A new educational institution for Turku; starting with a development phase, with names expected on the construction contract in approximately 9 months. The value of the final construction contract is around €26 million.
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Expected news, critical in terms of dilution.
This means the convertible hybrid bonds will be redeemed.
SRV to redeem convertible hybrid bonds issued in 2016 and 2018
This announcement concerns SRV Group Plc’s (“Company”) perpetual convertible hybrid bonds ISIN FI4000198122 and FI4000315395 (together, the “Hybrid Bonds”).
The remaining aggregate principal amount of the convertible hybrid bond issued on 23 March 2016 (fixed coupon rate 4.875 percent) is EUR 14,455,202 (ISIN: FI4000198122).
The remaining aggregate principal amount of the convertible hybrid bond issued on 27 March 2018 (fixed coupon rate 4.875 percent) is EUR 24,665,475 (ISIN: FI4000315395).
The Hybrid Bonds are perpetual, but the Company has the right to redeem them in full on the first reset date or any interest reset date thereafter in accordance with section 7.5 (Redemption at the option of the Issuer) of the terms and conditions of each Hybrid Bond. The Company hereby notifies the holders of the Hybrid Bonds (“Holders”) and the Calculation Agent that it will redeem the outstanding Hybrid Bonds in full on 30 June 2026 (“Redemption Date”) in accordance with the terms and conditions of the Hybrid Bonds.
On the Redemption Date, the Company will pay the Holders of the Hybrid Bonds a redemption price for each Hybrid Bond equal to 100 percent of their nominal value, plus accrued but unpaid interest. The Hybrid Bonds to be redeemed will accrue interest until the Redemption Date (but excluding the Redemption Date).
This redemption notice is irrevocable. All Hybrid Bonds redeemed by the company will be cancelled.
The Hybrid Bonds are separate from the EUR 22.5 million green hybrid bond issued by the company in November 2025, which is not convertible. The redemptions do not apply to this green hybrid bond.
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Here are Atte’s quick comments on SRV’s Q1 results. 
SRV’s first-quarter results were softer than our expectations. The weakness at the beginning of the year was largely expected due to the low order backlog at the end of 2025, but the actual performance was slightly weaker than our forecasts. The company already raised its guidance for the current year in April, driven by strong order intake, and the start of the year—which was softer than our expectations—does not significantly change our view of the company’s earnings growth, which is weighted towards the end of the year.
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Regarding the future, I would highlight two points from the release:
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“The volume and margin levels of life-cycle projects and other contracting in business premises construction developed positively.” (bolding by the author).
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“We are taking a strengthening position in the data center market; in addition to the Lahti project, we are currently building the LUMI AI Factory data center in Kajaani and are in negotiations for several interesting projects.” (bolding by the author)
In terms of future operating profit and cash flow, it is essential to get the contracting margin levels up. Over the coming quarters, revenue will increase, which in itself raises the operating result. If, in addition to this, there is an increase in margin levels, it is a very welcome development.
Apparently, we have reason to expect significant contract announcements in the near future (0 - 120 days), as the ongoing negotiations have been highlighted so clearly.
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Atte managed to interview SRV’s CFO Jarkko Rantala
Topics:
00:00 Introduction
00:12 Key highlights of the quarter
01:24 Strong order intake
02:18 Won data center project
02:48 Risk-reward profile of data center projects
03:55 Project management capacity
04:28 ”There are plenty of opportunities”
05:30 Private projects
06:20 Potential for starting own-developed projects
07:46 Contracting volumes
08:47 Investor targets
10:08 Impact of the war in Iran on demand
11:16 Cost outlook
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In the company’s webcast, data centers and the continuation of this boom throughout the decade were brought up in several instances and quite emphatically.
Based on the webcast, these projects have better margins than normal contracting.
I personally was left with the impression that data center projects could even create a need to revise the company’s published long-term financial targets in a more positive direction.
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Here is a new company report on SRV from Atte following the Q1 report
SRV’s seasonally quiet first quarter results fell slightly short of our forecasts. However, we believe the company’s revenue and operative operating profit will turn to clear growth during the current year, supported especially by the DayOne data center project, which will recognize revenue at a fast pace this year and next. The stock still appears correctly priced, which is why we remain on the sidelines for now to monitor development. We maintain our target price at EUR 5.2 and our recommendation at the Reduce level.
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Evli also considers the Q1 2026 report soft, and sets a target price of €5.3 & Reduce
Evli | SRV - Growth potential amid uncertainty Evli | SRV - Growth potential amid uncertainty
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