Q2 2026 Solwers Oyj Earnings Call

August 25, 2026

Speaker #1: Welcome to Solwers Q2 2026 results presentation. My name is Jasmine Jussila, I'm Chief Communications Officer, and I will be moderating this event. Today we have CEO Johan Aarnroth together with Teemu Kraus, CFO, presenting the results.

Jasmine Jussila: Welcome to Solwers' January-June 2026 results presentation. My name is Jasmine Jussila. I am Chief Communications Officer, and I will be moderating this event. Today we have CEO Johan Ehrnrooth together with Teemu Kraus, CFO, presenting the results, and afterwards we will go through your questions. During the presentation, you can write your questions to the webcast chat. Before we kick off, let's have a short recap on Solwers today. We are a group of consultancy companies that offer architectural design, technical and other consulting, as well as project management services in three countries. Altogether, we are 29 companies, all operating under their own brand identity and serving their clients locally in Finland, Sweden, and Poland. Then let's start. Go ahead, Juhan.

Speaker #1: And afterwards, we will go through your questions. During the presentation, you can write your questions to the webcast chat. Before we kick off, let's have a short recap on Solwers today.

Jasmine Jussila: Before we kick off, let's have a short recap on Solwers today. We are a group of consultancy companies that offer architectural design, technical and other consulting, as well as project management services in three countries. Altogether, we are 29 companies, all operating under their own brand identity and serving their clients locally in Finland, Sweden, and Poland. Then let's start. Go ahead, Johan.

Speaker #1: We are a group of consultancy companies that offer architectural design, technical, and other consulting, as well as project management services, in three countries. Altogether, we comprise 29 companies.

Speaker #1: All operating under their own brand identity and serving their clients locally in Finland, Sweden, and Poland. Then let's start. Go ahead, Johan.

Speaker #2: Thank you, Jasmine. Good morning also from my—from my part. So, let's have a look at our January–June results. The key figures we produced are revenue of €41.8 million.

Johan Ehrnrooth: Thank you, Jasmine. Good morning also from my part. Let's have a look at our January, June results. The key figures, we produced a revenue of €41.8 million. It was 1.2% down from last year. Our EBITDA was €3 million. We have updated our calculation method for that to correspond with similar companies in the market. We also now report the adjusted EBITDA. It was €4 million. There was not that much adjustments this time. EBIT was €1 million. Another new KPI is the return on capital employed, which was 2.4% in the first year half. Going into this year, we expected Q1 to be challenging, and we had reason to believe that we would perform better in Q2. However, Q2 was a disappointment, and by that, the total performance in H1 was not satisfactory.

Johan Ehrnrooth: Thank you, Jasmine. Good morning also from my part. Let's have a look at our January, June results. The key figures, we produced a revenue of EUR 41.8 million. It was 1.2% down from last year. Our EBITDA was EUR 3 million. We have updated our calculation method for that to correspond with similar companies in the market.

Speaker #2: It was down 1.2% from last year. Our EBITDA was €0.3 million. We have updated our calculation method to correspond with similar companies in the market.

Speaker #2: We also now report the adjusted EBITDA. It was €0.4 million. There were not that many adjustments this time. EBIT was €0.1 million.

Johan Ehrnrooth: We also now report the adjusted EBITDA. It was EUR 4 million. There was not that much adjustments this time. EBIT was EUR 1 million. Another new KPI is the return on capital employed, which was 2.4% in the first year half. Going into this year, we expected Q1 to be challenging, and we had reason to believe that we would perform better in Q2. However, Q2 was a disappointment, and by that, the total performance in H1 was not satisfactory.

Speaker #2: And another new KPI is the return on capital employed, which was 2.4% in the first half of the year. Going into this year, we expected Q1 to be challenging.

Speaker #2: And we had reason to believe that we would perform better in Q2. However, Q2 was a disappointment, and by that, the total performance in H1 was not satisfactory.

Speaker #2: So, with the EBITDA margin of 0.7%, and after discussions with the banks, we had a waiver for our covenant testing at the end of June, so we had reason to believe that we could perform better.

