Translation: Original published in Finnish on 12/19/2025 at 7:00 am EET.

We reiterate our Buy recommendation and EUR 55.0 target price for Admicom. Admicom has established its foundation for growth during the recent years of a weak construction cycle, and we believe that the company's organization and product portfolio are now well-positioned to accelerate growth as the market situation improves. In the short term, the weak market is still impeding development, but we anticipate favorable conditions for accelerated growth beginning in H2'26. Considering this anticipated rapid growth for the coming years, we believe that the stock's valuation picture is attractive.

Comprehensive SaaS software provider for construction industry SMEs

The Ultima ERP system designed especially for SMEs and complementing accounting and other value-added services are at the heart of Admicom’s solution offering. The core idea of a solution offered as a scalable SaaS software is the advance automation and a comprehensive solution that considers the special characteristics of the construction industry. The acquisitions made by Admicom over the past five years have expanded the product portfolio, e.g., into cost accounting, project management and documentation. At the same time, the enlarged customer base (>3400 customers) offers additional and cross-selling potential when the Finnish construction market picks up. With the acquisition of the Estonian company Bauhub at the end of 2024, Admicom also made its first credible foray into international markets. International expansion will be further accelerated in the coming years through new acquisitions.

High-quality company that has undergone change in a difficult market

Admicom's investment profile combines strong long-term growth potential, excellent profitability and cash flow with good continuity, scalability and predictability of the business model. The company's revenue has grown by an average of 25% between 2015 and 2024, and the company's guidance for 2025 is an adjusted EBITDA margin of 31-33%. In recent years, however, organic growth has slowed due to a major organizational change and a weakening of the construction cycle. At the same time, increased investments in the next phase of growth and internationalization have pushed the company's profitability from historically high levels. However, the investments have now largely been made and, as the company has demonstrated in the past, future growth should be reflected more strongly in earnings. Admicom's strong market position and competitive product offering in Finland put the company in a good position to return to an accelerated growth path when the market situation improves. In addition, international expansion has the potential to multiply the market potential. The degree of digitalization in construction is well below other industries and, in coming decades, the digitalization of the industry will offer huge growth opportunities for companies working in this area.

Valuation is attractive relative to accelerating growth in the coming years

Admicom's organic growth will still be modest in 2025, as the construction market will remain weak. Due to the recent decline in the share price, the valuation (2025e EV/EBIT 17x) is not particularly demanding, even with this result. However, we believe the company is well-positioned to accelerate growth in the coming years, with gradually improving profitability as market conditions improve. In relation to this, the valuation for next year (EV/EBIT 15x) is already moderate, and as earnings growth accelerates, the valuation (2027-2028e EV/EBIT 12x-10x) will become very attractive in the medium term. Depending on Admicom's earnings growth outlook, we estimate the neutral multiple range in the medium term to be around 15x–20x, and with a double-digit organic growth outlook, the valuation could be even somewhat higher.