68% of construction companies reported no or low involvement in public infrastructure projects in Q3, rising to 69% expecting no or low involvement in Q4 2025
The Construction Industry Federation (CIF) has published its Q4 2025 Construction Outlook Survey, revealing that engagement with public infrastructure projects remains limited across the sector. 68% of companies reported no or low involvement in public works contracts in Q3, rising to 69% expecting no or low involvement in Q4 2025.
Despite this, there are early signs of renewed interest. 21% of companies expect their involvement in public infrastructure projects to increase over the next 12 months, up six percentage points since the end of Q3. Among those anticipating reduced involvement, bureaucracy, high tendering costs, and delays in awarding contracts are cited as the principal deterrents.
Economic uncertainty has weighed on economy-wide capital formation in early 2025, with many firms adopting a cautious, wait-and-see approach to large, capital-intensive projects. However, the outlook for 2026 is more positive, with modified investment forecast to grow by 1.6% in 2025 and accelerate to 4% in 2026, according to the Department of Finance.
Based on responses from 220 construction companies, the survey shows that activity in Q4 2025 remains strongest across Residential (67%), Non-Residential (51%), and Civil Engineering (22%), with significant overlap between sectors. General Building and Specialist Contractors continue to operate consistently across both residential and non-residential markets.
Civil Engineering / Infrastructure and Specialist Contracting recorded the strongest year-on-year (YOY) turnover growth in Q3. Looking ahead to Q4, larger companies (€9M+) are the most confident about achieving a net increase in turnover.
New orders increased YOY across all sectors, with the exception of General Building Contracting. While performance by company size is mixed, larger firms (€9M+) continue to outperform and are the most optimistic regarding future order pipelines.
A YOY increase in project pricing was reported by a significant share of companies across all sectors, particularly among firms with turnover below €4.5M. This upward pricing trend is expected to continue into Q4.
Employment expectations for Q4 remain positive across most sectors. The exception is Civil Engineering/Infrastructure, where 26% of companies anticipate a reduction in employment levels.
Exports remain a growing contributor to business activity. 27% of companies reported a YOY increase in export turnover, and the same proportion expect export turnover to increase further in Q4 2025. Approximately one in four (26%) larger companies (€9M+) are currently exporting. Data centres, pharmaceutical plants, retail, housing, and healthcare were the most common project types delivered internationally in Q3 and are expected to remain so in Q4.
Commenting on the findings, CIF CEO Andrew Brownlee said: “Our Q4 Construction Outlook Survey highlights a critical challenge; that engagement with public works contracts remains a weak link in infrastructure delivery.
“While persistently low involvement continues, with 68% of companies reporting no or low engagement in Q3, the industry is beginning to show early signs of re-engagement.
“Ireland faces a paradox: a strong long-term demand pipeline driven by demographics, climate goals, regional development, and acute infrastructure deficits paired with persistent delivery barriers.
“Total capital expenditure is projected to reach €19.1 billion in 2026. Two major Government strategies, ‘Delivering Homes, Building Communities 2025–2030’ and the ‘Action Plan on Accelerating Infrastructure’, underscore the State’s intention to accelerate delivery.
“However, the largest capital investment plan in our history must be matched with a clear roadmap of projects and timelines. Construction companies need certainty to scale up operations and deliver. The funding is there. Now we need clarity on what will be built, when it will be delivered, and a focus on meeting those deadlines.”
The survey of 220 construction companies found that:
Business Turnover
- 32% reported a YOY increase in turnover in Q3 2025.
- 23% anticipate turnover will increase in Q4 2025.
New Orders
- 27% reported higher revenue from new orders YOY in Q3.
- 22% expect further increases in Q4, with 56% expecting no change.
Employment
- 22% reported a YOY increase in employment in Q3.
- 20% expect to increase staffing levels in the coming months, with 68% expecting no change.
Costs and Pricing
- 69% experienced higher raw material costs YOY in Q3.
- 65% expect further cost increases in Q4.
- 54% reported a YOY increase in project pricing in Q3.
- 43% expect pricing to continue rising in Q4.