Johan Ehrnrooth: With the EBITDA margin of 0.7%, and we, after discussions with the banks, had a waiver for our covenant testing in the end of June. We had reason to believe that we could perform better. Since this waiver, we have negotiated our terms to our financing agreement, and yesterday we came out with the notice that we have agreed on this with the bank. Behind this Q2 disappointment was especially the low billing rate in companies serving the Swedish industry. The performance in the architectural design in Sweden was also poor, and to some extent, we had challenges in the architectural design in Finland. We were not able to pass on the wage inflation to the prices. Last year, we announced a program to save costs, and that has resulted in savings of €0.7 million in fixed cost. Now, the focus is turned to subsidiary-specific actions.

Speaker #2: Since this waiver, we have negotiated our terms to our financing agreement, and yesterday we came out with a notice that we have agreed on this with the bank.

Speaker #2: Behind this Q2 disappointment was especially the low billing rate in companies serving the Swedish industry. The performance in architectural design in Sweden was also poor.

Johan Ehrnrooth: Behind this Q2 disappointment was especially the low billing rate in companies serving the Swedish industry. The performance in the architectural design in Sweden was also poor, and to some extent, we had challenges in the architectural design in Finland. We were not able to pass on the wage inflation to the prices. Last year, we announced a program to save costs, and that has resulted in savings of EUR 0.7 million in fixed cost. Now, the focus is turned to subsidiary-specific actions.

Speaker #2: And to some extent, we had challenges in the architectural design in Finland. We were not able to pass on the wage inflation to the prices.

Speaker #2: Last year, we announced a program to save costs, and that has resulted in savings of €0.7 million in fixed costs. Now, the focus is turned to subsidiary-specific actions.

Speaker #2: So, there we are, carrying out personnel and office space savings. The full effect of those will be visible during Q4. On a positive note, the order stock grew and most of the portfolio companies delivered.

Johan Ehrnrooth: There we are carrying out personnel and office space savings. The full effect of those will be visible during Q4. On a positive note, the order stock grew and most of the portfolio companies delivered. Specialist engineering, financial administration, and also infrastructure delivered good performance. The order stock there developed positively. Solwers is composed of 29 companies. Among those, there are well performers, but also weak performers. The weak result was concentrated in about a handful companies, mainly in Sweden, and there we now are carrying out the corrective measures. Looking at the performance in the country, so in Finland, the performance was reasonable. The demand of infrastructure planning is at high level, and Finnmap Infra, our largest company, had stable performance. Regarding geotechnical services, Geounion, as an example, continued their quite good performance.

Speaker #2: So, specialist engineering, financial administration, and also infrastructure delivered good performance. And the order stock there developed positively. Solwers is composed of 29 companies. Among those, there are well performers, but also weak performers.

Speaker #2: Thus, the weak result was concentrated in about a handful of companies, mainly in Sweden. There, we are now carrying out the corrective measures. Looking at the performance in the countries, in Finland the performance was reasonable.

Johan Ehrnrooth: The weak result was concentrated in about a handful companies, mainly in Sweden, and there we now are carrying out the corrective measures. Looking at the performance in the country, so in Finland, the performance was reasonable. The demand of infrastructure planning is at high level, and Finnmap Infra, our largest company, had stable performance. Regarding geotechnical services, Geounion, as an example, continued their quite good performance.

Speaker #2: The demand for infrastructure planning is at a high level. And FinMap Infra, our largest company, had stable performance. Regarding just technical services, Geo Union, as an example, continued their quite good performance.

Speaker #2: In the structure design, we had a satisfactory level. And, for example, Pontech there had encouraging progress. In architecture, the market remained challenging, so we had to adapt capacity to demand.

Johan Ehrnrooth: In the structure design, we had a satisfactory level, and for example, Pontek there had encouraging progress. In architecture, the market remained challenging, so we had to adapt capacity to demand, but we did see some picking up of requests for proposals over the summer. In Sweden, H1 was challenging. Also there, the infrastructure was. Excuse me. Also there, the infrastructure was stable, and the order stock has long-running projects for Licab, as an example. In the companies serving the industry market, the competition remained tough. So ELE, WiseGate Consulting, Relitor, faced price pressure and had too low billing rate. Also, the architectural design had challenges in the H1. Here is a snapshot of the projects we are involved in. Finnmap Infra acts as principal designer in the improvement of the Tampere underground infrastructure.

Speaker #2: But we did see some picking up of requests for proposals over the summer. In Sweden, H1 was challenging. Also there, the infrastructure was—excuse me—also there, the infrastructure was stable, and the order stock has long-running projects.

