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Kreate signs agreement for continuation of previous railway project

KREATEAnalyst Comment28.06.2024, 07.40
Roni PeuranheimoAnalyst
Discuss

Translation: Original comment published in Finnish on 6/28/2024 at 7:25 am EEST.

Kreate has signed an extension with the Finnish Transport Agency for two previous railway projects that Kreate is currently building between Kytömaa and Ainola. The signed contract is worth 34 MEUR. Kreate's order book at the end of Q1'24 was 183.6 MEUR, which makes the contract quite significant, even though it is spread over several years (2025-2027). The contract win supports the growth outlook we expect for the coming years, but we will of course review our forecasts in the next update.

The Kytömaa-Järvenpää construction contract won by KREATE is part of a major Helsinki-Riihimäki project that will improve the reliability of the key railway line, enable more passenger traffic and promote the competitiveness of freight traffic. The two works currently under construction include a new east track and a platform that will be operational by December 2024 at the latest. Winning the third part of the project seems to us to indicate that the first two parts went well from the customer's point of view, which is naturally encouraging for the company. The new contract is expected to begin no later than January 2025 with bridge and earthworks. The project is due to be completed by July 2027. The railway project is a good example of the fruits of Kreate's growth efforts, as the railway business is one of the key areas where the company is seeking growth.

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.

Read more on company page

Key Estimate Figures28.04.2024

202324e25e
Revenue320.0279.5297.4
growth-%16.8 %-12.7 %6.4 %
EBIT (adj.)7.69.010.8
EBIT-% (adj.)2.4 %3.2 %3.6 %
EPS (adj.)0.440.560.73
Dividend0.480.490.50
Dividend %6.7 %1.8 %1.8 %
P/E (adj.)16.550.338.6
EV/EBITDA5.818.216.2

Forum discussions

More work for Kreate along the Helsinki metro line. An €8.2 million contract, with the project starting at the end of 2026. Kreate – 13 Aug ...
8/14/2026, 9:23 AM
9
Without making any judgment on anyone’s assets or investment background: these are actually quite small quantities and amounts. Once you take...
7/22/2026, 6:59 AM
by Juhani
1
Well, that’s not accurate. Over the last 4 quarters, the net profit has been 2.7 + 2.3 + 0.8 + 5.7 = €11.5M. The current market capitalization...
7/22/2026, 6:39 AM
by Blackparta
10
The sell-offs are completely understandable; the P/B is around 5.5 and the P/E based on realized earnings is 30+. I would sell too if I had ...
7/22/2026, 5:30 AM
by Valkeus
4
I still don’t find these sales alarming. In the first case, the seller has some kind of selling program where, whenever the window opens, they...
7/22/2026, 5:18 AM
by IMATION
2
Yeah, I was just spotting the same thing a moment ago - the company released the announcement after 5 PM.
7/21/2026, 8:11 PM
by MichaelJ13508
1
Well, look at that. And the plot thickens, as yet another insider has sold a hefty batch of shares. That certainly gives one food for thought...
7/21/2026, 7:29 PM
by veronmaksaja
1