Financial targets

Caverion updated its financial targets on 9 May 2022. Caverion’s mid-term financial targets until the end of 2025 are:

Financial targets

Cash conversion (LTM) Operating cash flow before financial and tax items / EBITDA  > 100%
Profitability Adjusted EBITA* > 5.5% of revenue
Organic revenue growth 3−4% p.a. over the strategy period**
M&A revenue growth 2−3% p.a. over the strategy period
Debt leverage Net debt/LTM Adjusted EBITDA < 2.5x***
Dividend policy Distribute at least 50% of the result for the year after taxes, however, taking leverage level into account

* Adjusted EBITA is defined as Operating profit + amortisation and impairment on intangible assets. Adjustments according to defined Items affecting comparability (IAC).

** Previously organic revenue growth > 4% p.a. over the cycle supported by bolt-on acquisitions in selected growth areas and complementary capabilities, Services revenue growth > market growth, Services revenue > 2/3 of Group revenue.

*** Previously Net debt/EBITDA < 2.5x based on calculation principles confirmed with the lending parties, containing certain agreed adjustments. Adjusted EBITDA is affected by the same adjustments as adjusted EBITA, except for restructuring costs, which do not include depreciation and impairment relating to restructurings.

Previous financial targets and results 2021