Energoprojekt Holding reported a sharp deterioration in first-half 2026 results, with consolidated net profit falling almost 70% to RSD 432.7 million (€3.7 million) as operating performance weakened despite Serbia’s extensive infrastructure investment programme. The Serbian engineering group recorded 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, reaching RSD 174.4 million, down from RSD 615 million a year earlier. The results come during a major investment cycle in Serbia covering motorways, railways, energy facilities, transmission infrastructure, urban projects and developments associated with Expo 2027.
Domestic revenue declines sharply
Energoprojekt’s consolidated operating revenue dropped to approximately RSD 3.6 billion in the first half of 2026, compared with around RSD 5.3 billion in the same period of 2025. The largest decline occurred in the Serbian market. Domestic sales fell from more than RSD 4 billion to below RSD 1 billion. Foreign-market revenue was comparatively stable at around RSD 2.5 billion, increasing the relative contribution of international operations to the group’s operating base.
The domestic decline comes as Serbia continues projects involving the Belgrade metro, motorway and expressway corridors, railway reconstruction, electricity transmission, renewable generation and municipal infrastructure. Many large contracts are organised around international EPC contractors, bilateral financing structures or strategic partnerships. Serbian engineering companies often participate as designers, consultants, subcontractors or specialist contractors rather than holding the main EPC position.
Investment volumes and contractor earnings diverge
The results illustrate the difference between overall infrastructure investment and the revenue and margins captured by individual domestic contractors. The profitability of engineering companies depends on project type, contractual arrangements, cost escalation, delays, financing expenses and the allocation of risks between investors and contractors. International contractors can also bring established engineering, procurement and financing structures into major projects, increasing competition for domestic companies.
Consequently, the headline value of Serbia’s infrastructure programme does not necessarily translate into equivalent revenue or profit for local engineering groups. Energoprojekt’s move from an operating profit of approximately RSD 998 million to an operating loss of RSD 134.2 million indicates that the decline was concentrated in its core operations rather than resulting solely from weaker financial income.
International operations remain significant
Energoprojekt has historically developed a substantial international business through engineering and construction projects in Africa, the Middle East and other international markets. Those operations are providing a degree of diversification as Serbian revenue contracts. With foreign-market revenue at approximately RSD 2.5 billion, international activity represents a significantly larger proportion of the group’s operating base than it did when domestic sales exceeded RSD 4 billion.
International projects also expose the group to political risks, currency movements, delayed payments, guarantees and working-capital requirements. Maintaining overseas revenue therefore does not automatically translate into higher profitability. The company’s financial performance depends on the profitability and execution of individual projects as well as overall turnover.
Cash holdings decline
Energoprojekt’s cash and cash equivalents decreased to approximately RSD 3 billion, from more than RSD 5 billion previously. The lower cash balance comes alongside the deterioration in operating results. Engineering and construction businesses can require significant working capital because contractors may need to fund labour, equipment and subcontractors before receiving full payment from clients. Delays in projects or certification of completed work can therefore affect cash generation even where contracts remain economically viable over their full duration.
Ownership structure becomes more concentrated
The first-half results coincide with a significant change in Energoprojekt’s ownership structure. An investor group centred on Napred Razvoj has consolidated control of more than 90% of Energoprojekt, leaving a substantially smaller minority shareholder base. The combination of concentrated ownership and weaker operating performance places greater focus on the company’s future business structure. Energoprojekt retains activities spanning engineering, construction, energy, infrastructure and project development, while its international operations remain an important part of the group.
Domestic participation remains an infrastructure issue
Energoprojekt’s performance also comes amid wider efforts to increase domestic participation in Serbia’s infrastructure programme. The strategic-partner process for the Kraljevo-Novi Pazar-Raška road corridor, for example, includes a substantial domestic-content requirement covering Serbian labour, materials and subcontractors. Such provisions can increase the share of infrastructure spending reaching domestic businesses, but participation does not necessarily mean that local companies secure the highest-value portions of projects. Engineering design, project management, systems integration and main-contracting roles can have different economics from construction subcontracting and material supply.
Energoprojekt’s history as a Serbian engineering group capable of designing, managing and executing complex domestic and international projects places its current performance within that broader question of domestic participation in Serbia’s infrastructure investment cycle. In the first half of 2026, the group recorded lower revenue, a sharp contraction in Serbian sales and an operating loss, while major infrastructure activity continued across the country.
