Translation: Original published in Finnish on 6/9/2026 at 9:25 am EEST.

Sitowise announced on Tuesday that it will sell its loss-making Swedish technical consulting business to Sweco. We consider the news positive for the stock, as cutting long-standing problems clarifies the investment case, frees up management resources, and immediately improves the profitability profile of continuing operations, even if the transaction price remains nominal. The arrangement will significantly decrease our revenue estimates, but it supports our expectations for the company's relative margin recovery. Finland has achieved healthy profitability, led by Infra and Digital Solutions, and after the changes, this strong earnings performance will be more clearly highlighted to investors.

The transaction price reflects the long-standing challenges in Sweden

Sitowise Sverige AB, the target of the transaction, had a revenue of 26 MEUR in 2025 and employs around 265 people. The parties have agreed on a debt-free purchase price (EV) of approximately 3.0 MEUR, and the agreement also includes an earn-out of up to 2.0 MEUR linked to long-term lease liabilities in 2027–2029. This purchase price roughly corresponds to an EV/S multiple of just 0.1x, an extremely low level for an expert company in our opinion. However, we consider the price to be justified because the Swedish business has been significantly loss-making in recent years. While the company has not disclosed the exact amount of the loss incurred in Sweden, based on verbal descriptions, we estimate that Sweden’s losses in 2025 were approximately 4 MEUR at the adjusted EBITA level. This figure is significant relative to Sitowise’s total adjusted EBITA of 8.9 MEUR in 2025.

Sitowise has expanded into Sweden through a number of acquisitions, and the divestiture being carried out now effectively marks a strategic withdrawal from traditional technical consulting in Sweden. The company will record an impairment and a sales loss on the sale, which, in our view, underscores the fact that previous acquisitions have destroyed shareholder value. Looking ahead, however, we believe the deal is a good solution, as it breaks the downward spiral and removes one of the most significant risk factors clouding Sitowise’s stock.

Investment case clarified, margin profile rises

Following the sale, Sitowise will focus on its three core businesses: Infra, Buildings, and Digital Solutions. We consider it very logical that the digital solutions subsidiary operating in Sweden (Sitowise Digital Solutions AB, prev. Infracontrol) was excluded from the transaction and will remain part of the group. The digital product business is scalable and at the core of the company's strategy, whereas traditional project consulting in Sweden has required, in our view, a disproportionate amount of management attention relative to the results.

Since the divested unit has been unprofitable, its removal will immediately improve Sitowise's adjusted EBITA margin. The transaction is expected to be completed during the third quarter of 2026, and the company will report the unit as a discontinued operation starting with the Q2'26 report. We will update our estimates to reflect the new structure by tomorrow. Roughly estimated, the transaction will decrease our revenue estimate for the current year by just under 15% (previously 193 MEUR). At the same time, it will raise our EBITA estimate by 1.6 MEUR to approximately 13 MEUR, increasing the margin to 7.8% (prev. 5.9%) and bringing the company significantly closer to its target level of over 10%. The arrangement will also contribute to the group's cash flow and help strengthen the company's balance sheet toward its target of less than 3.0x net debt to EBITDA.