Source January–March 2026 Interim Report, published on 7 May 2026:
"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
President and CEO
SRV Group Plc