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SRV Yhtiöt Oyj : Interim Report Presentation Q1 2026
SRV Yhtiöt Oyj : Interim Report Presentation Q1
About this update from Srv Yhtiot Oyj
Interim Report 1-3/2026 SRV Group Plc 7 May 2026 Substantial order intake paves the way for strong performance in the rest of the year - first-quarter revenue and operative operating profit low, as expected Saku Sipola, President & CEO Jarkko Rantala, CFO Agenda 2 1 Market overview Strategy 3 Interim Report 1-3/2026 4 4 Outlook 2026 The macroeconomic environment remained uncertain The investor market, which picked up especially in the early part of the year, weakened as the war in Iran and the resulting rise in energy prices accelerated inflation and interest rates rose, at least temporarily. The clear weakening of consumer confidence weighs on private consumption and the housing market. The market conditions for construction are 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 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 1/2020-3/2026 1/2020-3/2026 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 1/2020-4/2026 1/2020-3/2026 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 (%) Public sector demand has remained stable, with data centres forming a significant growth segment NON-RESIDENTIAL CONSTRUCTION Demand in the public sector has remained stable, and investments in public spaces will continue to support the contract market in the coming years. In the private sector, data centre projects in particular form a significant growth segment. The sharp increase in building permits for data centres is already reflected in the development of activity in commercial construction. Investor demand for non-residential premises showed gradual signs of recovery in the first half of the year, but the prolongation of the energy crisis and geopolitical uncertainty may weaken the development. Sources: Statistics Finland, KTI, CFCI 4 25 26 2020-2026 (KTI) 20 21 22 23 24 25 26 27 0.0 20 21 22 23 24 2026 2027 Forecast 03/26 +6.0% +4.5% Forecast 09/25 +3.0% Retail Hotel Office Public use Industrial Residential Permits, starts and completions of transport buildings* 5 4 3 2 1 0 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 Construction activities granted building permits Construction projects started Construction projects completed *Volume (million m3), moving annual sum 8 CFCI's forecast 03/2026: Non-residential (€ billion) 16 Number of real estate transactions (billion EUR) 12 8.0 7.0 7.2 6.0 5.5 0 4.4 4.0 2.7 4 2.3 2.2 2.0 1 NON-RESIDENTIAL: COMPLETED, ONGOING AND UPCOMING PROJECTS Jorvi's hospital's new ward building, Espoo (completed) 210 m€ revenue Area: 50,000 gross m 2 Schedule: Summer 2022 -January 2026 Nissniku multipurpose building, Kirkkonummi (ongoing) 36 m€ revenue Area: 9,500 gross m 2 Schedule: October 2025 -December 2027 Kruunuvuorenranta multipurpose building Helmi, Helsinki (ongoing) 60 m€ revenue Area: 17 000 brm 2 Schedule: May 2025 - Summer 2027 Contract type: Alliance Contract type: Lifecycle project Contract type: Project management contract 5 1 NON-RESIDENTIAL: COMPLETED, ONGOING AND UPCOMING PROJECTS DayOne data centre, Lahti (ongoing) Rovaniemi's main police station, Rovaniemi (ongoing) Meyer head office , Turku (upcoming) Area: Area not to be shared, agreed with the customer Schedule: May 2026 - 2027 Contract type: Project management contract with The project will increase the order backlog by approx. 35 % compared to Q4/2025 Area: 12,800 gross m 2 50 m€ revenue Schedule: April 2026 -autumn 2028 Contract type: Flagship alliance project Area: 14,579 gross m 2 Schedule: April 2026 -January 2028 Contract type: Development project 39 m€ revenue target-price and guaranteed maximum price 6 Investor market picked up at the beginning of the year, consumer market remained weak for the time being RESIDENTIAL CONSTRUCTION The residential investor market picked up in the early part of the year, especially due to large housing portfolio transactions and the partial opening of the fund market, but inflation and interest rate risks as well as geopolitical uncertainty increase short-term uncertainty. The market for residential development and developer-contracted projects continues to be burdened by an oversupply of apartments, the unwinding of which is progressing slowly and depends on the development of urban households, changes in housing allowances and the high level of publicly subsidised production. State-subsidised residential production has accounted for the majority of new construction, but its decline will weaken demand in the short term and support the recovery of private residential construction in the longer term. 7 Sources: CFCI, Federation of Real Estate Agency, KTI 21 1/2020-02/2026 22 1.9 0.8 23 1.6 0.6 24 1.0 0.9 1.3 25 26 2020-2026 (KTI) Forecast 03/26 -3.0% Forecast 09/25 +12.0% Residential Other Sales of old apartments, units 8000 6000 4000 2000 0 20 21 22 23 24 25 26 3.5 Residential (EUR