Speaker #2: For LISAB as an example, in the companies serving the industry market, the competition remained tough. So LA Wisegate Consulting Relator faced price pressure and had too low a billing rate.

Johan Ehrnrooth: In the companies serving the industry market, the competition remained tough. So ELE, WiseGate Consulting, Relitor, faced price pressure and had too low billing rate. Also, the architectural design had challenges in the H1. Here is a snapshot of the projects we are involved in. Finnmap Infra acts as principal designer in the improvement of the Tampere underground infrastructure.

Speaker #2: Also, the architectural design had challenges in the first half of the year. Here is a snapshot of the projects we are involved in. FinMap Infra acts as principal designer in the improvement of the Tampere underground infrastructure.

Speaker #2: Pehampi there is being enlarged. And this is a collaboration project with Sitowise and Ramboll. This project continues all into the 2030s. In June we won a general planning assignment for the East Railway Porvoo–Kouvola; this is also FinMap Infra's project.

Johan Ehrnrooth: Pyhäjärvi there is being enlarged, and this is a collaboration project with Sitowise and Ramboll. This project continues all into 2030s. in June, we won a general planning assignment for the East Railway, Porvoo-Koria. This is also Finnmap Infra's project. Norrbotniabanan continues to be a significant undertaking for us. Licab has about 20 experts involved there. This is also a long project. There are a lot of other projects as well, and as an example, we are involved in multiple swimming hall projects. For example, the Elmo, the Tapiola swimming hall in Myyrmäki in Kemi. Our Davidsson Tarkela Siren Architects have specialist competence in this area, and also other companies, Zenner and Planair, are participating in these projects with the building technology design. We are doing work to strengthen the foundation for the future.

Speaker #2: The North Botnia Line continues to be a significant undertaking for us. LISAB has about 20 experts involved there. This is also a long project. There are a lot of other projects as well.

Speaker #2: And as an example, we are involved in multiple swimming hall projects. For example, the Elmo, the Tapiola swimming hall, in Myyrmäki, in Kemi. Our Davidson Tarkela Siren architects have specialist competence in this area.

Johan Ehrnrooth: For example, the Elmo, the Tapiola swimming hall in Myyrmäki in Kemi. Our Davidsson Tarkela Siren Architects have specialist competence in this area, and also other companies, Zenner and Planair, are participating in these projects with the building technology design. We are doing work to strengthen the foundation for the future.

Speaker #2: And also, other companies, Zenner and Planaer, are participating in these projects with the building technology design. We are doing work to strengthen the foundation for the future.

Speaker #2: So, as mentioned, we have renegotiated the terms for our financing agreement, by which we will reach a net debt to EBITDA ratio of 3.5 by the end of June next year.

Johan Ehrnrooth: As mentioned, we have renegotiated the terms for our financing agreement, by which we will reach net debt EBITDA ratio of 3.5 by end of June next year. We are doing subsidiary-specific measures, so we are closing small offices. We need to reduce some staff, and we have a clear focus on sales and costs. We are doing competence development. As an example, we have conducted AI training in Finland and project manager training in Sweden. In the spring, we launched two new share-based incentive plans to commit our key personnel. We have also improved our financial reporting and IR communication, so the EBITDA calculation is now aligned with market practice. We now report the adjusted EBITDA and ROCE. We have also implemented new IR tools to improve the transparency of our share. Teemu, please.

Speaker #2: We are doing subsidiary-specific measures. So, we are closing small offices, we need to reduce some staff, and we have a clear focus on sales and costs.

Speaker #2: We are doing competence development. As an example, we have conducted AI training in Finland and project manager training in Sweden. In the spring, we launched two new share-based incentive plans to commit our key personnel.

Johan Ehrnrooth: In the spring, we launched two new share-based incentive plans to commit our key personnel. We have also improved our financial reporting and IR communication, so the EBITDA calculation is now aligned with market practice. We now report the adjusted EBITDA and ROCE. We have also implemented new IR tools to improve the transparency of our share. Teemu, please.

Speaker #2: We have also improved our financial reporting and IR communication. So the EBITDA calculation is now aligned with market practice. We now report the adjusted EBITDA and ROCE.

Speaker #2: We have also implemented new IR tools to improve the transparency of our share. Teemu, please.

Speaker #1: Thank you. Good morning from my side as well. I will walk us through the financial part of this webcast. Let's start from the top line.

