Finland's Sitowise Q4 net sales rise on infra growth

Overview

• Nordic built environment expert's Q4 net sales rose 3% to EUR 50.2 mln

• Adjusted EBITA for Q4 improved to EUR 2.2 mln

• Q4 operating result impacted by goodwill impairment, resulting in EUR 38.8 mln loss

Outlook

• Sitowise expects mixed market conditions in 2026 with good demand in Infra and Digital Solutions

• Company sees slow recovery in construction market, impacting Buildings area until 2027

• Sitowise declines to issue 2026 guidance due to construction market uncertainty

Result Drivers

• INFRA GROWTH - Infra business drove net sales growth with over 11% organic growth, supported by rail transport and green transition projects

• DIGITAL SOLUTIONS - Digital Solutions business saw lower project volumes but maintained profitability through fast-growing product business

• GOODWILL IMPAIRMENT - Operating result impacted by goodwill impairment related to Swedish acquisitions, resulting in significant loss

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the construction & engineering peer group is "buy."

• Wall Street's median 12-month price target for Sitowise Group Oyj is €2.30, about 5% below its February 10 closing price of €2.42

• The stock recently traded at 121 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nWkr8k43w3

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)