Analyst Comment
Kreate's 30 MEUR tunnel project accelerates growth in Sweden
By Sauli Vilén
Summary
- Kreate's Swedish subsidiary secured a 30 MEUR tunnel renovation contract in Gothenburg, marking the largest contract in its Swedish history and enhancing its order book.
- The Lundby Tunnel project will be included in Kreate's Q2'26 order book, with work planned from September 2026 to August 2028, supporting the company's strategic expansion in Sweden.
- Kreate's operational performance is robust, with a record-high order book of 689 MEUR at the end of Q1, and the new contract boosts Q2's announced orders to approximately 260 MEUR.
- The project aligns with Kreate's growth strategy and supports the company's momentum, as highlighted by a recent positive earnings revision.
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Translation: Original published in Finnish on 06/17/2026 at 09:13 am EEST
Kreate announced on Wednesday that its Swedish subsidiary has won a tunnel renovation contract in Gothenburg worth around 30 MEUR. We consider the news positive, as it further strengthens the company's already excellent order book and supports the scaling of Swedish operations in line with the strategy. The order is the largest in the company's Swedish history and provides the unit with better visibility for the coming years. We updated our estimates for Kreate this morning, and the order does not cause immediate pressure to change our estimates.
Swedish operations take a significant growth step
The recently won subcontract for the Lundby Tunnel will be recorded in Kreate's Q2'26 order book, with work scheduled between September 2026 and August 2028. This is the largest single contract in Kreate Sverige's history, which we believe is strong proof of the company's competitiveness and specialized expertise in demanding tunnel construction. The project excellently strengthens the unit's basic workload for the next two years and strongly supports Kreate's strategic objective to build Sweden into a second strong geographical foothold for the group.
The order supports the company's exceptionally strong momentum
Kreate's operational performance is currently very strong, as underscored by yesterday's positive earnings revision. At the end of Q1, the order book was at a record high of 689 MEUR, and the newly announced contract increases the value of new orders announced during Q2 to around 260 MEUR. This further strengthens our view that the company's order book will again reach a new record high at the end of Q2. The project naturally supports our growth estimates for the coming years, which we discussed in more detail in the company report we published this morning.
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 pageKey Estimate Figures16.06
| 2025 | 26e | 27e | |
|---|---|---|---|
| Revenue | 315.2 | 623.8 | 644.5 |
| growth-% | 14.4 % | 97.9 % | 3.3 % |
| EBIT (adj.) | 10.0 | 23.5 | 26.1 |
| EBIT-% (adj.) | 3.2 % | 3.8 % | 4.1 % |
| EPS (adj.) | 0.71 | 1.84 | 2.06 |
| Dividend | 0.60 | 0.90 | 1.00 |
| Dividend % | 4.8 % | 3.5 % | 3.8 % |
| P/E (adj.) | 17.6 | 14.2 | 12.7 |
| EV/EBITDA | 7.7 | 7.3 | 6.5 |
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