SRV GROUP PLC STOCK EXCHANGE RELEASE 5 NOVEMBER 2025 8:30 EET
SRV announces updated long-term financial objectives; strategy remains
unchanged
The Board of Directors of SRV Group Plc has confirmed updated long-term
financial objectives for the company. The objectives remain the same in
substance, but they are now aimed to be achieved during 2029-2030, depending on
market conditions. The objectives were originally set to be reached in 2027, but
due to an exceptionally prolonged weak market situation, the schedule has been
delayed.
SRV's long-term financial objectives
The company's operations are guided by the following long-term financial
objectives that it aims to achieve by 2029-2030:
• Operative operating profit of at least EUR 50 million (unchanged)
• Revenue > EUR 900 million (unchanged)
The company's dividend policy objective to distribute 30-50% of annual profit,
taking into account the company's outlook and capital requirements, remains
unchanged.
Prolonged lack of demand has postponed the achievement of long-term financial
objectives
For almost three years, the near-complete absence of consumer and investor
demand has delayed the strategic shift in the project portfolio. As a result,
achieving the long-term financial objectives has been postponed. Currently, the
company's project portfolio is exceptionally weighted toward contracting,
particularly cooperative public-sector business premises projects.
In a challenging market environment, SRV has managed to increase its market
share. The company has become Finland's largest builder of business premises and
is particularly strong in public-sector contracting and lifecycle projects,
while also proving its competitiveness in residential contracting in recent
years. The EUR 930 million contracting order backlog, along with approximately
EUR 1.1 billion worth of projects already won but not yet included in the
backlog, ensures volume for the coming years.
Profitable growth from business premises and residential construction based on
SRV's own project development
SRV seeks profitable growth in its strategy by gradually increasing the share of
residential construction and, in particular, business premises and residential
construction based on SRV's own project development as soon as market conditions
allow. The company believes that urbanization will continue and is expected to
restore consumer and investor demand, especially in residential construction but
also in business premises construction, over the coming years. To be ready to
meet growing demand, SRV has actively strengthened its project development
pipeline required for the growth of development and developer-contracted
production and has made its first carefully targeted land acquisitions. The
project development pipeline has grown by approximately 50 percent over the past
two years, totaling about one million square meters of floor area.
SRV focuses on three main aspects in portfolio management. First, the goal is to
strengthen SRV's leading position in cooperative and other contracting. Second,
the aim is to increase the share of development and developer-contracted
projects to 30-40% of revenue. Third, the company targets growing residential
projects to 30-40% of revenue. The gradual strengthening of SRV's balance
sheet—most recently through the agreement to sell SRV Infra Oy (announced on 27
October 2025)—enhances the company's ability to finance land acquisitions for
development and developer-contracted production and, in particular, the capital
tied to developer-contracted production as its volume grows.
“Increasing the share of development projects built for property investors and
developer-contracted residential projects sold to consumers in our project
portfolio will grow our revenue and improve the average profitability of
projects. We have a significantly expanded project development pipeline, which
we have invested heavily in over recent years. In addition, we have carried out
our first carefully targeted land acquisitions. Thanks to the work done and our
strengthened balance sheet, we will be able to quickly increase the number of
projects based on our own development as the market increasingly allows in the
coming years,” says Saku Sipola, President and CEO of SRV Group Plc.
“At the same time, various forms of contracting—such as lifecycle projects, data
centers, and residential contracting, and especially slightly lower-margin and
lower-risk cooperative contracting—remain an important cornerstone for us.”
Webcast
SRV will present its updated long-term financial objectives and provide insights
into its strategy and the outlook for the construction market in a webcast for
investors, analysts, and media representatives starting today, 5 November 2025,
at 14:00. The event can be followed live via webcast or as a recording
afterwards at https://srv.videosync.fi/2025-11-5. The presentation materials
will be available after the event on SRV's website at www.srv.fi/en/investor.
The language of the event is Finnish.
For further information, please contact:
Saku Sipola, CEO, SRV Group Plc, tel. +358 40 551 5953, saku.sipola@srv.fi
Miia Eloranta, Senior Vice President, Communications and Marketing, tel. +358 50
441 4221, miia.eloranta@srv.fi
Distribution:
Nasdaq Helsinki
Media
www.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 well-being of both the environment and people into
consideration. We call this approach life-cycle 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. We
operate in growth centres in Finland. In 2024, our revenue totalled EUR 745.8
million. In addition to approximately 800 in-house staff, we have a network of
around 3,200 partners.
SRV - Building for life