Zagrebtrans Revenues Reflect the Cyclicality of Green Energy Projects

In recent years, Zagrebtrans, one of the more well-known companies in the region for handling oversized and heavy cargo and their transportation, has recorded a decline in revenue. We were curious about what is happening, so the hosts, directors Roža Matovina and Danko Veselinović welcomed us at their headquarters.

Matovina was appointed director after the premature death of owner Ida Mejaški last June, alongside Veselinović (the late Mejaški’s husband), and given that she has been working in the company for a long time in high positions, it was not a problem for her to settle into that role.

Last year, the decline in revenue was halted; moreover, it increased compared to 2024, when it amounted to 18.6 million euros, but that year a smaller portion was achieved thanks to extraordinary revenues. According to preliminary financial reports, last year’s revenue was 18.3 million euros, EBITDA two million euros, operating profit 350 thousand euros with a net loss of 325 thousand euros.

For this year, contracts have been signed for more than 70 percent of planned revenues.

– Therefore, this year we expect an increase in revenue of approximately 25 percent. For a larger portion of planned revenues, business negotiations are in the final phase – emphasizes Matovina.

Cooperator of Multinationals

This would be a return to 2020. Namely, after revenue growth in that year and in 2021, it significantly declined in the following years. The reason lies in the decrease in the number of projects in the field of renewable energy sources (wind energy), in which Zagrebtrans acts as a cooperator for global multinational companies.

Primarily due to administrative barriers, these projects have practically stalled in recent years in Croatia, but in other European countries (depending on investment cycles) they are not always current. They also execute projects in the countries of the region (Serbia, BiH, Montenegro, and Kosovo), as well as in EU member states (for example, Lithuania, Germany). Namely, the company’s leaders explain that the majority of revenues come from these projects, from 50 to 85 percent, depending on how many there are.

It was precisely the large projects in 2020 and 2021 that contributed to higher revenues than in the following years when they were not present in such volume, leading to a recorded loss in business in 2022. However, that year was also active as the company was engaged in wind farm projects in Lithuania and servicing wind farms in Kosovo, which, along with other projects, brought in 13.5 million euros, still much less compared to 24.9 million euros in 2021.

– Wind projects have their cycle, from the contracting phase to the execution phase, so engagement on them depends on that process – explains Veselinović.

Violation of Rules

The company executes wind energy projects not only in Croatia but also in the countries of the region: Bosnia and Herzegovina, Serbia, Kosovo, Albania, and Montenegro. Due to these projects, companies with the same name were registered in Tomislavgrad (BiH, director Roža Matovina) and Belgrade (Serbia, director Danko Veselinović) in 2017, although they note that they have been in these and other countries in the region for more than twenty years. In Montenegro, Albania, and Kosovo, there are subsidiaries, and a company has also been registered in Germany.

– We have exceptionally positive business experiences and correct business cooperation with the economic environment of these countries and the market – notes Veselinović.

They also highlight Lithuania, where the company has been continuously present for three years and participated in the construction of several wind farms. Additionally, Zagrebtrans participates in projects across Central Europe (Germany, Poland…) and Scandinavia, from the assembly of wind farms to the transportation of transformers and other heavy cargo.

– There have been no major problems in transports from the European Union to third countries so far. Such extraordinary transports by road and rail are a large part of the company’s business and, thanks to extensive experience and good preparation, are realized without major difficulties. However, we want to point out that we encounter unfair competition in the domestic market due to illegal cabotage by certain foreign carriers, where the oversight and sanctioning carried out by the relevant institutions are often insufficiently effective in practice – notes Veselinović.

Cabotage refers to foreign carriers performing internal transport in another EU member state after delivering cargo there from their home country. According to the rules (since February 21, 2022), a carrier can perform up to three cabotage transports in another member state within seven days after an international journey, and after that, they cannot perform cabotage again with the same vehicle in the same country for the next four days. However, according to our interlocutors, some carriers do not adhere to these rules.

