Strabag (WBAG:STR) Could Be 11% Undervalued After Raising 2026 Guidance
Why Strabag’s latest earnings and guidance updates matter for investors
Strabag (WBAG:STR) has become a focus for investors after reporting stronger half year 2026 figures and lifting both its EBIT margin guidance and production outlook for the full year.
The stronger half year 2026 update has come after a period of solid momentum for Strabag, with a 30 day share price return of 12.04% and a year to date share price return of 17.89%, helping lift the stock to €94.9.
For longer term holders, the picture is even stronger, with a 1 year total shareholder return of 29.70% and a very large 5 year total shareholder return that points to investors steadily reassessing the company’s earnings power and risk profile in light of results like these.
Compare Strabag’s upgraded guidance with other construction and infrastructure stocks that are also showing stronger earnings momentum by scanning our hand picked list of solid balance sheet and fundamentals (437 results) today.
The share price move and upgraded guidance have already reset expectations for Strabag. The next step is to assess whether the current valuation still leaves meaningful upside available, or if most of the easy gains are now behind the stock.
Most Popular Narrative: 10.7% Undervalued
At a last close of €94.9, Strabag trades below the most widely followed narrative fair value of €106.25, which frames today’s stronger guidance in a different light.
Strabag's strong order backlog, which exceeded €25 billion for the first time, provides visibility and stability for future revenue streams, suggesting a solid revenue outlook for the coming years. The company's acquisition of infrastructure and energy transition projects in Europe and the Americas indicates potential changes in revenue and could maintain or enhance profitability margins despite challenges in the residential construction market.
Want to see what sits behind that €106.25 fair value for Strabag? The narrative emphasizes revenue expansion, margin resilience, and a richer future earnings multiple. The exact mix matters.
Result: Fair Value of €106.25 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, investors still need to watch for any pullback in public infrastructure spending and further pressure from weak residential construction in Austria and Germany, which could challenge this Strabag narrative.
Find out about the key risks to this Strabag narrative.
Next Steps
With sentiment around Strabag tilting positive but not one sided, this is a good moment to move quickly, review the full picture, and weigh both the upside potential and the risks using the 2 key rewards and 3 important warning signs.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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