Translation: Original published in Finnish on 5/13/2026 at 7:00 am EEST.

In a release published on Tuesday, Solwers announced it would update its EBITA calculation method to align with market practice and introduce new alternative performance measures, such as return on capital employed (ROCE), into its reporting. We consider changes that improve reporting transparency and comparability to be very welcome, as we have previously pointed out the company's unusual handling of lease liabilities and called for measuring return on capital in an acquisition-driven strategy. These changes will lead to technical revisions in our EBITA estimates but will not affect the company's operational earnings capacity, cash flows, or our view of its value. We will update our EBITA estimates in our Q1 preview commentary for Solwers, which will be published before the earnings release date (May 21).

Reporting aligns with industry standards

As a result of the updated calculation method, Solwers’ EBITA will henceforth include depreciation allocated to right-of-use assets related to buildings and real estate, in accordance with IFRS 16. The previous practice of excluding these depreciation charges from EBITA deviated from general industry standards and inflated the figure relative to peers. In the past, the difference between the old and new calculation methods has been about three percentage points. Consequently, the new calculation method makes it significantly easier to compare Solwers' profitability with that of other companies in the design and consulting sector.

The reduction in the company’s profitability target from 12% to 9% reflects precisely this change in calculation method, meaning the company's actual target level remains completely unchanged. We continue to view the 9% EBITA margin target as quite ambitious given the current challenging market environment, in which the company’s profitability has recently come under significant pressure.

Putting return on capital front and center is the right move

In addition to changes in EBITA, Solwers is introducing adjusted EBITA and return on capital employed (ROCE) as new performance measures. We believe that including the ROCE metric, in particular, in official reporting is an excellent move. We have repeatedly emphasized that the success of a company like Solwers, which relies heavily on inorganic growth, should be assessed specifically in terms of return on invested capital.

The historical ROCE figures now presented, which decreased to 2.8% in the last quarter of 2025, confirm our previous assessment that the group's earnings level and return on capital have fallen to very weak levels at the bottom of the cycle. With these new metrics, investors can more easily track whether the company’s capital allocation and M&A strategy will create shareholder value again, assuming market conditions and performance hopefully recover in the coming years.