Our purpose is to enable performance and people’s wellbeing in smart and sustainable built environments. Customers can trust our expert guidance during the entire life cycle of their buildings, infrastructure or industrial sites and processes: from design & build to projects, technical and industrial maintenance, technical facility management as well as advisory services. With over 14,000 professionals in 10 countries in Northern and Central Europe, we are contributing to a carbon-neutral society through our energy-efficient and sustainable solutions.
We will strive to maintain a strong position in our markets and improve our position in geographies supporting our growth, profitability and resiliency. Always keeping our investors, customers, employees and the environment in mind, we aim to create value while ensuring we work towards the benefit of all our stakeholders.
1. Well-positioned to drive sustainable profitable growth
Caverion’s strategy for the period until the end of 2025 focuses on sustainable revenue growth, profitability improvement and investments to support our customers’ building performance.
During the previous Fit for Growth strategy, we focused on strengthening our prioritisation and selection of contracts and Projects business, as well as implementing cost-saving and efficiency initiatives across our platform, focusing on improved financial performance. Concurrently, Caverion adjusted its strategy to be better aligned with the changing market conditions and the evolving customer needs.
Caverion is now ready for sustainable growth guided by four strategic themes: People, Digitalisation and Sustainability leading to an outstanding Customer Experience.
2. A leading position in a huge market supported by megatrends
Caverion has a strong position in a fragmented market and there is still considerable room to grow the market share. Caverion is ranked among the top-5 players in the building solutions market in most of our operating countries measured by revenue. We are also one of the leading industrial solutions companies in Finland.
Our combined presence in both Nordics and in Central Europe gives us a competitive advantage to support our customers’ needs, including large multinational clients. Caverion is positively exposed to the megatrends in the industry, which include energy-efficiency, urbanisation, increasing technology and digitalisation as well as security. These trends have developed in our favour in recent years and continue to accelerate, supporting Caverion’s growth going forward.
3. A large range of sustainable solutions with a clear differentiation offered to a diversified customer base
Caverion’s solutions continue to evolve, and become more complex and tailored as the needs of our customers change. Our operating model is based on our strong local presence while sharing common expertise in solutions business across locations.
We are also well-positioned to meet the increased market demand for solutions supporting sustainability, such as improved energy efficiency and better indoor climate. In addition, digital solutions are a key component of our offering, ensuring our customers have the latest data, insights and actions plans to better manage their buildings, infrastructure and industrial sites and processes.
During the ongoing strategy period Caverion will differentiate itself in the market by creating sustainable impact for every customer with the solutions it designs and delivers, reliably and transparently every time.
4. Strong team to execute on strategy and capture untapped potential
People are at the core of Caverion’s business and customer interface. We aim to become the most attractive employer in our industry by focusing on attracting and growing the right people, empowering the Building Performance culture and leading people and performance with passion and care.
Our Group Management Board has a broad professional background from building technology and other industries and a wide market knowledge to execute the strategy throughout the company. Our focus on internal training, diversity and safety also guarantees we have the right, highly-experienced people to serve our diverse customer base while improving employee retention and health.
5. Solid order backlog with an increasing share of services and recurring work
Caverion’s 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 of good quality, providing us with visibility for the future. Our Services business, which already accounted for 66.8% of Group revenue in 2022 and includes digital solutions, generates recurring revenue that additionally improves visibility. The overall stable nature of the Services business also strengthens our resilience through business cycles, which is further supported by a diversified customer base.
We focus on evolving our business mix towards Solutions business at the higher end of the value chain, including Advisory, Engineering and Digital solutions, Managed Services as well as Smart solutions. In these categories, the growth outlook, the margin potential and the focus on acquisitive growth are deemed to be higher.
6. Performance management culture with focus on cash flow and working capital
Caverion has a strong performance management culture with focus on cash flow and working capital optimisation. We have benefited from having rooted performance management culture throughout the organisation.
Caverion’s asset-light business model is highly cash generative, allowing us to re-invest in growing the business organically and through M&A, while also returning cash to shareholders via dividends and managing our leverage. Our solid services business improves the predictability of cash flow.
Our operating cash flow is seasonal with Q4 typically being the strongest quarter. We actively focus on our working capital management and on reducing the seasonality of our business.