Teemu Kraus: Thank you. Good morning from my side as well. I will walk us through the financial part of this webcast. Let us start from the top line. Group revenue for the H1 was €41.8 million, which was 1.2% below the comparison period. The development differed between the two quarters. In the Q1, revenue increased by 2.9%, whereas in the Q2 it declined by 5.1% year on year. Q2 revenue amounted to €20.8 million compared with €21.9 million in the corresponding period last year. This means that the decline in the Q2 was more than the offset of the positive start to the year and resulted in a modest decrease for the H1 as a whole. Looking at the geographical revenue split, business remains well-balanced between Finland and Sweden.

Teemu Kraus: Thank you. Good morning from my side as well. I will walk us through the financial part of this webcast. Let us start from the top line. Group revenue for the H1 was EUR 41.8 million, which was 1.2% below the comparison period. The development differed between the two quarters. In the Q1, revenue increased by 2.9%, whereas in the Q2 it declined by 5.1% year on year.

Speaker #1: So, group revenue for the first half was €41.8 million, which was 1.2% below the comparison period. The development differed between the two quarters. In the first quarter, revenue increased by 2.9%, whereas in the second quarter it declined by 5.1%.

Speaker #1: Year on year. Second quarter revenue amounted to 20.8 billion euros compared with the 21.9 million euros in the corresponding period last year. This means that the decline in the second quarter was more than the offset of the positive start to the year end resulted in a modest decrease for the first half of as a whole.

Teemu Kraus: Q2 revenue amounted to EUR 20.8 million compared with EUR 21.9 million in the corresponding period last year. This means that the decline in the Q2 was more than the offset of the positive start to the year and resulted in a modest decrease for the H1 as a whole. Looking at the geographical revenue split, business remains well-balanced between Finland and Sweden.

Speaker #1: Looking at the geographical revenue split, business remains well balanced between Finland and Sweden. Finland represented €22.1 million of revenue during the first half, while Sweden contributed €80.9 million.

Teemu Kraus: Finland represented EUR 22.1 million of revenue during the H1, while Sweden contributed EUR 80.9 million. As a result, neither market dominates the group's revenue base, which provides resilience against market-specific fluctuations. Although still modest in size, Poland broadens our geographical presence and supports our long-term growth opportunities. Other operating income had only limited impact on the group's profitability. The item includes mainly non-recurring business-related income, and the biggest impact factor was changes in contingent considerations liabilities arising from earlier acquisitions. The development of variable cost was broadly in line with the underlying level of business activity. Cost controlling projects related and subcontracting expenses remained satisfactory. As revenues declined slightly compared to the previous year, variable cost also adjusted accordingly. Personnel expenses increased by approximately 2% year on year, while the average headcount remained broadly unchanged.

Speaker #1: As a result, neither market dominates the group's revenue base, which provides resilience against market-specific fluctuations. Although still modest in size, Poland grows our geographical presence and supports our long-term growth opportunities.

Speaker #1: Other operating income had only a limited impact on the group's profitability. The item includes mainly non-recurring business-related income, and the biggest impact factor was changes in contingent consideration liabilities arising from early acquisitions.

Teemu Kraus: The item includes mainly non-recurring business-related income, and the biggest impact factor was changes in contingent considerations liabilities arising from earlier acquisitions. The development of variable cost was broadly in line with the underlying level of business activity. Cost controlling projects related and subcontracting expenses remained satisfactory. As revenues declined slightly compared to the previous year, variable cost also adjusted accordingly. Personnel expenses increased by approximately 2% year on year, while the average headcount remained broadly unchanged.

Speaker #1: The development of variable costs was broadly in line with the underlying level of business activity. Cost control in project-related and subcontracting expenses remained satisfactory.

Speaker #1: As revenues declined slightly compared to the previous year, variable costs also adjusted accordingly. Personnel expenses increased by approximately 2% year on year, while the average headcount remained broadly unchanged.

Speaker #1: The increase reflects normal salary inflation and annual compensation adjustments across the group, rather than growth in personnel. However, profitability was affected by lower utilization levels, which had a direct impact on earnings.

