Translation: Original published in Finnish on 8/6/2026 at 7:00 am EEST.

Source: Inderes

Sitowise will publish its Q2 report on Wednesday, August 12. We expect the company's revenue to have decreased from the comparison period due to the divestment of Swedish operations, though we anticipate a significant improvement in the profitability of continuing operations after removing the unprofitable unit from the figures. In the report, we will pay particular attention to the development of the order book, signs of recovery in the Finnish market, and the company’s financial performance under the new structure.

Revenue declines following the divestiture of operations in Sweden

We forecast Sitowise's Q2 revenue to decrease by 13% to 43 MEUR (Q2'25: 50 MEUR). The most significant factor behind the decrease is the sale of the Swedish technical consulting business, which was announced in June, and as a result, the unit has been reclassified as discontinued operations and removed from the revenue of continuing operations. In continuing operations, we expect the Infra business to continue its steady, positive development, supported by infrastructure projects, green transition projects, and data centers, among other things. For Digital Solutions, we anticipate stable year-on-year development, although we expect product sales to have grown further within the business area. In contrast, volumes in the Buildings business area are expected to have remained low, as the Finnish housing construction cycle has continued to be weak, although the worst of the downturn should be over by now.

Profitability leaps as loss-making Sweden leaves the figures

We expect the adjusted EBITA to have increased to 3.5 MEUR (Q2'25: 2.5 MEUR) which corresponds to a margin of 8.1% (Q2'25: 5.1%). This surge in profitability is largely due to the removal of the loss-making Swedish business from the figures for continuing operations, which improves the group's margin profile immediately. Additionally, profitability is bolstered by previously implemented adjustment measures in Finland and a better balance between the number of employees and workload, reflected in the billing rate. However, according to our estimates, earnings per share reported on the bottom line are significantly impacted by a non-cash write-down of approximately 18 MEUR related to the sale of the Swedish subsidiary. We expect financing costs to have remained relatively high, although they are slowly beginning to decrease.

Focus on order book and outlook

Sitowise has not yet provided numerical guidance for 2026 due to market uncertainty. We will monitor whether the company provides more precise guidelines for the rest of the year with the new structure, but it is possible that guidance will not be available even at this stage. For full-year 2026, we currently estimate that revenue from continuing operations will decrease by 8% to 174 MEUR and that adjusted EBITA will be 12.5 MEUR.

In the report, we will pay particular attention to the development of the order book and management's comments on the timeline for recovery in the Finnish construction market. During the quarter, the company announced several projects, all of which center primarily on the Infra business and rail transport. The Vantaa light rail (second partial order) and West-Helsinki Light Rail projects progressed to the implementation phase, with the second partial order contract being signed in Vantaa in May and construction of the West-Helsinki Light Rail commencing. The Airport Line and the East Railway projects, on the other hand, are in the design phase prior to a construction decision, for which Sitowise was selected, together with Ramboll, to prepare the track plan for the Airport Line and to participate in the general planning phase of the East Railway as a second design consortium. Data center construction has also emerged as an important growth driver in recent times, and we look forward to an update on the outlook for demand in this sector. In addition, we monitor the company's cash flow and balance sheet trends. Cutting losses in Sweden will help the company restore its balance sheet and move toward its target net debt-to-EBITDA ratio of less than 3.0x, which is important for the stock’s risk profile.