Technical consulting company Sweco published its Q4 report today, February 9, 2024. As one of the market leaders, Sweco serves as a good benchmark, particularly for Sitowise and Solwers. The report showed a revenue of 7,717 MSEK, up from 6,732 MSEK in Q4’22, with an EBITA margin of 8.5%, down from 10.5% in the same period last year. Revenue growth was 15%, of which calendar-adjusted organic growth was 6%. Organic growth was primarily driven by higher average fees and increased headcount, offset by negative project adjustments and a lower billing rate.

In Sweden, Sweco achieved organic growth of 6% (Q4 22: 7%) and an EBITA margin of 13.4% (Q4 22: 14.4%). The decline in EBITA was driven by higher personnel expenses, lower billing rates and higher operating costs. Despite the overall stability of the Swedish market, there were differences between the segments. Demand for energy and environmental services remained strong, driven by green transition and climate adaptation projects. Infrastructure services, particularly relevant to Sitowise's focus in Sweden, experienced stable demand. However, weakness persisted in the residential and commercial real estate sectors.

In Finland, Sweco reported negative calendar-adjusted organic growth of -2% (Q4 22: 10%), with an EBITA margin of 5.0% (Q4 22: 11.7%). The Finnish market showed mixed dynamics, with a positive performance in the energy and infrastructure sectors, but continued weakness in industrial services. Similar to Sweden, challenges remained in residential and commercial real estate, while the public building segment remained stable.

For Finnish technical consultancies specializing in the construction market, the infrastructure market seems to be stable, while demand in parts of the building segments remains weak. The calendar effect (one working day less compared to Q4'22) will also have a negative impact on growth numbers, billings, and profitability.