SRV - Fairly well in line with estimates
SRV's net sales in Q3 amounted to EUR 183.5m, slightly above our estimate of EUR 179.5m. Operative EBIT was at a good level yet slightly below our estimate at EUR 4.5m (Evli est. EUR 4.9m). The order backlog remains robust as expected.
- Revenue in Q3 was EUR 183.5m (EUR 146.9m in Q3/23), slightly above our estimate of EUR 179.5m. Revenue grew 24.9% y/y.
- The operative operating profit in Q3 amounted to EUR 4.5m (EUR 4.6m in Q3/23), slightly below our estimate of EUR 4.9m.
- SRV’s signed new agreements worth EUR 273.9m (EUR 132.5m in Q3/23).
- The order backlog in Q3 was EUR 1179.6m (EUR 995.6m in Q3/23), up by 18.5% y/y.
- Business construction revenue in Q3 was EUR 167.2m, (EUR 165.0m Evli estimate) up 28.1% y/y. Growth was driven by project management and alliance contracts, particularly due to hospital project construction.
- Housing construction revenue in Q3 was EUR 16.2m (EUR 15.0m Evli estimate). Housing construction remained quiet as expected, with 446 residential units under construction (all contracts).
- No developer planned development projects have been started in 2024 and therefore no developer-contracted projects will be recognized as income in 2025. This is in line with our estimate.
- SRV outlook 2024 (SPECIFIED): The Group’s revenue for 2024 is expected to increase on 2023, and will amount to EUR 720–750 million. Operative operating profit is expected to improve on 2023, and will amount to EUR 7–12 million.
- Our estimates prior to the report were at EUR 726.3m for net sales and EUR 11.9m for operative operating profit.