SRV Yhtiöt Oyj : Half-year report presentation H1/2026

About this update from Srv Yhtiot Oyj

‌Half-year Report 1-6/2026 SRV Group Plc 6 August 2026 Revenue rises, year-end earnings outlook confirmed Saku Sipola, President & CEO Jarkko Rantala, CFO ‌Agenda 2 1 Market overview Strategy 3 Half-year Report 1-6/2026 4 4 Outlook 2026 ‌Cautious signs of recovery in the macroeconomic environment The Finnish economy has been clearly recovering since last autumn, but inflation, interest rate and geopolitical risks continue to maintain uncertainty. Consumer confidence remains weak, albeit on the rise. The construction market is expected to start to strengthen in 2026-2027, although short-term uncertainty remains high. Sources: Bank of Finland, Statistics Finland, Investing.com, Ministry of Finance, Confederation of Finnish Construction Industries (CFCI) , 3 23 24 25 26 27 2026 2027 +1,5% +1,0% +3,5% Forecast 03/26 Forecast 09/25 20 21 22 23 24 25 26 20 21 22 23 24 25 26 1/2020-6/2026 1/2020-6/2026 20 21 22 0 5 1 0 -1 15 10 4 3 2 5 4 3 2 1 0 -1 20 Five-year SWAP rate (%) 12 month Euribor (%) 20 21 22 23 24 25 26 20 21 22 23 24 25 26 1/2020-6/2026 1/2020-6/2026 25 45 40 35 30 CFCI's forecast 03/2026 Total construction market (€ billion) 10 5 0 -5 -10 -15 -20 3 2 1 0 -1 -2 -3 Consumer confidence GDP volume change (%) ‌Non-residential construction turned to a slight upturn - the bottom in the number of real estate transactions has passed NON-RESIDENTIAL MARKET Demand in the public sector continues to support the non-residential contracting market. In private developers' projects, data centres are a rapidly growing segment. Investor demand for non-residential projects has gradually recovered in the wake of Finland's positive economic development. However, the instability in the energy market caused by the war in Iran and the consequent rise in interest rates will have a negative impact on investor demand. Sources: CFCI, KTI 4 2026 2027 Forecast 03/26 +6.0% +4.5% Retail Office Industrial Forecast 09/25 +3.0% Hotel Public use Residential 25 26 2020-2026 (KTI) 24 23 22 21 20 27 20 21 22 23 24 25 26 0.0 0 2.0 4 2.3 2.7 3.4 4.0 4.4 8 5.5 6.0 12 7.2 7.0 8.0 Number of real estate transactions (billion EUR) CFCI's forecast 03/2026: Non-residential (€ billion) 16 ‌Data centres offer opportunities for higher profitability Based on the investment decisions already made, Finland's data centre capacity is expected to grow by approximately 52% per year until 2027, after which the growth is expected to continue at an annual level of approximately 21%* Data centre projects are large in terms of euros, technically demanding and time-critical in terms of euros, the expertise, resources and security of supply of the construction partner are emphasized customers are selective and there is less competition than other contracting, which strengthens the position of experienced operators SRV is advancing selectively in the market, with an emphasis on a controlled risk profile and profitable implementation SRV's data centre projects: LUMI AI Factory in Kajaani (2027) DayOne in Lahti (2027) As we gain experience, the data centre market offers an opportunity for higher profitability than traditional contracting *Source: Finnish Data Center Market Study and Impact Assessment Report conducted by Ramboll and commissioned by the Finnish Data Center Association and the Confederation of Finnish Industries ** Volume (million m3), rolling annual sum, Source: Statistics Finland 5 The sharp increase in data centre construction permits is reflected in the number of permits for transport buildings: Permits, starts and completions of transport buildings** 7 6 5 4 3 2 1 0 2020 2022 2024 2026 Construction activities granted building permits Construction projects started Construction projects completed ‌NON-RESIDENTIAL: COMPLETED, ONGOING AND UPCOMING PROJECTS Helsinki University's Physicum's renovation, Helsinki (completed) Extent: Schedule: 20.500 gross m 2 2/2025- 4/2026 6 m€ revenue Contracting Project management type: contract Extensive renovation of the Pasila Government Agency Centre, Helsinki (completed) Annex to the National Museum of Finland, Helsinki (completed) Extent: 19.000 gross m 2 Schedule: 2/2025-5/2026 Contracting Collaborative project type: management contract 30 m€ revenue Extent: 5.900 gross m 2 47 m€ revenue Schedule: 2/2022-5/2026 Contracting Senate Properties' flagship type: alliance project 6 ‌NON-RESIDENTIAL: COMPLETED, ONGOING AND UPCOMING