GRK’s financial statement release for January–December 2024:
January–December 2024 in brief (IFRS):
- Revenue increased by approximately 33% to EUR 728.6 (546.2) million.
- Adjusted EBITDA was EUR 61.3 (38.0) million, or 8.4% (7.0%) of revenue.
- EBITDA was EUR 60.9 (37.7) million, or 8.4% (6.9%) of revenue.
- Adjusted operating profit was EUR 45.6 (24.9) million, or 6.3% (4.6%) of revenue.
- Operating profit was EUR 45.2 (24.2) million, or 6.2% (4.4%) of revenue.
- The equity ratio was 42.4% (39.9%).
- Return on capital employed was 150.1% (47.8%).
- The order backlog grew, amounting to EUR 845,6 (568,3) million at the end of the year.
CEO’s Review
GRK had an excellent year in terms of all financial indicators[TN1] , and a big thank you for that goes to our great personnel. Our strong growth continued, with our revenue increasing by approximately 33% to EUR 728.6 million. We have successfully increased our revenue in Finland, Sweden and Estonia.
Due to the good weather conditions, we were able to continue many projects efficiently until the end of the year, which had a positive impact on GRK’s revenue and profit performance. Our operating profit increased significantly and reached EUR 45.2 million. All of our country companies have managed to improve their profitability. Our cash position was strong, our return on invested capital was very good, and our equity ratio improved.
The strongest growth and profit performance were achieved in Sweden. The most significant project was the earthworks, foundation reinforcement and concrete foundation project at the Stegra AB plant site, where we have won additional work in addition to the previously announced contract.
We have added several new projects to our order backlog
At the end of December, our order backlog stood at a record high EUR 845,6 million. We had the opportunity to start a number of significant new projects in 2024. Examples of these include the construction of the Hailuoto causeway, the Espoo City Rail Link contract, the improvement of national road 9, and earthworks for Fingrid’s main grid cable connection in Helsinki. In Estonia, we won a new railway electrification project and also one significant earthworks contract related to the Rail Baltica railway project. While we have several large projects in our order backlog, we also have many smaller projects that represent a significant share of our revenue.
Last autumn, we completed our part of the Kalasatama–Pasila tramway project. This meant that one successful project has now been completed, but there are more to come. We are currently involved in tramway projects in Turku and Vantaa, which are both still in the development phase. When the implementation phase begins, they will be fully included in our order backlog.
GRK has the opportunity to grow in all of its operating countries
The market situation remains uncertain. Although the construction sector has experienced negative news, the situation is favourable from our perspective. Forecasts point to slight growth in the infrastructure construction market in all of our operating countries. We updated our strategy in the latter part of the year, and I am confident that there will continue to be interesting business opportunities in infrastructure construction. The green transition, urbanisation, the maintenance backlog and defence investments will support the infrastructure construction market. We intend to seize these opportunities.
Unfortunately, there were also dark moments in a year that was marked by financial success. The most devastating incident happened in the autumn, when a fatal occupational accident occurred at our rail construction site in Tikkurila. Although the accident was caused by human error, it does not diminish the sorrow it has caused. GRK has a long-standing focus on the prevention of occupational accidents, but the fatal incident further underscores the importance of safety.
Planned changes in management
The new year will be my last as CEO of GRK. In early January 2025, we announced that a planned change of leadership is under way at GRK. Mika Mäenpää, the CEO of our Swedish country company, has been selected as my successor. He will take up his post by the end of September at the latest. I will support Mika in the transfer of duties, and as necessary, until the end of the year. I wish Mika every success in his new position when he takes over as CEO.
In any case, GRK is in strong shape, and we have plenty of great projects in our order backlog. Above all, the credit for this belongs to our customers and our personnel.