Kreate signs agreement for continuation of previous railway project

Translation: Original comment published in Finnish on 6/28/2024 at 7:25 am EEST.

Kreate has signed an extension with the Finnish Transport Agency for two previous railway projects that Kreate is currently building between Kytömaa and Ainola. The signed contract is worth 34 MEUR. Kreate's order book at the end of Q1'24 was 183.6 MEUR, which makes the contract quite significant, even though it is spread over several years (2025-2027). The contract win supports the growth outlook we expect for the coming years, but we will of course review our forecasts in the next update.

The Kytömaa-Järvenpää construction contract won by KREATE is part of a major Helsinki-Riihimäki project that will improve the reliability of the key railway line, enable more passenger traffic and promote the competitiveness of freight traffic. The two works currently under construction include a new east track and a platform that will be operational by December 2024 at the latest. Winning the third part of the project seems to us to indicate that the first two parts went well from the customer's point of view, which is naturally encouraging for the company. The new contract is expected to begin no later than January 2025 with bridge and earthworks. The project is due to be completed by July 2027. The railway project is a good example of the fruits of Kreate's growth efforts, as the railway business is one of the key areas where the company is seeking growth.