Here’s also Evli’s initial take on the result: Consti: Steady development continues - Evli - Inderes
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Slight pessimism in @Olli_Koponen’s report, we remain on the reduce side (read hold) and the target price is also cut: Consti Q4'24: Kasvulle ei selkeitä ajureita - Inderes
Indeed, it would be good to get confirmation for the order book, so that there’s enough renovation work for everyone.
Kauppalehti is negative about Olli’s target price 
: Inderes lowers Consti’s target price to 1.5 euros (previously 11.0 euros), reiterates reduce recommendation
And at 12:11 PM Kauppalehti also noticed its error: CORRECTION: Inderes lowers Consti’s target price to 10.5 euros (previously 11.0 euros), reiterates reduce recommendation
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Koponen has prepared a comprehensive report on Consti, which is available for everyone to read, like all comprehensive reports.
We raise Consti’s recommendation to Add (previously Reduce), raising our target price to EUR 11.00 (previously EUR 10.50) in connection with the comprehensive report update. Consti has performed well in the challenging construction market, and although the near-term outlook does not predict significant growth, the company is well-positioned to benefit from the future recovery of the construction market. There is no significant upside potential in the valuation, but considering Consti’s potential and strong dividend yield, the return expectation is sufficient.
Quoted from the report:
Our accepted valuation range based on the above-mentioned grounds is: EV/EBIT: 10–14x, P/E: 10–14x. In our opinion, there is upside potential in the valuation level if the improvement in business profitability shows sustainability and continuity improves (maintenance/services > projects). In this case, we believe the acceptable valuation level could move towards the upper end of the current range. Changes in the competitive situation or clear signs of weaker long-term profitability potential than our expectations could lower the accepted valuation.
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Here’s SalkunRakentaja’s article about Consti, quoting Evli’s Atte Jortikka.
”The company is currently priced at a significant discount compared to both its peer group and its own historical valuation levels. In addition to the low valuation, the company’s share offers a dividend yield of over seven percent for the coming years,” Jortikka states.
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Vara-Olli, @Kaisa_Vanha-Perttula forecasts the Q1 result, so the results will be published already on Friday: https://www.inderes.fi/analyst-comments/consti-q125-ennakko-vaisua-kehitysta-haastavassa-markkinassa
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The Q1 results are out, and the order book was a positive surprise, at least for me, as there has been very little news on that front: Consti Oyj osavuosikatsaus 1.1.–31.3.2025 | Kauppalehti
Key events 1–3/2025 (comparison figures for 1–3/2024 in parentheses):
- Revenue 65.6 (65.5) million euros; growth of 0.1 %
- EBITDA 0.8 (1.3) million euros and EBITDA margin 1.2 % (2.0 %)
- Operating result -0.1 (0.2) million euros and operating result margin -0.2 % (0.3 %)
- Order book 246.4 (244.4) million euros; growth of 0.8 %
- New orders 60.1 (36.3) million euros; growth of 65.5 %
- Free cash flow -0.5 (-0.5) million euros
- Earnings per share -0.04 (-0.00) euros
Service was the scapegoat for the soft result, at least according to the CEO: “Our operating result was negatively impacted by Service, i.e., our service business’s lower-than-expected revenue and profitability level.”
Let’s also add @Kaisa_Vanha-Perttula’s morning comment: Consti Q1’25 -pikakommentti: Vakaa kehitys jatkui - Inderes
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Kaisa has finished the new company report as Sunday work.
Consti’s Q1 report was, as a whole, well in line with our expectations. In a typically quieter quarter, revenue remained at the comparison period’s level, and adjusted operating profit weakened slightly due to a weaker project distribution and tight competition. The outlook did not offer major surprises, and the market situation remains challenging. However, as the market recovers, Consti’s order book, strong balance sheet, and good market position create, in our assessment, good starting points for pursuing growth. In our opinion, the valuation of the share is moderate relative to the earnings growth in the coming years, and a strong dividend yield supports the return expectation. Therefore, we reiterate our add recommendation and our target price of 11.0 euros.
