SRV - 2025 outlook worse than expected
SRV's net sales in Q4 amounted to EUR 209.1m, slightly above our estimate of EUR 196.0m. While volumes beat, operative EBIT matched our estimate at EUR 3.0. Although we anticipated subdued prospects for 2025, the outlook adds additional downward pressure to our estimates.
- Revenue in Q4 was EUR 209.1m (EUR 181.8m in Q4/23), slightly above our estimate of EUR 196.0m. Revenue grew 15.1% y/y.
- The operative operating profit in Q4 amounted to EUR 3.0m (EUR 2.4m in Q4/23), in line with our estimate of EUR 3.0m.
- Reported EBIT was lower than we estimated due to write-down on the lease agreement for SRV’s current head office.
- SRV’s signed new agreements worth EUR 66.0m (EUR 253.1m in Q4/23).
- The order backlog in Q4 was EUR 1052.8m (EUR 1048.6m in Q4/23).
- Business construction revenue in Q4 was EUR 191.5m, (EUR 175.0m Evli estimate) up 25% y/y. Growth was driven by project management and alliance contracts, particularly due to hospital project construction.
- Housing construction revenue in Q4 was EUR 17.5m (EUR 15.4m Evli estimate). Housing construction remained quiet as expected, with 520 residential units under construction (all contracts).
- SRV outlook for 2025: Revenue is expected to decline compared with 2024 and to amount to EUR 630-710m (Evli current est. EUR 782.5m) and operative EBIT is expected to be positive (Evli current est. EUR 16.3m).
- Yesterday SRV released that it is starting the construction of a developer-contracted project in Espoo, this marks the first developer-contracted project start since 2022.