Well, that was some news for this morning. Revenue will increase by approximately 50 M€, and the concluded framework agreement with SRV will likely bring certain projects for 2026. We will probably get analysts’ analysis of the deal later today.
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Here are Ate’s comments on Kreate acquiring SRV’s Infra Business. 
Kreate announced yesterday that it is acquiring the entire share capital of SRV’s subsidiary, SRV Infra Oy. The enterprise value of the transaction is approximately EUR 30 million and it will be executed in cash. SRV Infra’s revenue in 2024 was EUR 52.2 million and operating profit was EUR 2.6 million. The acquisition expands Kreate’s offering in Finland into a completely new business area, underground rock construction. The purchase price is in line with the company’s own valuation and, in our view, neutral, considering the acquired company’s high profitability and positive earnings trend. The transaction will cause changes to our forecasts, which we will update in the coming days.
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Here is also a company report from Ate after these latest news.
Kreate announced on Monday that it is acquiring the entire share capital of SRV’s subsidiary SRV Infra Oy. The enterprise value of the transaction is approximately EUR 30 million, and the purchase price will be paid in cash. The acquisition expands Kreate’s offering in Finland into a completely new business area, underground rock construction. The acquired business is remarkably profitable and supports Kreate’s improving profitability in our forecasts. Based on SRV Infra’s realized earnings, the purchase price can be considered at a neutral level (EV/EBIT 11.5x). On the other hand, we believe that the business has developed favorably this year and that the earnings level is at least absolutely higher than last year. In our view, the transaction strengthens Kreate’s outlook for profitable growth in the coming years. We raise our target price to EUR 11.0 (previously EUR 10.5), but reiterate our reduce recommendation.
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Kreate Oy and the Finnish Transport Infrastructure Agency have signed a contract agreement worth nearly 80 million euros for the extensive Mt 180 Kurkela–Kuusisto project. The project, which begins with a development phase, is expected to be recorded in its entirety in the order book in the first quarter of 2026. One of Southwest Finland’s most significant infrastructure investments will improve road connections in Kaarina and the Turunmaa archipelago and support the region’s sustainable growth. The other end of the new Kaarina western bypass will be built right next to the Kirjalansalmi bridge, which was built by Kreate and opened to traffic this November.
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This was a significant addition to Kreate’s order book, as Atte notes in his comment. Another big piece of news for Kreate was the realization of the Vantaa light rail. Kreate and GRK are partners in this, and both their shares are slightly over €100 million. Antti V gave his comments on this in GRK’s thread.
GRK - Monipuolinen infrarakentaja - #103 käyttäjältä Antti_Viljakainen.
Next year looks really interesting for Kreate. Let’s also remember that the SRV Infra acquisition adds about €50 million to revenue. The Competition Authority’s decision should still come this year.
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The Investment Group has made a 2.5-minute video about Kreate.
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A consortium formed by Kreate and GRK Suomi signed an agreement with the City of Vantaa on November 26, 2025, for the first implementation phase of the eastern section of the Vantaa Light Rail (Vantaan ratikka). The revised total cost estimate for the Vantaa Light Rail is approximately 750 million euros. The estimated construction cost for the eastern section alliance is 280 million euros, which will be divided equally between the parties of the consortium. Kreate will record just over 45 million euros from the first phase in its order book. Construction of the eastern section of the Vantaa Light Rail will begin in December.
The first-phase implementation agreement now concluded is a continuation of the project’s development phase, which began last autumn. Kreate, GRK, and other eastern section alliance partners will also continue the implementation using the alliance model, which enables seamless cooperation and cost-effective solutions as the project progresses. The transition to the implementation of the second phase of the eastern section is estimated to occur in spring 2026 with a separate agreement. The contract sum for the second order phase is estimated to be significantly larger than the first agreement.
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At the investment fair, I listened to Kreate’s updates from Vikström. He mentioned that the order book is expected to swell significantly in the coming quarters. We already saw the first realization of this yesterday in the form of the Vantaa light rail project. Overall, the outlook for the future seemed positive.
I personally believe that Kreate will break the €400 million revenue mark next year. Inderes’ forecast is €392 million. Kreate’s target for operating profit margin is >5%. The company has improved its profitability recently, and I believe that next year will also be the best year in terms of profitability in a while. My own guess for EBIT% is 4.5%. From this, we would get an EBIT of €18 million. We could further estimate the enterprise value with different multiples. Let’s choose a conservative multiple of 8. This gives us an enterprise value of €144 million. The company has net debt of approximately €20 million, so the value of the share capital remains at €124 million. With 9 million shares, the value per share is €13.8. Everyone can consider what the share price would be with an EV/EBIT multiple of 10, or if the EBIT% is 5…
A lot of “what ifs,” but in my opinion, it illustrates that despite Kreate’s pleasant upward trend, there is still potential for a significant increase in the share price.
