SRV - Gradual improvement in a tough market
SRV's net sales in Q1 amounted to EUR 167.0m, above our estimate of EUR 152.0m. EBIT was slightly softer than estimated yet improved y/y as expected.
- Revenue in Q1 was EUR 167.0m (EUR 138.3m in Q1/23), above our estimate of EUR 152.0m. Revenue grew 20.7% y/y.
- The operative operating profit in Q1 amounted to EUR 1.3m, only slightly below our estimate of EUR 1.5m.
- SRV’s signed new agreements worth EUR 136.4m (EUR 149.9m in Q1/23).
- The order backlog in Q1 was EUR 1020.4m (EUR 871.0m in Q1/23), up by 17% y/y.
- Business construction revenue in Q1 was EUR 156.1m, (EUR 140.0m Evli estimate) up 37.0 % y/y. While we expected strong growth, the non-residential volumes came in even stronger than expected.
- Housing construction revenue in Q1 was EUR 10.9m (EUR 12.0m. Evli estimate). SRV recognized only 3 residential units as income which was expected.
- While the market remains challenging in the residential side, the company believes that it will be possible to start up selected development or developer-contracted projects in the latter part of the year
- SRV outlook 2024 (unchanged): Full-year consolidated revenue for 2024 is expected to grow compared to 2023 (revenue in 2023: EUR 610.0 million). Operative operating profit is expected to improve on 2023 (operative operating profit in 2023: EUR 1.1 million).