SRV - Solid performance in a tough market
SRV's net sales in Q3 amounted to EUR 146.9m, only slightly below our estimate of EUR 151.7m. Operative profitability was significantly better than expected, with operative EBIT at EUR 4.6m (EUR 1.6m Evli).
- Revenue in Q3 was EUR 146.9m (EUR 186.8m in Q3/22), slightly below our estimate of EUR 151.7m. Revenue declined 21% y/y.
- The operative operating profit in Q3 amounted to EUR 4.6m, clearly above our estimate of EUR 1.6m.
- EBIT was at EUR -4.9m, with EUR -9.5m effect coming from the sale of most of the remaining Russian assets during the quarter as communicated earlier by the company (we did not include the effect in our estimates)
- SRV’s order intake during Q3 was roughly at the level of last year, at EUR 132.5m (EUR 135.0m in Q3/22).
- The order backlog at the end of Q3 was EUR 995.6m (EUR 717.1m in Q3/22), up by 39% y/y.
- Business construction revenue in Q3 was EUR 130.5m (EUR 114.4m Evli estimate). The strong business construction revenue was driven by the robust backlog of project management and alliance projects.
- Housing construction revenue in Q3 was EUR 16.3m (EUR 36.9m. Evli estimate). The housing construction activity was even weaker during the quarter than we had previously estimated with zero developer-contracted residential units recognized as income and only 541 residential units under construction at the end of September.
- The report’s clear positive was the company’s business construction operations where the volumes increased at an even faster rate than we had expected which led to improved profitability for the segment.
- Outlook for 2023 remains unchanged.