SRV Yhtiöt (SRV1V) Q2 2024 earnings summary

Executive summary

• Revenue grew 25.5% year-over-year to €353.2 million in H1 2024, with operative operating profit improving to €2.7 million from a loss of €5.9 million, driven by strong business construction and a robust order backlog of €1,067.3 million, 92.8% sold.

• Market conditions remain challenging, especially in housing, but the balance sheet and financing are stable, with a low number of unsold completed residential units.

• SRV is positioned for profitable growth as market conditions improve and demand recovers.

Financial highlights

• Q2 2024 revenue was €186.3 million, up 30.2% year-over-year; operative operating profit was €1.5 million (Q2 2023: €-3.9 million).

• H1 2024 net profit was €0.7 million (H1 2023: €-7.9 million); earnings per share were €-0.04.

• Equity ratio at period-end was 33.6% (34.3% in H1 2023); net gearing was 70.9% (83.3%).

• Cash and cash equivalents at period-end were €41.4 million; financing reserves totaled €80.4 million.

• Emission intensity (scope 1 and 2) declined to 3.4 tCO2/million euros revenue, down over 80% from 2021 baseline.

Outlook and guidance

• Full-year 2024 consolidated revenue and operative operating profit are expected to grow compared to 2023.

• Revenue will mainly come from low-margin, low-risk cooperative contracting; no developer-contracted housing projects are scheduled for completion in 2024.

• Market recovery is anticipated as urbanisation continues, interest rates decline, and construction costs fall, but a significant upswing is expected only in 1–2 years.