6.3 Revenue

The disaggregation of revenue into categories that reflect the nature, the amount, the timing and the uncertainty of revenues and cash flows are affected by economic factors, is in line with the recognition of revenue per segment.

Revenue per segment

Living

The revenue from the Living segment includes revenue from residential building and property development projects developed by the Group, which generally involve the delivery of both the land and the buildings. Projects executed for private buyers amounted to € 591 million (2023: €383 million) and projects developed for real estate investors and housing corporations amounted to € 403 million (2023: €437 million).

The projects for private buyers are generally only started once at least 70% of the homes have been sold. Developments are invoiced on the basis of predefined milestones according to the Woningborg (Homeownership Guarantee Fund) or SWK (Homeownership Guarantee Fund Foundation) schedule. In practice, the Group works with both combined and separate (land) purchase/construction contracts. Depending on the contract form, the delivery of the land is invoiced separately or included in the first instalment.

Construction work on projects for property investors and housing associations does not start before the sale has been completed. The invoicing schedule is agreed with each client and, as in the case of private buyers, is generally linked to the completion of milestones, the first instalment being invoiced upon conveyance of the land. Revenue from the land is recognised at the time of conveyance at the notary, while the revenue from the buildings is recognised during the course of the construction period.

Working

The revenues from the Working segment are primarily related to service activities performed on clients’ buildings and technical installations. The revenues of €424 million (2023: €347 million) are recognised as these service and maintenance activities are performed.

In addition, Working realised non-residential buildings and technical installations for clients, mostly in the public and semi-public sector, in the amount of € 197 million (2023: € 175 million), with construction only starting after the contract has been awarded. The revenue is recognised during the construction period. Invoicing follows a schedule linked to predefined milestones that can vary per contract.

Connecting

The revenue generated by the Connecting segment is primarily related to the construction of roads and other civil engineering works on behalf of public sector authorities and amounted to € 639 million (2023: € 469 million). Construction only commences when orders have been confirmed. Invoicing is according to a schedule based on pre-defined milestones, which may differ per contract. Revenue is recognised during the course of the construction period. Connecting also carries out service and maintenance work on pieces of infrastructure. Revenue from these activities amounted to € 330 million (2023: € 306 million) and is recognised in proportion to the work performed.

Additional information on revenue

During 2024, the Group recognized € 269 million (2023: € 196 million) in revenues that had been included in the ‘work in progress credit´ as at 1 January.

In 2024, € 3 million (2023: expense of € 3 million) in revenues related to performance obligations fulfilled in earlier periods was recognized.

The amount of the transaction price attributed to performance obligations that have not been fulfilled (in whole or in part) was approximately € 2.6 billion (2023: € 2.6 billion). Of this, 59% will be fulfilled in 2025, 26% in the period 2026 and 2027 and 16% in 2028 and beyond (2023: 58% in 2024, 26% in the period 2025 and 2026 and 16% in 2027 and beyond). The disclosed amounts are related to contracted revenue and include only revenue that is highly probable. Future revenue generated by contracts for which the unit price have been agreed, but not the volumes, have not been included in the disclosed amounts. The Group has not made use of the practical option of not disclosing performance obligations that are part of a contract with an originally expected completion date of one year or less.

The Group has not adjusted revenue for significant financing components among other things  because the period between fulfilment of the performance obligations and payment by the client is less than one year.