SRV GROUP PLC INTERIM REPORT 7 MAY 2026 AT 08.30 EEST
SRV Financial statement release 1–3/2026: 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
January - March 2026 in brief:
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Revenue was EUR 140.6 (161.4) million (-12.9%).Revenue from non-residential construction was EUR 125.6 (149.8) million and revenue from residential construction was EUR 15.0 (11.7) million. SRV Infra Oy, which was sold in December 2025, accounted for EUR 9.0 million of the revenue from non-residential construction during the comparison period.
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Operative operating profit amounted to EUR -0.3 (1.1) million. Non-residential construction volumes in alliance projects were lower than in the comparison period, which had a negative impact on operative operating profit. Both volumes and margins developed favourably in lifecycle projects and other non-residential contracting. In residential construction, volumes and margins improved slightly on the comparison period.
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Operating profit was EUR -0.3 (0.7) million. The operating profit for the comparison period was weakened by approximately EUR 0.4 million in expert fees related to the sale of the Pearl Plaza shopping centre. The result before taxes was EUR -2.2 (-0.5) million.
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Order intake in January-March was strong – with new agreements signed valued at EUR 395.4 (140.9) million. The most significant new contract was the DayOne data center to be built in Lahti.
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At period-end, the order backlog stood at EUR 1,030.5 (1,042.6) million. In addition, the order backlog for service periods in lifecycle projects amounted to EUR 101.9 (106.0) million. SRV also has projects valued at about EUR 1.3 (0.6) billion that have been won or committed to with preliminary/development agreements, but which have not yet been entered into the order backlog.
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Excluding the impact of IFRS 16, the equity ratio was 51.4 (49.1) per cent and gearing was -13.6 (-4.5) per cent.
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Financing reserves totalled EUR 114.6 (80.5 3/2025) million.
Outlook for 2026
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The Group’s revenue for 2026 is expected to exceed EUR 800 million (Revised 23 April 2026. Previous guidance: EUR 650–750 million; revenue in 2025: EUR 705.6 million)
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The Group’s 2026 operative operating profit is expected to exceed 2025 levels (Revised 23 April 2026. Previous guidance: operative operating profit is expected to be positive; operative operating profit in 2025: EUR 6.8 million)
Earnings for 2026 will be weighted towards the second half of the year, when projects won in 2026 and those currently in the development phase begin to generate revenue and margins. Lower revenues and margins are expected during the first half of the year as a result of the low order backlog at the end of 2025.
President & CEO's review
“Our order intake in the first quarter of the year was very strong: we signed new agreements worth nearly EUR 400 million.This is the highest order intake of this decade and the fourth highest quarterly order intake in our history. Our order backlog, which has grown to over a billion, together with projects that we have already won, but which have not yet been entered into the order backlog, will pave the way for strong performance in the rest of the year, as these projects begin to generate revenue and profit. January–March is always our weakest quarter, and as we noted in our 2025 financial statement bulletin, revenue and operative operating profit for 2026 will be weighted towards the second half of the year. The market situation took a step backward during the quarter, as the cautious optimism seen at the turn of the year gave way to uncertainty following the war in Iran, and consumer confidence fell more sharply.
As expected, the company’s revenue for the first months of the year remained weak as a result of the low order backlog at the end of 2025. Revenue fell to EUR 140.6 million, which was about 13 per cent less than in the comparison period. SRV Infra Oy, which was sold in December 2025, accounted for EUR 9.0 million of the revenue from non-residential construction during the comparison period. Our operative operating profit totalled EUR -0.3 million, and was negatively impacted by a decline in non-residential construction volumes compared to the comparison period. Residential construction achieved a better margin than in the comparison period.
Our order backlog strengthened significantly and stood at EUR 1,030.5 million at the end of March. Non-residential projects entered into the order backlog during the first quarter included a data centre for DayOne in Lahti, Rovaniemi main police station, and Marjoniemi Comprehensive School in Kouvola. DayOne’s data centre increased SRV's order backlog by approximately 35 per cent compared with the order backlog reported for Q4 2025. This project will be recognised as income according to the degree of completion in 2026 and 2027, and the data centre is scheduled to open in 2027. Alongside public-sector construction, the booming data centre market is a bright spot in a construction market currently characterised by weak demand. Thanks to our profound expertise in technical building systems and our experience in challenging projects, technically demanding data centres offer us the potential for growth. And we are indeed strengthening our position in the data centre market: in addition to the Lahti project, we are currently building the LUMI AI Factory data centre in Kajaani and are negotiating several interesting projects.
In residential construction, we made progress with our goals of increasing the proportion of both development and developer-contracted projects in our portfolio. The order backlog for residential construction grew when we launched two residential projects: a 47-unit development project for Keva's and Taaleri's Eden Asunnot (Espoon Luhtasammal) and a 49-unit rental apartment building for Y-Säätiö. In April, after the end of the review period, we signed an agreement with ICECAPITAL Housing Fund VII Ky to build development project Piaffe, a 49-unit building in Vermonniitty, Espoo. The development properties are our first investor sales in three years and reflected the investor demand that was picking up at the beginning of the year.Two developer-contracted residential projects that are currently under construction for consumers in Espoo – Neuvokas and Luhtavehka – will be completed and recognised as income this year. We are developing new opportunities in Helsinki district such as Lauttasaari, where we are aiming for some project startups in early 2027.
