Source: Inderes

Translation: Original published in Finnish on 7/14/2026 at 9:18 am EEST.

Kreate reported a very strong second-quarter result across the board, with both revenue and earnings clearly exceeding our expectations. The order book swelling to a new record level (886 MEUR), inorganic growth, and excellent project execution drove the company to even stronger growth than we expected, which also lifted relative profitability to a clearly higher level than we anticipated. In our view, the fierce start to the year provides the company with a solid foundation for achieving its recently raised guidance and creates clear upward pressure on our full-year estimates.

Revenue grew even stronger than we had anticipated

Kreate's Q2 revenue jumped by a substantial 152% year-on-year to 185 MEUR, clearly exceeding our 155 MEUR estimate. Growth was driven by the support from the SRV Infra acquisition and the consolidation of KFS Finland, as well as the rapid realization of the already high order book. The company was able to initiate new projects rapidly and execute ongoing projects more efficiently than expected. Geographically, the revenue beat against our forecast came almost entirely from Finland. In Sweden, revenue developed roughly in line with our expectations (Q2'26: 15.6 MEUR vs. our forecast of 16.2 MEUR). Although revenue grew explosively, the company's order book continued to expand strongly to a new record, reaching 886 MEUR at the end of the review period (Q2'25: 281 MEUR, Q1'26: 689 MEUR). New major projects that supplemented the order book included the second phase of the Vantaa tramway works and the largest contract in Sweden's history, the renovation of the Lundby Tunnel. The over 200% growth in the order book clearly exceeded our expectations for a strong order intake. KFS Finland's share of the order book was ~50 MEUR at the end of June.

Volume lever compensated for growth investments more strongly than expected

The significantly stronger-than-expected revenue growth was now also more clearly reflected in the bottom line. Kreate's Q2 EBITA was 9.3 MEUR, significantly exceeding our 5.4 MEUR estimate. Relative profitability (EBITA margin 5.0%) also clearly exceeded our 3.5% expectation. We anticipate earnings growth to be primarily driven by increasing volumes and the support provided by KFS Finland and SRV Infra. However, operational efficiency proved to be stronger than we expected. According to the company, front-loaded growth investments, acquisition integration costs, and the recruitment of over one hundred new employees continued to weigh on relative profitability, but exceptional volume leverage compensated for these burdens. Operational strength also flowed effectively to the bottom line, and reported EPS (EUR 0.64) clearly beat our forecast of EUR 0.41.

Sturdy foundation for achieving the guidance puts upward pressure on forecasts

As expected, Kreate reiterated its earnings guidance, which was raised in mid-June. Kreate still estimates that its revenue in 2026 will increase and be in the range of 600–650 MEUR (2025: MEUR) and its EBITA will increase and be in the range of 21–26 MEUR (2025: 10.2 MEUR). Our current estimates expect full-year revenue to settle at 624 MEUR and EBITA at 23.5 MEUR. The stronger-than-expected Q2 and record-high order book are, in our preliminary assessment, putting upward pressure on our figures. The company estimates that 336 MEUR of the current order book will be realized during the 2026 financial year. Considering the revenue generated in the year to date and the forecast, the company will achieve revenue within the guidance range with its current project portfolio.