 | |
| Company type | PublicSubsidiary |
|---|---|
| FWB: HOT MDAX Component | |
| ISIN | DE0006070006  |
| Industry | Construction |
| Founded | 1873; 152 years ago (1873)[1] |
| Headquarters | Essen, Germany |
| Products | Construction services,project management |
| Revenue |  €27.756 billion(2023)[2] |
| €523 million(2023)[2] | |
 €314 million(2023)[2] | |
| Total assets | €19 billion(2023)[2] |
| Total equity | €1.266 billion(end 2023)[2] |
Number of employees | 41,575(end 2023)[2] |
| Parent | ACS Group (75.71%)[3] |
| Website | hochtief.com |
HochtiefAG is a global provider ofinfrastructure technology and construction services, with locations inNorth America,Australia, andEurope. TheEssen based company is primarily active in the fields ofhigh tech,energy transition, and sustainable infrastructure. With the international projects making up 95% of the company's revenue, Hochtief was among the largest international construction firms in 2023.[4][5]
In Australia, the group is active through its subsidiaryCimic (100% since 2022).[6] Via its wholly owned subsidiaryTurner Hochtief is a leader in commercial construction in theUnited States.[7] Since June 2018, Hochtief has held a 20% stake inAbertis. Abertis directly owns 99.1% of the toll road operator Abertis Infraestructuras.[6]
Since ACS Group first acquired shares in Hochtief in 2005, it has increased its shareholding to 75.71% in 2023.[8]
In 1873, brothers Philipp Helfmann (abricklayer) and Balthasar Helfmann (alocksmith), originally fromKelsterbach, founded the companyGebrüder Helfmann inFrankfurt am Main. While Balthasar was responsible for the completion of construction contracts, Philipp developed the financing side of the business.[9] Their first major contract was for theUniversity of Giessen in 1878.[10] By the 1880s, the company had begun to produce its own construction materials but was still only a regional player. Shortly after the death of Balthasar, Philipp Helfmann transformed the company into a joint-stock corporation for building construction and civil engineering namedAktiengesellschaft für Hoch- und Tiefbauten (Construction and Civil Engineering Corporation) in 1896, just before the German Stock Exchange Act came into force.[11]
A major development was the contract for thespa inBad Orb in 1899, where the order included not just construction of the buildings, but also provision of infrastructure likeroads andgardens, arrangement of finances for the project, and maintenance of some responsibilities for operation after the construction. Also in 1899, anotherturnkey project, a newgrainsilo inGenoa, Italy, was both the firm's first international venture and its first project usingreinforced concrete. Philipp Helfmann died in the same year, with his son-in-law,Hans Weidmann, taking over asChief Executive.[9]
The firm grew rapidly, but was not comparable with the major German construction companies of the era. In 1921, it attracted investment from theindustrialistHugo Stinnes (described byTime as the "New Emperor of Germany" for his wealth and influence) and in 1922, the firm moved its base to Essen as part of its integration into the Stinnes group.[12] Stinnes planned to use Hochtief for all his construction projects, while Hochtief saw an opportunity to profit from theTreaty of Versailles, organising the delivery of construction materials to France as part of Germanreparations forWorld War I. Stinnes died in 1924,[13] and within a year his industrial empire collapsed. With the help of severalbanks, the company (now known asHochtief Aktiengesellschaft für Hoch- und Tiefbauten vorm. Gebrüder Helfmann) avoidedinsolvency. In the aftermath of the Stinnes collapse, the majorutilityRWE and electrical equipment producerAEG became major shareholders in Hochtief, and Hans Weidmann stepped down in 1927.[9][14]
A series of major construction projects ensued, including theEchelsbach Bridge (then Germany's largest single span reinforced concrete bridge),[15] theSchluchsee dam and work on theZollverein colliery.[16]
From 1933 onwards, the structures of theThird Reich influenced Hochtief's business activities.[17]Jewish members of the supervisory board were expelled under theNuremberg Laws in 1935. In 1937, CEO Eugen Vögler joined theNazi Party (NSDAP) and served as leader of the Construction Industry Group as well as an honorary squad leader of theHitler Youth.[18] The construction business flourished under thefour year plan, with its vastpublic works programme, including theAutobahn network, and the industrial build-up in preparation for war, for example the construction of a newtruck factory forOpel inBrandenberg. Hochtief also worked on a new centre for Nazi rallies inNuremberg. In 1936, it moved its Essen headquarters from thePferdemarkt to its current location onRellinghauser Straße. As war became imminent, the company began work on theWestwall defensive network.[19] DuringWorld War II, it worked on theAtlantic Wall defences, and a range of infrastructure projects across German-dominated Europe. Hochtief also constructed buildings for Hitler himself, notably hisBavarian Alpine retreat, theBerghof, hisWolf's Lairheadquarters inRastenburg, and theFührerbunker inBerlin, where Hitler ultimately committed suicide.[9][20]
After 1939, the firm began to useforced labour extensively on its projects, as did many other German industrial companies at the time. Hochtief's slave workers suffered from malnutrition, beating and constant abuse.[21][22]
