Grk Infra Plc · OMXHEX:GRK
Grk Infra — H1 2025 Earnings Presentation
36 slides from Grk Infra's earnings presentation, Jul 31, 2025
Slide 1: Revenue and operating profit continued to grow
Revenue and operating profit continued to grow Half-year report Q1–Q2/2025 GRK Infra Plc 31 July 2025
Slide 2: Presenters and agenda of the day
Presenters and agenda of the day Agenda • GRK in brief • Financial review • Project and market review • Outlook and guidance (updated) • Sustainability • Strategy and long-term goals • Summary Markku Juha • Q&A Toimela Puolanne CEO CFO 2
Slide 3: GRK is one of the leading operators in the stable infrastructure construction market
GRK is one of the leading operators in the stable infrastructure construction market Broad selection of infrastructure Established position in three countries construction services Revenue Civil engineering 1–6/2025 and road construction MEUR 406.4 Estonia Geographical Finland distribution of revenu
Slide 4: Financial review January-June 2025
Financial review January-June 2025
Slide 5: Profitable growth 1–6/2025
Profitable growth 1–6/2025 • Revenue continued to grow (39.9%) • Profitable growth continued in line with the strategy Revenue, MEUR 406.4 (290.5) Adjusted operating profit, MEUR • GRK’s projects progressed faster than anticipated in the first half of the year, and their profitability 25.1 (5.4) dev
Slide 6: Significant increase in revenue
Significant increase in revenue • In January–June 2025, revenue increased by 39.9% Revenue (MEUR) to EUR 406.4 (290.5) million. Subheading • •Revenue XXX developed favourably in all country •companies. XXX 406.4 290.5 • The positive development was favourably affected by increased business volumes 2
Slide 7: Revenue development in GRK’s country companies
Revenue development in GRK’s country companies GRK SUOMI OY GRK SVERIGE AB GRK EESTI AS Revenue (MEUR) 394.5 274.2 200.2 156.3 173.9 111.0 72.1 37.9 29.6 H1/2025 H1/2024 2024 H1/2025 H1/2024 2024 H1/2025 H1/2024 2024 7
Slide 8: Profitability improved significantly in January–June 2025
Profitability improved significantly in January–June 2025 • GRK’s adjusted operating profit increased to EUR 25.1 (5.4) million, and operating profit increased to EUR 23.8 (5.4) million. Adjusted operating profit (MEUR) Subheading • XXX • The profitability reflects the strong growth of revenue • XXX
Slide 9: Both GRK's operations and the industry overall are characterised by obvious seasonality
Both GRK's operations and the industry overall are characterised by obvious seasonality Revenue 1–6/2025: 406.4 (290.5) MEUR Adjusted operating profit 1–6/2025: 25.1 (5.4) MEUR Adjusted operating profit % by quarter Revenue by quarte, MEUR 12.0 % 250 10.0 % 200 8.0 % 6.0 % 150 4.0 % 100 2.0 % 0.0 %
Slide 10: Strong financial position
Strong financial position Net working capital (MEUR) Operating free cash flow (MEUR) Subheading 30 June 24 31.12.2024 • XXX30 June 2025 41.3 • XXX 21.3 -12.5 -37.9 -53.0 30 June2025 30 June2024 31.12.2024 -61.0 10
Slide 11: Strong financial position
Strong financial position Equity ratio Net debt / adjusted EBITDA Subheading 50.2% • XXX 42.9% • XXX 35.5% -1.7 -0.9 -1.4 30 June 2025 30 June 2024 31.12.2024 30 June2025 30 June2024 31.12.2024 11
Slide 12: Cash and cash equivalents and net debt
Cash and cash equivalents and net debt Cash and cash equivalents (MEUR) Net debt (MEUR) Alaotsikko • XXX 177.4 • XXX 30 June 2024 31.12.2024 30 June 2025 126.7 78.3 -39.9 -88.0 31.12.2024 -138.7 30 June 2025 30 June 2024 12
Slide 13: Return on capital
Return on capital Return on equity (ROE) Return on capital employed (ROCE) Subheading • XXX 173.9% • XXX 150.1% 40.7% 35.4% 30.4% 49.4% 30 June 2025 30 June 2024 31.12.2024 30 June 2025 30 June 2024 31.12.2024 13
Slide 14: Order backlog at a good level
Order backlog at a good level Distribution of unrecognised order backlog Unrecognised order backlog at the end among the country companies at the end of the period (MEUR) of the period (MEUR) Subheading • XXX 845.6 865.8 • XXX788.9 154.8 384.1 GRK Suomi Oy 788.9 GRK Sverige AB MEUR GRK Eesti AS 250.
Slide 15: Project and market review
GRK Project and market review
Slide 16: Projects that significantly affected revenue during 1–6/2025
Projects that significantly affected revenue during 1–6/2025 Stegra hydrogen and steel plant Espoo City Rail Link Railway maintenance foundation and groundworks > 400 Total value ~ 100 ~ 50 Total value Three extensive maintenance areas in Finland. The management’s estimate of the revenue impact of m
Slide 17: Projects in the development phase
Projects in the development phase Turku tramway Rail Baltica “GRK has projects worth approximately EUR 410– 470 million that have been won or are linked to development contracts but have not yet been entered in the order backlog.” GRK’s share, estimate ~ 150 million EUR GRK’s share, estimate ~ 158–2
Slide 18: What are the steps in an alliance project?
