Vilppo has prepared a new company report on Sitowise after Q3. 
Sitowise’s Q3 result was subdued overall. Finland performed well, but losses in Sweden deepened. At the bottom of the construction cycle, all cash flow is consumed by financing costs, but as demand recovers, results could improve quickly. However, we still need clearer signs of an earnings turnaround before taking a bolder view.
https://www.inderes.fi/research/sitowise-q325-tarkkailuasemissa-syklin-poh
Isa and Olli chatted in English about Sitowise regarding Q3. \n\n\nhttps://www.inderes.fi/videos/sitowise-q325-at-the-bottom-of-the-cycle\n\nThis video can also be found here: https://www.youtube.com/@inderesnordic
Sitowise’s CEO Heikki Haasmaa spoke about his company at the Sijoittaja 2025 event
Black Friday stock showing -15% on the board, without any news? Apparently, someone has a strong need to get rid of the shares.
I took advantage of this Black Friday introductory offer.
For me, these consulting firms are fundamentally a definite no for my portfolio, but a market capitalization of just under 80 million euros in relation to revenue (of course, on the flip side, also considerable net debt) piqued my interest for a closer look. Usually, the first thing I check with a new prospect is who my business partners are. Therefore, I checked the list of the largest shareholders and its biggest changes. In November, Proprius Partners seems to have disappeared from the list of the 100 largest shareholders. Instead, Erkki Etola has added 378,000 pcs.
Substantial write-down regarding the goodwill of Swedish acquisitions 2/3 = EUR 40 million.
Otherwise, the testing indicated that the goodwill was relevantly recorded in the balance sheet.
EDIT: or what that share actually is. In Finnish, “kohta kolmasta” (almost a third) which I interpreted as a typo for “kahta kolmasta” (two thirds). But in the English release, “one third” i.e. 1/3.
=> Explained below that EUR 40 million = 2/3
Inside Information: Sitowise makes a write-down of approximately EUR 40 million related to its Swedish business
Sitowise Group Oyj 16.12.2025 Inside Information at 7:45 p.m.As part of its annual financial reporting process, Sitowise tested the balance sheet values of the Group’s intangible assets and goodwill, as well as the values of subsidiary shares held on the parent company’s balance sheet. As a result of the testing, Sitowise will make a write-down of approximately EUR 40 million related to its Swedish business in its fourth-quarter 2025 reporting. The write-down affects the Group’s goodwill and the shares of the subsidiary Sitowise Sverige AB held on the parent company’s balance sheet.
The write-down of Group goodwill has no impact on the Group’s adjusted EBITA or cash flow. The write-down will be reported in the income statement under the line item “Depreciation, amortization and impairment losses” and will affect the Group’s fourth-quarter result.
Goodwill testing was performed for the entire business, and the write-down was allocated to the Swedish business due to its weakened future cash flow assumptions. The revenue and profitability development of the Swedish business area has been weak, and the realization of expected benefits from adaptation measures implemented in 2024–2025 has been delayed from previous expectations, as described in Sitowise’s latest interim reports. The written-down goodwill originated from acquisitions made in Sweden between 2018 and 2022, which are included in Sitowise’s Swedish business area.
The balance sheet value of Group goodwill after the write-down is approximately EUR 120 million, and it has entirely arisen from Sitowise’s Infra, Buildings, and Digital Solutions businesses, whose development has been good when viewed as a whole. Group goodwill will continue to be tested as a single unit.
In connection with the Group goodwill testing, the value of subsidiary shares owned by the Group’s parent company Sitowise Group Oyj was also reviewed. As a result, the acquisition cost of Sitowise Sverige AB shares included in the parent company’s balance sheet was written down by approximately EUR 40 million, which corresponds to approximately almost a third of their acquisition cost in the 2024 financial statements. The write-down of the value of subsidiary shares has no impact on the Group’s figures, but it reduces the amount of distributable funds of the parent company. Distributable funds will remain at a good level even after the write-down.
Do I remember correctly that this write-down risk has been flagged in an Inderes report? I recall @Olli_Koponen having spoken about this at some point. I have kept this on my watchlist, but the weak performance of the Swedish business has been haunting me in the back of my mind. Well, now one can buy in cheaper, if one has the courage.
Hi Opa and other forum members! My apologies for the typo and translation error in the announcements. In Finnish, the sentence should indeed read “Tämän seurauksena emoyhtiön taseeseen sisältyvien Sitowise Sverige AB:n osakkeiden hankintahintaa alaskirjattiin noin 40 miljoonaa euroa, mikä vastaa noin kahta kolmannesta niiden hankintahinnasta vuoden 2024 tilinpäätöksessä.” And in English, it should similarly be two thirds. However, the most essential thing here is the amount, i.e., EUR 40 million. Regards, Mari/Sitowise IR
Here are Vilppo’s comments on the large write-down in Sweden.
Sitowise announced on Tuesday that it would make a write-down of approximately EUR 40 million related to its Swedish business. The write-down has no cash flow impact, but it reflects the prolonged challenges of the Swedish business. The risk of a write-down was evident, so the news did not come as a surprise and does not cause immediate pressure for changes to our operational forecasts. In our understanding, the covenant condition for the loans in the company’s current financing package is tied to the gearing ratio (net debt to last 12 months’ EBITDA) and the decrease in equity has no impact on them.
So, group goodwill was tested…
And the value of subsidiary shares was reviewed. So, is the total outcome of both actions 40M?
Goodwill of EUR 40 million was written down from Sitowise’s balance sheet, and for Sitowise Sverige AB, this meant that after this same EUR 40 million was removed, only EUR 20 million remained from the acquisition cost of companies acquired in Sweden (this item is not goodwill, as it was fully written down for Sweden). So, in other words, companies were originally acquired in Sweden for EUR 60 million, but due to weak performance and the recent write-down, their balance sheet value is now only EUR 20 million.
Happy New Year 2026 to the forum! Our pre-silent period newsletter can be found here: Q4/2025 Pre-silent period newsletter | Sitowise Best regards, Mari/Sitowise IR
The CEO is changing at the company.
Olli has published a new company report on Sitowise.
Sitowise announced on Monday that the company’s CEO Heikki Haasmaa will leave his position during Q1, and the search for his successor has been initiated. The company’s CFO also changed last week when Sanna Sormaala, who was appointed in August, started in her role. The management changes do not cause any adjustments to our view. We updated our forecasts to include the EUR 40 million goodwill impairment in Sweden announced in December, which also had no impact on our view. We reiterate our Reduce rating and target price of EUR 2.2.