SRV Half-year Report 1–6/2026: Revenue rises, year-end earnings outlook confirmed
SRV GROUP PLC HALF-YEAR REPORT 6 AUGUST 2026 AT 08.30 EEST
SRV Half-year Report 1–6/2026: Revenue rises, year-end earnings outlook confirmed
April-June 2026 in brief
- Revenue was EUR 199.6 (168.7) million (+18.3%). Revenue from non-residential construction was EUR 172.0 (156.1) million and revenue from residential construction was EUR 27.6 (12.6) million. SRV Infra Oy, which was sold in December 2025, accounted for EUR 12.5 million of the revenue from non-residential construction during the comparison period.
- Operative operating profit amounted to EUR 0.4 (0.8) million. The result was weakened by the fact that the profit margin on certain projects in their early stages is still quite modest due to both risk provisions and the timing of the Group’s fixed costs.
- The Group has specified its outlook for 2026 operative operating profit and now expects operative operating profit to be EUR 10–20 million (previous guidance: operative operating profit is expected to exceed 2025 levels).
- Operating profit was EUR 0.4 (0.7) million. The result before taxes was EUR -1.4 (-1.4) million.
- New agreements valued at EUR 167.5 (37.7) million were signed.
- At period-end, the order backlog stood at EUR 1,023.9 (931.8) million. In addition, the order backlog for service periods in lifecycle projects amounted to EUR 101.0 (104.1) 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.
- 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.
- Financing reserves totalled EUR 147.1 (95.2 6/2025) million.
- On 30 June 2026, SRV redeemed the convertible hybrid bonds issued in 2016 and 2018 with a total nominal value of about EUR 39 million.
January-June 2026 in brief:
- Revenue was EUR 340.2 (330.2) million (3.0%)
- Operative operating profit amounted to EUR 0.0 (1.9) million with an operating profit of EUR 0.0 (1.4) million. The result before taxes was EUR -3.5 (-1.8) million.
- Earnings per share were EUR -0.3 (-0.1).
- New agreements valued at EUR 562.9 (178.6) million were signed in January-June.
Outlook for 2026 (revised)
- The Group’s revenue for 2026 is expected to exceed EUR 800 million (Unchanged. Revenue in 2025: EUR 705.6 million.)
- The Group’s 2026 operative operating profit is expected to be between EUR 10 and 20 million. (Revised. Previous guidance: operative operating profit is expected to exceed 2025 levels; 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.
President & CEO's review
“Our business progressed in line with expectations during the second quarter. Revenue totalled EUR 199.6 million, representing an increase of about 18 per cent on the comparison period. Revenue exceeded the comparison period, even though the comparison period included EUR 12.5 million of revenue generated by SRV Infra Oy, which was divested in December 2025. Operative operating profit totalled EUR 0.4 million. The result were negatively impacted by the timing of the Group’s fixed costs, and conservative profit margins for a number of projects that are still in their early stages. The result therefore remained low, as expected. However, revenue has continued to increase, and clear growth in earnings is expected for the rest of the year, when several projects won during 2026 and those currently in the development phase begin to generate revenue and the average margin will improve as the portfolio structure changes.
Our order backlog remained robust, and stood at EUR 1,023.9 million at the end of the year. The total value of projects that have been won, but which have not yet been entered into the order backlog is also significant, at approximately EUR 1.3 billion. The addition of these projects to the order backlog will lay a solid foundation for positive earnings growth and a good second half of the year, as well as a strong start to 2027.
Several projects in different areas of Finland were entered into the order backlog during the second quarter: Meyer Turku’s new headquarters for the real estate investment company Balder; the Kouvola multipurpose arena; 111 residential units for Espoon Asunnot in Mårtensbro, Espoo; 49 rental units for ICECAPITAL Housing Fund VII Ky in Vermonniitty, Espoo; a daycare centre in Hakunila, Vantaa; a new maintenance centre for the Espoo Parish Union; and the development phase of the Vaarala depot in Vantaa. The Hakkari School project in Lempäälä, which was entered into the order backlog during the reporting period, is one example of our profound expertise in renovations. Our other ongoing renovation projects include the Otaniemi Chapel in Espoo, and the Central Railway Station metro station and Porthania property in Helsinki. The latter two are still in the development phase. In July, after the reporting period, we also signed a contract for renovations and new construction at the Lyseo Upper Secondary School in Hämeenlinna. We have systematically strengthened our renovation construction expertise and see growing potential for us in the renovation market. Ageing building stock, stricter energy efficiency requirements and our customers’ need to extend the lifecycles of their properties will continue to drive demand for high-quality renovation and new construction projects in the future.
In June, we completed a new hotel and event complex in Oulu’s Market Square, which will help to strengthen Oulu's tourism and events offering. In autumn 2025, after a hiatus of nearly three years, we were able to resume construction work on the Market Square Hotel project in partnership with the real estate investment company Balder Finland, which enabled us to free up the capital we had committed to the project, in line with our objectives.
Our financial position is strong, and the number of unsold completed residential units – which stood at 117 at the end of June – remains low. In June, we carried out a planned redemption of the convertible hybrid bonds issued in 2016 and 2018, with a total nominal value of about EUR 39 million. Following this redemption, our only remaining hybrid bond is the EUR 22.5 million green hybrid bond issued in December 2025.
