Translation: Original published in Finnish on 6/26/2025 at 7:26 am EEST.

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. Kreate's order book at the end of Q1'25 was around 226 MEUR, relative to which the contract is not significant on a group scale, but in our view, supports both achieving the current year's guidance and next year's development.

The won contract demonstrates that Kreate's growth investments are paying off and confirms the company's position as a reliable player

The interior construction contract for the Lovö tunnel, which is part of the Stockholm bypass project, will begin immediately and has been added to Kreate's Q2 order book. The contract is scheduled for completion in March 2026. Thus, the won contract significantly strengthens Kreate's Swedish operations' order backlog and next year's growth prospects. The rolling 12-month revenue for Swedish operations was 33.9 MEUR at the end of Q1, and our revenue forecast for 2025 is approximately 39.4 MEUR, so the contract represents a relatively significant addition to the volume of Swedish operations next year.

According to the release, this involves continuing work that was left unfinished by a previous contractor, which in our view highlights Kreate as a reliable and competent player that is also capable of taking responsibility for challenging projects. Kreate is also involved in other projects related to the Stockholm bypass, so the agreement can be seen as an additional contract to previous projects.

The project supports both the current year’s guidelines and next year’s development

Kreate's order book at the end of Q1 was around 226 MEUR, in light of which the contract is not significant at the Group level considering the company's size. However, the contract represents nearly a 6% increase compared to the previous quarter's order book. Kreate reiterated its guidance in connection with Q1, stating that 2025 revenue is expected to grow to 290–310 MEUR (2024: 275.5 MEUR) and EBITA to be 9–11 MEUR (2024: 8.8 MEUR). In our view, the won contract supports both achieving the current year's guidance and next year's revenue growth (2026e: 319 MEUR).

Kreate's order book was growing strongly at the end of Q1 (+23% y/y), and in our view, winning projects in a challenging construction market is a good indication of the stable, and in part even favorable, outlook for infrastructure construction, as well as the success of Kreate's growth investments.