Progress has also been made with our strategic goal of increasing the number of non-residential development projects in our portfolio. In April, after the end of the review period, we signed an agreement with the real estate investment company Balder to develop Meyer Turku’s new headquarters in Blue Industry Park near the Turku shipyard. The transaction is still contingent upon the building permit entering into force. This development project has a total value of about EUR 38.5 million, which we expect to enter into SRV’s order backlog in June.
The company's balance sheet is in good shape, and the number of unsold, completed residential units remained low at the end of March (89 units). SRV has a strong financial position, which safeguards our ability to increase the number of development and developer-contracted projects in line with our strategy. We will also redeem the remainder of our previous hybrid bonds, with a nominal value of EUR 39.1 million, in June.
The construction site for the Ohkola Hospital Building in Mäntsälä won first place in the 2025 Finnish national occupational safety competition for residential construction, which is a fine testament to both our systematic safety efforts and the safety culture that we have established. The new hospital building in Ohkola is part of our large-scale Laakso Joint Hospital project, which is scheduled for completion in 2030.
The market environment has deteriorated as a consequence of the war in Iran. Rising energy prices have fuelled inflation and caused an – at least temporary – rise in interest rates. These effects are dampening both consumer and investor demand. Public-sector demand has remained steady, however, and data centre projects have emerged as a significant growth segment. In spite of the challenging market environment, we expect to start up some of the residential and non-residential development projects that are currently in the negotiation phase by the end of the year.”
Saku Sipola
Group Key Figures
| 1-3/ | 1-3/ | 1-12/ | |||
| (IFRS, EUR million) | 2026 | 2025 | change | change, % | 2025 |
| Revenue | 140.6 | 161.4 | -20.9 | -12.9 | 705.6 |
| Operative operating profit | -0.3 | 1.1 | -1.5 | 6.8 | |
| Operative operating profit, % | -0.2 | 0.7 | -0.9 | 1.0 | |
| Operating profit | -0.3 | 0.7 | -1.1 | 27.5 | |
| Operating profit, % | -0.2 | 0.5 | -0.7 | 3.9 | |
| Profit before taxes | -2.2 | -0.5 | -1.7 | 19.4 | |
| Net profit for the period | -1.6 | -0.2 | -1.4 | 15.5 | |
| Net profit for the period, % | -1.1 | -0.1 | -1.0 | 2.2 | |
| Earnings per share, eur 1) | -0.15 | -0.05 | -0.10 | 0.78 | |
| Order backlog (unrecognised) | 1,030.5 | 1,042.6 | -12.1 | -1.2 | 772.3 |
| Equity ratio, % | 36.6 | 35.0 | 1.6 | 35.7 | |
| Equity ratio, %, excl. IFRS 16 2) | 51.4 | 49.1 | 2.3 | 49.4 | |
| Net interest-bearing debt | 92.1 | 101.1 | -8.9 | -8.8 | 56.8 |
| Net interest-bearing debt, excl. IFRS 16 2) | -23.7 | -7.1 | -16.6 | -59.6 | |
| Net gearing ratio, % | 56.9 | 68.9 | -12.0 | 34.3 | |
| Net gearing ratio, %, excl. IFRS 16 2) | -13.6 | -4.5 | -9.1 | -33.4 | |
| Financial reserves | 114.6 | 80.5 | 34.1 | 42.4 | 144.6 |
1. In the calculation of earnings per share, tax-adjusted interest on hybrid bonds is deducted from the profit for the period.
2. The figure has been adjusted to remove the impacts of IFRS 16.
Significant events after the period
On 23 April 2026, SRV announced that the company was raising its 2026 forecast for both revenue and operative operating profit. This revised guidance was based on a better-than-expected order intake during early 2026 and favourable progress in projects currently in the development phase.
SRV announced on 6 May 2026 that it will redeem in full on 30 June 2026 the convertible hybrid bonds issued in 2016 and 2018, with nominal values of EUR 14.5 million and EUR 24.7 million.
Helsinki, 7 May 2026
Board of Directors
All forward-looking statements in this interim report are based on management’s current expectations and beliefs about future events. The company’s actual results and financial position may differ materially from the expectations and beliefs such statements contain due to a number of factors that have been presented in this interim report.
Briefing, webcast and presentation materials
A briefing for analysts, investors and media representatives will be held at SRV’s head office at Horisontti in Kalasatama, Helsinki on 7 May 2026, starting at 11:00 EEST. A webcast of the briefing can be followed live at www.srv.fi/en/investors. A recording will be available on the website after the presentation. The materials will also be made available on the website.
For further information, please contact:
Saku Sipola, President & CEO, tel. +358 (0)40 551 5953, saku.sipola@srv.fi
Jarkko Rantala, CFO, tel. +358 (0)40 674 1949, jarkko.rantala@srv.fi
Miia Eloranta, Senior Vice President, Communications and Marketing, tel. +358 (0)50 441 4221, miia.eloranta@srv.fi
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SRV in brief
SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter – and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.
Our company, established in 1987, is listed on the Helsinki Stock Exchange. Our operations focus on growth centres in Finland. In 2025, our revenue totalled EUR 705.6 million. In addition to approximately 700 in-house staff, we have a network of around 2,900 partners.
SRV – Building for life