18.7.2025 08:30:00 EEST | Consti Oyj | Half Year financial report
CONSTI PLC HALF-YEAR FINANCIAL REPORT 18 JULY 2025, at 8.30 a.m.
Consti Plc Half-Year Financial Report for January - June 2025
SOLID PERFORMANCE CONTINUED, ORDER BACKLOG INCREASED
4-6/2025 highlights (comparison figures in parenthesis 4-6/2024):
- Net sales EUR 84.8 (82.9) million; growth 2.3%
- EBITDA EUR 3.4 (4.0) million and EBITDA margin 4.0% (4.8%)
- Operating result (EBIT) EUR 2.5 (3.0) million and EBIT margin 2.9% (3.6%)
- Order backlog EUR 276.7 (261.2) million; growth 5.9 %
- Order intake EUR 105.1 (90.8) million; growth 15.8%
- Free cash flow EUR 2.9 (1.2) million
- Earnings per share EUR 0.23 (0.27)
1-6/2025 highlights (comparison figures in parenthesis 1-6/2024):
- Net sales EUR 150.4 (148.4) million; growth 1.3%
- EBITDA EUR 4.1 (5.3) million and EBITDA margin 2.7% (3.6%)
- Operating result (EBIT) EUR 2.3 (3.2) million and EBIT margin 1.6% (2.2%)
- Order intake EUR 165.2 (127.1) million; growth 30.0%
- Free cash flow EUR 2.4 (0.7) million
- Earnings per share EUR 0.19 (0.27)
Guidance on the Group outlook for 2025:
Consti estimates that its operating result for 2025 will be in the range of EUR 9-12 million.
KEY FIGURES (EUR 1,000) | 4-6/ | 4-6/ | Change % | 1-6/ | 1-6/ | Change % | 1-12/ |
Net sales | 84,775 | 82,853 | 2.3 % | 150,381 | 148,379 | 1.3 % | 326,692 |
EBITDA | 3,358 | 3,998 | -16.0 % | 4,123 | 5,282 | -21.9 % | 14,275 |
EBITDA margin, % | 4.0 % | 4.8 % | 2.7 % | 3.6 % | 4.4 % | ||
Operating result (EBIT) | 2,475 | 2,994 | -17.3 % | 2,345 | 3,209 | -26.9 % | 10,184 |
Operating result (EBIT) margin, % | 2.9 % | 3.6 % | 1.6 % | 2.2 % | 3.1 % | ||
Profit/loss for the period | 1,794 | 2,141 | -16.2 % | 1,506 | 2,106 | -28.5 % | 7,143 |
Order backlog | 276,717 | 261,224 | 5.9 % | 240,108 | |||
Free cash flow | 2,909 | 1,210 | 140.5 % | 2,434 | 693 | 251.0 % | 7,205 |
Cash conversion, % | 86.6 % | 30.3 % | 59.0 % | 13.1 % | 50.5 % | ||
Net interest-bearing debt | 3,801 | 3,901 | -2.6 % | 2,681 | |||
Gearing, % | 9.0 % | 9.6 % | 6.1 % | ||||
Return on investment, ROI % | 16.6 % | 21.9 % | 17.4 % | ||||
Number of personnel at period end | 1,042 | 1,087 | -4.1 % | 1,012 | |||
Earnings per share, undiluted (EUR) | 0.23 | 0.27 | -14.8 % | 0.19 | 0.27 | -29.6 % | 0.91 |
CEO Esa Korkeela's comment
"Our net sales for the second quarter increased by 2.3 percent, totalling EUR 84.8 (82.9) million. Our net sales grew strongly in the Housing Companies business area, while net sales in our other business areas declined compared to the reference period. Our operating profit for April to June was EUR 2.5 (3.0) million, equivalent to 2.9 (3.6) percent of net sales.
During the second quarter, projects progressed largely as planned, and the profitability of our project business was in line with our expectations. However, our operating profit was negatively impacted by the continued low net sales and profitability levels in our Service business, which we were not yet able to improve to a satisfactory level during the second quarter. Additionally, our profitability in the second quarter was affected by the prolonged downturn in the construction sector, as well as the investments made in tendering and negotiation activities to secure our order backlog. Our balance sheet and liquidity position remained at a good level at the end of the review period.
