That EUR 4 million is a nice sum compared to Luotea’s market capitalization of about EUR 100 million. Of course, due to the complaints, its receipt and amount will only be confirmed sometime in the future. Luotea’s balance sheet or our forecasts did not include expectations for or against compensation in this matter, so this is a plus if it materializes.
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And of course, with the decision, the biggest risk that Luotea would have to pay 140 million kronor in compensation is removed. As an outsider, however, it is difficult to assess the grounds for the counterclaims.
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Here’s Rauli’s comments on how Luotea received a favorable judgment from the Solna District Court, ordering Micasa Fastigheter to pay the company approximately 4 million euros 
Luotea announced on Friday that the Solna District Court had issued a favorable judgment to the company in a dispute concerning the company’s Swedish subsidiary and its former client, Micasa Fastigheter. The District Court ordered Micasa to pay Luotea approximately EUR 4 million in total. We consider the news positive for Luotea, as, if realized, the judgment means a one-time cash flow that is significant relative to the company’s market capitalization of approximately EUR 100 million. The judgment is not yet legally binding, and we assume it will be appealed to the Court of Appeal, so the final decision and the timing of the cash flow are still uncertain.
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Message merged into thread: Lassila & Tikanoja
We’re discussing Luotea as an investment case, in English
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Here is Rauli’s preview as Luotea reports its Q1 results on Wednesday, May 6.
We expect the company’s revenue to have grown moderately and the adjusted result to have improved clearly from the comparison period. According to our estimates, the earnings level is boosted especially by the reduced losses in Swedish operations and the lower group administration costs of the independent company. We expect the company to reiterate its guidance for an improvement in full-year adj. EBITA.
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I will be continuing the CEO interviews with Luotean in connection with the results on Wednesday. If you have any questions about this relatively new independent listed company, please send them my way!
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Things didn’t go quite according to plan for L&T’s spin-off either: Luotea Oyj:n osavuosikatsaus 1.1. - 31.3.2026 | Kauppalehti
JANUARY–MARCH
- Revenue for the first quarter of the year was EUR 86.0 million (86.6). Revenue decreased by 0.6%.
- Adjusted EBITA for the first quarter was EUR 0.3 million (0.5), which was 0.4% (0.5%) of revenue.
- Adjusted operating profit for the first quarter was EUR -0.0 million (0.1), which was -0.0% (0.1%) of revenue. Operating profit was EUR -0.4 million (-0.0), which was -0.5% (-0.1%) of revenue.
- Net cash flow from operating activities after investments was EUR 3.6 million (6.6; the comparison period includes both continuing and discontinued operations).
- Earnings per share for the quarter were EUR -0.02 (0.09).
- The Annual General Meeting of Luotea Plc decided after the end of the review period on a dividend of EUR 0.07 per share.
CEO ANTTI NIITYNPÄÄ:
In Finland, the property services market continued to be characterized by intense price competition, ongoing customer savings programs, delays in investment decisions, and general economic uncertainty. In Sweden, the economic operating environment and the real estate market developed more positively, which was also reflected in the momentum of Luotea’s business.
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@Rauli_Juva finished his quick comment, so you don’t have to rely on my hunches, but Sweden’s performance is indeed very positive: Luotea Q1'26 -pikakommentti: Ruotsi paransi odotetusti, Suomi veti tuloksen heikoksi - Inderes
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Rauli discussed Luotea’s Q1 with the company’s CEO Antti Niitynpää
Topics:
00:00 Introduction
00:09 Luotea’s Q1 development
01:12 Less upselling in Finland
02:59 Earnings improved in Sweden
04:17 Fuel prices have risen
04:51 Guidance
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Here is a new company report on Luotea from Rauli.
Luotea’s Q1 result was a clear disappointment as profitability in Finland declined, while Sweden continued its turnaround. We lowered our forecasts for this year significantly, but we still believe Luotea’s earnings are on a clear upward trend driven by the Swedish turnaround. Earnings multiples for this year (e.g., EV/EBIT 9x) are relatively neutral, but good cash flow and earnings growth support the expected return. We reiterate our Accumulate rating but lower our target price to EUR 2.5 (prev. EUR 2.6).
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I was looking at the shareholder lists for Luotea and Lassila & Tikanoja yesterday evening, a few observations. Proprius appears to have exited Luotea entirely but continues as a shareholder in L&T. Oldenburg’s Phoebus has also significantly reduced its holding in Luotea while increasing it in L&T. The most interesting point is that Luotea’s nominee-registered ownership has risen to 17.36%, whereas L&T has remained roughly unchanged at 11.93%. My own completely speculative hunch suggests that some foreign entity might potentially see M&A opportunities here 
.
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This company’s valuation has really been flushed down the toilet over the past few months. Based on Inderes’ forecasts for this year, EV/S is ~0.19 and EV/EBITA ~6.7, with the share price at €1.8 today.
In my opinion, the 2026 forecasts aren’t overly bullish either, with Finland’s operating profit at €10.4M (EBIT ~4.5%) and Sweden’s at €1.1M (~1%), meaning not much is expected from Sweden yet. These could, of course, still disappoint in the short term, after which the company would turn into a value trap (at least in the short run).
