But let’s say that I also follow the industry from an investment perspective, so it’s hard to say if this will get even worse than a disaster, and at some point, it will surely get better. I haven’t yet invested in companies in the sector, but in bad times, I guess one should buy them cheap.
Of course, these should then be in reasonable shape after the recession to benefit from the recovery, but these big companies are quite broadly involved in all sorts of things, so in a good economic climate, there would probably be enough work?
I wouldn’t want any long-term holding from the construction sector, unless some Lapwall-like business concept would forcefully gain market share from others?
Before, my favorites were Ramirent and its peer, whatever it was, but they delisted…
Sitowise CEO Heikki Haasmaa was interviewed by Olli.
Sitowise reported weaker-than-expected Q4 results, as revenue decreased and profitability remained low due to invoicing rates and business challenges. The decline in order backlog and market uncertainty led the company not to provide guidance for 2025. Sitowise CEO Heikki Haasmaa commented in an interview with analyst Olli Koponen.
Topics:
00:00 Introduction
00:10 Q4 Highlights
02:33 Challenges in the Building business
04:36 Project Challenges
06:46 Tackling Challenges
08:05 Market Weakness & Operational Execution
09:32 Outlook
12:55 Guidance Not Provided
Return to normal is inevitable. Structures from housing to infrastructure must be planned. Inevitably, all construction sector designers (Sitowise and Solwers) and, in the first phase, Kreate and Tekova as implementers will benefit from this. Finland is inevitably heading towards an economic upturn, and these early-stage designers and facility developers will be the first to enjoy the fruits of growth.
“The total value of the project’s services for Sitowise is approximately 1.6 million euros. Its uniqueness creates new business opportunities for Sitowise in green transition projects and strengthens the company’s pioneering position compared to competitors, says Tulamo.”
“During the design phase, the project’s special characteristics are taken into account in various areas, such as architectural and structural, fire and geotechnical engineering, HVAC, automation, electrical, and project design. The design includes the technical planning of battery storage systems, solar panels, and electric vehicle charging stations, focusing on energy efficiency and sustainability. Construction management and project management tasks cover the project’s implementation, supervision, and scheduling, as well as budget and quality management.”
What about analyst @Olli_Koponen’s comments from the annual general meeting? I would have gone myself, but I couldn’t make it due to the flu.
How was the CEO’s presentation, did it match previous videos, did any more positive signal emerge? The share price is highly volatile, but the trading volume is so small that one can hardly draw proper conclusions from it.
If others were present at the annual general meeting, we’d gladly hear other analyses too
I’m just chiming in here because Olli is on parental leave and might not see your question.
But analysts very rarely attend company meetings precisely because it requires owning shares in the company. I don’t know if Olli owns Sitowise, though, and on that front, your guess is probably as good as mine.
Thanks for the comments. Do you know if Inderes will be getting some kind of CEO review video or other similar material from the annual general meeting? Analysts can probably analyze these, even if they don’t receive a direct invitation to the official annual general meeting.
I’m not certain, but at least in other general meetings, the videos have been available on the same day, and this has not been the case with Sitowise. I don’t have time now to inquire about this from those who know better (Customs matters and Ilkka are keeping me busy), but I assume that something like this is not coming.
And yes, they could analyze, but generally, at these events, new information is rarely shared or the future is discussed to the extent that it hasn’t already been communicated to the market.
Hi! Attached is our pre-silent newsletter published last Friday. Happy Easter week to the forum members! Regards, Mari/Sitowise IR Pre-silent newsletter Q1 2025 FI_final.pdf (385.3 KB)
I’m also replying to this with a delay, so Sitowise had its traditional annual general meeting this year, where presentations were not video recorded. The presentation material can be found on our IR website Annual General Meeting 2025 | Sitowise
Here are @lucas.mattsson’s preliminary comments as the company releases its Q1 report next Tuesday.
Switched to Finnish version.
Sitowise will report its Q1 results on Tuesday, May 13, 2025. We forecast revenue to have decreased due to weak market conditions and one less working day. Additionally, we anticipate a decrease in profit alongside the revenue decline, but we expect operational adjustments responding to the current challenging operating environment to support profitability somewhat. In the upcoming Q1 report, we are particularly interested in comments on market outlook, cash flow development, and the financial situation, which are key this year.
Revenue decreased by 6.5% to EUR 48.1 (51.5) million. At comparable exchange rates, revenue decreased by 6.6%.
Organic revenue growth was negative, -6.3% (-7.7%).
Adjusted EBITA was EUR 2.4 (3.4) million, or 5.1% (6.6%) of revenue.
Operating profit decreased to EUR -0.3 (2.0) million, or -0.6% (3.8%) of revenue.
Cash flow from operations before financial items and taxes was EUR 0.5 (5.0) million.
Order backlog increased during the review period. Compared to a year ago, the order backlog decreased by 3.4% and was EUR 157 (163) million.
Gearing (net debt / adjusted EBITDA) was 6.0x (3.8x).
In the customer survey conducted at the beginning of the year, willingness to recommend remained at a good level and NPS (Net Promoter Score) was 35 (31).
Pia Maljanen interviewed CEO Heikki Haasmaa regarding Q1.
Topics:
00:00 Introduction
00:11 Q1 highlights
02:57 What does the construction market look like for the current year?
04:24 Positive development in Infrastructure and Digital Solutions
06:22 Swedish market
07:40 Helsinki light rail project
08:35 New financing package
09:20 Opportunities brought by green transition projects
11:43 Visibility for the rest of the year
Translated into Finnish from @lucas.mattsson’s English report.
Sitowise’s Q1 results were mixed, as the company’s revenue developed as expected, but profitability fell short of expectations. In our opinion, the persistently weak profitability highlights the importance of increasing revenue, and it is also a prerequisite for strengthening cash flow and thus the financial position. The share’s valuation is high relative to the low short-term earnings level, and this, combined with the financial position, creates a weak risk-return ratio in our view. We therefore reiterate our Reduce recommendation and revise our target price to 2.40 euros (previously 2.50 euros) mainly due to forecast calculations.
@Antti_Leinonen has written a good and comprehensive article about Sitowise.
There is a theoretical possibility for a clear course increase, which does not require exceptional performance from the company. A larger position would require a deeper understanding of why the company performs significantly worse than its Swedish competitors or several unlisted design offices.
“Sitowise continues its investment in sustainability services. Emma Kaasinen starts as Client Director for sustainability services.”
“Kaasinen has worked for the past six years at the international financial industry player MSCI, which provides tools for assessing investment-related risks and opportunities. Kaasinen brings to Sitowise solid experience in ESG themes (Environmental, Social, and Governance) as well as a deep understanding of EU regulation and sustainability risk management. Her work experience at MSCI enabled close cooperation with real estate companies, which helped companies analyze sustainability requirements and build a sustainable business strategy.”
