SRV Yhtiöt (SRV1V) Q3 2024 earnings summary

Executive summary

• Revenue grew 25.3% year-over-year to €536.7 million for January–September 2024, driven by business and infrastructure construction, while housing construction volumes remained low.

• Operative operating profit was stable at €4.5 million in Q3 2024 and improved to €7.3 million for January–September, with net profit at €1.7 million compared to a loss of €14.4 million a year earlier.

• Order backlog increased 18.5% year-over-year to €1,179.6 million, with 93.5% of the backlog sold.

• Market conditions remain challenging, with weak private demand and delayed recovery in residential construction, but public-sector projects support volumes.

• Customer satisfaction (B2B NPS) reached a record 74, and employee net promoter score (eNPS) hit 30.

Financial highlights

• Q3 2024 revenue rose 24.9% to €183.5 million from €146.9 million year-over-year.

• Operative operating profit for Q3 2024 was €4.5 million, nearly unchanged from Q3 2023.

• Net profit for Q3 was €1.0 million (Q3 2023: €-6.6 million); EPS for the period was €0.04 (Q3 2023: €-0.51).

• Cash flow from operating and investment activities for January–September was €7.4 million (2023: €-13.6 million).

• Equity ratio at period-end was 34.5% (34.9% in 9/2023); gearing improved to 69.7% (84.8% in 9/2023).

Outlook and guidance

• Full-year 2024 revenue is estimated at €720–750 million, up from €610.0 million in 2023.

• Operational EBIT for 2024 is expected to improve to €7–12 million, compared to €1.1 million in 2023.

• Developer-contracted housing production will be minimal, with no such projects scheduled for completion in 2024.

• Market recovery is anticipated within 1–2 years, with readiness for rapid growth as demand returns.