It would be easy to draw up a “base scenario” like the following: the company reaches its profitability targets within a few years for Finland (EBITA 5%), while Sweden slightly misses targets (EBITA 3%), but revenue doesn’t grow. In this case, Finland’s EBITA of €11.1M, Sweden’s EBITA of €3.8M, and group costs of -€1.5M would lead to an EBITA level of €13.4M. With the current enterprise value (EV) of ~€66M, we’d be talking about an EV/EBITA level of approximately 5. If I recall correctly, Rauli’s thought was that Luote could be valued at around EV/EBITA 10, meaning the share price could double from the current level if the market started to believe this level is sustainable. This assumes the company’s cash position doesn’t grow, meaning the investor would also receive the entire free cash flow as dividends (~10% FCF yield).
One could also think of it the other way around: what does the market currently expect to justify the current share price? Assuming again that the fair value for the company would be EV/EBITA 10. Let’s assume Sweden generates a zero result. Group costs remain at -€1.5M. In this case, solving the equation gives an EBITA for Finland of €8.1M, which corresponds to an EBITA margin of 3.6%. Not bad, in my opinion, compared to last year’s €12.6M and the €10.4M forecast for 2026, plus the fact that the valuation is based solely on the Finnish operations.
As can be read above, I think the expected return for this case looks quite good right now, and the risk-reward ratio appears attractive for a value investor over the medium term. Of course, the quality of the company is a bit concerning given its history, and this might not necessarily be a “buy and hold” type of case. The stock market is currently full of small, very lowly valued companies anyway, and the new L&T isn’t badly priced either.
ps. Feel free to correct the figures if the Excel numbers or formulas have gone skewed at some point.
pps. It’s often said that EBITA is “bullshit earnings,” but as I understand it, in this case, it converts well into cash flow and the adjustments “should” remain a peculiarity of this year (due to the demerger?).
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The CEO at least decided to catch the “falling knife”, 5,300 shares: Luotea Oyj - Johdon liiketoimet: Antti Niitynpää - Inderes
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Here are Rauli’s preliminary comments ahead of Luotea’s earnings report on Thursday, August 6th:
We expect the company’s revenue to have remained at the same level as the comparison period and the adjusted EBITA to have clearly improved. We estimate that the improvement in earnings is explained by the reduction in losses in Sweden and lower corporate expenses, while we expect the result in Finland to have declined from a strong comparison period. We believe the company will reiterate its guidance, which indicates earnings growth for the current year.
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APRIL-JUNE
- Revenue for April-June was 88.1 million euros (86.8). Revenue increased by 1.5%.
- Adjusted EBITA for April-June was 2.5 million euros (1.9), which was 2.9% (2.1%) of revenue.
- Adjusted operating profit for April-June was 2.2 million euros (1.5), which was 2.5% (1.7%) of revenue. Operating profit was 0.9 million euros (0.7), which was 1.0% (0.8%) of revenue.
- Earnings per share for April-June was 0.01 euros (0.01).
JANUARY-JUNE
- Revenue for January-June was 174.2 million euros (173.4). Revenue increased by 0.4%.
- Adjusted EBITA for January-June was 2.9 million euros (2.3), which was 1.6% (1.3%) of revenue.
- Adjusted operating profit for January-June was 2.1 million euros (1.6), which was 1.2% (0.9%) of revenue. Operating profit was 0.5 million euros (0.7), which was 0.3% (0.4%) of revenue.
- Earnings per share for January-June was -0.01 euros (0.01).
- Net cash flow from operations after investments for January-June was -1.3 million euros (2.4; the comparison period includes both continuing and discontinued operations).
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Here are Rauli’s quick comments on this morning’s result
Luotea’s Q2 result improved from the comparison period but fell short of our forecast. This was mainly due to the Swedish result remaining in the red despite our breakeven forecast, even though the result improved clearly from the comparison period. The Finnish result weakened as expected from the comparison period. The company reiterated its full-year guidance, which points to earnings growth, but following a result that fell short of expectations, we see some slight downward pressure on our forecasts.
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Iikka interviewed Luotea CEO Antti Niitynpää regarding their Q2 results
Topics:
(00:08) Q2 performance
(01:12) Earnings declined in Finland
(01:48) Earnings improved in Sweden
(02:21) Change in Swedish leadership
(03:11) Is the Swedish market bottoming out?
(03:32) Outsourcing of HUS real estate maintenance
(04:05) Other outsourcing processes?
(04:13) Guidance
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Here is the company report from Rauli on Luotea regarding their Q2 results
Luotea’s Q2 results improved compared to the same period last year, but the pace of the earnings turnaround in Sweden was weaker than both our expectations and those of the company’s management. This led to a downward revision of our forecasts. However, we believe the earnings turnaround in Sweden will continue over the coming years, which, combined with strong cash flow, makes the return expectation attractive in our view. We reiterate our “accumulate” recommendation but are lowering our target price to 2.2 euros (previously 2.5 euros) due to lower forecasts.
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@Rauli_Juva and why not others as well. The latest Inderes reports emphasize how there are stocks priced at under 10x P/FCF (price to free cash flow). Nowadays, you can no longer find this metric in the Inderes stock screener, but I would assume, for example, based on 2027 forecasts, that Luotea would be one of the cheapest stocks on the exchange by this metric, although mining companies etc. are likely ahead. Can someone share a list of the top 10 cheapest stocks on the Helsinki Stock Exchange/Inderes coverage using this metric, perhaps based on 2027 forecasts?