Interestingly, the revenue growth during the pandemic years and the beginning of the Russian-Ukrainian war shows that these crises did not significantly affect the company’s business, not even, as we have seen, the earthquake in Banija. Namely, Matovina and Veselinović explain that all wind energy projects and transformer transports were planned and contracted before the pandemic and the war in Ukraine began, so their execution during that period was ongoing, meaning everything that was contracted then was realized.

It is encouraging that export revenues, after a decline in recent years, began to rise again last year. Namely, our hosts say that according to preliminary financial reports, export revenues were 12.65 million euros, which is 112 percent more than in 2024.

Introduction of AI

Additionally, one of the prominent market niches where Zagrebtrans generates revenue is the transportation of energy transformers, while other revenues relate to extraordinary oversized road transport and crane operations outside of wind energy projects and energy transformers. In May 2020, the company was engaged in the removal of the northern tower of Zagreb Cathedral, and in March 2025, in the dismantling of the roof of the main hall of the Sports Hall.

Besides Zagreb, the company was also engaged in the earthquake-affected Petrinja, removing dangerous buildings and their parts (chimneys, facades). Namely, Zagrebtrans has the strongest crane in Croatia (650 tons), into which it invested for the purposes of executing wind energy projects at the beginning of 2024. It also possesses the latest EURO 6 generation vehicles in its fleet. At the end of that year, notes Lider’s financial analyst and owner of Kontera Nikola Nikšić, the dominant item (50 percent) in the asset structure (assets of 26.7 million euros) was ‘installations and equipment, tools, and transport means’.

– This year, three new special RBTS trailers for transporting extremely long wind turbine blades have also been procured. Likewise, we continuously invest in renewing the fleet – says Veselinović. Investment in artificial intelligence (AI) is also one of the directions the company plans to pursue. In the upcoming period, the integration of artificial intelligence into business, our interlocutors say, will become a necessity for almost all business entities.

– We are currently in the experimental phase, testing artificial intelligence within business processes. At this moment, the effects of integrating AI into business processes are relatively limited. For a greater leap, it is necessary to integrate AI with the specific knowledge that the company possesses, for which the development of special software is needed – explains Veselinović.

Our hosts highlight plans for post-war Ukraine, where they are working on developing several projects. Ukraine is very interesting energetically, they explain, as it is estimated to be lacking ten gigawatts of energy, which is a huge shortfall. For comparison, the goal of large projects in Lithuania, which lasted several years, was to build a facility of two gigawatts.

Quality Workforce

Company costs have risen from 2021 to 2025. Primarily, there has been an increase in equipment rental and insurance costs, specifically the rental of part of the cranes used in executing wind energy projects. Nikšić, who only had data until the end of 2024, states that in the structure of business expenses that year, other external costs were dominant (39.1 percent in 2024), continuing the downward trend (the share in 2021 was 62.8 percent), which may indicate a decline in the company’s activity.

At the same time, our interlocutors from Zagrebtrans say that from 2021 to 2025, salaries have increased by 24 percent, and Nikšić reports a figure of 5.38 million euros for 2024 of that total cost. Their share in business expenses in 2024 reached 31.4 percent and maintained a growth trend, unlike other external costs (the share in 2021 was 21.1 percent). Thus, the average net salary in 2024 was 2212 euros, slightly higher than 2154 euros in 2023. This aligns with what Matovina says that the average gross salary last year was around 3200 euros.

– Although we are not free from workforce fluctuations, our main staff have been with us for a long time. I dare say that our salaries for workers with special skills, which we certainly need, are higher than in many European competing companies. Zagrebtrans has a quality and trained workforce capable of executing assigned work tasks. Workers have undergone manufacturer training for crane operations, occupational safety training, and more, and they also hold internationally recognized certificates – states Matovina.

Veselinović adds that such a salary policy is logical because we live in a time of great mobility of people, who go where they think they will have a better life. In recent years, the number of employees has slightly decreased (in 2024 there were a total of 146), and today, the hosts claim, there are a total of 140.