What are the steps in an alliance project? Tendering phase Development phase Implementation phase • The development phase starts when the • The client puts the project up for tender contractor has been selected. • In the implementation phase, construction • Tender participants form a consortium that
Slide 19: Examples of projects won in Q2/2025
Examples of projects won in Q2/2025 Paving projects (ELY) Railway service agreements "Most of GRK’s projects are relatively small projects Total value ~30 million EUR Revenue annually ~3.5 million EUR/year of approximately EUR 0–5 million. In addition to these, the company’s project backlog Kouvola–
Slide 20: Positive market outlook for the rest of the year
Positive market outlook for the rest of the year "In Finland, the level of activity has been exceptionally high in both the public and private sectors, and we have received many requests for tenders. The Finnish Transport Infrastructure Agency will put several large road projects up for tender durin
Slide 21: Guidance (updated June 2025)
Guidance (updated 18 June 2025)
Slide 22: Updated (18 June 2025) guidance for 2025
Updated (18 June 2025) guidance for 2025 Outlook for 2025 Guidance for 2025 (updated) The economy is starting to recover from the recession. GRK estimates that its revenue in 2025 will be in the range of Inflation and interest rates will continue to decrease slowly. EUR 730–800 million (2024: EUR 72
Slide 23: Sustainability
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Slide 24: Occupational safety
Occupational safety • GRK has a long-standing focus on the prevention of occupational accidents, and the accident frequency has decreased. • After the review period, on 17 July, a fatal occupational accident occurred at our site in Jyväskylä. • This was a piece of sad news not only for the family, f
Slide 25: Number of summer workers: 110 (97)
Sustainability, January–June 2025 Number of summer workers: 110 (97) Accident Lost work Use of recycled Carbon Governance frequency* days materials, 100 intensity deviations tonnes/month 6.6 48 81 16.3 0 (7.7) (68) (51**) (26.8) (0) 25 *The accident frequency indicator includes GRK’s own personnel a
Slide 26: Background information on the Finnish Competition and Consumer Authority's investigation
Background information on the Finnish Competition and Consumer Authority's investigation • GRK has zero tolerance for misconduct, and we purposefully address any detected violations. • On 21 May 2025, the Finnish Competition and Consumer Authority (FCCA) announced that it is investigating the asphal
Slide 27: Strategy and long-term goals
Strategy and long-term goals
Slide 28: GRK's strategic intent
GRK's strategic intent Strategic intent 2028 Strategic growth areas Procedures and means We expand into new areas of We operate with an entrepreneurial infrastructure construction as spirit and we have a shared culture well as new geographical areas, especially in Sweden We attract, foster and retai
Slide 29: Financial targets by 2028
Financial targets by 2028 The company’s strategy focuses on profitable growth and the Board of Directors has decided the company’s financial targets and dividend policy accordingly Revenue growth, Profitability Capital structure Capital Dividend million EUR efficiency policy >750 >6% < 1.5x > 20% >
Slide 30: Progress of the strategy: recruitment and acquisitions
Progress of the strategy: recruitment and acquisitions Electricity network construction We have recruited personnel to start a business area focusing on electricity networks. In electricity network construction ("GRK Power"), the focus will be mainly on the construction of "In accordance with our el
Slide 31: The two cornerstones of environmental technology
The two cornerstones of environmental technology Bioproducts Environmental technology GRK produces biochar, which we use in our own infrastructure contracts and the construction of green spaces; for example, for soil improvement or growing media. We also offer biochar and carbon credits sold on the
Slide 32: The number of GRK’s circular economy sites will increase
The number of GRK’s circular economy sites will increase 1 Nurmijärvi 2 Sipoo 3 Mäntsälä 4 Lappilan käsittelylaitos ”With the acquisition, 5 Yrtinkangas GRK acquires seven 6 Lappeenranta new circular economy 7 Isosuo, Punkalaidun sites in southern 8 Kanteenmaa Finland, particularly in Uusimaa, where
Slide 33: Summary
Summary
Slide 34: Summary - positive development continued in the first half of the year
Summary - positive development continued in the first half of the year Revenue, MEUR Adjusted operating profit, Earnings per share EBIT, MEUR 1. Our profitable growth continued in line with 406.4 25.1 1.0 0.48 the strategic goal 800 50 0,8 0.8 40 600 30 0.6 400 20 0.4 200 10 0.2 2. 0 GRK’s projects
Slide 35: Mika Mäenpää will start as CEO of GRK Infra Plc on 1 October 2025
Mika Mäenpää will start as CEO of GRK Infra Plc on 1 October 2025 • GRK initially announced the planned change of CEO in January 2025 • At that time, it was stated that GRK’s current CEO, Juha Toimela, will reach the retirement age specified in his contract in 2025. GRK’s Board of Directors had deci
Slide 36: Thank You!
Thank You!