Translation: Original published in Finnish on 01/22/2026 at 08:00 am EET

Kreate announced on Wednesday that it has signed an implementation phase agreement with the Finnish Transport Infrastructure Agency for the Tampere passenger railway yard renewal project. We expected the second phase of the project, which was in the development stage, to move to implementation and thus be recorded in the order book during the first half of this year. The size of the second phase (152 MEUR) was also well in line with the company's previously communicated figure of around 160 MEUR. The extensive project supports our view of strong revenue growth for the company already this year and increases long-term visibility upon the project's completion in 2031.

Historically large order book entry

The total value of the signed implementation phase agreement is 192 MEUR. However, the sum includes already ongoing Phase 1 work, valued at around 40 MEUR. Thus, Kreate will record good 152 MEUR in its Q1'26 order book for the second phase of the project. This is the biggest deal in the company’s history.

The project will move to the second construction phase during spring 2026, and the work will be completed in its entirety in early 2031. The project is extensive and diverse, including, e.g., the renewal of railway bridges, the construction of a new travel terminal, and extensive track work. The project will be implemented using an alliance model, where the clients are the Finnish Transport Infrastructure Agency, as well as the City of Tampere, Fintraffic Railway Ltd, and VR-Group Plc.

The agreement was expected, and the project is included in our estimates

The signing of the contract did not come as a surprise, as the project has been in Kreate's development phase portfolio. In our recent extensive report, we estimated that the project would move to the implementation phase and be recorded in the order book in the first half of 2026. The amount to be recorded in the order book (152 MEUR) is well in line with our previous estimate of around 160 MEUR for the second phase of the project. As the project was already included in our estimates, the release does not necessitate any estimate changes. However, the signing of the agreement reduces estimate risk and strengthens visibility into volume development in the coming years, as the project is spread over several years until 2031. As a project implemented with an alliance model, the project's risk profile is also lower than a typical turnkey contract.