Teemu Kraus: The increase reflects normal salary inflation and annual compensation adjustments across the group rather than growth in personnel. However, profitability was affected by lower utilization levels, which had a direct impact on earnings. In response, we have continued to implement targeted cost adjustment measures in selected businesses. The benefits of these measures are expected to materialize gradually during the H2 of the year. Financial expenses increased year on year, mainly due to the group interest rates. During the review period, the group also entered into interest rate swap in order to hedge part of our exposure to variable interest rates. Looking at profitability, the H1 of 2026 was clearly below both our expectations and the comparison period. EBITDA amounted to EUR 0.3 million, corresponding to EBITDA margin of 0.7%. Adjusted EBITDA was EUR 0.4 million or 0.9% of the revenue.

Speaker #1: In response, we have continued to implement targeted cost adjustment measures in selected businesses. The benefits of these measures are expected to materialize gradually during the second half of the year.

Speaker #1: Financial expenses increased year on year, mainly due to the group’s interest rates. During the previous period, the group also entered into an interest rate swap in order to hedge part of our exposure to variable interest rates.

Teemu Kraus: Financial expenses increased year on year, mainly due to the group interest rates. During the review period, the group also entered into interest rate swap in order to hedge part of our exposure to variable interest rates. Looking at profitability, the H1 of 2026 was clearly below both our expectations and the comparison period. EBITDA amounted to EUR 0.3 million, corresponding to EBITDA margin of 0.7%. Adjusted EBITDA was EUR 0.4 million or 0.9% of the revenue.

Speaker #1: Looking at profitability, the first half of 2026 was clearly below both our expectations and the comparison period. EBITDA amounted to €0.3 million, corresponding to an EBITDA margin of 0.7%.

Speaker #1: Adjusted EBITDA was €0.4 million, or 0.9% of revenue. The main reasons behind the weaker performance were lower billing rates and pricing pressure in parts of the business.

Teemu Kraus: The main reasons behind the weaker performance were lower billing rates and pricing pressure in parts of the business, particularly in Sweden. Billing rate declined to 79.8% from 82.6%. At the same time, personal expenses increased moderately due to the salary inflation and compensation adjustments, while headcount remained broadly stable. The challenges were not evenly distributed across the group, as several businesses performed very well. While a limited number of underperforming units, particularly in Sweden, affected on the overall profitability. As stated, we have already implemented corrective actions, including personal reductions, office rationalization, and tighter cost control. Our priority for the reminder of the year is to improve utilization, strengthen sales activities, and restore profitability. While the benefits will build gradually, we expect the impact to become mainly visible during the H2 of the year and particularly towards the end of the year.

Speaker #1: Particularly in Sweden, the billing rate declined to 79.8% from 82.6%. At the same time, personnel expenses increased moderately due to salary inflation and compensation adjustments, while headcount remained broadly stable.

Speaker #1: The challenges were not evenly distributed across the group, as several businesses performed very well, while a limited number of underperforming units, particularly in Sweden, impacted the overall profitability.

Teemu Kraus: While a limited number of underperforming units, particularly in Sweden, affected on the overall profitability. As stated, we have already implemented corrective actions, including personal reductions, office rationalization, and tighter cost control. Our priority for the reminder of the year is to improve utilization, strengthen sales activities, and restore profitability. While the benefits will build gradually, we expect the impact to become mainly visible during the H2 of the year and particularly towards the end of the year.

Speaker #1: As stated, we have already implemented corrective actions, including personnel reductions, office rationalization, and tighter cost control. Our priority for the remainder of the year is to improve utilization, strengthen sales activities, and restore profitability.

Speaker #1: While the benefits will build gradually, we expect the impact to become mainly visible during the second half of the year, and particularly towards the end of the year.

Speaker #1: Our balance sheet remained relatively stable during the first half. The equity ratio was 41.1%, slightly below the 42.3% reported a year earlier. Net debt increased by approximately 12% to €28.2 million, mainly as a result of lower cash reserves.

Teemu Kraus: Our balance sheet remained relatively stable during the H1. The equity ratio was 41.1%, slightly below the 42.3% reported year earlier. Net debt increased by approximately 12% to EUR 28.2 million, mainly as a result of lower cash reserves. At the same time, return on capital employed declined to 2.4% from 7.7%, reflecting the lower earnings level. Operating cash flow amounted to approximately EUR 1.2 million in the H1, compared with the EUR 0.5 million in the comparison period. The improvement was mainly supported by working capital movements. On the other hand, lower profitability impacted operating cash flow. Investment cash flow was close to neutral at EUR 0.1 million, reflecting the fact that no acquisitions were completed during the reporting period. Financing cash flow was negative at EUR 2.7 million, driven by repayment of loans and purchase of non-controlling interest.

