SRV Interim Report 1-9/2025: Revenue and operative operating profit down – financial reserves strengthen further

SRV’s operating environment in 2025 has been shaped by weak investor and consumer demand, rising geopolitical risks and their indirect effects on materials and labour, and continued uncertainty around the start-up of new projects. Revenue for the year is mainly generated by lower-margin but lower-risk cooperative contracting, with a smaller share from competitive and negotiated contracts. Development projects sold to investors remain limited, and no developer-contracted housing projects will be completed during 2025.

Q3/2025 performance

In the third quarter, SRV’s business volumes remained low, reflecting the subdued market. Revenue declined 13% year-on-year to EUR 159.7 million, and operative operating profit was EUR 1.3 million. The result was impacted by lower volumes and a sales mix dominated by contracting, which carries lower margins than developed and developer-contracted construction. Infrastructure construction posted a stronger margin than in the comparison period. While performance aligned with expectations in this market, it is not considered satisfactory. The company continues to focus on resilient contracting revenue while preparing for future growth driven by its own project development.

Order backlog and pipeline

SRV’s order backlog remained stable quarter-on-quarter at EUR 931 million at the end of September. New entries during the period included the extension of the Myllypuro health and well-being centre, seven apartment buildings and two parking facilities for the City of Helsinki in Maunula, and the completion of the Market Square Hotel in Oulu. Contracts for the hotel completion were signed in September, enabling the start of finishing works.

In addition, SRV has approximately EUR 1.1 billion in projects won or committed to via preliminary or development agreements that are not yet in the order backlog. These include the Turku Ratapiha project, upcoming phases of the Helsinki Laakso Joint Hospital, and the final phase of the Tampere University Hospital renewal programme, adjacent to which SRV is currently building a new facility for child and adolescent psychiatry. If realised, SRV’s share of the cooperative project management contract would total about EUR 600 million, to be added to the order backlog in phases as contracts are signed during 2025–2032. The project would not tie up SRV’s capital and would represent a significant revenue driver in the coming years.

New wins and development-phase projects

SRV signed an agreement with CSC – IT Center for Science to launch the development phase of the LUMI AI Factory data centre. The project’s investment potential will be determined during the development phase by year-end and requires a separate investment decision from CSC to proceed.

In early October, SRV and Trevian, as the Raksila 2.0 consortium, were selected by the City of Oulu to develop the Oulu Experience Arena and Environment project. The initiative begins with a two-year development and urban planning phase, with the final investment and construction decision expected by the end of 2027. If carried out, SRV’s share of the arena complex construction contract is expected to exceed EUR 100 million and would be recognised in the order backlog in stages from 2028 onward. In line with the competition submission, additional plots in the area will be reserved for SRV for further development.

Financial position and risk management

SRV’s financial position remains strong. Financial reserves, comprising cash, cash equivalents and undrawn credit facilities, increased to EUR 107 million at the end of the review period. The number of completed, unsold apartments is low and the majority are leased. In the prevailing uncertainty, a sufficient order backlog, disciplined project control and robust solvency are key strengths.

Sustainability and lifecycle-wise construction

SRV advanced lifecycle-wise construction during the review period. The company announced it is the first construction company in Finland to calculate a corporate-level nature footprint. This work was carried out as part of a research project in cooperation with the University of Jyväskylä and the cities of Espoo and Tampere to develop nature footprint and handprint methodologies for construction and urban planning.

Market outlook

SRV does not expect a broad-based recovery in consumer and investor markets during the final months of 2025, though some improvement signals have emerged. The company aims to launch select development projects, potentially including developer-contracted ones. Market growth is expected to begin in 2026, supported by positive wage development and lower labour taxation that strengthen purchasing power, while a halt in the decline of interest rates and housing prices reduces postponement of home purchases. Growth is expected to accelerate in 2027.

SRV is preparing for recovery by ensuring optimal supply positioning. The company continues to strengthen its project development base and pursue targeted plot acquisitions. During the review period, five centrally located plots were acquired in Kaleva, Tampere. As populations grow in SRV’s key urban regions and demand rises across segments, SRV is ready to launch new projects on tight schedules.

Key highlights of the review period

• Q3 revenue: EUR 159.7 million (–13% year-on-year)
• Q3 operative operating profit: EUR 1.3 million
• Order backlog at period-end: EUR 931 million
• Projects in development/preliminary agreements not yet in backlog: ~EUR 1.1 billion
• Potential share of cooperative hospital project: ~EUR 600 million (2025–2032, phased recognition)
• Oulu arena project (if executed): SRV share estimated to exceed EUR 100 million (from 2028, phased)
• Financial reserves at period-end: EUR 107 million

Significant events after the period

No significant events occurred after the end of the review period.

All forward-looking statements herein are based on current expectations and assumptions and are subject to risks and uncertainties that may cause actual results and financial position to differ materially.

SRV, founded in 1987 and listed in Helsinki, operates in Finland’s growth centres. In 2024, revenue totalled EUR 745.8 million. The company focuses on sustainable urban development and lifecycle-wise construction.