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As we reflect on the pivotal social and economic forces that have shaped the business landscape in 2024, both domestically and internationally, it’s clear that optimism about the future remains strong, even amid challenges. The successes and milestones achieved by local companies this past year - alongside Croatia’s upgraded credit rating - once again demonstrate our resilience in navigating external crises and geopolitical complexities. These accomplishments also underscore our readiness to harness our expertise, skills, and vision to compete assertively on European and global stages, confidently positioning ourselves alongside much larger players. At KONČAR, we are a clear reflection of this resilience. This year, we have fortified our position as a regional leader in energy, urban mobility, renewable energy sources, and digital solutions. Our initiatives continue to place us among Europe’s most influential tech manufacturers, advancing essential objectives of the green transition.
The results at the end of Q3 this year speak volumes about our success. We reported a net profit of EUR 116.6 million, representing a remarkable 141.4% year-on-year increase compared to the corresponding period last year. Sales revenue from products and services also posted substantial growth, reaching EUR 734.6 million in the first nine months, with exports accounting for almost 73% of this total. Our most impressive growth came from the competitive EU market, where exports totalled EUR 398.2 million by the end of September, reflecting a solid 35.3% year-on-year increase over the same period in 2023. Our optimism for 2025 and beyond is underpinned by a strong order intake and substantial backlog. As of the end of Q3, KONČAR had secured EUR 1.28 billion in new contracts, with nearly EUR 1 billion (76.5%) from export markets. Our backlog now stands at approximately EUR 2 billion, ensuring a solid trajectory for sustainable growth.
Alongside our strong financial results, the strategic initiatives completed in the first three quarters of 2024 reinforce our long-term vision for growth. These advancements are a direct result of the comprehensive transformation journey that KONČAR Group began four years ago. One key milestone is the joint venture we launched with Siemens Energy AG in July, through which we are establishing a new company and constructing a manufacturing facility for transformer tanks. With a 60% ownership stake, KONČAR’s role in this partnership is crucial in meeting rising global demand for transformers.
Within the urban mobility and infrastructure segment, we reached an agreement with HŽ Passenger Transport Ltd. for the sale of six electro-diesel long-distance trains, valued at EUR 57.3 million, and with Zagrebački električni tramvaj Ltd. for 20 tram vehicles, totalling nearly EUR 40 million. A notable contract in the power transmission and distribution segment includes the EUR 13.7 million reconstruction of high-voltage substations for EAC Cyprus. Additionally, Dalekovod has secured preferred bidder status for the construction of a 420 kV transmission line in Norway, valued above EUR 63 million.
We see the green energy transition building substantial momentum in the years to come. KONČAR is ready to embrace this shift, committed to leading the industry with forward-thinking technological solutions. Our newly adopted strategy, People, Technology, Investments – KONČAR 2030, reinforces this mission by driving forward the transformation of KONČAR Group. Through this strategy, we are expanding our global reach with a state-of-the-art, digitalized product portfolio for the energy, transportation, and industrial sectors.
Alongside our commitment to technological advancement and sustained investment, this strategy prioritizes people by focusing on attracting and retaining top talents and building market competencies through internal development. With a substantial order intake secured for the upcoming year and a strategic commitment to cultivating a culture of excellence, we anticipate growth across all areas of our business. This strengthens our leadership in technology and solidifies our reputation as one of the most desirable employers in the domestic market.
