Kreate Group Plc · OMXHEX:KREATE
Kreate — Q2 2025 Earnings Presentation
16 slides from Kreate's earnings presentation, Jul 15, 2025
Slide 1: Order backlog 40% and Q2 revenue 8% higher year-on-year
ORDER BACKLOG 40% AND Q2 REVENUE 8% HIGHER YEAR-ON-YEAR MIKKO LAINE, CFO 1 5 J U LY 2 0 2 5 K R E AT E G R O U P P L C / J A N U A RY- J U N E 2 0 2 5
Slide 2: Order backlog has grown for three consecutive quarters
ORDER BACKLOG HAS GROWN FOR THREE CONSECUTIVE QUARTERS ▪ Q2 EBITA profitability 3.0% (3.8%) ▪ EBITA EUR 2.2 (2.6) million ▪ Project profitability at the level of the comparison period ▪ We are preparing for growth – we have recruited and trained personnel and invested in facilities and equipment, es
Slide 3: Highlights from the second quarter
HIGHLIGHTS FROM THE SECOND QUARTER At Kirjalansalmi, cables installed Lovön tunnels interior contract New rail crane taken into use The cables of the Kirjalansalmi cable-stayed Kreate Sverige and Trafikverket have agreed Kreate’s newly modernised rail crane has been bridge were successfully installe
Slide 4: Interest rate development supports investments
INTEREST RATE DEVELOPMENT SUPPORTS INVESTMENTS MEGATRENDS DRIVE DEMAND IN THE LONG TERM INFLATION AND INTEREST RATE INDUSTRIAL INVESTMENTS TRANSPORT INVESTMENTS Cost level stable. Interest rates have The private sector is very active in State’s approximately EUR 4 declined throughout the first half
Slide 5: Market outlook improving in the short term, positive in the long term
MARKET OUTLOOK IMPROVING IN THE SHORT TERM, POSITIVE IN THE LONG TERM DEVELOPMENT OF THE MARKET MARKET OUTLOOK OUTLOOK SUITABLE TO KREATE Q/25 < 6 MONTHS > 6 MONTHS (MANAGEMENT ASSESSMENT) Market situation FINLAND Very strong Bridge construction Stronger than usual Normal Foundation and engineering
Slide 6: Order backlog has grown for three consecutive quarters
ORDER BACKLOG HAS GROWN FOR THREE CONSECUTIVE QUARTERS Order backlog Q2/23 – Q2/25, EUR million ▪ Order backlog at the end of June EUR 281.0 million ▪ Change from the end of March 24.5% ▪ Change from a year earlier 40.4% ▪ Q2 2025 new projects worth EUR 116 million, including among others ▪ the Lovö
Slide 7: Strategy execution in the second quarter
STRATEGY EXECUTION IN THE SECOND QUARTER W E M U S T: The number of personnel continued to grow – there are already over 600 1 BE THE BEST PLACE FOR THE BEST INFRASTRUCTURE EXPERTS Kreate employees, in addition to our professionals at the KFS joint venture in Finland. We have successfully increased
Slide 8: Sustainability in our operations
SUSTAINABILITY IN OUR OPERATIONS GREAT PROGRESS IN OCCUPATIONAL SAFETY OBSERVATIONS Building with passion Highlights Q2 2025 Employee satisfaction Occupational safety and safety culture 8.8 10.5 29 % Increasing competence Combined observations observations accident frequency per person from projects
Slide 9: Guidance for 2025 unchanged
GUIDANCE FOR 2025 UNCHANGED Kreate estimates that its revenue in 2025 will grow and be in the range of EUR 290–310 million (2024: EUR 275.5 million) and EBITA will increase and be in the range of EUR 9–11 million (2024: EUR 8.8 million). Justifications: The company's guidance is based on the order b
Slide 10: Revenue weighted towards the end of the year
REVENUE WEIGHTED TOWARDS THE END OF THE YEAR Revenue, EUR million Revenue distribution 1-6/2025 -20.7 % 8.1 % change from the same quarter in the previous year 10
Slide 11: EBITA slightly lower than in the comparison period as a result of growth investments
EBITA SLIGHTLY LOWER THAN IN THE COMPARISON PERIOD AS A RESULT OF GROWTH INVESTMENTS EBITA, EUR million ▪ In April–June, EBITA-% declined from the comparison period and was 3.0% (3.8%) ▪ in euros EUR 2.2 (2.6) million ▪ In January–June, EBITA-% was 1.8 (2.4) ▪ EBITA profitability ▪ Project profitabi
Slide 12: Favourable working capital development supported strong cash flow
FAVOURABLE WORKING CAPITAL DEVELOPMENT SUPPORTED STRONG CASH FLOW Free cash flow from operating activities, EUR million ▪ Good operational cash flow ▪ April–June: EUR 9.3 (-6.5) million ▪ January–June: EUR 15.3 (-9.6) million ▪ The change in net working capital improved cash flow by EUR 7.4 million
Slide 13: Interest-bearing net debt decreased to below EUR 20 million
INTEREST-BEARING NET DEBT DECREASED TO BELOW EUR 20 MILLION Interest-bearing net debt (EUR million) and equity ratio (%) ▪ Kreate’s interest-bearing net debt on 30 June 2025 was EUR 19.0 million (30 June 2024: 31.7) ▪ The release of working capital is the single largest factor behind the decrease in
Slide 14: Successful refinancing completed at the beginning of July
SUCCESSFUL REFINANCING COMPLETED AT THE BEGINNING OF JULY – SUPPORTS STRATEGY EXECUTION IN FINLAND AND SWEDEN Loan portfolio on 30 June 2025, EUR million Repayment schedule for interest-bearing debt*, EUR million Average interest of interest- bearing debt, excluding lease liabilities recognised in t
Slide 15: Key figures
KEY FIGURES EUR million 4-6/2025 4-6/2024 1-6/2025 1-6/2024 1-12/2024 Order backlog 281.0 200.1 176.6 Revenue 73.5 68.0 125.9 122.4 275.5 EBITDA 4.0 4.0 5.7 5.7 15.3 EBITDA, % 5.4 % 5.9 % 4.5 % 4.6 % 5.5 % EBITA 2.2 2.6 2.3 2.9 8.8 EBITA, % 3.0 % 3.8 % 1.8 % 2.4 % 3.2 % Operating profit 2.2 2.6 2.2
Slide 16: The future is built today
THE FUTURE IS BUILT TODAY