SRV Yhtiöt (SRV1V) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was EUR 161.4 million, down 3.3% year-over-year, with stable operative operating profit at EUR 1.1 million and a robust order backlog of EUR 1,042.6 million.

• The company's balance sheet remains strong, with a low number of unsold completed apartments and improved equity ratio and gearing.

• Market uncertainty and weak private demand delayed new project starts, but a new developer-contracted housing project was launched after a two-year pause.

• Public sector investment supports business volumes, while private demand is expected to recover gradually later in the year.

• Market conditions are expected to improve gradually, with no major turnaround anticipated in H1 2025.

Financial highlights

• Q1 2025 revenue: EUR 161.4 million (down from EUR 167.0 million year-over-year); operative operating profit: EUR 1.1 million (EUR 1.3 million in Q1 2024); operating profit: EUR 0.7 million.

• Net profit: EUR -0.2 million (down from EUR 0.5 million); EPS: EUR -0.05 (down from EUR -0.01).

• Order backlog: EUR 1,042.6 million (up from EUR 1,020.4 million); new contracts signed in Q1 2025 totaled EUR 140.9 million.

• Operating cash flow after investments was negative, reflecting typical seasonality, but improved to EUR -1.3 million.

• Financing reserves remained stable at EUR 80–80.5 million.

Outlook and guidance

• 2025 revenue expected to decrease to EUR 630–710 million (2024: EUR 745.8 million); operative operating profit for 2025 is estimated to remain positive.

• Revenue will mainly come from low-margin, low-risk cooperative contracting; developer-contracted housing production will be minimal.

• Market recovery is anticipated to be gradual as interest rates fall and oversupply diminishes.

• Significant uncertainty remains regarding new project startups and margin accrual due to weak private demand and geopolitical risks.