IN Brief:
- STRABAG UK is preparing for a step-up in major civil engineering and tunnelling activity from 2027.
- The contractor is targeting £1bn UK revenue by 2028, backed by a UK order book of more than £4bn.
- HS2, the Haweswater Aqueduct Resilience Programme, and the Woodsmith mine tunnel are expected to anchor the next phase of delivery.
STRABAG UK is preparing for a sharp increase in civil engineering workload as major tunnelling programmes move further into construction.
The contractor’s UK revenue fell from £700m to £600m in 2025 after activity was deferred on HS2 and Anglo American’s Woodsmith mine project. The business is now positioning for a stronger period, with secured and preferred-bidder work expected to support a target of £1bn UK revenue by 2028.
The near-term pipeline is led by the £3bn Haweswater Aqueduct Resilience Programme for United Utilities. The scheme will replace six ageing tunnel sections along the pipeline that carries water from Cumbria to Lancashire and Greater Manchester, with main construction expected to begin towards the end of this year.
HS2 remains another major source of tunnelling activity. STRABAG is part of the joint venture with Skanska and Costain delivering London tunnel works, where final drives towards Euston are due to advance. Although the wider programme remains under political and commercial scrutiny, tunnelling, logistics, shaft works, and urban access continue to represent one of the UK’s largest civil engineering workloads.
The third major driver is the Woodsmith potash mine project in Yorkshire. STRABAG’s contract to bore the 37km mineral transport system tunnel is expected to return to full construction in 2027 after a slowdown. The tunnel will move polyhalite underground from the mine area towards processing and export infrastructure, reducing surface transport through a sensitive landscape.
During the slower period, STRABAG has continued to invest in tendering, recruitment, and training. It has also broadened its specialist base, acquiring high-voltage installation specialist Gunning Transmission & Distribution Services and structural steelwork contractor Crofton Engineering. A £59m deal to acquire ground engineering specialist Van Elle is expected to strengthen its infrastructure platform further.
The acquisition activity points to the shape of the current UK civils market. Long-duration infrastructure programmes are placing greater pressure on contractors to control specialist capability, supply-chain interfaces, and critical-path packages. Ground engineering, high-voltage installation, steelwork, temporary works, and tunnelling support are no longer peripheral services when they determine whether large schemes can hold programme.
Regulated infrastructure is also carrying more of the construction workload as private commercial building remains uneven. Water resilience, energy networks, transport renewal, and defence-related infrastructure are creating longer pipelines for contractors with heavy civils capability. Balfour Beatty has already set out its expectation for growth across grid, defence, and major infrastructure markets, while HS2’s Washwood Heath depot contract has moved another operationally critical rail asset into delivery.
Tunnelling programmes carry a commercial risk profile that differs sharply from standard building work. Ground conditions, TBM performance, segment supply, spoil logistics, water ingress, ventilation, shaft construction, and environmental controls all influence productivity. Rural and environmentally sensitive schemes such as HARP and Woodsmith also bring access constraints, community interfaces, and landscape considerations into the core delivery plan.
STRABAG’s strategy suggests a move towards greater control over those delivery variables. By building a broader base of specialist capability, the contractor can reduce exposure to stretched subcontract markets and strengthen its position on packages where delay or rework can quickly affect the wider programme.
The secured order book gives the business scale, but the next phase will test how effectively it can mobilise multiple complex schemes at once. A tunnelling-led workload surge brings high-value opportunity, but it also demands disciplined programme management, strong technical assurance, and enough specialist labour to keep several long-cycle projects moving.
