Solwers’ subsidiary has submitted counterclaim against Kreate

Translation: Original published in Finnish on 5/27/2025 at 7:55 am EEST.

Solwers' subsidiary Finnmap Infra has responded to a lawsuit filed by Kreate earlier this year regarding an alleged breach of performance and has also filed its own compensation claim against Kreate. In our view, disputes and litigation of this kind are fairly common in the industry and taking the case to court was to be expected. However, it is difficult to predict the outcome of the legal process from the outside, and we will continue to monitor the progress of the case before making any changes in our estimates regarding compensation claims.

Finnmap Infra has responded to Kreate's claim and filed a counterclaim

Kreate's claim, filed in February, is based on an alleged breach of performance related to the E18 Turku ring road project between Kausela and Pukkila. We commented on the case in more detail here. Solwers announced yesterday that its subsidiary, Finnmap Infra, has submitted a response to the district court, denying both the basis and the amount of the claims. Simultaneously, Finnmap Infra has filed a counterclaim for approximately 1.1 MEUR concerning the alleged negligence of Kreate and the resulting compensation for additional and modification works. Finnmap Infra is also demanding compensation for legal costs.

Scale of claims especially emphasized for Solwers' size range

The size of Kreate's previously submitted claim of approximately 2.5 MEUR is significant in relation to Solwers' current earnings level and cash flow (2025e: EBITA 6.3 MEUR). Thus, a potential single large one-off item could cause a significant dent for one year if Solwers were ordered to pay the claim and the insurance did not cover the related expenses. However, with Finnmap Infra's counterclaim of approximately 1.1 MEUR, the net effect could go either way. Relative to Kreate's size, the magnitude of the matter is clearly smaller (2025e: EBITA 9.9 MEUR). However, it is difficult to predict the outcome of the legal process from the outside, and we will continue to monitor the progress of the case before any changes in our estimates regarding compensation claims.