Inside Information: GRK Infra Plc acquires Keski-Suomen Betonirakenne Oy - Inderes
Quite a significant acquisition. The price isn’t impossible either.
GRK strengthens its growth through the Transaction. KSBR’s revenue for 2025 was EUR 124 million and operating profit was EUR 10.9 million.
The maximum debt-free purchase price for KSBR and KSBR Sverige is thus approximately EUR 97.55 million in total, including KSBR’s net cash, which is over EUR 20 million.
Here is a fresh company report from Atte…
… and a comment on the Turku tramway project being approved!
The Turku City Council decided yesterday that a 12-kilometer tram line will be built in Turku, connecting the port, the city center, Kupittaa, and Varissuo. For GRK, the approximately EUR 190 million project will support the company’s volumes in the coming years as it kicks off.
We briefly went over GRK’s latest news in the video, including the acquisition of KSBR and some speculation regarding future strategic moves.
Here are Kassu’s comments on the latest news from GRK 
GRK announced on Tuesday that it has completed the acquisition of Keski-Suomen Betonirakenne Oy (KSBR) and simultaneously released a new guidance for the combined entity for 2026. The new guidance clearly exceeded our expectations, which points to excellent progress in the company’s own projects and strong demand.
I noticed this morning that analyst @Atte_Jortikka, who follows Kreate and GRK, seems to be back from summer break, as the earnings preview for Kreate was just released. Is it intended that the forecasts and other data on GRK’s company page will only be updated in connection with the earnings preview? As I understand it, the guidance and forecasts were completely overhauled around the turn of June and July, but the company page still shows the old figures. The midpoint of the new guidance for revenue alone is €920 million, which is off by just under €50 million from the current figure. In fact, the previous forecasts were even a few million above the guidance. The lower end of the guidance was raised by €100 million and the upper end by €150 million. Kasper, while filling in, saw upward pressure on the forecasts but did not start adjusting them. However, GRK’s Q2 results will not be published until July 28th.
Hi! I actually returned to work from vacation yesterday. I updated my GRK forecasts when the deal was announced in May, but they turned out to be too conservative compared to the now updated guidance, especially regarding profitability. As Kasper commented, the strong guidance suggests not only the impact of the deal, but also that the company’s business has performed quite well in the early part of the year relative to our forecasts. An update on GRK will be coming before the earnings release.
Atte has published a preliminary company report on GRK, which will report its results on Tuesday, July 28th.
Following the completion of the KSBR acquisition, the company provided new guidance for the current year that positively surprised us, particularly in terms of profitability. We have revised our forecasts upward for both the current year and future years. In the short term, the company is supported by a strong order flow and inorganic growth. Furthermore, we expect the end markets to continue developing favorably in the coming years. The significant earnings growth we project brings the valuation multiples down to an attractive level, despite the recent rise in the share price. Following these forecast revisions, we are raising our target price for GRK to 20.0 euros (previously 16.0 euros). Our recommendation remains at ‘Accumulate’.
And here is Ate’s quick comment on this morning’s earnings.
GRK’s second-quarter results, published this morning, clearly exceeded our expectations in terms of profitability. Revenue fell slightly more than we had forecast, but disciplined project selection and successful project execution were reflected in excellent operating results. Given the exceptionally strong quarterly result and the record-high order backlog, we see clear upward pressure on our full-year earnings forecasts.
Ate interviewed GRK CEO Mika Mäenpää
Topics:
(00:00) Introduction
(00:11) A strong start to the year behind us
(00:50) Data center projects
(02:02) Opportunities brought by the KSBR acquisition
(03:42) Profitability level and cyclicality
(04:26) Development of KSBR
(05:03) Can we expect new acquisitions?
(05:54) Updated guidance
(06:54) Won contracts
(07:27) Revenue guidance range
(08:18) Profitability drivers
(09:13) Financial targets
Atte has published a company report on GRK
GRK released a very strong Q2 result in terms of profitability. We believe that revenue growth will also strengthen in the second half of the year, and the record-high order backlog provides support for our forecasts for next year as well. In addition to the current order backlog, market conditions in the company’s operating countries remain largely positive, leading us to expect order intake to continue to be strong in the second half of the year as well. We believe the stock’s pricing is still reasonable, and the roughly 3–4% dividend yield makes the return expectation attractive. Following our forecast revisions, we are raising our target price to 23.0 euros (previously 20.0 euros). We maintain our “accumulate” recommendation.