Speaker #1: At the same time, return on capital employed declined to 2.4% from 7.7%, reflecting the lower earnings level. Operating cash flow amounted to approximately €1.2 million in the first half.

Speaker #1: Compared with the 0.5 million in the comparison period, the improvement was mainly supported by working capital movements. On the other hand, lower profitability impacted operating cash flow.

Teemu Kraus: The improvement was mainly supported by working capital movements. On the other hand, lower profitability impacted operating cash flow. Investment cash flow was close to neutral at EUR 0.1 million, reflecting the fact that no acquisitions were completed during the reporting period. Financing cash flow was negative at EUR 2.7 million, driven by repayment of loans and purchase of non-controlling interest.

Speaker #1: Investment cash flow was close to neutral at €0.1 million, reflecting the fact that no acquisitions were completed during the reporting period.

Speaker #1: Financing cash flow was negative at €2.7 million, driven by repayment of loans and purchase of non-controlling interest. As a result, cash and cash equivalents decreased from €11.2 million at the end of June 2025 to €6.2 million at the end of June 2026.

Teemu Kraus: As a result, cash and cash equivalents decreased from EUR 11.2 million at the end of June 2025 to EUR 6.2 million at the end of June 2026. Improving profitability, cash generation, and working capital efficiency remain key priorities for the H2 of the year. Other finance topics. As already mentioned, a temporary waiver was agreed with the group's main bank in June, followed by a financing agreement amendment signed 23 August, which means yesterday. It is valid until 13 June 2027. This amendment provides more stable environment for executing the profitability and improvement program and strengthening the financial position. Solwers also entered into an interest rate swap to reduce exposure to variable interest rates. This was all from finance. Thank you.

Speaker #1: Improving profitability, cash generation, and working capital efficiency remained key priorities for the second half of the year. Other finance topics, as already mentioned: a temporary waiver was agreed with the group's main bank in June, followed by a financing agreement amendment signed on the 24th of August, which means yesterday.

Speaker #1: It is valid until the 13th of June, 2027. This amendment provides a more stable environment for executing the profitability and improvement program and strengthening the financial position.

Teemu Kraus: It is valid until 13 June 2027. This amendment provides more stable environment for executing the profitability and improvement program and strengthening the financial position. Solwers also entered into an interest rate swap to reduce exposure to variable interest rates. This was all from finance. Thank you.

Speaker #1: Solwers also entered into an interest rate swap to reduce exposure to variable interest rates. And this was all from Finance. Thank you.

Speaker #2: Thank you Teemu. So let's go ahead with the outlook for the yeast rest of the year. So regarding the market outlook and Finland so infrastructure demand stays strong so this is backed by the assignments already secured and the national transport plans.

Johan Ehrnrooth: Thank you, Teemu. Let's go ahead with the outlook for the rest of the year. Regarding the market outlook in Finland, infrastructure demand stays strong. This is backed by the assignments already secured and the national transport plans. On this side, it is mainly rail investments and road repair projects that keep the engineering demand up. The construction is picking up slowly. Housing, especially residential, is expected to remain weak, but on other sides of the construction, there is some picking up expected. In architectures, we see opportunities in commercial, in public sector, and renovation projects. In Sweden, the demand for industrial clients improved gradually, and this comes a step behind the wider industrial recovery. As until now, it is mainly the green transition investments in electrification, renewable energy, and energy infrastructure, but also defense that support the market demand.

Speaker #2: On this side, it's mainly rail investments and road repair projects that keep the engineering demand up. Construction is picking up slowly. Housing, especially residential, is expected to remain weak, but on other sides of construction, there is some picking up expected.

Speaker #2: In architecture, we see opportunities in commercial and public sector and renovation projects. In Sweden, the demand from industrial clients improved gradually, and this comes a step behind the wider industrial recovery.

Johan Ehrnrooth: In architectures, we see opportunities in commercial, in public sector, and renovation projects. In Sweden, the demand for industrial clients improved gradually, and this comes a step behind the wider industrial recovery. As until now, it is mainly the green transition investments in electrification, renewable energy, and energy infrastructure, but also defense that support the market demand.

