SRV - No surprises
SRV's net sales in Q1 amounted to EUR 161.4m, slightly below our estimate of EUR 167.5m. Operative EBIT matched our estimate at EUR 1.1m. Order backlog remained steady both q/q and y/y.
- Revenue in Q1 was EUR 161.4m (EUR 167.0m in Q1/24), slightly below our estimate of EUR 167.5m. Revenue declined 3.3% y/y.
- The operative operating profit in Q1 amounted to EUR 1.1m (EUR 1.3m in Q1/24), in line with our estimate of EUR 1.1m.
- As noted in our preview, decline in operative EBIT was a result of lower volumes, especially in development projects.
- SRV’s infrastructure business achieved a better margin than in the comparison period.
- Reported EBIT was lower due to expert fees related to the sale of the Pearl Plaza shopping centre (effect EUR -0.4m)
- SRV’s signed new agreements worth EUR 140.9m (EUR 136.4m in Q1/24).
- The order backlog in Q1 was EUR 1043m (EUR 1020m in Q1/24, EUR 1053 at the end of 2024).
- Business construction revenue in Q1 was EUR 149.8m, (EUR 151.0m Evli estimate) down 4% y/y. Revenue decreased in development projects.
- Housing construction revenue in Q1 was EUR 11.7m (EUR 16.4m Evli estimate). Zero developer-contracted units were recognized as income during Q1.
- SRV outlook for 2025 (unchanged): Revenue is expected to decline compared with 2024 and to amount to EUR 630-710m and operative EBIT is expected to be positive.