SRV - Strong growth, modest profitability
SRV's net sales in Q2 amounted to EUR 186.3m, slightly above our estimate of EUR 178.7m. Operative EBIT remained modest at EUR 1.5m, below our estimate of EUR 2.5m. The order backlog remains robust as expected.
- Revenue in Q2 was EUR 186.3m (EUR 143.1m in Q2/23), above our estimate of EUR 178.7m. Revenue grew 30.2% y/y.
- The operative operating profit in Q2 amounted to EUR 1.5m (EUR -3.9m in Q2/23), below our estimate of EUR 2.5m.
- SRV’s signed new agreements worth EUR 215.0m (EUR 245.9m in Q2/23).
- The order backlog in Q2 was EUR 1067.3m (EUR 993.1m in Q2/23), up by 7.5% y/y.
- Business construction revenue in Q2 was EUR 173.3m, (EUR 163.0m Evli estimate) up 50.1% y/y. Growth was driven by project management and alliance contracts, particularly due to hospital project construction.
- Housing construction revenue in Q2 was EUR 13.0m (EUR 15.7m Evli estimate). Housing construction remained quiet as expected, with 532 residential units under construction.
- There were no developer contracting start-ups during H1/24, the company believes that it will be possible to start up selected developer-contracted or development projects during the second half of the year.
- SRV outlook 2024 (unchanged): Full-year consolidated revenue for 2024 is expected to grow compared to 2023 (revenue in 2023: EUR 610.0 million). Operative operating profit is expected to improve on 2023 (operative operating profit in 2023: EUR 1.1 million).