Solwers H1'25 preview: Chasing the market turning point

Translation: Original published in Finnish on 8/20/2025 at 7:43 am EEST.

Source: Inderes

Solwers will publish its H1 report next Tuesday at around 8.30 am EEST. We expect the company's revenue to have grown from the comparison period thanks to acquisitions, while our profitability estimate is roughly at the same level as a year ago. Since the company does not provide numerical guidance, we will pay close attention to any updated comments regarding the outlook, particularly regarding whether the company has observed concrete signs of an increase in market activity.

Company acquisitions provide some traction for the top line

We forecast Solwers' H1 revenue to have grown by just over 4% from the comparison period to 41.7 MEUR. This revenue growth is driven by the acquisitions of Siren Architects and Spectra Consult, according to our estimates. Organically, we expect revenue to stagnate again, as it did in the first quarter. Overall, we estimate that the market situation has remained sluggish. We do not expect order books, which were higher than in the comparison period at the turn of the year, to translate into actual growth, as we estimate that fierce price competition, among other factors, has continued to erode growth.

We do not expect any major changes in profitability levels

We estimate that EBITA in H1 will remain flat year-on-year at 3.3 MEUR. This corresponds to a slightly lower margin of 7.8% compared to the comparison period. It should be noted that the comparison period does not set the bar high, and our profitability forecast is moderate compared to the company's historical standards. We estimate that the sluggish market situation has kept billing rates low, which has eroded profitability. Conversely, we estimate that short-term adjustment measures (e.g., layoffs and reduced group expenses) supported profitability, particularly toward the end of the period. Based on an operating result in line with the comparison period and slightly lower net financial expenses, we forecast earnings per share to increase to EUR 0.13 for H1.

Still pursuing the bottom

Solwers has not provided a numerical guidance for the current year, which is in line with its guidance practice. The company has also stated that it expects a further improvement in the business environment toward the end of the year due to a general market pick-up. Previously, we estimated that demand would bottom out in H1'25 and that revenue would return to organic growth in the latter part of the year. We are seeking validation of this assessment in emerging market commentary in addition to being particularly interested in the progress made in streamlining the company's administrative expenses. Cost efficiency, together with top-line development, will play a key role in strengthening the company's profitability in the coming years.