Moderate Revenue Growth; Actions Underway to Improve Profitability
Solwers Plc Company Release August 26, 2025, at 08:30 a.m. EEST
This release is a summary of Solwers Plc's Half-Year Financial Report January-June 2024. The full financial statements bulletin is attached to this company release and available on the company's website at https://solwers.com/for-investors/reports-and-presentations/
The figures for the first half of the year (January 1 - June 30, 2025) are unaudited (IFRS). The figures in brackets refer to the corresponding period in 2024 and are expressed in the same unit, except where otherwise noted.
April-June 2025 in brief
- Revenue grew 5.9% compared to same period last year, being EUR 21,908 (20,688) thousand
- EBITA was EUR 944 (1,728) thousand
- EBIT was EUR 121 (1,046) thousand
January-June 2025 in brief
- Revenue was EUR 42,319 (39,909) thousand, growth of 6.0% vs previous year
- EBITA was EUR 1,821 (3,259) thousand, 4.3% (8.2) of revenue
- EBIT was EUR 173 (1,952) thousand, 0.4% (4.9) of revenue
- Operating cash flow EUR 524 (+1,125) thousand.
- Billing rate was 82.6% (81.5)
- Earnings per share (EPS) was EUR -0.06 (0.07)
- Headcount at the end of the reporting period was 703 (690)
- Two subsidiary mergers took place according to initial plans in Finland. The new company names are Plan Air Oy and Davidsson Tarkela Siren Arkkitehdit Oy
- Ownership in Enervex AB was strengthened by redeeming minority holdings
- The Annual General Meeting decided to distribute dividends of EUR 0.024 (0.064) per share for the financial year 2024
- Johan Ehrnrooth was appointed as the next CEO of the Company after Stefan Nyström reaches retirement age in Spring 2026. Ehrnrooth starts in the position on 24 November 2025.
Key figures
* Solwers publishes quarterly information for January-March and July-September in a more concise format as business reviews, which include only the key figures essential to the Company.
CEO Stefan Nyström's review
As anticipated, the market recovery has been modest both in Sweden and Finland. Our revenue was EUR 42.3 million and grew six percent in January-June 2025 compared to the same period previous year.
We had challenges in profitability. In the first half of the year, the EBITA margin was only 4.3 percent and EBIT 0.4 percent. Profitability improved slightly in the second quarter compared to the first. Price competition has remained fierce in both countries, and salary increases have not been fully passed on to prices. In addition to price pressures, our H1 profitability was affected by a total of about EUR 0.6 million euros by additional purchase prices for some companies, as well as investments in main listing readiness and future growth. The increasing group expenses were curbed in the second quarter thanks to the savings program. During the year 2025 we aim for nearly one million euros in savings compared to the previous year.
The performance of the Finnish subsidiaries has generally improved. In Sweden, ongoing investments continue to employ local Solwers subsidiaries, yet there are fewer new projects. Part of the Swedish companies perform excellently, while others have challenges. A delay in one of our Swedish projects has required subcontracting and has eroded profitability in an already low-margin project, the loss is around EUR -0,4 million.
I am pleased to note that our order stock has remained at a good level, signaling a promising trajectory once projects materialize. The billing rate has also seen a moderate increase and is at a good level.
Mergers and Acquisitions
Two subsidiary mergers took place during the first half of the year. The group now consists of a total of 27 operational companies, each with their own brand: 14 in Finland and 13 in Sweden. We did not acquire new companies during the first half of the year.
Significant New Projects
We are proud to have joined several high-profile projects during 2025. The City of Turku's investments in developing its service network have already led to seven daycare center design projects and the planning of the Linnakaupunki multipurpose building for Lukkaroinen Architects. Engineering firm W. Zenner is responsible for process design of testing systems for Chiller's new 9,000 m² factory project in Tuusula, with subcontracting support from our subsidiaries Contria and Swedish-based ELE Engineering. The design phase is expected to continue through spring 2026. I am pleased that the cross-selling between the countries has hereby kicked off. Licab, our subsidiary in Sweden, is involved in the multi-year planning of the coastal railway North Botnia Line, with Trafikverket as the client.