PROJECTS Marjoniemi Comprehensive School, Kouvola (ongoing) Extent: 10.000 gross m 2 Schedule: 3/2026 - 6/2028 Contracting type: Collaborative project management contract 33 m€ revenue Meyer Turku's HQ, Turku (ongoing) 39 m€ revenue Extent: 14.600 gross m 2 Schedule: 4/2026 -1/2028 Market Square Hotel, Oulu (completed) Extent: 6.500 gross m 2 Schedule: 9/2025-6/2026 Contracting type: Development project 20 m€ project value Contracting type: Development project 7 ‌NON-RESIDENTIAL: COMPLETED, ONGOING AND UPCOMING PROJECTS LUMI AI Factory data centre , Kajaani (ongoing) Extent: 7.000 gross m 2 Schedule 1/2026 - spring 2027 Contracting type: Collaborative project management contract 54 m€ revenue DayOne data centre , Lahti (ongoing) Extent: Extent not to be shared, agreed with the customer The project Final phase of Tays renewal programme , Tampere (upcoming) 600 m€ revenue Extent: 170.000 gross m 2 Schedule: 2025-2032 Schedule: 5/2026 - 2027 will increase the order backlog by (estimation) Contracting type: Project management contract with target-price and guaranteed maximum price approx. 35 % compared to Q4/2025 Contracting type: Project management contract 8 ‌NON-RESIDENTIAL: COMPLETED, ONGOING AND UPCOMING PROJECTS Kouvola multipurpose arena (upcoming) Extent: 7.000 gross m 2 Schedule: 18 m€ revenue Contracting type: Autumn 2026 - spring 2028 Collaborative design-and build project Renovation and construction of Lyseo Upper Secondary School, Hämeenlinna (upcoming) New main police station, Kuopio (upcoming) Extent: 8.470 gross m 2 Schedule: Autumn 2026 - spring 2028 21,5 m€ revenue Extent: 16.800 gross m 2 75 m€ revenue Schedule: Autumn 2026 -summer 2029 (estimation) 9 Contracting type: Project management contract with target-price and guaranteed maximum price Contracting type: Senate Properties' flagship alliance project ‌Oversupply burdens the residential market RESIDENTIAL MARKET The residential investor market picked up in the early part of the year, especially due to large residential portfolio transactions and the partial opening of the fund market, but the risk of inflation and interest rates still has a negative impact on investor demand. The market for development and developer-contracted residential projects continues to be burdened by an oversupply of apartments, and sales of new properties have remained very subdued throughout the first half of the year. State-subsidised residential production has been responsible for the majority of new construction. The planned reduction of it will weaken demand in the short term and support the recovery of private residential construction in the longer term. 10 Sources: CFCI, Federation of Real Estate Agency, KTI, ALMA INSIGHT S 22 26 23 24 25 26 2020-2026 (KTI) Forecast 03/26 Forecast 09/25 2026 -3.0% +12,0% Retail Hotel Office Public use Industrial Residential Sales of old apartments, units 8000 Number of rental listings in Etuovi.com service 6000 4000 2000 0 6,000 5,000 4,000 3,000 2,000 1,000 0 20 21 22 23 24 25 26 1/2020-06/2026 20 21 Helsinki Turku 22 23 Vantaa Tampere 24 25 Espoo 7.2 16 CFCI's forecast 03/2026: Residential (€ billion) Number of real estate transactions (billion EUR) 12 8 4 23 24 25 26 2027 -1.0% 27 8.0 6.0 4.0 2.0 0.0 7.0 21 5.5 4.4 2.7 3.4 2.3 0 20 21 22 20 ‌RESIDENTIAL: COMPLETED, ONGOING AND UPCOMING PROJECTS Niittykumpu Neuvokas Espoo (completed) 13 m€ revenue Extent: 3.928 gross m 2 Schedule: 1/2025-5/2026 Espoo Vermonniitty for ICECAPITAL Housing Fund VII Ky Espoo (ongoing) 12 m€ revenue Extent: 3.449 gross m 2 Schedule: 5/2026 - 6/2027 Espoo Mårtensbro for Espoon Asunnot Espoo (ongoing) 17 m€ revenue Extent: 8.845 gross m 2 Schedule: 6/2026 - autumn 2027 Contracting type: Developer-contracted project Contracting type: Development project Contracting type: Turnkey project 11 ‌Revenue rises, year-end earnings outlook confirmed Business H1 2026 Revenue 340.2 m€ (330.2) Operative operating profit 0.0 m€ (1.9) Order backlog 1,023.9 m€ (931.8) Towards a strong end of the year As expected, the result is still low but will turn to clear growth during the rest of the year due to growing volumes and slightly better profitability. The result was weakened by the timing of the Group's fixed costs and the cautious revenue recognition margins of certain early-stage projects. Projects that have been won and are in the development phase provide a good foundation for a strong rest of the year. The market situation offers opportunities The construction market situation remains challenging, but it also offers opportunities. Demand in the public sector supports the contracting market, and data centres offer the potential for profitable growth. The renovation market shows growing potential. 