Analyst Comment
Sitowise's new financing agreement creates space for implementing earnings turnaround
By Olli Vilppo
Summary
- Sitowise has signed a new 89 MEUR secured financing agreement, extending debt maturities to June 2028 and replacing the previous agreement set to mature in June 2027.
- The new agreement includes a financial covenant related to the net debt-to-EBITDA ratio, with financing costs remaining high due to significant balance sheet leverage.
- Despite the new financing, Sitowise's net debt-to-EBITDA ratio of 4.9x exceeds its target of 2.5x, highlighting the importance of an earnings turnaround to reduce balance sheet risk.
- The company is expected to grow revenue by 1.9% to 192.3 MEUR in 2026, with adjusted EBITA rising to 11.8 MEUR, but high financing costs continue to impact the operating result.
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Translation: Original published in Finnish on 3/11/2026 at 8:53 am EET.
Sitowise announced Wednesday morning that it had signed a new 89 MEUR secured financing agreement, replacing the company's existing agreement, which would have matured in June 2027. The new agreement effectively postpones debt maturities by one year, to June 2028. While the agreement strengthens our confidence that the company has the banks' support to weather a challenging cycle, the balance sheet still plays a significant role in the stock's risk profile. The news does not cause changes to our estimates.
Earnings turnaround remains key to reducing balance sheet risk
The new agreement includes the customary financial covenant related to the net debt-to-EBITDA ratio. The loan margin remains tied to the company's financial leverage, meaning financing costs will remain high as long as balance sheet leverage remains significant. At the time of the Q4 report, the company's net debt-to-EBITDA ratio was 4.9x, clearly above its own target level of 2.5x.
We estimate Sitowise's revenue to grow by 1.9% to 192.3 MEUR in 2026 and its adjusted EBITA to rise to 11.8 MEUR (2025: 8.9 MEUR). However, financing costs continue to consume a large portion of the operating result. While the now-confirmed continuation of financing eliminates the immediate refinancing risk, restoring the balance sheet to health requires realizing our forecast of an earnings turnaround in the coming years, which would bring the company closer to its target debt ratio of 2.5x. We currently predict that the company will reach its target level by the end of 2027.
Sitowise is a Nordic expert in technical consulting and digital solutions. Our mission is to engineer the foundation of Nordic resilience. We design infrastructure, buildings and cities that stand the test of time and change. We enhance society’s operational reliability by developing critical infrastructure and ensure the sustainable use of the environment and natural resources. We operate in four business areas: Infra, Buildings, Digital solutions and Sweden. The Group’s net sales in 2025 were EUR 189 million, and the company employs approximately 1,900 experts. Sitowise Group Plc is listed on the Nasdaq Helsinki stock exchange under the trading symbol SITOWS.
Read more on company pageKey Estimate Figures12/02
| 2025 | 26e | 27e | |
|---|---|---|---|
| Revenue | 188.7 | 192.3 | 206.8 |
| growth-% | -2.2 % | 1.9 % | 7.5 % |
| EBIT (adj.) | 4.4 | 7.8 | 13.2 |
| EBIT-% (adj.) | 2.3 % | 4.0 % | 6.4 % |
| EPS (adj.) | -0.01 | 0.04 | 0.17 |
| Dividend | 0.00 | 0.02 | 0.05 |
| Dividend % | 0.7 % | 1.7 % | |
| P/E (adj.) | neg. | 74.0 | 17.5 |
| EV/EBITDA | 11.4 | 8.8 | 7.1 |
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