BUSINESS CONTINUED TO DEVELOP STEADILY
Consti’s business continued to develop steadily in 2025 despite the challenging market conditions. Our net sales increased by 2.9 per cent, amounting to 336 million euros.
We have managed to maintain a reasonable level of profitability, although it remains below our long-term targets. Our operating result was 9.4 million euros, or 2.8 per cent of net sales, compared to 10.2 million euros and 3.1 per cent the previous year.
At the end of the year, our balance sheet and liquidity position were at an excellent level. Our free cash flow improved and gearing ratio decreased significantly. We believe that our strong financial position and ability to deliver diverse projects ranging from small service contracts to large construction projects favor a versatile construction and building services expert like Consti.
The overall construction market is estimated to have grown in 2025 by three percent compared to previous year, but the renovation market is estimated to have continued to contract. The subdued demand for new construction and private real estate investors’ cautiousness about launching new renovation projects have sustained the intense competition in the construction and building technology markets.
Overall, we have been reasonably successful in compensating for the effects of the prolonged downturn in construction through improved operational effectiveness.
The needs-driven demand in renovation is currently most evident in housing companies, and we succeeded in increasing our net sales in the Housing Companies business area. The net sales in our other business areas, Corporations, Public Sector and Building Technology, declined.
Our expertise in housing companies was recognised in the industry, as Consti’s pipeline renovation projects achieved the first and second places in the Pipeline Renovation of the Year competition and our facade project received an honourable mention in the Facade Renovation of the Year competition. The RALA Quality Award, which we received in the autumn, is a testament to our long-term and determined efforts to develop management and improve staff wellbeing.
We have also achieved our strategic objective of broadening our role within the construction value chain, as evidenced by several successful pipeline renovation projects for housing companies delivered under the turnkey model, as well as numerous collaborative projects currently in the development phase. These projects particularly require contractor’s capabilities in project development and design management.
In 2025, we continued our active yet disciplined tendering activities. However, challenging competitive environment and weak demand continued to impact our order intake. Over the course of the year, we received new orders amounting to 251 million euros, a 3.2 per cent decrease compared to the reference period. Overall, our order backlog contracted by approximately 13 per cent, standing at 208 million euros at the end of the year. Although the volume of new orders did not meet our targets, we are satisfied with their quality.
In addition, our order backlog will be improved in the beginning of 2026 with the signed contract with Senate Properties for the Government Palace building project. Construction work is scheduled to begin in August 2026 and to be completed during 2030.
The grounds for a turnaround in construction exist with the slowdown in inflation, the stabilisation of interest rates, and the rise in purchasing power, but the uncertainty in the operating environment weighs on the outlook.
The past year marked Consti’s 10th year as a listed company. I believe that our time on the stock exchange has strengthened our position as a responsible, long-standing, and reliable operator in the construction industry. During these ten years, we have expanded our expertise to include energy renovations and new construction as well as increased our capacity to serve townhouse associations. The regular reporting required by the listing provides greater transparency not only into our financials but also into our strategy and its execution.
In line with our strategy, we aim to grow by responding to the increased demand driven by an ageing building stock, urbanisation, and climate change. The need for renovation and building purpose modifications is also increased by the societal changes, such as aging population, new requirements in how the spaces are utilised, and increased requirements for user comfort.
At Consti, we see renovation construction as a sustainable alternative to demolition, and we aim to be a pioneer in this development.
A warm thank you to all our customers, investors and other partners for their excellent cooperation, as well as to every member of the Consti team for their dedicated and determined efforts throughout 2025.
Esa Korkeela
CEO