This continued momentum underscores our steadfast commitment to business transformation – anchored in strategic investments in research and development, expansion of production capacities, and state-of-the-art equipment. These initiatives have further entrenched KONČAR’s position as a leading technology innovator and the regional benchmark in power engineering, urban mobility, renewable energy, and digitalisation. Our technological expertise, uncompromising quality, and proven reliability are increasingly recognised on the global stage and the share of contracts on export markets is almost 75%. The transformers, our flagship product and still the strongest export driver within our portfolio, remain at the heart of our achievements during this period.

KONČAR’s outstanding performance in 2024 did not go unnoticed by the investment community. By year-end, the Company’s market capitalisation had surpassed EUR 1.1 billion, positioning KONČAR among a select group of companies listed on the Zagreb Stock Exchange with a market valuation exceeding the one-billion-euro mark. The strength of KONČAR’s performance across all key dimensions was further recognised through the prestigious Golden Share of the Year award, conferred by the Zagreb Stock Exchange.

Despite positive trends in key markets, the global economy continues to face significant geopolitical headwinds. The war in Ukraine persists, and the escalation of conflict in the Middle East – particularly the risk of spillover beyond Gaza and Israel – poses upward pressure on oil prices and prolongs global uncertainty. Against this backdrop, the KONČAR Group achieved exceptional operational results, outperforming the ambitious targets set at the beginning of the year. The backlog at the end of 2024 stood at EUR 2.035,6 million. Notably, the contracted volume scheduled for execution in 2025 has nearly reached full capacity, while the pipeline for 2026 and subsequent years continues to build, with order intake totalling EUR 925.8 million to date.

Consolidated revenue from the sale of products and services amounted to EUR 1,054.4 million – an increase of EUR 160.3 million, or nearly 18%, compared to 2023. Export activities continued to dominate the revenue structure, accounting for more than 70% of total sales. Year-on-year growth in export sales was recorded across nearly all international markets, with the most significant increase once again achieved in the European Union. Exports to EU member states rose by EUR 133 million, reaching nearly EUR 552 million, and now represent more than 74% of total export revenue. This robust sales performance underpinned a further rise in profitability. Reported net profit reached EUR 164.4 million – an increase of nearly EUR 94 million year-on-year. EBITDA doubled relative to 2023, amounting to EUR 184.7 million. The EBITDA margin improved markedly to 17.5%, up from slightly more than 10% in the same period last year.

As we enter the new business year, we remain firmly committed to ongoing transformation journey, with the goal of further strengthening our position in the global marketplace. Our investment programme continues to be purposefully directed toward the digitalisation of our portfolio, the development of next-generation solutions across the energy, transport, and industrial domains, and the expansion of production capabilities to drive scalable, sustainable growth. We will continue to actively evaluate acquisition opportunities – both in Croatia and across the European Union – as strategic levers to complement our organic momentum. At the same time, we recognise that our long-term success is inherently tied to the strength of our people. That is why the attraction, development, and retention of top talent, and the empowerment of our key personnel, remain central pillars of our corporate strategy for the years ahead.

This year we have included the Sustainability Report in the annual report, which has been prepared in accordance with the requirements of the Accounting Act and the European Sustainability Reporting Standards (ESRS), as mandated under the EU Corporate Sustainability Reporting Directive (CSRD): Consolidated annual report for 2024