After the review period our subsidiary Finnmap Infra was confirmed to have key role in the Helsinki port tunnel alliance project, with development phase beginning this year. The estimated duration of the actual project is seven years.
New Roles and Capacity Adjustments
We have also appointed new leaders especially in our Swedish subsidiaries and expect to see their impact in the operations later.
To accelerate mutual sales in Solwers group companies, we have made internal appointments of part-time Sales and Marketing Directors both in Sweden and Finland. With these appointments, we aim to actively offer our clients more comprehensive services.
At the same time, we have also continued with moderate capacity adjustments.
Growth Drivers for H2
In the upcoming months we will continue to focus on sales and cross-selling development, organic growth in those subsidiaries where possible, adjustment measures as well as the group level cost reduction initiatives. Growth continues to be the pillar of our strategy, yet we proceed with M&As with careful consideration.
After the summer holidays, the best months of the year typically follow. We expect the positive impact of investment decisions to be visible in the workload towards the end of the year. We continue moderate adjustment measures where needed.
In August, the Board of Solwers appointed Johan Ehrnrooth, a seasoned professional in the consulting industry, as the Company's next CEO as I reach the retirement age. Johan brings extensive experience in the sector, with deep knowledge of both the Swedish and Finnish markets, particularly within the industrial segment. He will take over the role on November 24, 2025. I will continue working in the company until the responsibilities have been smoothly handed over to my successor.
- Stefan Nyström, CEO, Solwers Plc
Market outlook
The uncertainty of the market environment as well as consumer hesitancy have held back the investments - particularly in residential, commercial and office sectors, but partly also in industrial projects. We see a positive momentum in projects related to public infrastructure and buildings. Also, projects related to the green transition continue to attract interest.
In Sweden the market environment is slightly more challenging than before as new industrial projects are struggling to kick-off.
In Finland, the order stock is smaller than in the previous year, but the number of new orders has increased significantly, particularly in residential and infrastructure projects. The positive development was evident in the second quarter (Source: SKOL Business Cycle review 2/2025). We believe this trend to continue towards the end of the year.
Overall, the design and consulting industry continues to be supported by the megatrend of urbanization, self-sufficiency in energy production, and increased orders from the defense industry.
Solwers' outlook for 2025 remains unchanged
The outlook for Solwers remain as stated in the Financial Statement Release on February 27, 2025.
Market uncertainty is limiting future visibility. As Solwers' operations depend on investments, the Company benefits from the general market recovery that is anticipated to strengthen towards the end of the year 2025.
In its operations, the Company focuses on growth through acquisitions in at least three countries, improving organic growth where possible, increasing profitability and cutting costs.
Espoo, August 26, 2025
Solwers Plc
Board of Directors
Certified Advisor: UB Corporate Finance Oy, ubcf@unitedbankers.fi
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Webcast: August 26, 2025, at 10:00 am EEST
The Company will hold a briefing in English for investors, media, and analysts on August 26, 2025, at 10:00 am EEST. The webcast can be followed at https://solwers.events.inderes.com/q2-2025. Audience may submit questions through the webcast chat.
A recording of the webcast and the presentation materials will be subsequently available at https://solwers.com/for-investors/reports-and-presentations/.
Enquiries:
Jasmine Jussila
Chief Communications Officer
+358 40 500 4760
jasmine.jussila@solwers.fi
Solwers Plc in brief:
Solwers is a group of consultancy companies that offer architectural design, technical and other consulting as well as project management services locally, close to clients. Solwers' strategy is based on acquisitions and organic growth, the group's attractiveness as a good employer for professionals in different fields and the continuous development of expertise. 27 operative Solwers companies employ around 700 experts in Finland and Sweden. The Company has established a country subsidiary in Poland and is exploring potential acquisition targets in the region.
www.solwers.com