Positive trends have been seen in our employees' wellbeing and motivation. The eNPS, which measures our employee experience, rose to a good level – 34 – during the reporting period, reflecting our employees’ high level of commitment to the company. The NPS (B2B), which measures customer satisfaction, remained very high at 75. We also continued our determined efforts to improve occupational safety, and the accident frequency rate stood at 9.1 at the end of June.
Many metrics have indicated clear signs of recovery in the Finnish economy since last autumn, but risks related to inflation, interest rates and geopolitics continue to fuel uncertainty. Residential construction is still burdened by an oversupply of housing and weak consumer demand. Although there are signs of an upswing in the market, we do not expect a more significant recovery to take place until next year. Non-residential construction is being supported by ongoing investments in the public sector and a brisk market for data centres. The latter offers significant opportunities for our expertise in technically demanding projects. We are currently engaged in a number of negotiations for new data centre projects. Data centres are characterised by their large scale in terms of monetary value, the division of design responsibilities between the client and the contractor, and a tight project schedule, which highlights the importance of the contractor’s expertise, resources and delivery reliability. Due to the complexity and time-sensitive nature of these projects, customers are very selective in their choice of partners, and there is less competition than in other types of contracting. Although data centre projects offer significant business potential, they also involve a higher level of risk than other construction projects. To date, we have selectively focused on projects in which the risk profile, contractual structures and other prerequisites have supported profitable implementation for both us and our customer. Our current data centre projects are the LUMI AI Factory in Kajaani and DayOne's data centre in Lahti, both scheduled for completion in 2027. As we gain more experience, we see the market as an even more attractive growth opportunity, and an area in which we can achieve higher profitability than in traditional contracting.
We are looking forward to the rest of the year with confidence. Our strong order backlog and project development portfolio, along with the stronger-than-expected recovery of the Finnish economy, will support our prospects. We remain focused on providing excellent customer service and high-quality construction, improving our profitability, and capitalising on new business opportunities. We are well positioned to strengthen our performance and profitability during the second half of the year.”
Saku Sipola
Group Key Figures
| 4-6/ | 4-6/ | 1-6/ | 1-6/ | 1-12/ | |||||
| (IFRS, EUR million) | 2026 | 2025 | change | change, % | 2026 | 2025 | change | change, % | 2025 |
| Revenue | 199.6 | 168.7 | 30.9 | 18.3 | 340.2 | 330.2 | 10.0 | 3.0 | 705.6 |
| Operative operating profit | 0.4 | 0.8 | -0.4 | -50.5 | 0.0 | 1.9 | -1.8 | -97.5 | 6.8 |
| Operative operating profit, % | 0.2 | 0.4 | -0.3 | 0.0 | 0.6 | -0.6 | 1.0 | ||
| Operating profit | 0.4 | 0.7 | -0.3 | -46.3 | 0.0 | 1.4 | -1.4 | -96.7 | 27.5 |
| Operating profit, % | 0.2 | 0.4 | -0.2 | 0.0 | 0.4 | -0.4 | 3.9 | ||
| Profit before taxes | -1.4 | -1.4 | 0.0 | -3.5 | -1.8 | -1.7 | 19.4 | ||
| Net profit for the period | -1.3 | -0.8 | -0.4 | -2.8 | -1.0 | -1.8 | 15.5 | ||
| Net profit for the period, % | -0.6 | -0.5 | -0.1 | -0.8 | -0.3 | -0.5 | 2.2 | ||
| Earnings per share, eur 1) | -0.11 | -0.06 | -0.05 | -0.27 | -0.11 | -0.16 | 0.78 | ||
| Order backlog (unrecognised) | 1,023.9 | 931.8 | 92.1 | 9.9 | 772.3 | ||||
| Equity ratio, % | 28.5 | 34.4 | -5.8 | 35.7 | |||||
| Equity ratio, %, excl. IFRS 16 2) | 42.1 | 50.1 | -8.0 | 49.4 | |||||
| Net interest-bearing debt | 49.0 | 98.9 | -49.8 | -50.4 | 56.8 | ||||
| Net interest-bearing debt, excl. IFRS 16 2) | -68.7 | -20.7 | -48.1 | -59.6 | |||||
| Net gearing ratio, % | 40.8 | 68.8 | -28.0 | 34.3 | |||||
| Net gearing ratio, %, excl. IFRS 16 2) | -51.8 | -13.3 | -38.5 | -33.4 | |||||
| Financial reserves | 147.1 | 95.2 | 51.9 | 54.5 | 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 1 July 2026, SRV announced that, pursuant to a decision by the company’s Board of Directors, the company had transferred 52,500 of its treasury shares to employees participating in the 2023–2025 earning period of the 2023 Performance Share Plan, without consideration, in order to pay out incentives to employees participating in the plan in accordance with its terms and conditions.
Helsinki, 6 August 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 6 August 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 construction company established in 1987 and Finland’s largest builder of non-residential premises. The company is particularly strong in public sector contracting and lifecycle projects. SRV also delivers non-residential and residential projects in growth centres based on its own project development, and partners with cities on urban development projects.
We are guided by our lifecycle-wise way of building and by our customer promise: By listening, we build wisely. Our revenue in 2025 was EUR 705.6 million. In addition to approximately 700 SRV employees, we worked with a network of around 2,900 partners. SRV is listed on Nasdaq Helsinki.
SRV – Building for life