Excerpts from the report:
Valuation Multiples
The valuation level we accept for the GRK share is approximately 11x–14x measured by the P/E ratio and 9x–12x measured by the EV/EBIT ratio. These levels correspond roughly to the 10-year averages of the company’s construction sector peers as well as the long-term medians of the Helsinki Stock Exchange. In our multiple analysis, we emphasize the enterprise value-based EV/EBIT metric due to the cash pile that has swelled following the listing and the rock-solid cash flow development of 2025.
According to our forecasts, GRK’s P/E ratios for 2026–2027 are at the ~11x level. The EV/EBIT ratios, which account for the excess cash, are at the 7x level, even though we have modeled significant working capital commitment for the company for 2026. Therefore, we believe the valuation picture is very attractive, especially on an EV basis, as the valuation multiples for both years are below our ranges. GRK is also relatively undervalued when examined using EV multiples. The P/E multiples are also within our ranges even without adjusting for the oversized cash position. We therefore see upside potential in GRK’s valuation multiples, which, combined with a dividend yield of approximately 3–4%, raises the return expectation clearly above our applied return requirement of just under 10%.
This press release just came out from GRK
GRK Infra Oyj INSIDE INFORMATION August 6, 2026 at 15:30
The Board of Directors of GRK Infra Oyj has decided to initiate a share buyback program (the “buyback program”) based on the authorization granted by the Annual General Meeting held on March 30, 2026. GRK Infra Oyj does not currently hold any treasury shares.
The share buyback program will be executed in accordance with the following main terms:
- The maximum value of shares to be acquired is 20 million euros. A maximum of 1,500,000 shares may be acquired (approximately 3.5% of the total number of shares).
- Purpose of the buybacks: the shares will be acquired to develop the capital structure of GRK Infra Oyj by reducing equity.
- Duration: the buybacks will begin no earlier than August 10, 2026, and end no later than February 28, 2027.
- Price: the market price formed in public trading on Nasdaq Helsinki.
- The shares will be acquired on the Nasdaq Helsinki stock exchange.
- The repurchased shares will be canceled on a quarterly basis.
Treasury shares will be acquired in accordance with Article 5 of the Market Abuse Regulation (EU) No 596/2014 and the Commission Delegated Regulation (EU) 2016/1052.
GRK Infra Oyj has appointed an external broker as the lead manager for the buyback program. The lead manager will make trading decisions independently of GRK Infra Oyj and without its influence.
GRK Infra Oyj may suspend or terminate the program prematurely. In such an event, GRK Infra Oyj will publish a stock exchange release regarding the matter.
Here are the brief comments from Ate regarding GRK’s share buybacks
Here are Ate’s comments on GRK’s latest acquisition.
I noticed this update from GRK:
Yesterday’s news boosted construction companies more broadly, but based on the update and the list of partner companies published by Google (which included KSBR), there is a good probability that this could lead to quite concrete work for GRK. As a signal, the news is certainly positive for the entire sector, and data center construction may now, at least in the initial phase, support construction as a whole more strongly than we outlined in last week’s article.Here are our company-specific comments on GRK from the article:
“GRK is, to our understanding, a relatively recent player in data center construction, having strengthened its segment expertise and exposure through, among other things, the KSBR acquisition completed in the summer. The company previously announced that it is involved in carrying out a EUR 66 million data center contract for a technology company in Finland. Based on discussions with management, we estimate that the company is involved in the construction of several other data centers, although we assume these other projects are smaller in scale than the announced project. Overall, we believe that data center construction already forms a relatively significant part of GRK’s current order book (Q2/26 order book EUR 1.2 billion). Like Kreate, GRK’s work is related to the early phase of the data center project, i.e., earthworks, foundation engineering, and site infrastructure. Given GRK’s still modest market share, we see potential for the company to increase its exposure from current levels. In addition, the Power business established by the company in 2025 offers the potential to expand its role in data center projects from earthworks to grid connections as well.”