After the collapse in 1945, Hochtief lost both its international business and its branches in East Germany.[23] Under the leadership of the new CEO, Artur Konrad, operations continued.[24]
One of the first major contracts was for auniversity hospital inBonn, between 1946 and 1949. The introduction of theDeutsche Mark in 1948 and the beginning of theWirtschaftswunder brought more new work.[25]
Josef Müller took over as CEO in 1950. A decision was made to undertake more international projects, following a period of essentially domestic work after World War II. This included a series of power infrastructure works inTurkey and bridge andsmelting works construction inEgypt during the early 1950s. Many projects from this period were undertaken outside of theFirst World, often funded fromdevelopment aid budgets.[26]
The company gained international recognition for the relocation of theAbu Simbel rock temple (from November 1963 to September 1968, planned by Walter Jurecka, former head of the international division) and the MandulisTemple of Kalabsha (1961 to 1963). TheseUNESCOWorld Heritage sites had to be relocated due to the construction of theAswan High Dam.[27][28]
From 1967 onwards, the company's focus shifted away from purely construction services towards turnkey construction and related services, exemplified by theHilton Hotel in Athens.[29]
By the mid-1970s, the international business accounted for only a small portion of the company's activities. Most work was domestic, driven by Germany's strong economic growth, with a particular strength inpower plant construction. This included the construction of theFederal Republic of Germany's first nuclear power plant,Kahl Nuclear Power Plant, nearDettingen am Main.[30][31] The construction contract had been awarded byAEG, which had been commissioned by the utility companyRWE to build the plant. The plant began to feed its electricity to the grid in June 1961.[32][33] By contrast, the firstEast German nuclear plant, atRheinsberg, was connected to the grid in 1966.[34] During the 1960s and 1970s, the company also executed significant transport infrastructure projects. Notable examples include the Raúl Uranga Subfluvial Tunnel inArgentina, theElbe Tunnel in Hamburg, and theBosphorus Bridge in Istanbul.[35]
After the 1973 oil crisis, the company benefited from the unexpected wealth of oil-exporting countries. By 1980, foreign work accounted for more than 50% of Hochtief's business. A major factor was the contract for the turnkey construction ofKing Abdulaziz International Airport (completed in 1981), the largest airport in Saudi Arabia, located inJeddah, and the most valuable contract Hochtief had ever been involved with.[36] The aesthetics of the architecture of the airport is highly rated, and it has several unusual features, including Terminal Three, used only during theHajj, reserved forpilgrims travelling toMecca. It has a tent-shapedfibreglassroof, contains amosque, can accommodate 80,000 travellers at once, and is believed to be the largest terminal in the world.[37]
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After German reunification, the company benefited from the construction boom, although by 1993, slowing economic growth led to increased competitive pressure. Under the leadership of Hans-Peter Keitel initially,[38] and from 2007 Herbert Lütkestratkötter, the company underwent a restructuring.[39] While construction remained the core business, Hochtief also began offering additional services as a construction provider, including the planning, financing, and operation of buildings. Acquisitions were made to support these new business areas.[40] To further this, Hochtief founded new companies and acquired Australia'sLeighton Holdings and the US-basedTurner Construction.[41]
In 2004, Hochtief transitioned from a subsidiary to a publicly traded company: the sale of the majority shareholder RWE's shares gave Hochtief a new international shareholder structure.[42] By 2005, around 80% of the company was in free float.[43] Through the acquisition of service companiesSiemens Gebäudemanagement[44] andLufthansa Gebäudemanagement,[45] Hochtief Facility Management, a subsidiary, expanded from 800 to approximately 4,500 employees in 2004. In 2007, Hochtief acquired Flatiron, a provider of infrastructure projects in the United States.[46] Hochtief is also represented in the Gulf region through the Habtoor Leighton Group, a Leighton subsidiary.[47]
In 2005,August von Finck, through his Custodia Holding, acquired a stake in the company, which was increased to 25.08% in 2006.[48][49] In March 2007, the Spanish construction groupActividades de Construcción y Servicios (ACS) purchased Custodia's shares for €72 per share, with the transaction amounting to over €1.26 billion.[50] Subsequently, ACS acquired more shares, holding 29.9% by September 2010.[51] On 16 September 2010, ACS announced a public takeover bid for the remaining shares, offering an exchange of eight ACS shares for five Hochtief shares. On 29 November, BaFin approved ACS's takeover of Hochtief. In December, Qatar Holding from the Emirate of Qatar subscribed to a reserved capital increase, acquiring nearly 9.1% of the shares. After improving the offer to nine ACS shares for five Hochtief shares, ACS announced in January 2011 that it held over 30% of Hochtief's shares following the conclusion of the takeover bid.[52][53] By June 2011, ACS held slightly over 50% of Hochtief's shares,[54] as shares held by Hochtief itself were voting shares attributed to ACS.