12 ‌Sustainably profitable Lifecycle-wise construction 13 1 0 F e b r u a r y 2 0 2 6 P r e s e n t a i o n n a m e a n d a u t h o r Long-term objectives 2029-2030: Operative operating profit at least EUR 50 million Revenue EUR 900 million ‌Strategy: Portfolio structure adapts to market demand 98% 2% 98% 2% 98% 2% 98% 2% To n ni a C O 2 14 e 100% Others Revenue for residential and non-residential construction, % (Rolling 12 monthts) Revenue for project types, % (Rolling 12 months) 100% 80% 60% 95% 40% 20% -% 2Q25 3Q25 4Q25 1Q26 5% 2Q26 Developer and development projects 20% Non-residential Residential 10% 2Q26 8% 1Q26 7% 4Q25 8% 3Q25 8% 2Q25 -% 80% 40% 90% 92% 93% 92% 92% 60% ‌An extensive project development pipeline enables the target portfolio OULU TAMPERE JYVÄSKYLÄ Total Residential (development and developer-contracted projects) approx. 417,000 floor m 2 Greater Helsinki area, 307,000 floor m 2 Regions, 110,000 floor m 2 Non-residential (development projects) approx. 606,000 floor m 2 Greater Helsinki area, 202,000 floor m 2 Regions, 404,000 floor m 2 approx. 1,023,000 floor m 2 The project development base has grown by 50% since 2023 TURKU GREATER HELSINKI AREA ‌Strategy: ESG indicators have developed positively 16 10 10 14 14 20 15 2021 2022 2023 2024 2025 Q2 2026 Carbon emissions form SRV's own operations (Rolling 12 months) 18.0 16,000 12,000 9,997 8,000 5.0 4,000 6,739 0 1,716 2,401 2021 2022 2.9 636 1,138 2023 2.4 313 1,446 2024 1.0 84 0.9 628 2025 129 527 Q2 2026 75 40 35 30 25 20 15 10 5 0 2022 2023 2024 2025 Q2 2026 *of taxonomy-eligible revenue 54% 69% 70% 70% 67% 100% 80% 60% 40% 20% -% Share of revenue from EU taxonomy-aligned and environmentally classified projects* 80 70 B2B NPS (national) 78 72 11 61 60 50 50 40 30 20 10 0 2022 2023 2024 2025 Q2 2026 Employee Net Promoter Score (eNPS) Lost time incident frequency rate (LTIF, rolling 12 months) 2022 2023 2024 2025 Q2 2026 5 0 7 9 ‌ Half-year Report 1-6/2026 ‌Revenue turned to growth, result still moderate 156 148 126 Revenue increased by 18 % from the comparison period. SRV Infra Oy, which was sold in December 2025, accounted for EUR 12.5 million of revenue from non-residential construction in the comparison period. The higher volume than in the comparison period had a positive impact on operative operating profit. The result was weakened by the fact that the revenue recognition margin of certain early-stage projects is still moderate due to risk provisions, as well as the timing of the Group's fixed costs. 18 0 172 1.0 0.8 0.4 40 0.0 -0.3 1.3 -1.0 2Q25 3Q25 4Q25 1Q26 2Q26 2Q25 3Q25 4Q25 1Q26 2Q26 Non-residential construction Residential construction 80 120 2.0 199 141 15 3.0 160 12 28 169 13 160 3.6 4.0 200 16 200 240 5.0 216 Operative operating profit, EUR million Revenue, EUR million ‌SRV redeemed its hybrid bonds as planned At the end of the review period, the Group's financial reserves totalled EUR 147.1 (95.2) million. Cash flow from operating activities and investing activities totalled EUR 87.1 (17.3) million. Cash flow was positively impacted by the completion of Oulu Market Square Hotel, the seasonal variation in advances received for contract production and the recognition of income from Niittykumpu Neuvokas. On 30 June 2026, SRV redeemed the convertible hybrid bonds issued in 2016 and 2018, with a total nominal value of approximately EUR 39 million. 19 60 50 40 30 20 10 0 2Q26 50.1 50.7 49.4 51.4 Financial reserves, EUR million 145 147 42.1 160 140 120 100 80 60 40 20 0 115 95 107 2Q25 3Q25 4Q25 1Q26 2Q26 2Q25 3Q25 4Q25 1Q26 -33.5 90 60 30 0 -30 Operating cash flow after investments, EUR million 87 Gearing, IFRS16 adjusted, % 17 28 7 0 -10 -20 -30 -40 -50 -60 -13.3 -17.3 -13.6 Equity ratio, IFRS16 adjusted % 2Q25 3Q25 4Q25 -33 1Q26 2Q26 2Q25 3Q25 4Q25 1Q26 -51.8 2Q26 ‌Order backlog remained strong In April-June, a total of EUR 167.5 (37.7) million in new contracts were signed. The order backlog included the new headquarters of Meyer Turku for the real estate investment company Balder, the Kouvola multi-purpose arena, 111 apartments for Espoon Asunnot in Mårtensbro, Espoo, 49 rental apartments for ICECAPITAL Housing Fund VII Ky in Vermonniitty, Espoo, and the renovation of the Hakkari school. The value of projects won or tied to pre-development/development agreements that have not yet been recorded in the order backlog is UR 1.3 (0.6) billion. In addition, the order backlog for service periods in lifecycle projects was EUR 101.0 (104.1) million. 