Frans spoke with Toivo’s CEO Markus Myllymäki regarding the company’s Q1 
Topics:
00:00 Introduction
00:21 Development during the beginning of the year
01:18 Project profitability and the one-off negative development gain
02:52 The three-way business split
05:46 Construction contract with VAV Group
08:07 Projects in progress
09:56 Status of the Sompasaari project
12:11 Observations on the operating environment
13:55 Outlook regarding project start-ups
Frans has published a new equity research report on Toivo following the Q1 results
We reiterate our Accumulate recommendation for Toivo Group and our target price of EUR 1.20. The Q1’26 result fell slightly short of our forecasts due to a one-off post-completion cost for an already finished project. On a positive note, the company’s project profitability was otherwise better than we expected. As anticipated, the company reiterated its guidance, and we lowered our earnings forecasts only slightly. The recovery of the housing market remains slow, and the elevated interest rate level especially overshadows the demand outlook for the housing sector. However, strong news flow, realized volume growth, good project profitability, and an improved competitive position have increased our confidence in the company. We see the valuation as more attractive after the share price decline, supported by a low balance-sheet-based (Q1’26: P/NAV 0.91x) and earnings-based valuation (2025 P/E 13x).