billion) 16 Number of real estate transactions (EUR billion) 12 8 4 8 6 4 2 4.8 5.2 4.6 1.1 20 0 2.3 2.1 20 21 22 2026 23 2027 -1.0% 24 25 26 27 0 2 RESIDENTIAL: COMPLETED, ONGOING AND UPCOMING PROJECTS Asunto Oy Espoon Luhtavehka, Espoo (ongoing) Ulappakatu 4, Area: 2,962 gross m 2 Schedule: December 2025 - December 2026 11 m€ revenue Contract type: Developer-contracted project Espoo (upcoming) 17m€ revenue Area: 8,845 gross m 2 Schedule: June 2026 -autumn 2027 Contract type: Turnkey contract Asunto Oy Espoon Piaffe, Espoo (upcoming) 12 m€ revenue Area: 3,449 gross m 2 Schedule: May2026 -summer 2027 Urakkamuoto: Development project 8 Substantial order intake paves the way for strong performance in the rest of the year Business Q1 2026 Revenue 140.6 m€ (161.4) Operative operating profit -0.3 m€ (1.1) Order backlog 1,030.5 m€ (1,042.6) Order intake of nearly EUR 400 million increased the order backlog to over EUR 1 billion Order intake was significant, value of signed new contracts was nearly EUR 400 million. The order backlog rose to more than EUR 1 billion. Revenue and operative operating profit were low as expected, as the profit for 2026 will be weighted towards the second half of the year. The market situation also offers opportunities 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. In residential construction, the investor market picked up in the early part of the year, but inflation and interest rate risks increase uncertainty in the short term. The consumer market will remain weak for the time being. 9 Long-term objectives 2029-2030: Sustainably profitable N Increasing shareholder value N Excellent customer and employee experience N Mitigating climate change at least EUR 50 > EUR 900 million Lifecycle-wise construction 10 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 Strategy: The portfolio structure adapts to market demand 98% 98% 2% 98% 2% To n ni a C O 2 11 e Revenue for residential and non-residential construction, % (Rolling 12 monthts) Others Revenue for project types, % (Rolling 12 months) 100% 80% 60% 94% 98% 40% 20% -% 6% 1Q25 2% 2Q25 3Q25 2% 4Q25 1Q26 Developer and development projects 20% Non-residential Residential 8% 1Q26 7% 4Q25 8% 3Q25 8% 2Q25 8% 1Q25 -% 100% 40% 92% 93% 92% 92% 92% 60% 80% 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 13 9,997 14 14 10 10 11 9 7 5 0 2021 2022 2023 2024 2025 Q1 2026 Carbon emissions form SRV's own operations (Rolling 12 months) 18.0 16,000 12,000 8,000 5.0 4,000 6,739 0 2.9 1,716 636 2,401 1,138 2021 2022 2023 2.4 313 1,446 2024 84 628 2025 1.0 0.9 270 330 Q1 2026 70% Employee Net Promoter Score (eNPS) 60 50 50 40 30 20 10 0 2022 2023 2024 2025 Q1 2026 61 72 78 B2B NPS (nationa) 78 80 70 Share of revenue from EU taxonomy-aligned and environmentally classified projects* 100% 80% 60% 40% 20% -% 67% 20 15 70% 76% 54% 2022 2023 2024 2025 Q1 2026 *of taxonomy-eligible revenue 30 25 20 15 10 5 0 2022 2023 2024 2025 Q1 2026 Lost time incident frequency rate (LTIF, rolling 12 months) Interim Report 1-3/2026 Operative operating profit low as expected 150 157 148 126 The revenue of non-residential construction decreased and the revenue of residential construction increased. SRV Infra Oy, which was sold in December 2025, accounted for EUR 9.0 million of revenue from non-residential construction in the comparison period. The volume of non-residential construction was lower than in the comparison period in alliance projects, which had a negative impact on the operative operating profit. The volume and margin level of life cycle projects and other contracting in non-residential construction developed positively. The volume and margin level of residential construction improved slightly from the comparison period. 15 1.1 Residential construction 1.3 80 1.0 0.8 40 0.0 -0.3 0 -1.0 1Q25 2Q25 3Q25 4Q25 1Q26 1Q25 2Q25 3Q25 4Q25 1Q26 Non-residential construction 120 2.0 199 141 15 3.0 160 12 169 12 161 11 160 3.6 4.0 16 200 240 5.0 216 Operative operating profit, EUR million Revenue, EUR million Strong balance sheet and financial position The financial reserves were at the end of the review period EUR 114.6 (80.5) million. Cash flow from operating activities and investing activities totalled EUR -32.7 (-1.3) million. Cash flow was impacted by normal seasonality in business, the progress of developer-contracted projects and changes in advances and receivables for ongoing contract production. 