I cannot yet say at this stage whether the EUR 66 million contract announced in August is related to this investment.
The €66M contract is the Muhos data center project, at least if local news is to be believed
KSBR (Keski-Suomen Betonirakenne Oy) has been selected to carry out construction work for a data center project for a technology company in Finland. The contract was signed on September 10, 2026. KSBR is part of the GRK Group, and the project will be recorded in GRK’s order backlog in the third quarter of the year.
The contract includes underground engineering, infrastructure, and concrete construction work for the data center area. Work will begin in September 2026 and is scheduled for completion by the end of 2027.
Here are Aapo’s comments on how GRK is involved in the new data center contract.
On Monday, GRK announced in its release that its recently acquired subsidiary KSBR has been chosen to carry out the underground engineering, infrastructure, and concrete construction work for a data center area for a technology company in Finland. Work will begin this month and be completed by the end of 2027, and the contract will be booked into the order backlog for the third quarter. The value of the contract was not disclosed, but we estimate it to be significant on the scale of KSBR. We view the news as positive evidence of the strategic fit of the KSBR acquisition, as we have previously estimated that the acquisition will strengthen GRK’s position specifically in data center projects.
GRK released a PRESS release like this today.
The Turku Tramway Alliance, consisting of the City of Turku, Turku Tramway Ltd, GRK, NRC Group, Ramboll, and Sweco, signed an agreement on September 28, 2026, regarding the implementation of the Turku tramway. The cost estimate for the first implementation phase is 33.3 million euros, of which GRK’s share is approximately 12 million euros. The project will be recorded in GRK’s order backlog for the first implementation phase in the third quarter of 2026.
GRK announced in May that it would participate in the construction of Turku’s new tramway in accordance with the decision made by the Turku City Council on May 18, 2026. The cost estimate for the first implementation phase includes construction for the 2027–2028 period as well as tramway design costs. In addition, extensive archaeological excavations will be carried out during these years, with a cost estimate of 15.1 million euros. The first implementation phase is part of GRK’s previously estimated share of approximately 190 million euros in the overall Turku tramway project. All the aforementioned amounts are included in the total cost estimate of the Turku tramway, which is 465.2 million euros.
Construction begins in early 2027
The first implementation phase will begin in early 2027 and will be completed by the end of 2028. The first implementation phase includes the construction of a public transport corridor and the renovation of the Cathedral Bridge (Tuomiokirkkosilta) and surrounding streets. In addition, extensive archaeological excavations will be carried out in the area.
“We have been planning the implementation of the project for over two years and soon we will finally be able to start construction. This will be visible in the cityscape on Uudenmaankatu and Aninkaistenkatu, as well as on the Cathedral Bridge, where we will complete the construction work before Turku’s 800th anniversary year in 2029,” says Jouko Viitala, Head of Unit at GRK.
In addition to construction, GRK will also act partly as a consultant in the project regarding track technology systems.
The launch of the second implementation phase, i.e., the construction of the actual tramway, requires the securing of state funding in the next MAL (Land Use, Housing and Transport) negotiation round. The tramway will be completed in 2032, and commercial operations will begin in the autumn of 2033 after track testing and trial runs.
This is related to the news from May, so it’s not really a big surprise.
GRK has been selected to execute the Ring I (Kehä I) Keilaniemi and Länsiväylä bridges improvement project in Espoo. The value of the contract for GRK is approximately 27 million euros, and the client is the Finnish Transport Infrastructure Agency (Väylävirasto). The contract was signed on September 30, 2026, and the project will be recorded in GRK’s order backlog in the third quarter of 2026.
Here are Atte’s advance comments as GRK publishes its Q3 results next Tuesday
We expect the company’s revenue to have grown by more than a quarter compared to the comparison period, as the record-high order book is delivered during the summer season and KSBR, consolidated from the beginning of July, brings inorganic growth. We also forecast that profitability remained at an exceptionally high level, similar to the second quarter, driven by strong project execution and project mix. In the report, we are particularly monitoring order book development following the record Q2, the sustainability of profitability, and the company’s outlook for the remainder of the year and especially for next year.