In April-June, we received new orders worth EUR 105.1 (90.8) million, representing a 15.8 percent increase compared to the reference period, and are satisfied with both the total volume and quality of the orders received despite intense competition. Among the most significant orders in our construction business areas during the second quarter was the renovation and extension of Maunula Primary School and Månsas Primary School, commissioned by the City of Helsinki, as well as the renovation of Kivimäki School in Vantaa, and in the Building Technology business area, the first phase of ventilation and electrical works for the Metso Lokomotion Technology Centre in Tampere. The combined value of these contracts is approximately EUR 47 million. The remaining order intake for April-June consists of several smaller projects evenly distributed across our business areas. Our order backlog at the end of the review period was at a good level, growing by 5.9 percent compared to the reference period, amounting to EUR 276.7 (261.2) million.
Throughout the review period, we continued to implement our strategy and take measures to safeguard our business performance amid the prolonged construction downturn. Our actions focused on tendering activities, improving production efficiency, and achieving an even more consistent performance level in our project deliveries.
In the first half of the year, housing companies and the public sector demonstrated a reasonable readiness to invest in renovations across our operating areas. The demand for new construction remained weak, and private real estate investment companies continued to be cautious about starting new renovation projects. Competition in the construction and building technology market remained tight. We do not expect a significant improvement in construction demand prospects during the second half of 2025.
However, we believe that the prevailing market situation favours a versatile construction and building technology expert like Consti, which has a strong financial position and the ability to deliver a wide range of projects from small service contracts to large construction projects. Supported by our good order backlog, we aim to continue solid performance and focus on implementing our current strategy."
Operating environment
Construction market 2025-2026
Construction market research institute Euroconstruct estimated in its June 2025 report that the volume for housebuilding construction output will grow by 3.4% in 2025. According to Euroconstruct's forecast, the new construction volume is estimated to grow by around 7.8 percent and the renovation volume to decline by 0.2 percent in 2025.
Euroconstruct's forecasts were lowered compared to its previous report. In its December 2024 report Euroconstruct estimated that the volume for housebuilding construction output in Finland will grow by 5.3%, the new construction volume by 11.2 percent and the renovation volume by 0.3 percent in 2025. Recovery of the market is slower than expected.
For the year 2026, Euroconstruct predicts that the change in renovation volume will be flat at 0.0 percent (previous forecast was 0.7 percent in December 2024).
According to the report recovery in renovation is slow as both housing companies and consumers are still facing tight economic conditions.
The renovation market in general
Renovation is needs-based and thus less sensitive to economic cycles than new construction. However, the steady growth of renovation over the past 20 years came to a halt in 2023, and the decline continued in 2024. Renovation has been reduced partly by the same reasons as new construction, such as rising interest rates, inflation, and repair costs, as well as increased maintenance costs for properties, such as the rising cost of heating.
In 2024, building construction continued to decline, but the decrease levelled off from the previous year. The sharp decline in building construction is primarily due to the halt in new housing production after an exceptionally intense period of housing construction. Residential new construction decreased by approximately 30 percent for the second consecutive year. In other building construction, the changes have been far less significant.
The sharp drop in new construction has meant that more money is currently being spent on renovating existing homes than on building new ones. At the same time, competition for renovation projects and building technology contracts has intensified significantly. In 2024, the value of residential building renovations remained almost on level with 2023, i.e. around nine billion euros. The value of other renovations was about six billion euros.
Nearly two-thirds of renovation work is focused on residential buildings, and more than half of this is estimated to be professional renovation. In residential renovations, building technology plays a key role, accounting for about 35 percent of the value of renovations.
In non-residential buildings, in addition to technical age-related repairs, renovations include a great deal of building purpose modifications, such as converting old, underutilized office buildings into hotels or apartments, or improving them to better meet current needs.
About one-fifth of all renovation is maintenance and upkeep, with a higher-than-average share in non-residential buildings.
