There’s an article in HS regarding Kesko, but which also significantly touches upon SRV. The article’s title:
"Tikkurila’s most massive shopping center of its time to be replaced by a new one
Construction|Kesko has joined forces with construction company SRV in a revolution concerning Tikkurila’s city center."
The article also mentions (as new information to me) SRV’s own plans in Tikkurila.
Indeed, there are big plans, and it seems they have to start from zoning… Construction perhaps at the end of the decade
Kesko has also joined forces with construction company SRV, which is planning offices, a conference hotel, and retail spaces on the other side of the street. Plans for this block at Asematie 1–3 have been on hold for a long time.
SRV has now issued a release about the Marjoniemi comprehensive school to be built in Kouvola.
The contract value for SRV is approximately 33 million euros.
According to the release, for the project to be realized, it still needs an investment decision from the City of Kouvola. The project will be entered into SRV’s order book once the construction decision has been confirmed.
What’s the situation with this Keilaniemi project…? Yesterday, the matter was discussed in the Espoo City Board’s Economic and Competitiveness Subcommittee, and as far as I understand, the decision was largely in line with the proposal (pages 27-33 in the minutes, https://espoo.oncloudos.com/kokous/20251513.PDF). Over the weekend, there was a post by an Espoo politician on Facebook (attached as an image), which implied that SRV’s position would improve (“20 million euros”…). The Länsiväylä newspaper reported on the matter yesterday and today, but the articles are behind a paywall - does anyone have access to the articles?
Yesterday: SRV on saamassa tahtonsa läpi Keilaniemen talokiistassa – "Olen järkyttynyt", sanoo SDP-päättäjä | Paikalliset | Länsiväylä
Today: Keilaniemen tornitalokiistassa kompromissi – SRV joutuu maksamaan viivästyskorkoa | Paikalliset | Länsiväylä
Someone asked what happened (in the meeting). Here’s the answer:
·
SRV pays 5% interest for a 6-month payment period, i.e., 0.75 million euros. Then a new processing. The agreement was not opened, nor was the door to weakening terms. Entrepreneurial risk remained with the company. Zoning proceeds with high-quality goals, not for bulk.
I was somewhat amused by this SDP lawyer’s view on SRV’s profitability… perhaps the fire of ideology makes even cod taste like salmon. Just the same rigor in all city matters.
Well, those schedules have been shuffled around, for known reasons.
In this situation, it is unreasonable to support a profitable listed company with over
a million euros by granting interest-free payment time for a purchase price of approximately 30 million euros. Espoo had no
obligation whatsoever to accept changes to the payment schedule.
EPS 2010-2024:
-In 2024, fortunately, Pearl Plaza was sold, which pushed the result above zero.
As mentioned in connection with the earnings report, targets are being pushed forward. The idea behind the targets is to achieve 30-40% of revenue from self-developed / self-initiated projects and residential projects.
SRV’s long-term financial targets
The company’s operations are guided by long-term financial targets, which it aims to achieve by 2029-2030:
Operating profit at least EUR 50 million (unchanged)
Revenue > EUR 900 million (unchanged)
The company’s dividend policy target to distribute 30-50% of annual earnings as dividends, taking into account the company’s outlook and capital needs, remains unchanged.
SRV focuses on three main areas in portfolio management. The goal is to strengthen SRV’s leading position in collaborative and other contracting. Secondly, the aim is to increase the share of self-developed and self-initiated projects to 30-40 percent of revenue. Thirdly, the company aims to increase residential projects to 30-40 percent of revenue. The gradual strengthening of the company’s balance sheet, most recently the agreement on the sale of SRV Infra Oy (published 27.10.2025), increases the company’s ability to finance land acquisitions for self-developed and self-initiated production, and especially the capital committed to self-initiated production as its volume grows.
Let’s do an interview today after SRV’s webcast (which starts at 2 PM). If any questions for the management come to mind before that, you can post them in the thread.
One could at least ask about the situation in Keilaniemi and its impact on the outcome.
Sipola said regarding Q3 that the company will recover its investment from Oulu Torihotelli.
One could ask Sipola if this means that SRV will receive approximately €13.5 million in capital, along with delay interest and the building’s maintenance costs for almost three years?
Here are Ate’s comments on SRV’s “target updates” 
SRV announced this morning that it is postponing the timeline for achieving its long-term financial targets. The targets, which remain unchanged in content (revenue > EUR 900 million and operational EBIT > EUR 50 million), are now set to be achieved during 2029–2030, whereas the previous target date was during 2027. The company justifies the postponement with the exceptionally prolonged weak market situation, which has delayed the strategy-compliant shift towards more profitable self-developed projects. The announcement was expected and does not cause changes to our view of the company or our forecasts.
It would be interesting to hear what kind of market volume SRV anticipates in the volume of ARA-subsidized and privately financed housing projects for the upcoming period 2026-2030. And how does SRV aim to maintain its position in a changing market?
Edit: Also linking to the development of the total residential construction volume in Finland during 2026-2030.
