AB Kauno tiltai, a Lithuanian subsidiary of the Polish infrastructure group Trakcja, has signed a contract with Lithuania’s state road manager Via Lietuva for the renovation of a section of the A1 motorway connecting Vilnius, Kaunas and Klaipeda. The deal covers project preparation and construction works on the right side of the road from km 116.901 to km 152.882 and on the left side from km 146.165 to km 147.90.
The contract, announced on Friday, is one of the largest foreign orders for the Trakcja group in recent months. The A1 is the main artery of Lithuania, and the renovation aims to improve traffic flow and safety on one of the country’s busiest routes. According to the company, the works are expected to start later this year and will be carried out in stages to minimise disruption.
In the first quarter of 2026, Trakcja reported consolidated revenues of PLN 324.8 million, up from PLN 301.9 million in the same period of 2025. The group called this the highest quarterly revenue in the last three years. However, it still recorded an operating loss of PLN 4.0 million, compared to a loss of PLN 13.9 million a year earlier. The net loss narrowed to PLN 7.0 million from PLN 10.0 million.
Cost pressure and challenging market conditions
– The road construction market in Poland and the Baltics is under strong cost pressure, with rising prices of materials and labour – the company said in a commentary to the financial results. – This contract, although important, is being executed in a demanding environment. We continue to focus on improving margins and securing profitable orders.
Trakcja’s management has repeatedly stressed that the group is shifting its strategy towards higher-margin projects, especially in the Baltic states, where competition from local players is intense but public investment in infrastructure remains robust. The Lithuanian road agency Via Lietuva has a multi-year programme of upgrades to the country’s main highways, partly financed by EU funds.
Expansion in the Baltic states
The contract strengthens Trakcja’s position in Lithuania, where AB Kauno tiltai has been active for years. The subsidiary specialises in road and bridge construction and has already completed several projects for Via Lietuva. The group is also present in Latvia and Estonia, and aims to increase its share of foreign revenues to offset the slowdown in Poland’s public procurement market.
Analysts note that while the contract value has not been disclosed, it is likely to exceed EUR 30 million given the length of the section and the scope of works. For Trakcja, which is still recovering from years of losses, every large order that contributes to capacity utilisation and cash flow is critical.
Źródło: WNP.PL, Fot. Tomas Jakubauskas / Shutterstock