According to the Finnish Real Estate Federation's Renovation Barometer, water and sewer systems remain the top renovation priority for apartment buildings. The next most common renovations are roof and facade repairs, as well as heating system modernisations. The rising cost of district heating in many cities is a key factor driving heating system upgrades.
Renovations of commercial and office spaces have also been postponed due to the rapid rise in costs. In addition, the oversupply of commercial spaces and the decline in property prices have slowed down repairs. As the economic situation improves, the oversupply is expected to encourage property owners to improve the competitiveness and rentability of their spaces.
The demand for renovation is supported by the large number of residential buildings that are reaching the age for pipeline renovations. Properties built in the 1970s, which have the largest amount of residential floor space, are now in need of renovation. Additionally, many properties from the 1980s, a significant portion of which are row houses, are also reaching renovation age, with 1980s apartments representing the largest share in terms of quantity.
In addition to building technology renovations, many housing companies have an increasing need for facade repairs, which have often been overshadowed by pipeline renovations for financial reasons. The importance of facade repairs and maintenance continues to grow as winters become increasingly wet. Alongside technical repair needs, expectations for living comfort have risen. The repair needs of commercial spaces are also driven by changing space requirements.
The EU's Energy Efficiency Directive, which came into force in May 2024, is driving the need for energy renovations. The directive aims to reduce the energy consumption and greenhouse gas emissions of buildings. In commercial properties, the demand for energy renovations is also influenced by user requirements - including both financial considerations and environmental certification standards. The need for energy renovations applies to both residential housing companies and various commercial spaces.
Overall, the need for renovation is maintained by both the aging building stock and societal changes such as urbanisation, population aging, changes in working methods and retail, and sustainability goals. Renovation plays a central role in reducing the carbon footprint of the built environment, as the number of new buildings grows by only about one percent per year.
Both new construction and renovations are strongly concentrated in growth centres in Finland.
Outlook for 2025
In 2025, the housebuilding construction output in Finland is estimated to increase by approximately 3.4 percent from the previous year. New construction is predicted to grow by approximately 7.8 percent and renovation to decline by 0.2 percent in 2025.
The weak demand for new construction and private real estate investment companies' caution in launching new construction projects has continued. Competition in the construction and building technology market has remained intense. The demand outlook for construction is weakened by prolonged economic uncertainty, interest rates, high construction costs, and tightening availability of financing, and Consti does not expect a significant improvement in the demand outlook for construction in the second half of 2025.
Despite the market situation, Consti aims to continue solid performance supported by a good order backlog and focus on implementing the strategy.
Consti estimates that its operating result for 2025 will be in the range of EUR 9-12 million.
Press conference
Microsoft Teams meeting for analysts, portfolio managers and media representatives, will take place 18 July 2025, at 10:00 a.m. (EET). The meeting will be hosted by CEO Esa Korkeela and CFO Anders Löfman.
Analysts, portfolio managers and media representatives are kindly requested to register for the meeting no later than Thursday 17 July 2025 at 12.00 p.m. by sending an email to IR@consti.fi. A link to the meeting will be sent to registered participants during the afternoon of Thursday 17 July 2025.
Financial communication in 2025
Consti Plc shall publish one more interim report during 2025:
- Interim report 1-9/2025 published 24 October 2025
CONSTI PLC
Further information:
Esa Korkeela, CEO, Consti Plc, Tel. +358 40 730 8568
Anders Löfman, CFO, Consti Plc, Tel. +358 40 572 6619
Distribution:
Nasdaq Helsinki Ltd.
Major media
www.consti.fi
Consti is a leading Finnish company concentrating on renovation and technical services. Consti offers comprehensive renovation and building technology services and selected new construction services to housing companies, corporations, investors and the public sector in Finland's growth centres. Company has four business areas: Housing Companies, Corporations, Public Sector and Building Technology. In 2024, Consti Group's net sales amounted to 327 million euro. It employs approximately 1000 professionals in construction and building technology.
Consti Plc is listed on Nasdaq Helsinki. The trading code is CONSTI. www.consti.fi