In practice, the only thing that changed is the postponement of previous targets by a couple of years. Whether the target actually shifts forward by one, two, three, or five years remains to be seen and depends almost entirely on the rise of own-developed housing production and, to a lesser extent, on the increase in own-developed commercial property construction. No one could have predicted two years ago what the situation would be in 2025, so by the same logic, no one knows how the market will stand in 2027. In other words, the target could just as well be achieved already in 2028 or not until 2030. It could even go beyond that.
Locking expectations to +900/+50 figures is a fallacy, as there are remarkably good intermediate steps even between those figures compared to the current valuation level.
If an operating profit level of +50 M€ were to be achieved by 2030, it would presumably mean that the cumulative operating profit level achieved by then would significantly exceed the company’s current market value.
Regarding the stock’s valuation, it will likely continue to move sideways until banks, pension insurers, and institutions sense a turnaround in the fundamentals of housing construction.
Based on what Sipola stated about VVL, speculations about share dilution can now finally be put to rest.
Atte interviewed CFO Jarkko Rantala about SRV’s new financial targets
Topics:
00:00 Introduction
00:12 New financial targets
01:11 What kind of market are the targets based on?
02:09 Own project development portfolio
03:04 Profitability of contracting
04:18 Sale of SRV Infra
05:40 Utilization of the purchase price
06:19 Impact of the transaction on profitability
07:14 Pre-marketing
08:00 Keilaniemi housing project
Regarding the Keilaniemi plots, a paywall-free news article in HS now: Keilaniemen tornitalot kutistuvat ja viivästyvät vuosilla | HS.fi
In residential/office construction, the target is now years 2027-2028.
Nearly 50 million euro project planned until 2030
The City of Porvoo has selected SRV as the implementation partner for the new construction project to be carried out in Kokonniemi. The project, implemented as a collaborative project management contract, is divided into a development phase and two implementation phases. The target price for the project management contract is 48.5 million euros. At the end of the development phase, the client will separately decide on the new construction project’s transition to the implementation phase.
The project will be recorded in SRV’s order book when the implementation phase begins. The project supports SRV’s strategic goal to strengthen the company’s leading position in collaborative and other contracting, where the company is strong, especially in public sector projects.
The development phase of the project starts immediately and continues until summer 2026. The client will make the construction decision to proceed to the implementation phase in June 2026. Construction work for the ice hall, to be implemented in the first phase, will begin in autumn 2026, and construction work for the multi-purpose arena, in the second phase, will begin in summer 2028. The estimated completion of the entire building complex is in summer 2030.
Projects are coming up, but their margins are always discussed.
It would be interesting to hear from SRV how much the standstill of self-developed housing projects costs the company in absolute terms and compared to a so-called normal situation.
Currently, the plots are idle, and their financing costs incur expenses. At the same time, there are certainly personnel partly planning and on standby, anticipating the start of future projects.
Only based on additional information could one better assess the real earning capacity of the contracting business, because currently, a minor/slightly larger/significant portion of its profit is consumed by the running costs of self-developed housing construction.
Thinking positively, the rise of self-developed housing construction will raise the profit level slightly/a bit more/significantly from both directions simultaneously.
Today a slightly smaller announcement, but everything counts. Value for SRV 6 M€.\n\nSRV toteuttaa Jykialle uuden puolustusteollisuuden tuotantolaitoksen - SRV Yhtiöt Oyj
Some movement regarding hybrid bonds, but these ‘individual’ ‘very limited’ ‘private and personal but still market-priced’ things are a bit hazy to my understanding. And where the offer is coupled with opportunities to subscribe for a new hybrid bond as well.
INSIDE INFORMATION: SRV considers issuing a new green hybrid bond and limited repurchases of its existing convertible hybrid bonds
SRV Group Plc (“SRV”) plans to issue a new unsecured, subordinated, and perpetual green hybrid bond (“New Hybrid Bond”) with an estimated total amount of EUR 20–30 million (“Issuance”). The Issuance of the New Hybrid Bond is expected to take place in the near future, market conditions permitting.
SRV would use an amount corresponding to the net proceeds from the Issuance of the New Hybrid Bond for financing or refinancing eligible green projects in accordance with its Green Bond Framework (“Framework”). The Framework is published today on SRV’s website at Velka- ja hybridisijoittajat.
In connection with the Issuance, SRV plans to repurchase its existing convertible hybrid bonds (ISIN FI4000198122 and/or FI4000315395) (“Existing Hybrid Bonds”) from a very limited and pre-determined group of Existing Hybrid Bondholders, who are offered the opportunity to subscribe for the New Hybrid Bond in the Issuance (each separately a “Repurchase” or together “Repurchases”). The price and other terms of each Repurchase will be determined on market terms in private and investor-specific negotiations. The Repurchases are conditional on the issuance of the New Hybrid Bond.
Nordea Bank Abp and Swedbank AB (publ) act as lead managers for the potential Issuance and as advisors in the preparation of the Green Bond Framework. Nordea Bank Abp and Swedbank AB (publ) also act as arrangers for the potential Repurchases.
