Translation: Original published in Finnish on 2/3/2026 at 8:17 am EET.

Solwers is a Group of expert services companies that aims to create value through both the operational business of the companies and by consolidating the industry through acquisitions. In 2026, the company needs to find critical earnings growth again, as the Group's return on capital has fallen to a low level with the current earnings. We see good opportunities for this, as the ratio of order backlog to personnel has already started to improve, and one-off costs should also decrease. We reiterate our EUR 2.5 target price and Accumulate recommendation.

A Group formed by expert companies

Solwers, established in 2017, is a Group formed by expert companies in the field of technical consulting and design that owns 29 operational subsidiaries in Finland, Sweden, and since December, also in Poland. Revenue is divided relatively evenly between Finland and Sweden. Solwers companies' expert services cover a wide range of project life cycle stages, and they are also widely distributed across different design areas of the built environment. Acquired companies are not integrated into the Group, but they continue with their own brands after the change of ownership. Thanks to its business model, Solwers has diligently implemented its inorganic growth strategy aimed at rapid growth during its short history, and the company has grown by around 25% annually.

Profitability concerns since 2024

From 2024 onwards, Solwers' margin has decreased significantly (2025e: EBITA 5.4%) as there has not been enough work for all consultants and price levels have also decreased in the tighter market. At the same time, the company's other costs have increased, partly due to non-recurring expenses. In the earnings slump, the prerequisites for inorganic growth have also weakened. In the coming years, the company needs to restore the Group's margin closer to historical levels (2019-2023 average EBITA 10.9%) to prove that previous acquisitions have been successful, which will also improve the conditions for new acquisitions.

Market should start picking up from cycle bottom

The long-term organic growth of Solwers' target markets is at the level of general economic growth or slightly above it, supported by structural drivers. Although the market recovery from its current slump has been slower than expected for a long time, clear building blocks for accelerating growth are in place. Key drivers of economic growth include the spillover effects of Germany's and the EU's extensive investment packages, improving consumer purchasing power, and decreasing interest rates. Against this backdrop, we expect the technical design and consulting market to start getting a boost from general economic developments, especially in the second half of 2026.
The company's earnings should also gradually recover as utilization rates improve, savings are realized, and market price levels can also be expected to start recovering. By 2027, we expect the EBITA margin to recover to 9.8%. Our estimates do not consider future acquisitions, but there is still plenty of room for consolidation in the current main markets.

The realization of earnings growth drives the share

Solwers' risk profile is dependent on its normal profitability level, as the company's debt servicing capacity and thus the debt-related risk level depend on the earnings level. Cutting a few corners, if the profitability level were to remain close to the levels seen during 2024-2025, the share would be expensive, the M&A strategy would have failed, and the debt burden would be a challenge. Similarly, if profitability recovers to the level of our estimates, the share's valuation is already quite affordable (2027e P/E 8x and EV/EBIT 9x), the debt level is under control, and new acquisitions can be considered again. In our view, the stock's risk/reward is sufficiently attractive at the current low price. However, the slope of earnings growth is still unclear, which keeps financial risks elevated.