Speaker #2: As until now, it is mainly the green transition investments in electrification, renewable energy, and energy infrastructure, but also defense, that support the market demand.

Speaker #2: Also in Sweden, the infrastructure demand is expected to stay strong. Architecture, however, is held back by slow new housing and commercial projects.

Johan Ehrnrooth: Also in Sweden, the infrastructure demand is expected to stay strong. Architecture, however, is held back by slow new housing projects. On the commercial and real estate side, we see some early signs of improvement. In Poland, accounting services outlook is favorable. There is a new mandatory e-invoicing system that drives the market demand. The business services sector keeps growing there, and the demand is also moving from bookkeeping to consulting. Our key priorities for the H2 of the year, we need to improve our billing rate. We need to ensure that we have right-sized resources. We continue the focus on sales to strengthen that, and we closely manage the cost structure for all Solwers companies. We do not provide an outlook for H2 for the time being. The market situation for our sectors remain mixed. For most of the portfolio companies, we expect them to deliver stable results.

Speaker #2: On the commercial and real estate side, we see some early signs of improvement. In Poland, the accounting services outlook is favorable. There's a new mandatory e-invoicing system that drives market demand. The business services sector keeps growing there, and the demand is also moving from bookkeeping to consulting.

Speaker #2: Our key priorities for the second half of the year: we need to improve our billing rate, we need to ensure that we have right-sized resources, we continue the focus on sales to strengthen that, and we closely manage the cost structure for all Solwers companies.

Johan Ehrnrooth: Our key priorities for the H2 of the year, we need to improve our billing rate. We need to ensure that we have right-sized resources. We continue the focus on sales to strengthen that, and we closely manage the cost structure for all Solwers companies. We do not provide an outlook for H2 for the time being. The market situation for our sectors remain mixed. For most of the portfolio companies, we expect them to deliver stable results.

Speaker #2: We do not provide an outlook for H2 for the time being. The market situation for our sectors remains mixed, so for most of the portfolio companies, we expect them to deliver stable results. And as said before, the order stock level is higher than it was this time last year.

Johan Ehrnrooth: As said before, the order stock level is higher than it was this time last year. The visibility to the development of the profitability is limited for rest of the year, and this is especially true regarding our Swedish companies serving the industrial engineering clients. We have already started measures to improve the efficiency of our Swedish companies, and we expect that the results are visible then during the Q4. We maintain our midterm financial targets. We target a revenue growth of about 20%, an EBITDA above 9%, and an equity ratio above 40%. Now there is time for some Q&A.

Speaker #2: But the profitability development for the rest of the year is limited, or—sorry—the visibility to the development of the profitability is limited for the rest of the year, and this is especially true regarding our Swedish companies serving the industrial engineering clients.

Speaker #2: We have already started measures to improve the efficiency of our Swedish companies, and we expect that these results are visible then during the fourth quarter.

Speaker #2: We maintain our midterm financial targets, so we target a revenue growth of about 20%, an EBITDA above 9%, and an equity ratio above 40%.

Speaker #2: Now there is some time for some Q&A.

Speaker #3: Thank you, Johan and Teemu. We have a couple of questions here. Johan, you mentioned that the development in Q2 was a disappointment. Why did the positive development in the order backlog not result in a favorable net sales development already in Q2?

Jasmine Jussila: Thank you, Johan and Teemu. We have a couple of questions here. Johan, you mentioned that the development in Q2 was a disappointment. Why positive development in the order backlog did not result in a favorable net sales development already in Q2?

Johan Ehrnrooth: The Q2, as said before, the main challenges are there in a handful of companies, and the problem was there in the billing rate of those companies. Solwers consists of 29 companies, and among that there are several good performances as well. But this time, the handful of companies drove the situation to what it is now.

Speaker #2: The Q2 as said before so the the main challenging the challenge challenges are there in a handful of companies and the problem was there in the billing rate of of those companies so solvers consists of 29 companies and and among that there are several good performances as well but this time the the handful of companies drove the situation to what it is now.

Jasmine Jussila: You mentioned that the billing rate was down. How was the pricing?

Speaker #3: You mentioned that the billing rate was down. How was the pricing?

Speaker #2: The pricing is on average, as we mentioned, so we were not able to pass on the salary increases to the pricing, so it remains stable.

Johan Ehrnrooth: The pricing, in average, as we mentioned, we were not able to pass on the salary increases to the pricing, so it remained stable.

