Situation.
Contractor with revenue of several billion EUR and operating margin of approximately 2%, in a construction market down double digits.
Overhead cost reduction.
European construction group
Challenge.
Overhead had grown approximately 30% through the upcycle across five business areas, with no comparable baseline. Support functions ranged from 1.8% to 3.4% of business area revenue on inconsistent definitions.
What we did.
Established a comparable overhead baseline, benchmark-based targets per function and an initiative portfolio with line ownership.
The outcome.
An overhead reduction target of approximately EUR 35m, or 20% of addressable overhead, was approved and carried into the budget cycle.
Anonymised engagement. Figures are approximate. Targets, assessed potential, approved programmes and realised results are described separately in the outcome. Converted amounts use ECB reference rates dated 18 September 2026, rounded to two significant figures.
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