16 1Q26 Equity ratio, IFRS16 adjusted % 60 50 40 30 20 10 0 Financial reserves, EUR million 145 49.1 50.1 50.7 49.4 51.4 140 120 100 80 60 40 20 0 95 107 115 81 1Q25 2Q25 3Q25 4Q25 1Q26 1Q25 2Q25 3Q25 4Q25 1Q26 -33.5 4Q25 3Q25 2Q25 1Q25 -33 1Q26 1Q25 2Q25 3Q25 4Q25 -13.6 -17.3 -13.3 -4.5 5 0 -5 -10 -15 -20 -25 -30 -35 -40 -1 Gearing IFRS16 adjusted, % Operating cash flow after investments, EUR million 28 17 7 30 20 10 0 -10 -20 -30 -40 Strong order intake increased the order backlog to over one billion In January-March the value of new signed contracts was EUR 395.4 (140.9) million. In addition, the order backlog for service periods in life-cycle projects was EUR 102 million. The order backlog included DayOne's data centre in Lahti, Rovaniemi Main Police Station, Marjoniemi Comprehensive School, the development phase of the renovation project of the Helsinki Central Railway Station metro station, and two housing projects: a 49-apartment rental apartment building at Anna Sahlsténin katu 16 in Espoo for Y-Foundation and a 47-apartment rental apartment for Luhtasammal Keva's and Taaleri's Eden Asunnot in Espoo. SRV has projects that have been won or tied to pre-development agreements but not yet recorded in the order backlog of the value of approximately EUR 1.3 (0.6) billion. 17 0 937 613 250 864 784 805 903 923 892 858 837 742 920 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 Non-residential Residential 932 1250 Order backlog, EUR million 1180 1000 993 996 1049 112 1020 1067 133 1053 1043 1031 147 130 1047 931 871 156 137 129 139 167 127 129 147 772 750 159 500 The structure of the order backlog continues to be contracting-oriented The order backlog of non-residential construction decreased to EUR 864.0 (903.4) million. The order backlog consists mostly of project management and alliance contracting. The order backlog of residential construction increased to EUR 166.5 (139.3) million. 18 94 84 86 90 98 50 482 200 724 616 654 738 400 0 2 Q1 2025 5 Q2 2025 17 Q3 2025 10 Q4 2025 6 Q1 2026 0 0 Q1 2025 0 Q2 2025 0 Q3 2025 0 Q4 2025 10 Q1 2026 Development contracting Alliance and project management contracting Life-cycle projects and others *Infrastructure construction included in the order backlog until 3... Development contracting / sold to investors Developer contracting Other 150 Order backlog of the non-residential construction, EUR million Order backlog of the housing construction, EUR million 200 1,000 903 864 159 167 805 800 163 784 134 41 139 147 145 152 127 59 600 613 121 66 49 62 100 Apartment start-ups still at a low level 0 520 0 125 220 74 At the end of March, a total of 559 apartments were under construction. In January, SRV signed an agreement with the Y-Foundation on the construction of a 49-apartment rental apartment building, KOY Espoo's Anna Sahlsténin katu 16, in Vermonniitty, Espoo. In addition, SRV signed an agreement with Keva's and Taaleri's Eden Asunnot in January for the construction of Asunto Oy Espoon Luhtasammal, a development project with 47 rental apartments in Niittykumpu, Espoo. 19 522 0 419 646 570 378 627 445 0 364 559 47 250 500 520 532 86 817 623 0 541 893 720 0 101 101 62 62 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 Developer contracting Other Development contracting/ Sold to investors 93 93 53 53 53 0 0 0 0 101 0 699 0 62 0 226 138 446 445 469 239 138 101 103 0 96 106 74 0 177 50 47 50 100 53 40 49 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 239 750 879 1000 1056 1250 Apartments, under construction (pcs) Apartments, start-ups (pcs) 250 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 Developer contracting Other Development contracting/ Sold to investors 220 0 200 138 177 0 150 146 0 125 SRV's market share increased in residential construction 20 Outlook 2026 The company's revenue for 2026 is expected to be over EUR 800 million (Refined on 23 April 2026. Earlier guidance: EUR 650-750 million, revenue in 2025: EUR 705.6 million) OUTLOOK 2026 The operative operating profit is expected to exceed the 2025 level (Refined on 23 April 2026. Earlier guidance: Operative operating profit expected to be positive, operative operating profit in 2025: EUR 6.8 million) 22 READY FOR PROFITABLE GROWTH 1. 2. 3. Strong order backlog and order backlog outlook The order backlog is over EUR 1 billion, which predicts a strong end to the year. In addition, projects worth approximately EUR 1.3 billion have been won or tied to preliminary or development agreements that have not yet been recorded in the order backlog. Revenue and operative operating profit were low as expected, as the profit for 2026 will be weighted towards the second half of the year. Market situation also offers opportunities The construction market situation remains challenging, but it also offers opportunities. In non-residential construction, demand from the public sector supports the contract market, and data centres form a significant growth segment. In residential . construction, the investor market picked up in the early part of the year, but inflation and interest rate risks increase uncertainty in the short term. The consumer market will remain weak for the time being. Project development base and balance sheet ready when the market opens up Successes have already been achieved in development projects, even though the market recovery is not yet underway. The extensive and diverse project development base provides a basis for changes in the project portfolio as the market opens up. The strong financial position enables us to invest in growth in line with the strategy. 23