Finnish construction company SRV saw revenue drop 13% to €160 million in the third quarter. The company's operating profit fell to €1.3 million, down from €4.5 million during the same period last year.
SRV's order book stood at €931 million at quarter's end, with 91% of projects sold. The company signed new contracts worth approximately €150 million during July-September.
Weak demand in private new construction contributed to the declining results, SRV stated in its quarterly report. The company faces significant uncertainty about launching new projects and their potential revenue.
CEO Saku Sipola said the results matched expectations given market conditions but called them unsatisfactory. He emphasized the company will withstand the downturn supported by strong contracting revenue.
Finland's construction sector report confirms new construction remains limited nationwide. Markets contain many unsold new apartments while supported housing production dominates private investor activity.
SRV maintained its order book from previous quarter levels. Recent additions include Helsinki's Myllypuro health center expansion and seven residential buildings in Maunula. The company also continues work on Oulu's Torihotell completion.
Unbooked projects worth approximately €1.1 billion remain in SRV's pipeline.
The company predicts consumer and investor markets won't broadly recover before year-end despite some positive signals. SRV expects market growth beginning in 2026 as wage improvements and tax cuts strengthen purchasing power.
Construction slowdowns continue affecting major Finnish developers amid high interest rates and economic uncertainty. SRV's results reflect broader challenges facing Nordic construction sectors.