Quoted from the report:
As risks in our forecasts, we see project-related risks, tightening competition, continued cost pressures, or the continuation of a weak market outlook further into the autumn. However, the company has a net debt-free balance sheet (excluding IFRS 16 liabilities), so significant inorganic growth opportunities are also on the table.
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Apparently, such a reasonably large project (announced already on July 1st) has not passed the news filter in the chain. Consti always announces these only via press release, but when trying to follow the order backlog, a project of 30 million is quite a nice addition, especially since it has been worryingly quiet during spring and early summer. To be recorded in the second quarter’s order backlog: Consti - Maunulan koulukokonaisuus uudistuu yhdistämällä uutta ja vanhaa
Consti will implement a school renovation and expansion project for the City of Helsinki in Maunula. The client is the Urban Environment Division. The project will be carried out as a project management contract. The project will start in summer 2025 and be completed in late 2027. The value of the contract is approximately 30 million euros.
The school complex will be thoroughly renewed
Maunula primary school and Månsas lågstadieskola offer Finnish and Swedish basic and pre-primary education. The school complex consists of two buildings completed in the 1950s, which have architectural-historical protection value.
The goal of the project now underway is to develop the school complex both functionally and technically. The aim is to create safe, healthy, and modern facilities that support teaching and the daily life of the school community. The facilities will be modernized and their versatility developed. Accessibility will be improved by installing lifts in both buildings. Building systems will be renewed and energy efficiency improved, for example, by renewing ventilation systems and renovating water roofs.
Structures and facades will be repaired, and windows and doors will be renovated or replaced. The school’s assembly and sports halls will be modernized, and the acoustics of teaching spaces and corridors will be improved. Changing rooms, washing facilities, and toilets will be modernized and increased.
New extension combines buildings and serves as the school’s heart space
A new two-story extension (3,038 gross floor area m²) will be built between the existing buildings, connecting the school buildings. The first floor will house the kitchen, dining hall/event spaces, and stage/sports facilities, as well as music and special education rooms. The second floor will feature a new main entrance and student welfare and administration facilities. The extension will replace the old connecting building between the buildings, which will be demolished.
The school’s yard areas will be comprehensively renewed. New play and lounge areas will be built, and green areas and green roofs will be implemented. Valuable vegetation will be protected. Traffic and parking arrangements will emphasize safety and functionality.
The school will operate in temporary facilities during the renovation. The new school complex will have facilities for 820 pupils and 77 pre-primary age children.
The project will be recorded in Consti’s order backlog for the second quarter of 2025.
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Here are Kaisa’s preliminary comments as Consti publishes its Q2 results on Friday.
We expect revenue to have decreased in Q2 in a challenging market, and the profit level to have fallen short of the strong comparison period, burdened by declining volumes and intense competition. In the current subdued market, in our estimation, it is difficult for Consti to improve its results without a recovery in demand, which is also indicated by the company’s current year guidance.
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To my own surprise, the order book indeed grew, apparently another larger project that I hadn’t noticed mentioned earlier. Profitability needs improvement, but all in all, a decent result considering market conditions: Consti Oyj puolivuosikatsaus 1.1.–30.6.2025 | Kauppalehti
18.7.2025 08:30:00 EEST | Consti Plc | Half-year report
STABLE PERFORMANCE CONTINUED, ORDER BOOK GROWING
Key events 4–6/2025 (comparison figures 4–6/2024 in parentheses):
Net sales EUR 84.8 (82.9) million; growth 2.3%
EBITDA EUR 3.4 (4.0) million and EBITDA margin 4.0% (4.8%)
Operating profit EUR 2.5 (3.0) million and operating profit margin 2.9% (3.6%)
Order book EUR 276.7 (261.2) million, growth 5.9%
New orders EUR 105.1 (90.8) million; growth 15.8%
Free cash flow EUR 2.9 (1.2) million
Earnings per share EUR 0.23 (0.27)
Key events 1–6/2025 (comparison figures 1–6/2024 in parentheses):
Net sales EUR 150.4 (148.4) million; growth 1.3%
EBITDA EUR 4.1 (5.3) million and EBITDA margin 2.7% (3.6%)
Operating profit EUR 2.3 (3.2) million and operating profit margin 1.6% (2.2%)
New orders EUR 165.2 (127.1) million; growth 30.0%
Free cash flow EUR 2.4 (0.7) million
Earnings per share EUR 0.19 (0.27)
Our most significant orders in the second quarter included the renovation and expansion project for Maunula Primary School and Månsas lågstadieskola for the City of Helsinki, and the renovation of Kivimäki School in Vantaa, both in the building construction sector, as well as ventilation and electrical works for the first phase of the Metso Lokomotion technology center in Tampere in the building technology sector. The combined value of these contracts is approximately EUR 47 million.