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Kreate’s CEO Timo Vikström talked about his company at the Investor 2025 day.
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Here are **Ate
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Kreate was grilled in Karo Hämäläinen’s Grilliraati (new entertaining program format).
Also available on Spotify:
https://open.spotify.com/episode/6Va0MLafNxc1grBwhnfQun?si=xPM59WsPQvGYKbLzj3MiYw
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Here are Atte’s comments on Kreate signing a new approximately 40 million contract for the Helsinki–Riihimäki project
Kreate announced on Thursday that it has signed a contract worth approximately EUR 40 million with the Finnish Transport Infrastructure Agency (Väylävirasto) for the Helsinki–Riihimäki project. The contract will be recorded in the company’s fourth-quarter order backlog. The project supports Kreate’s volume development in the coming years and represents approximately 3% of our revenue forecast for the company for 2026–2028.
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Kreate Oy, part of the Kreate Group, has today, 31 December 2025, completed the acquisition of the entire share capital of SRV Infra Oy. The transaction received approval from the competition authorities in November, and the execution of the deal was carried out at the end of December as previously announced, with an enterprise value of approximately EUR 30 million. The acquired company’s business primarily includes underground rock construction and, to a lesser extent, foundation and special foundation construction.
SRV Infra Oy’s revenue in 2024 was EUR 52 million and its operating profit was EUR 2.6 million. As of 1 January 2026, the company’s business will be reported as part of the Kreate Group’s structural engineering operations in Finland. Kreate reports all business operations as part of the infrastructure construction segment, which is the company’s only reportable segment.
The acquisition has no impact on the guidance for 2025. Kreate will publish its financial statement release for 2025 on 6 February 2026, in connection with which the company will also provide its revenue and earnings guidance for 2026.
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As a shareholder, I have been following the constant infrastructure overhaul in Vantaa with pleasure, seeing the name Kreate on the side of the machinery. The tram project is very visible, and the project is progressing at a brisk pace.
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Here are Atte’s further comments on how SRV and Kreate completed the acquisition of SRV Infra Oy as expected. Thanks to the acquisition, Kreate enters the field of underground rock construction, which is a new area for them in Finland.
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Here are Atte’s comments regarding Kreate winning a metro contract in Sweden
Kreate announced on Wednesday that Kreate Sverige and Region Stockholm have signed an agreement for the construction of the first access tunnel for Stockholm’s new metro line in Älvsjö. The contract value is approximately 8.5 MEUR, and it represents an important breakthrough for the company in the role of main contractor for a metro project in Sweden. The contract does not create immediate pressure to change our forecasts, but it supports our view of strong growth in the Swedish business during 2026–2027.
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Atte has been a busy bee and produced a new comprehensive report on Kreate. As usual, this comprehensive report is available for everyone to read, meaning there are no paywalls.
Kreate’s growth is accelerating clearly this year as the company grows organically in both Finland and Sweden, supported by a strengthening order book. In addition, growth is boosted by the completed SRV Infra acquisition. We forecast that through growth, the company’s profitability will return relatively closer to the levels seen in previous years. Following the recent positive order flow, we have also raised our growth forecasts from 2026 onwards. However, earnings-based valuation multiples for 2026-2027 have risen to a neutral level relative to our acceptable valuation. Consequently, the risk-reward ratio is not attractive at this stage, considering the uncertainties related to earnings growth. Due to the forecast changes, we are raising our target price to EUR 12.5 (prev. EUR 11.0), but we reiterate our Reduce recommendation.
Quoted from the report:
Foundation for profitable growth built
We forecast Kreate’s Swedish revenue to exceed the company’s SEK 650 million target (approx. EUR 59 million) in 2027, with our forecast at the EUR 62 million level. For the group as a whole, we expect the revenue growth rate to moderate after the 2026 growth spurt but remain at the company’s still strong 6-10% level, driven by the positive order book development we forecast. The company targets an annual revenue growth rate of 5-10%, which in our view is a strong pace to maintain in the infrastructure construction market. We expect the company to focus increasingly on profitability following the acquisition, which will lower the growth trajectory. However, we see the market situation providing the conditions to maintain good growth despite a selective approach.
We expect profitability to continue improving at the group level in 2027-2028. Moderating competition, selective bidding, and the strong growth of the more profitable Swedish business support profitability. We estimate that SRV Infra’s profitability will remain roughly at its current level over our forecast period, although normalizing slightly closer to the 4.0% level.
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Atte and Iikka discussed Kreate in light of the recent comprehensive report.
Topics:
00:00 Introduction
00:12 The stock has risen 80% over 12 months
01:07 Kreate’s business operations
02:52 How does Kreate differ from GRK?
03:51 The importance of the public sector for demand
07:22 We expect earnings to grow significantly
10:24 Recommendation is Reduce
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