Speaker #3: Do you have insight on how much your sales declined organically in Q2 or H1?

Jasmine Jussila: Do you have insight on how much did your sales decline organically in Q2 or H1?

Speaker #2: We have not reported that figure.

Johan Ehrnrooth: We have not reported that figure.

Speaker #1: We do not have organic growth in H2 or H1.

Teemu Kraus: We do not have organic growth in H1.

Speaker #3: Okay. Then, again, for Johan: do you have loss-making companies also in Finland, or is it only Sweden?

Jasmine Jussila: Then again, for Johan, do you have loss-making companies also in Finland, or is it only Sweden?

Speaker #2: We have also, in Finland—they are particular in Sweden—in Finland, there is a better possibility to manage the capacity. But there are some companies in Finland also where we need to improve our performance.

Johan Ehrnrooth: We have also in Finland. They are particular in Sweden. In Finland, there is the better possibility to manage the capacity. But there are some companies in Finland also where we need to improve our performance.

Speaker #3: Are your staff reductions mostly in Sweden, or also in Finland?

Jasmine Jussila: Are your staff reductions mostly in Sweden or also in Finland?

Speaker #2: Staff reductions are in Sweden; in Finland, it's more a question of potential temporary layoffs.

Johan Ehrnrooth: Staff reductions are in Sweden. In Finland, it is more a question of potential temporary layoffs.

Speaker #3: Are there significant one-off costs related to the layoffs?

Jasmine Jussila: Is there a significant one-off cost related to the layoffs?

Johan Ehrnrooth: There are some costs related to that. When we are doing layoffs, there is some time that we have the salary cost for the persons that are going out, and this is the reason why the full effect of the savings are visible then in Q4.

Speaker #2: There are some some costs related to that so so when we are doing layoffs so so there there is some time that we have the salary cost for the persons that are going out and and this is the reason why the full effect of the savings are visible then in in Q4.

Speaker #3: Okay. Then, regarding the recent acquisitions over the last 12 months, how have those companies performed?

Jasmine Jussila: Okay. Then regarding the recent acquisitions over the last 12 months, how have those companies performed?

Speaker #2: We are not opening in detail the performance of our companies, but on a general level we can say that Odigo has had a good half-year, and Poland as well.

Johan Ehrnrooth: We are not opening in detail the performance of our companies, but on a general level, we can say that Odigo has had a good H1 and Poland as well.

Jasmine Jussila: Then maybe a question for Teemu. Do you think your debt level is at an appropriate level given your operations in general?

Speaker #3: Then maybe a question for Teemu. Do you think your debt level is at an appropriate level given your operations in general?

Speaker #1: I think that the questioning case is a problem with the profitability level, not the debt levels.

Teemu Kraus: I think that the questioning case is a problem with the profitability level, not the debt levels.

Speaker #3: Okay. Then a couple of questions regarding the financial agreement. Teemu, what kind of cost does the covenant waiver bring to your financial costs?

Jasmine Jussila: Okay. Then a couple of questions regarding the financial agreement. Teemu, what kind of cost does the covenant waiver bring to your financial costs?

Speaker #1: We consider that as business secrecy, but it does have some costs, of course.

Teemu Kraus: We consider that as business secrecy, but it has some costs, of course.

Speaker #3: The covenant levels require quite drastic improvement, especially for H1 27. Is the driver expected earnings growth, lower net debt levels, or both?

Jasmine Jussila: The covenant levels require quite drastic improvement, especially for H1 2027. Is the driver expected earnings growth or lower net debt levels, or both?

Speaker #1: Actually, we have estimated the top-line growth quite conservatively, and the performance increase comes from the savings and cost-level discipline.

Teemu Kraus: Actually, we have estimated the top-line growth quite conservatively, and the performance increase comes from the savings and cost level discipline.

Speaker #3: Okay. Let's see, I think these were all the questions. Then, in the end, just a reminder: our Q3 business review will be published on November 12th, and we also have a couple of investor events still this year.

Jasmine Jussila: Let's see. I think these were all the questions. Then, in the end, just a reminder of our Q3 business review. It will be published on 12 November. We also have a couple of investor events still this year. We have two analyst houses following us, Nordea and Inderes, and they will give their insight separately. Thank you for-

Q2 2026 Solwers Oyj Earnings Call

Request TrialDemo

Solwers

Earnings