Sitowise Q4'25 flash comment: Earnings lines and outlook largely in line with expectations

Translation: Original published in Finnish on 2/11/2026 at 9:35 am EET.

Source: Inderes

Sitowise reported earnings lines this morning that were in line with our expectations. However, the company's return to revenue growth surpassed our expectations due to Infra's robust performance and the deceleration of the sharp sales decline in Sweden. The outlook remained unchanged from the previous quarter in different segments, and the order book received a slight boost, laying the foundation for our earnings growth expectations in 2026. Nevertheless, the company did not venture to provide guidance for 2026, indicating that uncertainty remains high. We currently estimate that the adjusted EBITA will rise to 12.1 in 2026 (2025: 8.8 MEUR), and we do not anticipate making significant revisions to our forecasts at this preliminary stage.

Infra performed well, and Sweden's decline also slowed down from earlier

Sitowise's Q4 revenue grew by 3% in reported terms to 50.2 MEUR, whereas we had expected a decline of 1% to 48.0 MEUR. Our expectations for stronger growth were met by Infra, which grew by 11% to 20.2 MEUR, driven by rail transport projects, as well as green transition and industrial projects. Digital Solutions sales, on the other hand, decreased by 2% to 9.4 MEUR due to lower project business volumes, despite our expectation of growth from the segment. Sales in the Buildings segment decreased by 3% to 13.3 MEUR. The decline in sales in the Swedish segment slowed significantly from previous quarters, decreasing by only 3% to 7.3 MEUR, compared to a 19% decline last quarter.

One additional working day than in the comparison period supported sales and earnings (a positive impact of 0.7-0.9 MEUR on revenue and EBITA). The utilization rate pleasantly improved to 74.2% during the quarter (Q4'24: 72.5%) and also improved from the previous quarter (Q3: 73.4%). The utilization rate is still far from the company’s target level of 78%.

EBITA improved as expected from weak comparison period

Sitowise’s adjusted EBITA for Q4 turned to growth as expected, reaching 2.2 MEUR (Q4'24: 1.2 MEUR). Verbal descriptions of the segments revealed that Infra continued to deliver strong profitability (over 12%). In contrast, the digital business now fell short of the group's target level with an EBITA margin of 5-10%, whereas it was above this level in the previous quarter. In the Buildings and Sweden business areas, full-time equivalent productivity was reported to have improved year-on-year as expected. Their EBITA margins were described as loss-making. However, the margin in the Buildings business weakened compared to the previous quarter, when the EBITA margin was slightly positive.

Outlook remains uncertain, yet a slight upturn in order book

As in the previous year, the company did not provide numerical guidance for the current year. The rationale was that due to the unpredictable timing of construction market recoveries both in Finland and Sweden, there is significant uncertainty related to Sitowise's revenue development in 2026 as well. Nevertheless, the company commented on the outlook for the next 12 months for the different segments. There were no changes to the verbal descriptions compared to the previous quarter. The outlook for Infra and Digital Solutions was described as stable, while the outlook for Buildings and Sweden was weak but improving.

In October–December, new orders grew 19% from the comparison period and amounted to 53.9 MEUR. Development was particularly driven by significant project wins in the Infra business area. The Digital Solutions business also succeeded in securing continuations for long-term software development projects, which contributed significantly to the growth of order intake. Order intake also increased in the Buildings and Sweden businesses. Overall, the order book increased by 2.5% from the end of the previous quarter, reaching 152.5 MEUR (Q4’24: 151 MEUR). As a whole, order books for Infra and Digital Solutions were at a good level. Order books remained low in the Buildings and Sweden business areas.

The company's gearing ratio (net debt/adjusted EBITDA) has now fallen to 4.9x. While the level remains very high, it is clearly down from 7.2x in the previous quarter, as strong cash flow at the end of the year reduced net debt and improved earnings strengthened EBITDA.