Kreate Group operates in the infrastructure sector. The company offers a wide range of services in the development of demanding industrial projects. Examples of services include bridge repair and construction, track construction for trains and rails, and mass excavation and crushing of rock for new motorway extensions. The largest operations are conducted around the Nordic market.
Kreate announced on Monday that it is acquiring all shares in SRV's subsidiary SRV Infra Oy. We believe the deal strengthens Kreate's profitable growth outlook in the coming years.
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Kreate announced yesterday that it is acquiring all shares in SRV's subsidiary SRV Infra Oy. The enterprise value of the transaction is approximately 30 MEUR, and it will be carried out in cash. SRV Infra’s revenue in 2024 was 52.2 MEUR, and its EBIT was 2.6 MEUR. This acquisition will expand Kreate's offering in Finland into an entirely new business area, underground rock construction. The purchase price aligns with the company's own valuation, and we consider it neutral given the acquired company's high profitability and positive earnings trend. The transaction will require us to revise our estimates, which we will update in the coming days.
Kreate's revenue growth clearly exceeded our estimates in Q3. Due to strong volume development, profitability was also higher than our estimates in absolute terms, although relative profitability was slightly below our estimates.
Kreate published its Q3 report this morning, which was stronger than we expected. The company's revenue and earnings clearly exceeded our estimates, driven by record-high volume.
We expect revenue to have continued its steady growth in Q3, supported by a strong order book, and earnings to have improved moderately with rising volumes. Kreate's share has risen by some 15% since the Q2 earnings, as a result of which the valuation of the share has become neutral.
Kreate's revenue growth exceeded our expectations in Q2, but the earnings level decreased slightly year-on-year. To meet its guidance, we believe the company needs a strong H2, where growth is underpinned by the rail projects to be added to the order book and profitability, in turn, is supported by rising volumes and easing cost pressures.
Kreate released its Q2 report this morning. Revenue growth exceeded our expectations in Q2, but the earnings level decreased slightly year-on-year and was also a bit below our forecast. On the positive side, the company's order backlog grew faster than expected, supporting revenue growth going forward.
We expect revenue to have seen a slight increase in Q2, driven by a stronger order book, but earnings to have remained sluggish, weighed down by low volumes and fierce competition.
Kreate announced on Tuesday that it had signed a new financing agreement for 49 MEUR. The new financing agreement replaces the company's agreements maturing next year and is a normal refinancing of loans.
Kreate announced yesterday that its Swedish subsidiary has won a project worth approximately 13 MEUR, which concerns the interior work of the Lovön tunnel, part of the Stockholm Bypass project. In terms of value, the contract becomes the largest in the history of Kreate's Swedish operations and, in our view, is a good example of Kreate's growth investments bearing fruit.
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.
