Finland's SRV Q2 revenue rises 18%
Finland's SRV Q2 revenue rises 18%
Overview
Finland construction firm's Q2 revenue rose 18% yr/yr, supported by both business segments
Q2 operative operating profit fell as margins on early-stage projects remained modest
Company confirmed full-yr revenue outlook, narrowed operative operating profit guidance to EUR 10–20 mln
Outlook
SRV expects 2026 revenue to exceed EUR 800 mln
Company sees 2026 operative operating profit between EUR 10 mln and EUR 20 mln, revising previous guidance
SRV says 2026 earnings will be weighted toward H2 as new projects generate revenue and margins
Result Drivers
LOW MARGINS ON EARLY PROJECTS - Co said Q2 operative operating profit was weakened by modest profit margins on projects in early stages and timing of fixed costs
ORDER BACKLOG AND NEW AGREEMENTS - Co said robust order backlog and new project agreements are expected to support earnings growth in H2
RESIDENTIAL DEMAND WEAK - Co said residential construction is still burdened by oversupply and weak consumer demand
Company press release: ID:nWkr9c0gKV
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | EUR 199.60 mln | EUR 182 mln (2 Analysts) |
Q2 Operative EBIT |
| EUR 400,000 |
|
Q2 Pretax Loss |
| EUR 1.40 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 2 "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 €5.25, about 9.2% below its August 5 closing price of €5.78
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 45 three months ago
Reuters Recommended Reads
Aug 6 - Estonia's Merko Ehitus Q2 revenue rises 12%
Aug 6 - Estonia's Nordecon Q2 revenue rises on buildings and infrastructure segments
Aug 6 - Norway's Selvaag Bolig H1 home sales value hits record high
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.)