GRK wins 68 MEUR road contract
Summary
- GRK announced it won a 68 MEUR contract to improve national road 5 in Finland, enhancing its order book with a project spanning from 2026 to 2029.
- The project involves upgrading a 17-kilometer road section, including constructing five multi-level junctions and 15 bridges, with construction starting in August 2026.
- This contract serves as a strong reference for GRK's expertise in road construction, filling the order book gap left by previous projects on national roads 4 and 9.
- The project contributes approximately 4% to GRK's Finnish revenue forecast for 2026–2029, with revenue recognition expected to peak in 2027–2028.
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Translation: Original published in Finnish on 5/5/2026 at 8:39 am EEST.
GRK announced on Monday that it had been selected to implement the improvement project of national road 5 between Leppävirta and Palokangas in Finland. Commissioned by the Finnish Transport Infrastructure Agency, the project is valued at approximately 68 MEUR and was immediately included in the company's order book. We consider the order a very welcome addition to GRK's Finnish order book. However, as the project is spread over several years, its annual revenue impact remains relatively moderate in our estimates.
Strong reference in demanding road construction
The design and implementation project, valued at approximately 68 MEUR, involves improving a roughly 17-kilometer road section into a median-barrier passing lane road. The project is technically diverse, including the construction of five multi-level junctions and 15 bridges, among other things. Project planning will start immediately, and construction is scheduled to begin in August 2026. The work is estimated to be completed in 2029.
In our view, this project is a strong reference for GRK, leveraging the company’s extensive expertise in civil engineering and road construction. The company has previous experience with similar major road projects, such as the improvements to national roads 4 and 9, and we believe this new contract will effectively fill the gap in the company's order book left by the completion of these projects.
Order supports revenue forecasts for the Finnish business
The total value of the project is 68 MEUR, distributed over the years 2026–2029, which equates to an average annual revenue of around 17 MEUR. However, as is typical for construction projects, revenue recognition will likely follow an S-curve, with the majority of revenue from the project accumulating in 2027–2028. Overall, the project accounts for approximately 4% of the Finnish unit's cumulative revenue for 2026–2029, which we estimate to total around 1,850 MEUR. At the group level, the project accounts for around 2% of the estimated revenue. Thus, the project represents a relatively moderate portion of our expectations, and the release does not cause immediate changes to our estimates.
GRK Infra operates in the infrastructure sector. The company's core competence includes the implementation of various infrastructure projects, project management of large and small projects and extensive railway expertise. Customers include the state, municipalities and cities as well as the private sector. In addition to the parent company GRK Infra Oyj, the GRK Group includes companies in each country of operation: GRK Suomi Oy in Finland, GRK Eesti AS in Estonia and GRK Sverige AB in Sweden.
Read more on company pageKey Estimate Figures13.02
| 2025 | 26e | 27e | |
|---|---|---|---|
| Revenue | 872.3 | 799.9 | 786.0 |
| growth-% | 19.8 % | -8.3 % | -1.7 % |
| EBIT (adj.) | 58.2 | 52.1 | 47.3 |
| EBIT-% (adj.) | 6.7 % | 6.5 % | 6.0 % |
| EPS (adj.) | 1.17 | 1.02 | 0.94 |
| Dividend | 0.53 | 0.56 | 0.62 |
| Dividend % | 3.7 % | 4.2 % | 4.6 % |
| P/E (adj.) | 12.3 | 13.1 | 14.1 |
| EV/EBITDA | 4.7 | 5.5 | 5.9 |
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