AB Kauno tiltai, a Lithuanian company belonging to the Polish infrastructure group Trakcja, has signed a contract with Via Lietuva, Lithuania’s national road administrator, for the renovation of a section of the A1 motorway. The route is the main transport artery connecting Vilnius, Kaunas and Klaipeda.
The agreement covers the preparation of a renovation design and the execution of construction works on the right side of the A1 from kilometre 116.901 to kilometre 152.882, as well as on the left side between kilometre 146.165 and kilometre 147.90. The contract was signed with Via Lietuva, based in Vilnius.
A strategic route for Lithuania
The A1 motorway is the backbone of Lithuania’s road network, linking the capital Vilnius with the second-largest city Kaunas and the key Baltic port of Klaipeda. Renovation works on this section are expected to improve traffic flow and road safety for both passenger and freight transport. The Lithuanian road infrastructure market has seen significant investment in recent years, partly funded by European Union cohesion funds.
For Trakcja, this contract strengthens its presence in the Baltic region. The group has been active in Lithuania through its local subsidiary, which knows the local market and regulatory environment well. The project will be carried out in stages, with design work preceding the actual construction.
Improving financial performance
Trakcja Group reported revenues of 324.8 million PLN in the first quarter of 2026, compared to 301.9 million PLN in the same period of 2025. This is the highest quarterly revenue recorded in the last three years, according to the company. Despite the revenue growth, the group recorded an operating loss of 4.0 million PLN, though this was a significant improvement from the 13.9 million PLN loss a year earlier.
The net loss for the first quarter of 2026 stood at 7.0 million PLN, compared to 10.0 million PLN in Q1 2025. The company pointed to persistent cost pressures and demanding conditions in the infrastructure construction market as factors affecting profitability. The new Lithuanian contract may help improve results in the coming quarters, as it adds to the group’s order book.
Market challenges and outlook
The Polish and Baltic infrastructure construction markets are facing rising material and labour costs, which squeeze margins across the sector. Trakcja has been focusing on selective bidding and operational efficiency to mitigate these pressures. The group’s strategy includes expanding its geographic footprint to markets where competition and pricing are more favourable.
On the Warsaw Stock Exchange, Trakcja’s shares closed at 3.31 PLN on the day of the announcement, up 2.48%, reflecting positive investor sentiment regarding the new contract. The company’s order book now includes several projects in Poland and Lithuania, providing revenue visibility for the coming years.
The Lithuanian road renovation project is expected to commence in the near future, with completion scheduled according to the terms of the agreement. Further details regarding the contract value and timeline have not been disclosed.
Źródło: WNP.PL, Fot. Tomas Jakubauskas / Shutterstock