20 3Q23 892 2Q23 0 250 613 859 864 784 805 903 923 920 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Non-residential Residential 147 1250 Order backlog, EUR million 1180 1000 993 156 996 137 1049 112 1020 129 1067 133 1053 130 1043 139 1031 1024 937 932 127 931 167 165 147 772 750 159 500 1047 837 858 ‌Order backlog structure contracting-oriented, volume of development projects growing The order backlog for residential construction increased by EUR 858.8 (804.8) million. A significant part of the order backlog consists of a project management and alliance contracting. The order backlog of residential construction increased by EUR 165.0 (127.0) million. 21 654 Development contracting / sold to investors Developer contracting Other 616 724 682 98 93 200 482 50 90 90 99 0 5 Q2 2025 17 Q3 2025 10 Q4 2025 6 Q1 2026 38 Q2 2026 0 0 Q2 2025 0 Q3 2025 0 Q4 2025 10 Q1 2026 17 Q2 2026 Development contracting Alliance and project management contracting Life-cycle projects and others *Infrastructure construction included in the order backlog until 3Q25 147 Order backlog of the non-residential construction*, EUR million Order backlog of the residential construction, EUR million 200 1,000 864 134 859 159 167 165 800 805 145 784 400 139 150 152 127 61 59 55 600 613 121 57 100 37 ‌Two new residential projects were launched during the review period At the end of June, a total of 629 apartments were under construction. In April, SRV signed two residential project agreements: with Espoon Asunnot for the construction of a 111 rental apartment financed by Varke in Mårtensbro, Espoo, and with ICECAPITAL Housing Fund VII Ky, for the construction of 49 rental apartments in Vermonniitty, Espoo. Niittykumpu Neuvokas was completed in May. At the end of June, the number of unsold completed apartments was 117 (94). 22 250 720 419 570 446 493 627 646 364 445 500 893 559 522 520 532 541 101 629 623 138 0 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Developer contracting Development contracting/ Sold to investors Other 96 40 53 53 53 0 0 0 0 0 0 93 86 0 378 138 62 62 0 0 47 93 469 520 445 226 239 101 0 150 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Developer contracting Development contracting/ Sold to investors Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 49 47 40 53 Apartments, start-ups (pcs) 74 0 50 125 49 138 50 106 146 750 Apartments, under construction (pcs) 1250 1056 1000 101 74 96 111 100 103 220 125 699 177 160 177 101 200 220 239 250 ‌ Outlook 2026 The Group's revenue for 2026 is expected to be over EUR 800 million Unchanged. Revenue in 2025: EUR 705.6 million ‌OUTLOOK 2026 (REFINED) Operative operating profit is expected to be between EUR 10-20 million Refined. Earlier guidance: Operative operating profit expected to exceed the 2025 level. Operative operating profit in 2025: EUR 6.8 million 24 ‌READY FOR PROFITABLE GROWTH 1. 2. 3. Revenue and profit to grow in the second half of the year As expected, the result was still low, but revenue is improving and the result will turn to clear growth during the rest of the year, as several projects won during the year and those in the development phase will start to accumulate revenue, and the average margin will improve as the structure of the portfolio changes. The market situation offers possibilities as well The construction market situation remains challenging, but it also offers opportunities. In non-residential construction, demand from the public sector supports the contracting market, and data centres form a significant growth segment. We see growing potential in the renovation market. . In residential construction, inflation and interest rate risks increase uncertainty, and the market will remain weak for the time being. Confidently towards the rest of the year Our outlook is supported by a strong order and project development backlog and a stronger-than-expected recovery in the Finnish economy. We will continue to focus on high-quality customer work and high-quality construction, improving profitability and taking advantage of new business opportunities. We are well positioned to strengthen our performance and profitability in the second half of the year. 25 ‌

View stock analysis, news, and events for Srv Yhtiot Oyj