Energoprojekt Holding recorded a sharp decline in first-half earnings in 2026, with its operating business moving into loss despite Serbia’s continued expansion of infrastructure investment. Consolidated net profit fell nearly 70% to RSD 432.7 million (€3.7 million) from around RSD 1.4 billion a year earlier. Operating performance weakened more significantly, with the group reporting an operating loss of RSD 134.2 million, compared with an operating profit of approximately RSD 998 million in the first half of 2025. Financial profit also declined, falling to RSD 174.4 million from RSD 615 million.
Domestic revenue declines
Consolidated operating revenue dropped to around RSD 3.6 billion from approximately RSD 5.3 billion in the same period of 2025. The largest decline was recorded in Serbia, where domestic sales fell from more than RSD 4 billion to below RSD 1 billion. Foreign-market revenue was considerably more resilient at around RSD 2.5 billion, increasing the relative importance of overseas operations within the group’s business. The performance comes as Serbia advances major investments in motorways, railways, energy facilities, transmission networks, urban infrastructure and projects linked to Expo 2027.
Large projects do not translate directly into revenue
The scale of Serbia’s infrastructure programme does not necessarily correspond to higher earnings for domestic engineering companies. Major projects involving the Belgrade metro, motorway and expressway networks, railway reconstruction, power transmission, renewable generation and municipal infrastructure are often structured around international EPC contractors, bilateral financing arrangements or strategic partnerships. Serbian engineering companies can participate as designers, consultants, subcontractors and specialist contractors without holding the main EPC contract.
This limits the share of headline infrastructure investment that is ultimately recorded as revenue by domestic engineering groups. Profitability is also influenced by contract structures, cost increases, project delays, financing expenses and how risks are allocated between clients and contractors.
International operations remain important
Foreign markets continue to represent a significant part of Energoprojekt’s activities. The group has historically undertaken engineering and construction projects across Africa, the Middle East and other international markets, providing diversification as domestic revenue weakened. With overseas revenue at approximately RSD 2.5 billion, international operations now represent a substantially larger share of the group’s operating base. International projects, however, can also involve political and currency exposure, delayed payments, guarantees and higher working-capital requirements.
Cash holdings decline
Energoprojekt’s cash and cash equivalents fell to around RSD 3 billion, from more than RSD 5 billion previously. The decline comes alongside weaker operating results and is relevant to the working-capital requirements of engineering and construction businesses. Contractors can incur costs for labour, equipment and subcontractors before receiving full payment from clients, while project delays or slower certification can affect cash generation.
Ownership structure changes
The financial deterioration coincides with a significant change in Energoprojekt’s ownership structure. An investor group centred on Napred Razvoj has consolidated more than 90% of Energoprojekt, leaving a substantially smaller minority shareholder base. The ownership structure places greater attention on the group’s future business strategy, including its position in Serbia’s infrastructure market, international project portfolio and the potential restructuring of subsidiaries and activities. Energoprojekt continues to operate across engineering, construction, energy, infrastructure and project development.
Domestic participation in infrastructure projects
The company’s results also highlight the broader issue of how much value Serbian companies capture from the country’s infrastructure investment cycle. Serbia increasingly requires or encourages domestic participation in major projects. The strategic-partner process for the Kraljevo-Novi Pazar-Raška road corridor, for example, includes requirements covering Serbian labour, materials and subcontractors.
Domestic-content requirements can increase local participation, but they do not necessarily place Serbian companies in the higher-value segments of major contracts. Engineering design, project management, systems integration and main contracting can generate different economics from construction subcontracting and material supply. Energoprojekt’s first-half results show the challenge of maintaining a high-value engineering position while infrastructure investment remains strong. Revenue declined, domestic sales contracted sharply and the operating business moved into loss during the first half of 2026.