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Kaisa has written quick comments on the morning’s results.
Consti’s Q2 revenue turned to growth, driven by the Housing Companies segment, also exceeding our forecasts. However, a weaker project mix and tight competition predictably weakened the company’s profitability. Although the market situation remains challenging, Consti’s order book has remained at a reasonable level. In addition, the company’s strong balance sheet and good market position create a solid foundation for pursuing growth as the market recovers.
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Evlin mukaan Constin tilauskertymä ja tilauskanta olivat hyvät, mutta sitten taas nostivat esille kannattavuutta heikentäneen palveluliiketoiminnan vaisun menon ja markkinatilanteen haasteet jne. 
Consti’s net sales in Q2 amounted to EUR 84.8m, surpassing our estimate (Evli est. EUR 80.6m.), with growth of 2.3% y/y. EBIT amounted to EUR 2.5m, while we had estimated EBIT of EUR 2.7m. Order backlog grew and remains healthy, in line with our expectations.
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Kaisa has diligently completed Consti’s company report on Sunday.
Consti’s revenue turned to growth in Q2, also exceeding our forecast, but profitability weakened as expected, driven by a weaker project distribution and tight competition. We expect reasonably stable development from Consti this year, which the company’s guidance also indicates. As the market recovers, Consti’s order book, strong balance sheet, and good market position, however, create good starting points for pursuing growth in the coming years. In our opinion, the stock’s valuation is moderate relative to earnings growth in the coming years, and the strong dividend yield supports the return expectation. Therefore, we reiterate our add recommendation and raise our target price to EUR 11.75 (previously EUR 11.00).
Quoted from the report:
New orders and order book rose slightly
Consti’s order book grew in Q2 to approximately EUR 277 million (+5.9% y/y), as new orders grew to approximately EUR 105 million (Q2’24: ~EUR 91 million). Order intake was boosted during the quarter particularly by the Maunula primary school and Månsas lågstadieskolan and Kivimäki school projects implemented for the City of Helsinki in the construction sectors, and by the Metso Lokomo project in the Building Systems sector. The combined value of the contracts is approximately EUR 47 million. In our view, new orders should support the company’s growth towards the end of the year and next year. Given the market situation, Consti’s order book has remained relatively stable.
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Let’s also add Wednesday’s press release about the 13.2 million contract, to be recorded in the third quarter. Consti is definitely strong in these school projects; can we even talk about them being the City of Helsinki’s court contractor : Consti toteuttaa Töölön ala-asteen perusparannus- ja laajennushankkeen - Inderes
Consti has been selected as the project management contractor for the Töölö Primary School renovation and expansion project. The client is the City of Helsinki. Construction work will begin in August 2025 and is estimated to be completed in the summer of 2027. The total scope of the project is 5191 brm² (gross square meters).
The school building located at Töölönkatu 41–45 was completed in 1906, and its extension in 1952. The agreement now made covers the renovation of the existing school building, the renewal of building services systems, and the improvement of the building’s energy efficiency. Accessibility, as well as the functionality and safety of the yard, will also be improved. The total value of the renovation is approximately 13.2 million euros.
