SRV - In line with expectations
SRV’s Q4 figures and 2026 outlook were in line with our expectations. Guidance mid-point implies close to flat revenue development. The share of developer-contracted units and development projects is expected to increase but remain relatively low.
- Revenue in Q4 was EUR 215.8m (EUR 209.1m in Q4/24), in line with our estimate of EUR 216.7m. Revenue increased 3.2% y/y.
- The operative operating profit in Q4 amounted to EUR 3.6m (EUR 3.0m in Q4/24), slightly below our estimate of EUR 3.9m.
- Profitability was aided by higher volumes in non-residential and infrastructure construction, despite lower volumes in and almost exclusively contracting based residential construction
- SRV signed new agreements worth EUR 109.3m (EUR 66.0m in Q4/24).
- The order backlog in Q4 fell to EUR 772.3m (EUR 1,053m in Q4/24). The sale of SRV Infra had a negative impact of EUR 58.7m.
- The value of projects won but not yet included in the order backlog increased to EUR 1.3bn, EUR 600m higher than a year earlier.
- Business construction revenue in Q4 was EUR 199.3m, (Evli EUR 203m) up 4% y/y. Lower margin project management and alliance contracting accounted for 79% of the order backlog.
- Housing construction revenue in Q4 was EUR 16.4m (Evli EUR 13.7m). Only one developer-contracted unit was recognized as income during Q4.
- SRV’s outlook for 2026: Revenue is expected to amount to EUR 650-750m (Evli: EUR 696.9m) and operative EBIT is expected to be positive (Evli: EUR 8.9m).
- SRV’s BoD proposes that no dividend be paid for FY 2025 (Evli EUR 0.00)