Finland's SRV Q3 revenue rises 28% year-on-year on higher volumes

By Reuters News


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


Reuters Recommended Reads

  • Oct 21 - Sweden residential developer JM's nine-month profit rises on production activity

  • Oct 21 - Fabege Q3 profit rises on residential development

  • Oct 21 - Hochtief plans to apply for EU funding for data centre, Handelsblatt reports


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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