Finland's SRV Q3 revenue rises 28% year-on-year on higher volumes
Overview
Finland construction firm's Q3 revenue rose 28% yr/yr, but missed sole analyst estimate
Q3 operative operating profit improved, driven by higher volumes and increased average margins
Order backlog at end-Q3 rose to EUR 1.54 bln, supported by new project wins
Outlook
SRV expects 2026 revenue to exceed EUR 800 mln
Company sees 2026 operative operating profit at EUR 10-20 mln
SRV says 2026 earnings will be weighted towards H2 as new projects ramp up
Result Drivers
DATA CENTRE CONTRACTS - Co said growth in non-residential construction was driven by data centre projects
HIGHER VOLUMES AND MARGINS - Co attributed improved operative operating profit to increased volumes and higher average margins
PROJECT IMPLEMENTATION - Co said improved earnings were supported by successful project implementation phases
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | EUR 204.60 mln | EUR 236 mln (1 Analyst) |
Q3 Operative EBIT | EUR 5.30 mln | ||
Q3 Pretax Profit | EUR 3.50 mln |
Analyst Coverage
The current average analyst rating on the shares is "sell" and the breakdown of recommendations is no "strong buy" or "buy", no "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the construction & engineering peer group is "buy."
Wall Street's median 12-month price target for SRV Yhtiot Oyj is €8.50, about 11.6% below its October 21 closing price of €9.62
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 17 three months ago
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Oct 21 - Hochtief plans to apply for EU funding for data centre, Handelsblatt reports
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)