Finnish construction company SRV has disclosed its interim report for the third quarter (Q3) of 2024, with an increase in revenue of 24.9% to €183.5m ($237m), compared to €146.9m in the same period last year.
This growth was attributed to a rise in alliance and project management contracts within the business and infrastructure construction sectors.
Despite the higher volume of business, the company's operative operating profit remained almost unchanged at €4.5m, slightly down from €4.6m in the previous year.
The company's result before taxes saw a positive shift, recording €1.7m compared to a loss of €6.5m in the previous year.
SRV's equity ratio was slightly down at 34.5% from 34.9% in September 2023 while gearing improved to 69.7% from 84.8%. Excluding IFRS 16 impacts, the equity ratio was at 48.2% and gearing stood at -6.0%.
The company's order backlog increased to €1,180m, with 93.5% sold, up from €995.6m and 92.1% sold in the previous year.
For the period from January to September 2024, SRV reported a revenue of €536.7m, marking a 25.3% increase from €428.3m in the same period last year.
The operative operating profit for this nine-month period was €7.3m, a considerable improvement from a loss of €1.3m.
The result before taxes for the period was €2.3m, recovering from a loss of €16.4m previously, and earnings per share were at -€0.0, compared to -€1.0 previously.
Looking ahead, SRV anticipates that its 2024 revenue and results will be influenced by various factors, including the margin of the order backlog, the initiation of new contracts, geopolitical risks, and changes in material costs and labour availability.
The company expects revenue to increase to €720m-€750m from €610.0m in 2023, with operative operating profit projected to improve to €7m-€12m from €1.1m in 2023.
SRV president and CEO Saku Sipola said: “Our order backlog, which consists almost entirely of cooperative and competitive contracts, increased during the third quarter and stood at €1,180m at the end of the review period. We also have projects valued at about €711m that have been won or committed to with preliminary contracts, but which have not yet been entered into our order backlog.”