There is a shortage of personnel such as drivers of oversized cargo, crane operators on large cranes, auxiliary workers in the crane department, and railway wagon attendants.

– We employ high-quality personnel who are mostly Croatian citizens. Some of them are returnees from abroad who realized they could achieve a better quality of life in our country, and we can provide that with our conditions – emphasizes Veselinović.

Although they still lack workers, it is interesting that they sometimes consciously keep more workers than the current volume of work. Since the work is cyclical and the workforce is specific, the company cannot afford to reduce or increase the number of workers depending on needs.

Expansion Abroad

Matovina is responsible for finance and legal affairs, while Veselinović is in charge of sales and operations. They say they jointly manage the company, respecting the sectors for which they are responsible. Besides the two of them, the most important people in the company are those in key positions: Mario Malčak (Director of Accounting and Finance), Frano Šarić (Director of Operations), and Niko Komljenović (Director of Sales and Project Management).

Zagrebtrans was founded by the late Milan Mejaški in 1989, and his daughter Ida inherited it. Today, co-owners are Nevenka Mejaški (mother) and her and Veselinović’s minor daughters Lara and Mila Veselinović (their father is their authorized representative). The company is among the regional leaders in the segment of transporting oversized and heavy cargo and handling them. As our interlocutors say, the company’s development goals are focused on expanding into foreign markets while maintaining competitiveness in the domestic and neighboring markets.

– The long-term goal of Zagrebtrans’s business is to become the leading service provider in Southeast Europe and a company that will dictate standards in the field of transporting and handling heavy and oversized cargo, crane operations, as well as in a specific market niche: the transportation and lifting of wind turbine components. Projects related to transformer handling and their transportation, as well as projects related to renewable sources, remain in focus for the company’s development plan. The center of interest is in export markets, and manufacturers who already have contracts or compete for projects in targeted markets are our previous global partners – lists Veselinović.

On this path, there are threats, but also opportunities. The more dangerous threats are the growing presence of foreign competition in the region, the stagnation in the development of wind farm projects in Croatia, and the shrinking pool of specific labor. However, opportunities should not be dismissed as the expansion of wind energy projects in the region is not excluded, for which their business partners (for example, wind turbine manufacturers) will compete, drawing them into business as well.

The expansion of domestic transformer production and a strong cycle of infrastructure investments in Croatia, as well as throughout Europe, should not be overlooked either. With 35 years of experience, Zagrebtrans as a brand has the strength to continue participating in these projects, possesses highly developed knowledge and experience, a quality and trained workforce capable of executing extremely complex projects, and a diversified portfolio related to energy, industry, and infrastructure. Furthermore, the fact that there have been periods of overstaffing also speaks to the company’s strength.

The company’s weakness lies in its dependence on the number and cyclicality of the projects in which its business partners participate, and the necessity for continuous investment in specific and high-value equipment (niche industry), as well as uneven cash flow and dependence on a limited number of high-level experts (niche industry).

The company certainly has potential; after all, its long-standing presence in the market supports this claim. However, as we were told, it is neither for sale nor plans to acquire another. This may not be the best solution now because, despite the brand’s strength, business has been somewhat stalling in recent years, according to Nikšić’s findings. Indeed, he had data until the end of 2024, but despite the growth of last year’s revenue, market forces remain very tricky and unpredictable. Zagrebtrans has enough strength to overcome them, as indicated by recent investments and, for instance, tolerating overstaffing in certain phases of business, but the management is aware that caution is not unwarranted.

Caution is Not Unwarranted

Namely, retained earnings until 2024 amounting to 3.5 million euros and the core capital and reserves amounting to 7.1 million have a share in liabilities of 39.5 percent, while financing from external sources is 60.5 percent, which is a borderline acceptable ratio for larger trading companies that are not capital companies.

It should be noted that a large part (53.1 percent) of short-term liabilities in 2024 related to obligations to creditors, but in the case of their reprogramming for a longer term (into long-term liabilities), significant positive changes in the values of the debt and liquidity indicators would occur. However, overall, the company is strong enough to overcome all difficulties in today’s market.