Hungary’s state-owned MVM has strengthened its position in Serbia’s energy infrastructure sector by taking control of two established engineering companies, gaining a platform for participation in major grid, pipeline and power projects while leaving the country’s dominant energy suppliers largely untouched. MVM increased its ownership of Energotehnika–Južna Bačka and Elektromontaža Kraljevo from 33.4% to 60% in September. Serbia’s Maneks group retained the remaining 40%. Following the transaction, the companies were renamed MVM Južna Bačka and MVM Elektromontaža.
The acquisition gives MVM control of a major locally registered energy-construction platform by revenue. It does not, however, materially change the structure of Serbia’s electricity or gas supply markets, where state-controlled companies continue to hold dominant positions. MVM’s expanded ownership instead provides access to the contractors needed for projects involving transmission networks, substations, renewable-energy facilities, power-plant reconstruction, smart-meter deployment and cross-border energy infrastructure.
Contractor Revenues Reach €328 Million
The two companies generated combined revenue of RSD38.4 billion, equivalent to approximately €328 million, in 2025. Revenue increased 3.4% from the previous year, while combined net profit declined by almost one-third to RSD2.5 billion. Combined EBITDA amounted to RSD3.3 billion.
The individual results differed significantly. Generated RSD26.4 billion in revenue, a 2.2% decline, while net profit fell by more than half to RSD1.1 billion. Its net margin decreased from 9% to 4.2% as costs remained under pressure despite lower revenue. Increased revenue by 18.3% to RSD12 billion and raised net profit by 9.3% to RSD1.39 billion. The smaller contractor therefore generated higher profit than its larger sister company despite reporting less than half the revenue.
The contrasting results underline the importance of project composition, procurement conditions, equipment costs and revenue timing in infrastructure contracting. The 2025 financial statements also provide only a limited picture of MVM’s performance as controlling shareholder. The transaction was completed on September 30, leaving MVM with majority control for only the final quarter of the year, although it had held minority interests in both companies since 2022.
Revenue Growth Has Accelerated Since MVM’s Initial Investment
The companies have expanded considerably over the longer period since MVM first entered their ownership structures. Južna Bačka’s revenue has approximately doubled from its 2021 level, although its profit has returned to roughly its starting point. Elektromontaža increased revenue from RSD4.3 billion in 2022 to RSD12 billion, while its profit rose approximately tenfold. Public procurement has played an important role in that expansion. Forbes Serbia reported that Južna Bačka had obtained approximately 70 tenders, either independently or through consortiums, since MVM’s initial investment. That was roughly twice the number secured during the preceding period. The first major contract involving the company after the name change has particular strategic significance because it includes participation in the planned Serbia-Hungary oil pipeline.
Combined Revenue Highlights Contractor Scale
There is no authoritative measure establishing the exact market share of the two MVM-controlled companies in Serbia’s energy-infrastructure construction sector. Infrastructure contracts span several statistical categories, are often executed through consortiums and may include imported equipment, engineering services and subcontracted activities. As a result, company revenue cannot be directly equated with the value of domestic energy-construction work.
Nevertheless, the companies are substantial by Serbian industry standards. Their combined 2025 revenue of RSD38.4 billion was almost four times the RSD10.2 billion reported by Kodar Energomontaža and more than seven times the RSD5.1 billion recorded by the Serbian entity of Elnos. Serbia’s statistical office recorded RSD114.96 billion of work in 2025 in the broad category covering pipelines, communication lines and electricity lines.
The MVM-controlled companies’ combined revenue was therefore equivalent to approximately one-third of that figure. That does not constitute a one-third market share because the company figures can include equipment, foreign operations and activities outside the statistical category, while the statistical measure also covers water and telecommunications infrastructure. The comparison nevertheless illustrates the scale of MVM’s newly controlled engineering platform within Serbia’s wider construction industry.
Electricity Supply Remains Dominated by EPS
MVM’s expanded contractor presence does not translate into a comparable position in Serbia’s electricity-supply market.
Elektroprivreda Srbije (EPS) accounted for 98.89% of electricity sold to final customers on the open market in 2025 and 96.7% of total final consumption, including regulated supply. EPS also generated approximately 89% of Serbia’s electricity.
MVM Partner Serbia was not listed among the 11 active final-customer electricity suppliers identified by the Serbian energy regulator. The acquisition of Južna Bačka and Elektromontaža therefore does not provide MVM with a significant additional retail electricity position. Natural gas provides a more established MVM presence, although Serbia’s incumbent remains dominant.
Srbijagas supplied 76% of all gas sold to final customers in 2025 and 84% of the open market. MVM owns 51% of Serbhungas, with Srbijagas holding the remaining 49%. Serbhungas supplied 3.93% of the Serbian gas market, making it effectively the second-largest supplier and narrowly ahead of Novi Sad Gas by volume. Its market position nevertheless remains substantially smaller than that of its Serbian shareholder.
Serbhungas recorded RSD4.9 billion in revenue in 2025 but posted a loss of approximately RSD73 million. The gas company therefore represents a strategic presence for MVM, but its financial performance remained negative during the year. The electricity and gas market data are contained in the regulator’s 2025 annual report.
NIS Retains Dominant Position in Oil Products
The oil-products market remains concentrated around NIS, which operates Serbia’s only refinery and the country’s largest filling-station network. NIS estimated that it held 66% of Serbia’s total motor-fuel market and 43% of retail motor-fuel sales during the first half of 2026.
The structure leaves MVM with a substantially different position from that of Serbia’s principal energy incumbents. Its expanded Serbian presence is concentrated in infrastructure construction rather than direct control of electricity generation, gas distribution or oil refining.
Infrastructure Investment Creates a Different Entry Point
MVM’s acquisition gives the Hungarian group exposure to the companies that can compete for Serbia’s next phase of energy infrastructure investment. The country needs to modernise ageing generation facilities, strengthen transmission and distribution networks, deploy modern electricity meters, integrate additional renewable generation and expand energy connections with neighbouring countries. The two MVM-controlled contractors are positioned to participate in these projects.
The ownership structure also combines MVM’s financial backing with established Serbian corporate participation. Maneks retains 40% of both companies, while Serbian state-controlled utilities remain important customers for infrastructure projects.
That structure gives MVM access to local operating experience and established relationships while exposing the group to Serbia’s public-procurement cycle and the investment programmes of state-controlled energy companies. The companies’ 2025 results also demonstrate the financial risks associated with this business model. Južna Bačka experienced a significant decline in profitability despite maintaining revenue above RSD26 billion, showing that a large infrastructure order book does not necessarily produce stable margins. MVM’s Serbian expansion therefore does not directly challenge the country’s established energy suppliers. EPS remains dominant in electricity, Srbijagas in natural gas and NIS in fuel products, while MVM has increased its position in the infrastructure companies that can build and upgrade the assets operated by those established players.