In addition, a new building will be constructed on the plot, which will house, among other things, teaching facilities for soft crafts and visual arts. The building will also allow the spaces to be utilized by residents and for evening use, for example, as an art hobby space. A separate total contract agreement will be made for the works related to the new building.
With the renovation, the school will offer approximately 450 pupils modern and comfortable facilities that promote diverse learning and community spirit.
Strong Expertise in Public Construction
Töölö Primary School serves as an excellent example of Consti’s strategic goal to strengthen its role in renovation and new construction projects for public buildings. The company currently has several school projects underway in the Helsinki metropolitan area, such as Stadin Ammattiopisto (Helsinki Vocational College and Adult Institute), Pihlajisto School, and Helsingin Uusi yhteiskoulu (Helsinki New Co-educational School).
In July, Consti announced the renovation and expansion project for the Maunula school complex. In total, the Töölö and Maunula school projects strengthen the order book by approximately 43 million euros.
“The Töölö school project strengthens our position as an implementer of demanding public building projects. Protective special features require specific expertise, which we have developed in several similar projects,” states Jukka Kylliö, Director of Consti’s Public Sector business area.
The renovation portion of the project will be recorded in Consti’s third-quarter order book.
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Henki-Fennia has apparently reduced its holdings, but Olli “Ilkanpoika” Herlin has acquired almost the same amount. The Herlin family’s flag is already held high on the ownership list by their investment companies Heikintorppa and Wipunen: Suurimmat osakkeenomistajat – Consti
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Atte J has provided his pre-commentary as Consti will publish its Q3 results on Friday.
We expect revenue to have grown compared to the comparison period. Revenue development is supported by strong order intake in Q2. With slightly higher volumes, we also forecast higher profitability than the comparison period, which is, however, still burdened by the persistently tight competitive situation.
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Atte, known from the Alokas haastattelee (Rookie Interviews) thread, was interviewed by Tomi about Consti’s business and operations.
Topics:
00:00 Introduction
00:44 Early-year development
02:03 Outlook for the rest of the year
03:25 Long-term profitability potential
04:39 Sustainable
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Thanks for the video @Atte_Jortikka and @Tomi_Valkeajarvi, and welcome from me too, Atte, nice to hear that Consti is a company you are already familiar with. Do you have any insight into whether Consti is currently involved in larger tenders? I came across this lost contract from July, behind a paywall, but the headline probably tells the essential: Yksi hylättiin, toinen jätti tarjoamatta – SRV kahmi yli 60 miljoonan euron urakan Constin nenän edestä | Tekniikka&Talous
Consti has a somewhat unfortunate habit of announcing even 30-million-euro won contracts only through press releases, even to the extent that the headline of the release doesn’t always make it clear that Consti is the contractor. It’s easily missed, at least by me. It’s left to speculation whether even the aforementioned 60-million-euro contract would have been announced with a stock exchange release, had it been won. Of course, by actively following Consti’s own pages: Lue Constin ajankohtaiset uutiset ja tapahtumat one can get some idea of what’s going on.
How does Atte see this matter, and does the company even have a policy regarding this press release/stock exchange release issue, when it comes to contracts!? One would think the company could provide some answer to this.
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Thanks! Surely Consti is currently involved in several tenders for larger projects. There is practically no visibility into individual tenders. However, it’s good to remember that Consti’s project portfolio consists mainly of small projects. Regarding the disclosure policy, I can inquire about the matter from the company.
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Yes, this is absolutely true, perhaps I too unnecessarily long for bigger projects, because the risks also tend to grow with them. @Atte_Jortikka at least didn’t get to experience the St.George trauma as an analyst back in the day, even if the case is probably familiar to him .
It’s good if you really bother to ask about that disclosure policy, even if it’s not high on their priority list. @Olli_Koponen surely had to work hard back in the day to get Korkeela into an Inderes interview . Consti people tend to focus on the matter itself, i.e., renovation. I once dropped by their annual general meeting; it didn’t take long, the meeting was knocked out in less than an hour.
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