Source January-June 2026 Interim Report published on 6 August 2026:
Financial income and expenses
April-June Financial income and expenses amounted to EUR -1.7 (-2.0) million. Net financial expenses included EUR 0.3 (0.6) million in dividend and interest income, EUR 0.4 (0.0) million in fair value changes on fund investments, EUR 0.0 (-0.2) million in fair value changes on derivatives, and EUR -0.4 (-0.2) million in interest expenses. In addition, financial expenses included EUR -1.5 (-1.5) million in interest on lease agreement debts under IFRS 16 and EUR -0.4 (-0.7) million in other financial expenses.
January-June Financial income and expenses amounted to EUR -3.6 (-3.3) million. Net financial expenses included EUR 0.5 (1.3) million in dividend and interest income, EUR 0.4 (0.0) million in fair value changes on fund investments, EUR 0.0 (-0.4) million in fair value changes on derivatives, and EUR -0.8 (-0.4) million in interest expenses, of which EUR 0.1 (0.0) million was capitalised as of the beginning of the year. In addition, financial expenses included EUR -3.0 (-2.8) million in interest on lease agreement debts under IFRS 16 and EUR -0.8 (-1.0) million in other financial expenses.
Financial position
The equity ratio was 28.5 (34.4) per cent and gearing was 40.8 (68.8) per cent. Excluding the impact of IFRS 16, the equity ratio was 42.1 (50.1) per cent and gearing was -51.8 (-13.3) per cent. The gearing declined to a very low level due to the strong cash position.
Capital employed stood at EUR 276.2 (297.3) million and the return on investment was 0.6 (1.9) at the end of the review period. Excluding the impact of IFRS 16, capital employed amounted to EUR 170.9 (189.3) million.
Net interest-bearing debt totalled EUR 49.0 (98.9) million at the end of the review period. Net interest-bearing debt saw a year-on-year decrease of EUR 49.8 million. Excluding the impact of IFRS 16, net interest-bearing debt totalled EUR -68.7 (-20.7) million, representing a decrease of EUR 48.1 million on the comparison period. Housing corporation loans accounted for EUR 19.6 (16.7) million of the interest-bearing debt.
Financial reserves
At the end of the review period, the Group’s financing reserves totalled EUR 147.1 (95.2) million, consisting of undrawn project financing amounting to EUR 0.0 million, an undrawn committed revolving credit facility of EUR 40.0 million, EUR 56.7 million in cash and cash equivalents, and short-term interest fund investments of EUR 50.4 million.
Credit facilities
The company has a EUR 40 million committed revolving credit facility with four banks. In May 2026, during the reporting period, SRV and its lenders agreed to exercise the one-year extension option for the company’s revolving credit facility. This revolving credit facility will now mature in May 2029. The interest margin on the revolving credit facility is tied to two of SRV's key sustainability targets: the emission intensity of indirect emissions (Scope 3) and the lost-time injury frequency (LTIF). EUR 10 million of the revolving credit facility had been allocated as a committed overdraft facility by the end of the review period, and it remained unused at the end of the period. The remaining EUR 30 million was also unused at the end of the review period.
The company has a binding EUR 15 million facility with two financiers for financing plot acquisitions. This facility is valid until June 2028, and remained unused at the end of the review period.
Hybrid bonds
In December 2025, SRV issued a EUR 22.5 million unsecured and subordinated green hybrid bond with a fixed interest rate of 10 per cent. The hybrid bond has no definite maturity date, but SRV has the right to redeem the hybrid bond for its nominal value on the review date of 1 December 2028 and on each interest payment date thereafter. The net proceeds of the hybrid bond issue will be used to finance or refinance approved green projects in accordance with SRV's Green Bond Framework, dated 19 November 2025.The hybrid bond has been recognised in equity less issue costs, and on 30 June 2026 it had a value of EUR 21.8 million in equity on the balance sheet.
In February 2026, SRV made redemptions of hybrid bonds from a very limited and predetermined number of bondholders for a total amount of EUR 2.1 million. All of the redeemed hybrid bonds were cancelled. On 6 May 2026, SRV announced that it would redeem all of its outstanding convertible hybrid bonds, with nominal values of EUR 14.5 million and 24.7 million euros. These hybrid bonds were redeemed as planned on 30 June 2026 in accordance with the terms and conditions of the bonds. Following this redemption, SRV’s only remaining hybrid bond is the EUR 22.5 million hybrid bond issued in December 2025, as described above.
Commercial papers
The company has a EUR 100 million domestic commercial paper programme. By the end of the review period, EUR 4.0 million in commercial paper had been issued from this programme.
Financial covenants of financing agreements
The financial covenants of SRV’s financing agreements are equity ratio, gearing, ratio of interest-bearing net debt to EBITDA, minimum liquidity, and certain other restrictions. The covenant levels of these financing agreements are determined on the basis of the accounting principles in force when the loan agreements were signed. Recognition of income on the basis of percentage of completion in developer-contracted projects is taken into consideration in the calculation of ratio of interest-bearing net debt to EBITDA and the equity ratio covenant. The loan agreements also contain some other deviations from traditional covenant calculation methods. The main covenants of the financing agreements are presented in note 11 to the interim report.
Investment commitments
SRV's investment commitments totalled EUR 19.6 (19.6) million at the end of the review period, and consisted of investments in Fennovoima and the Tampere Central Deck and Arena project.