CHM reports 2022 results and strategic pivots in a tightening market
After two decades of steady growth, the Alicante-based construction group CHM faced a year of red numbers despite a track record of resilient performance through earlier crises. The company reported an 8% drop in turnover, driven by the unavoidable rise in material and energy costs embedded in its contracts. Still, the year closed with a modest profit in revenue totaling 115.3 million euros, reflecting a difficult but partial recovery in a challenging environment.
These figures come from the latest accounts filed in the Trade Registry, showing how the Martinez Bernac family business navigated a year shaped by the fallout from the Ukrainian conflict, which pushed up raw materials and energy prices across the sector.
The management report accompanying the balance sheets notes substantial price escalations in key inputs: iron jumped 68%, aluminum 59%, cement 22%, and bituminous mixtures 81%. In aggregate terms, construction costs rose by more than 30%, testing the ability of a price-sensitive market to absorb the inflationary pressures without eroding margins.
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CHM expands into solar energy with a second company dedicated to solar farm development
Despite a series of state decrees allowing higher public funding for infrastructure, CHM found these measures insufficient to offset the price increases. The company identified gaps in coverage for certain line items such as energy, which itself rose by about 88% in the period, further constraining profitability and highlighting the need for diversified revenue streams.
At the staff level, the company employed a workforce of 570 across eight national and one international offices. By year-end, CHM remained focused on strengthening its order book and pursuing opportunities in new business lines, including engineering, procurement, and construction of photovoltaic plants, as a pillar of its diversification strategy.
Although the annual accounts show a net loss of 948,535 euros, equivalent to 0.8% of billed revenue, the management pointed to signs of a rebound. Projections for the coming year anticipate a return to profitability driven by a 33% expansion in the contracted business portfolio, with prices aligned to real costs and improved billing cycles.
By the end of 2022, CHM had already secured projects valued at 310.9 million euros for the coming years, with 138.8 million expected to be executed during the current year. The balance sheet underscores the quality of the firm’s public sector clients—including ministries, Adif, autonomous communities, and municipalities—alongside private clients, reinforcing confidence in new ventures such as photovoltaic project delivery, procurement, and construction.
Valued as a strong component of the Martinez Bernac holdings, the Vallaba Group reported positive results for the year, offsetting CHM’s losses through the robust performance of other group members. The consolidated net profit surpassed one million euros on a total turnover of 121.6 million, illustrating the resilience of the family’s diversified portfolio in a market still adjusting to higher costs and delayed project cycles.
In another strategic shift, CHM announced a move toward ecological road surfaces, transforming its facilities to produce sustainable pavements. The group’s capital program included the development of a 20-megawatt agrovoltaic park in Menorca, with an investment around 17.75 million euros, slated for completion in early 2023. The Sakura Tower development in Benidorm and the ongoing Residence Tridente project in Alicante were among notable promotions advancing toward delivery in 2023. The group also highlighted its ongoing expansion in the solar sector as a core growth engine, signaling a pivot from traditional construction toward energy-efficient infrastructure. The company’s footprint extended across eight national sites and one international delegation, reflecting a growing geographic reach and capability in large-scale energy and infrastructure projects.