Translation: Original published in Finnish on 5/19/2026 at 8:15 am EEST.

Yesterday, the Turku City Council decided that a 12-kilometer tram line will be built in Turku, connecting the Port of Turku, the city center, Kupittaa, and Varissuo. Once launched, the project will support GRK’s volumes by approximately 190 MEUR in the coming years.

The decision was made by a vote of 36–31 and remains contingent on the state committing to fund the project in the upcoming negotiations on land use, housing, and transport agreements. Historically, in our view, state participation in such significant urban development projects has been likely, provided the city secures its own commitment.

Turku Tramway Ltd selected GRK as part of the alliance to be a service provider for the tramway project in March 2024. GRK is part of the alliance as a contractor, alongside NRC Group. Ramboll and Sweco are the project developers. Updated plans and a cost estimate for the tramway project were published at the beginning of the year. GRK estimates its share of the project to be approximately 190 MEUR. Construction of the tramway is expected to take place between 2027 and 2032. Thus, the project's annual revenue impact on the company could computationally be slightly over 30 MEUR. However, we believe that actual construction could begin in 2028 once the state makes a binding financing decision. Therefore, we also believe that GRK's revenue recognition will be weighted toward the years 2028–2032. We consider this news positive for GRK, though it has no impact on our forecasts or view of the company.