The contractor said its UK workload is set to accelerate after revenue across Strabag’s UK operations slipped from £700m to £600m in 2025 after work was deferred on HS2 and Anglo American’s Woodsmith mine project.

Strabag UK managing director Andrew Dixon said momentum was now building for 2027 and beyond, with major infrastructure, energy and tunnelling opportunities driving confidence.

The business is targeting UK revenue of £1bn by 2028 as secured and preferred bidder jobs ramp up, backed by a £4bn-plus order book.

Dixon said: “Demand in the UK construction industry through 2025 did not provide the level of growth that we had anticipated at the start of the year.

“Tenders and awards from preferred bidder status experienced deferment due to client uncertainty caused by higher interest rates and economic volatility.”

But he said sentiment for 2026 and beyond was improving as ageing infrastructure, the energy transition, new technology and the government’s growth agenda start to unlock demand.

Strabag is now preparing for a step-change in activity, led by the £3bn Haweswater Aqueduct Resilience Programme for United Utilities.

The HARP scheme will replace six ageing tunnel sections along the 100km pipeline carrying water from Cumbria to Lancashire and Greater Manchester, with first main construction due to get underway at the end of this year.

HS2 work has also shifted up a gear following the launch of two tunnel boring machines for the final London tunnel drive to Euston by Strabag’s joint venture with Skanska and Costain.

Strabag’s contract to bore a 37km conveyor tunnel at the £4.2bn Woodsmith potash mine project in Yorkshire is also expected to return to full construction in 2027 after a two-year slowdown.

That follows last month’s deal for Mitsubishi Corporation to invest in the Anglo American project.

Dixon said Strabag had continued to invest in tendering, recruitment and training to build capacity for the next wave of UK work.

The contractor is also hunting acquisitions to broaden its capability and push deeper into target sectors like energy.

Since the start of the year Strabag has bought Stafford-based high-voltage installation specialist Gunning Transmission & Distribution Services and structural steelwork contractor Crofton Engineering.

Strabag is also expected to formally ratify its £59m deal to buy £150m-turnover ground engineering contractor Van Elle next month, strengthening its specialist subcontractor capability in infrastructure.

The firm said the UK business now acts as the leadership and administrative centre for all Strabag activity in Britain.

All future UK work will now be targeted principally through the company as the wider group backs expansion in the market.