The Reway Group and Italy’s Planned Investments in Road and Rail Infrastructure
Italy’s ageing infrastructure – and who stands to benefit: Reway Group as a leading provider of road and rail infrastructure modernisation services.
MONTHLY
Italy's Infrastructure Market: Opportunities and Growth Drivers
Reway's prospects are closely linked to structural developments in Italy. The country is investing heavily in infrastructure modernisation, driven by several key factors:
EU programmes and recovery funds: Billions of euros from European recovery programmes are being allocated to transport infrastructure.
Ageing infrastructure: A large proportion of Italy's motorways and bridges dates back to the post-war period and now requires substantial refurbishment.
Seismic safety: Italy is located in a seismically active region, and government programmes support the seismic retrofitting of existing structures.
Sustainability and noise protection: Projects aimed at improving environmental standards and reducing noise pollution are becoming increasingly important.
Railway investments: The railway sector is considered a particularly strong growth market, supported by high-speed rail projects and the modernisation of regional networks.
Approximately EUR 120 billion in spending is planned over the next 10–15 years for the refurbishment of Italy's motorway and railway networks alone!
Competition remains highly fragmented. Many smaller construction and refurbishment companies lack the capacity to participate in major tenders or execute complex projects. Reway benefits from its position as a consolidated provider that combines scale with specialist expertise.
Conclusion
Reway Group S.p.A. is a holding in our OHP Unternehmerfonds.
We believe the company benefits from a capable and experienced management team that has demonstrated strategic foresight in building a profitable business. This provides a strong foundation for Reway to establish itself as a leading niche provider and capitalise on Italy's substantial planned infrastructure investments.
Figure 1: Illustration of Reway Group’s services; AI-assisted
Italy faces one of its greatest economic and engineering challenges in recent decades:
The modernisation of its ageing and, in some cases, deteriorating infrastructure.
Bridges, tunnels, motorways and railway networks, many of which were built in the 1960s and 1970s, are now in urgent need of refurbishment. EU funding, government investment programmes and growing public awareness of safety concerns are further accelerating this development.
Against this backdrop, one company has emerged as a particularly prominent player: Reway Group S.p.A. – a rapidly growing business that has established a significant market position through specialisation, acquisitions and targeted investments.
Italy faces one of its greatest economic and engineering challenges in recent decades:
The modernisation of its ageing and, in some cases, deteriorating infrastructure.
Figure 2: Paolo Luccini, CEO of Reway S.p.A.; source: www.visionyournal.it
Paolo Luccini: Entrepreneurial Leader and Strategist
At the helm of Reway is Paolo Luccini (65), the company's Chairman and CEO. He is not only the face of the Group but has also played a pivotal role in transforming Reway from a collection of specialised businesses into a major player in Italy's infrastructure sector.
In 1994, Luccini founded MGA S.r.l. (Manutenzioni Generali Autostrade), a company specialising in the restoration and maintenance of motorway tunnels. Over the years, the business expanded into related services through organic growth and strategic acquisitions.
His career demonstrates an entrepreneurial approach that combines operational expertise with strategic vision. Under his leadership, Reway has positioned itself not as a traditional construction group, but as an integrated specialist in the maintenance and modernisation of motorway and railway infrastructure.
Luccini is pursuing a clear expansion strategy focused on:
Acquisitions
Strengthening core competencies
Entering growth markets such as railway and port infrastructure
For investors, an important consideration is that Luccini is not merely a professional manager but also an entrepreneur with a substantial ownership stake. Together with his son Alex, he holds approximately 56% of the ordinary shares through the holding company Luccini S.r.l.
Alex Luccini (40), unlike his father Paolo, who has a business administration background, is an engineer. He serves as Managing Director of the subsidiary SOTECO, which specialises in tunnel refurbishment as well as the installation and maintenance of noise barriers along motorways.
Figure 3: Growth in Reway's order backlog, 2023–2025; own illustration
The History of Reway: From a Group of Specialists to a Listed Company
Although Reway Group was officially established as a holding company only at the end of 2021, its operational history goes back considerably further:
1994: Foundation of MGA S.r.l. – specialising in motorway tunnel refurbishment.
2012: Foundation of TLS S.r.l. – specialising in the maintenance and seismic reinforcement of viaducts and bridges.
2016: Foundation of SOTECO S.r.l. – specialising in tunnel refurbishment and noise barriers.
2023: IPO and acquisition of Gema S.p.A. (formerly Se.Gi. S.p.A.) – marking the Group's entry into the railway infrastructure sector.
2024: Acquisition of Vega Engineering S.r.l. – specialising in the technical planning and engineering of motorway and railway infrastructure.
These companies were brought together under the Reway umbrella to combine expertise, create synergies and strengthen the Group's ability to compete for large-scale public tenders.
The strategy has proven successful!
Since its IPO, the Group's order backlog has more than doubled:
Figure 4: Reway revenue and profitability, FY 2021–H1 2025; own illustration
Business Segments and Core Competencies
Reway positions itself as an integrated provider of infrastructure refurbishment services. The company covers a broad range of activities and is the only provider capable of offering all these services nationwide in Italy from a single source:
Motorway tunnel refurbishment: Including structural reinforcement, fire protection, lighting systems and safety technology.
Bridge and viaduct refurbishment: Repairs, seismic reinforcement, surface restoration and structural strengthening.
Road infrastructure refurbishment: Road surfaces, noise barriers and other noise reduction measures.
Railway infrastructure refurbishment: Modernisation of railway networks and refurbishment of railway stations.
This vertical integration provides the company with a clear competitive advantage. While many competitors specialise in individual segments, Reway offers comprehensive, end-to-end solutions.
Financial Performance: Strong Growth Momentum
The company's latest financial reports reveal remarkable growth momentum:
Since 2021, both revenue and EBIT have more than doubled. The EBIT margin has remained in the range of 15–18% per year, highlighting the value of Reway's highly specialised services and the strong demand for them.
The first half of 2025 continued this positive trend, with revenue increasing by 16% year-on-year and an EBIT margin of 16%.
Figure 5: Collapsed bridge in Tuscany (2020); source: www.morgenpost.de
This article does not constitute a recommendation to buy securities or investment advice.
Figure 6: Reway Group S.p.A. share price performance since its IPO in March 2023
The company's cash flows and balance sheet reflect the working capital requirements typical of the industry, particularly the need to finance projects in advance. However, these requirements remain entirely manageable, and the company is able to maintain substantial cash reserves.
Cash flows are expected to remain volatile, but this should be more than offset by the company's projected growth.
Ott, Hagen & Partner AG
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