In May 2013, Hochtief sold its airports division to Canada'sPublic Sector Pension Investment Board for €1.1 billion.[55] At the same time, Hochtief began restructuring its loss-making European activities in 2013: The Group spun off the construction business, which had previously been bundled into one unit, into four largely autonomous companies and cut up to 1,000 jobs, primarily in Germany.[56]
In February 2014, the 50% stake in the real estate company Aurelis Real Estate, a former subsidiary ofDeutsche Bahn, was sold to an investor consortium led by the private equity firm Grove.[57] Further sales of smaller business units followed. In May 2015, Hochtief's offshore business was sold to GeoSea, a subsidiary of the DEME Group.[58] However, Hochtief strengthened its activities in the Asia-Pacific region, increasing its stake in the listed Australian subsidiary Leighton Holdings Limited from approximately 58% to 69.62% in 2014.[59]
As part of the reorganisation, the company was renamed from Leighton Holdings toCimic Group in April 2015.[60]
In 2022, Juan Santamaría Cases assumed his position as CEO of the company, succeeding Marcelino Fernández Verdes.[61] In 2023, Hochtief, together with EWE, was awarded funding under the German government's Deutschlandnetz initiative to establish and operate charging points for electric vehicles.[62]
Hochtief is anAktiengesellschaft. Itsshares are traded on all Germanstock exchanges, including theFrankfurt Stock Exchange andBörse München, using theXetra system. In the 2023 financial year, Hochtief generated revenue of €27.8 billion, with the majority of earnings coming from Hochtief Americas. During the same financial year, 41,575 employees worked for the group.
Shareholders as of September 2024:
The Hochtief Group operates three divisions with subsidiaries and additionally holds a 20% stake in Abertis HoldCo, S.A.:
| Hochtief | |||
|---|---|---|---|
| Turner Construction | Cimic Group | Engineering and Construction | Abertis |
Turner is an American construction management company.[63] It is primarily involved in the delivery of healthcare and education facilities, airports, sports venues, and office buildings.[64] Additionally, Turner is increasingly active in the construction of technical facilities, such as factories for electric vehicles and battery recycling, as well as data centres, including those for the internet companyMeta.[65][66][67]
Cimic operates in the Asia-Pacific region, providing construction services for sectors such as education, healthcare, power and energy, transportation, tunnelling, and water.[68][69] Cimic is also active in natural resources, holding stakes in service providers Thiess and Sedgman.[70]
Engineering and Construction encompasses Hochtief's construction activities and PPP business in Europe, along with the civil engineering company Flatiron in North America. In Europe, Hochtief operates in Germany, Poland, the Czech Republic, Austria, the UK, Scandinavia, and the Netherlands.[71]
Hochtief holds a stake in Abertis, a toll road operator with approximately 8,000 kilometres of toll roads in Europe and South America. Abertis operates mainly in France, Spain, Brazil, Chile, the United States, Mexico, and Puerto Rico.[72]
Subsidiaries include Flatiron, CPB Contractors, Leighton Asia (active in Hong Kong and other Southeast Asian countries),[73] and Hochtief Infrastructure.[74]
The company is mainly active in construction and civil engineering (buildings, bridges, tunnels, etc.). In addition to executing construction projects, Hochtief is also involved in planning and, in some cases, acts as a co-investor. Furthermore, Hochtief is active in the construction and operation of environmental technology facilities, as well as the expansion of digital infrastructure.[66][75][67]
The corporate group also provides services such as organising and consulting on real estate and infrastructure facilities.[5][6]
Hochtief develops and constructs neighbourhoods and districts that include residential properties, as well as public and commercial facilities.[5][76]
Hochtief delivers construction and infrastructure services for energy systems, from generation to utilization, and supports digital infrastructure projects like data centers and telecom networks.[63][66][75]
Hochtief is active in the energy infrastructure sector through subsidiaries such as Flatiron in the US and Canada, CPB Contractors in Australia, Leighton Asia in Hong Kong and Southeast Asia, as well as Hochtief Infrastructure in Germany.[6]
In the field of transport infrastructure, the company constructsbridges,railways, stations,airports, and ports, as well as roads, tunnels, and motorways both domestically and internationally, often within the framework of concession models such as public-private partnerships.[6]
Hochtief holds a 20% stake in the internationally operating toll road operatorAbertis, which owns approximately 8,000 kilometres of toll roads across several countries.[72]
Hochtief is involved in the mining business through Cimic and holds a stake in Thiess, a contract miner. In October 2020, Cimic sold 50% of its stake in its mining subsidiary Thiess to the Elliott Fund Management;[77] in April 2024, Cimic increased its shareholding back to 60%.[78]
Projects Hochtief has been involved in include theElbphilharmonie in Hamburg, theGotthard Base Tunnel in Switzerland and the project planning of theBurj Khalifa in Dubai. Hochtief has also worked on various airports, such as those in Frankfurt, Athens, and Warsaw, as well as several expansions of the German motorways. International bridge construction projects include theØresund Bridge and theBosphorus Bridge.[79][80]
The company is also working on theChacao Channel bridge due to be completed in 2025.[104]
In 2022, Hochtief published its Sustainability Plan 2025, aiming for the company's operations to become climate-neutral by 2045.[105] Additionally, the company is listed in theDow Jones Sustainability Index byS&P Global.[106]
| International | |
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| National | |
