Translation: Original published in Finnish on 5/4/2026 at 7:00 am EEST.

Source: Inderes

Sitowise publishes its Q1 interim report on Wednesday, May 06, 2026. We expect the company's revenue to have remained flat year-on-year, with stable adjusted EBITA. In the report, we will pay particular attention to the order book development, progress of the updated strategy, and comments on the market recovery timeline.

Revenue stagnates due to slow market recovery

We forecast Sitowise's Q1 revenue to have grown by a moderate 0.4% to 48.3 MEUR (Q1'25: 48.1 MEUR). In our estimation, revenue development is supported by the strong performance of the Infra business, which has benefited from rail transport and green transition projects in particular. We also expect Digital Solutions' annual recurring revenue (ARR) to have continued its strong growth, but subdued development in the segment's project business is slowing growth. In contrast, we estimate that activity in the Buildings segment and in the Swedish operations has remained subdued, although we expect the sharpest decline to be over. The company has previously estimated that the recovery in the construction market would be slow, as reflected in the volumes for the first part of the year.

Profitability remains low, but adjustment measures support earnings

We expect adjusted EBITA to have settled at 2.3 MEUR, which is consistent with the comparison period. Profitability is supported by the company's previously implemented adjustment measures and a decrease in personnel, which should lead to a better balance between the number of employees and the workload. However, the tight pricing environment in the Buildings business and in Sweden continues to weigh on earnings. On the bottom line, net profit remains burdened by high financing costs, despite the new financing agreement concluded in March that eliminated the immediate refinancing risk. We estimate EPS to be at zero (Q1'25: -0.04 EUR).

Market recovery timeline and updated strategy in focus

Sitowise has not yet provided numerical guidance for 2026 due to uncertainty regarding the timing of the construction market recovery. In the report, we will pay attention to whether the company provides more specific indications of full-year development at this stage. We expect the company to reiterate its segment-specific outlook and currently estimate that full-year 2026 revenue will grow by 1.9% to 192.3 MEUR, with adjusted EBITA rising to 11.8 MEUR (2025: 8.9 MEUR).

We believe that the financial targets updated in March, such as an adjusted EBITA margin of over 10%, are more realistic than before but still require significant improvement from the current performance level. Investors will pay particular attention in the report to the development of the order book (Q4’25: 152.5 MEUR), progress in reviving the Swedish business, and comments on strategic growth areas, such as industry, energy, and data centers. The balance sheet's recovery and reversal of financial leverage require realization of our estimated earnings turnaround so the company can approach its target net debt/EBITDA ratio of less than 3.0x.