Caverion as an investment

Sustainability needs are growing rapidly and we are well-positioned to enable a sustainable, digital future for our customers. Increasing awareness of sustainability is supported by both EU-driven regulations and national legislation setting higher targets and actions for energy efficiency and carbon-neutrality.

Digitalisation and sustainability are the key themes driving our profitable growth. Our financial performance improved during the Fit phase of our Fit for Growth strategy, and now we focus on the growth part. In the short term we still need to focus on improving our profitability due to the negative impacts of the lengthened corona pandemic.

Caverion has also published our sustainability targets, KPIs and actions in line with our strategy and purpose. 

We are a leading European service company and have a diversified customer base with a high retention rate. Our market position is strong and we are ranked among the top-5 players in most of our largest operating countries. Market is still very fragmented in these countries. Caverion is also the leading industrial solutions company in Finland.

We operate in a relationship business with a customer and life-cycle focus. Our strong, diversified customer base is the first foundation for our growth. Our Services and Projects business units support each other and together enable growth towards high-end life cycle solutions for buildings and industries.

Our order backlog is solid and its quality has improved due to efforts made to close or settle the remaining non-performing projects. In line with our strategy, the share of our Services backlog has increased.

We have a strong performance management culture with focus on cash flow and working capital. We have benefited from having rooted performance management throughout the organisation during the Fit phase of our strategy.

Furthermore, we are operating in asset-light, cash generative business. Caverion’s business is labour-intensive and typically requires little investments. Solid services business improves the predictability of cash flow.

Our operating cash flow is seasonal with Q4 typically being the strongest quarter. We are actively focusing on our working capital management and reducing the seasonality of our business.

Our liquidity position is very strong, and our leverage is at a low level. 

At the end of Q4/2020

• Interest-bearing net debt excluding lease liabilities amounted to EUR -10.6 (31.5) million and including lease liabilities to EUR 118.6 (168.4) million

• Net debt/EBITDA in was -0.2x (1.4x)

• Cash and cash equivalents of EURm 149.3 (93.6)