07.02.2020 Stock exchange release

Caverion Corporation’s Financial Statement Release for 1 January – 31 December 2019

Result targets achieved in Q4, Caverion’s turn to growth started

Guidance follow-up in 2019

The Group’s performance was in line with the guidance for 2019. The Group’s Services business revenue and its relative share of the Group’s total revenue increased and amounted to EUR 1,274.9 (1,213.0) million and 60.0 (55.0) percent of revenue, respectively. The Projects business revenue decreased to EUR 848.3 (991.1) million. The Group’s Adjusted EBITDA amounted to EUR 120.4 (53.4) million.

October 1 – December 31, 2019

  • Revenue: EUR 589.0 (587.6) million. Services business revenue increased by 7.5 percent.
  • Adjusted EBITDA: EUR 47.0 (11.0) million, or 8.0 (1.9) percent of revenue.
  • EBITDA: EUR 35.9 (-1.3) million, or 6.1 (-0.2) percent of revenue.
  • Adjusted EBITA: EUR 33.7 (9.6) million, or 5.7 (1.6) percent of revenue.
  • EBITA: EUR 22.5 (-2.7) million, or 3.8 (-0.5) percent of revenue.
  • Operating cash flow before financial and tax items: EUR 80.6 (53.7) million.
  • Earnings per share, undiluted: EUR 0.11 (-0.12) per share.
  • Net debt/EBITDA*: 1.4x (0.2x).
  • Updated financial targets and growth strategy launched at the Capital Markets Day in November.
  • Maintpartner and Huurre acquisitions closed in the end of November, Pelsu in October.

January 1 – December 31, 2019

  • Order backlog: EUR 1,670.5 (1,494.3) million, up by 11.8 percent.
  • Revenue: EUR 2,123.2 (2,204.1) million. Services business revenue increased by 5.1 percent.
  • Adjusted EBITDA: EUR 120.4 (53.4) million, or 5.7 (2.4) percent of revenue.
  • EBITDA: EUR 103.0 (-8.8) million, or 4.8 (-0.4) percent of revenue.
  • Adjusted EBITA: EUR 67.2 (46.8) million, or 3.2 (2.1) percent of revenue.
  • EBITA: EUR 49.8 (-15.4) million, or 2.3 (-0.7) percent of revenue.
  • Operating cash flow before financial and tax items: EUR 143.7 (21.6) million.
  • Earnings per share, undiluted: EUR 0.14 (-0.40) per share.

Unless otherwise noted, the figures in brackets refer to the corresponding period in the previous year.

* Based on calculation principles confirmed with the lending parties.

Caverion has adopted IFRS 16 Leases standard as of the effective date of January 1, 2019. The Group applies the modified retrospective approach and comparative figures for the financial periods prior to the first date of adoption have not been restated. Additional information is presented under Changes in external financial reporting in 2019 and in financial tables section note 1 Accounting principles.


The Board of Directors proposes to the Annual General Meeting to be held on 23 March 2020 that a dividend of EUR 0.08 per share will be paid.


EUR million 10–12/19
(IFRS 16)
(non IFRS 16)
Change 1–12/19
(IFRS 16)
(non IFRS 16)
Order backlog 1,670.5 1,494.3 11.8% 1,670.5 1,494.3 11.8%
Revenue 589.0 587.6 0.2% 2,123.2 2,204.1 -3.7%
Adjusted EBITDA 47.0 11.0 327.4% 120.4 53.4 125.5%
Adjusted EBITDA margin, % 8.0 1.9   5.7 2.4  
EBITDA 35.9 -1.3   103.0 -8.8  
EBITDA margin, % 6.1 -0.2   4.8 -0.4  
Adjusted EBITA 33.7 9.6 251.0% 67.2 46.8 43.5%
Adjusted EBITA margin, % 5.7 1.6   3.2 2.1  
EBITA 22.5 -2.7   49.8 -15.4  
EBITA margin, % 3.8 -0.5   2.3 -0.7  
Operating profit 18.9 -8.7   35.3 -35.9  
Operating profit margin, % 3.2 -1.5   1.7 -1.6  
Result for the period 15.1 -15.8   22.6 -48.1  
Earnings per share, undiluted, EUR 0.11 -0.12   0.14 -0.40  
Operating cash flow before financial and tax items 80.6 53.7 50.2% 143.7 21.6  
Cash conversion (LTM), %       139.5 n.a.  
Working capital       -100.9 -54.6 -84.8%
Interest-bearing net debt       168.4 6.9  
Net debt/EBITDA*       1.4 0.2  
Gearing, %       73.6 2.7  
Equity ratio, %       21.5 30.2  
Personnel, end of period       16,273 14,950 8.8%

* Based on calculation principles confirmed with the lending parties.

Ari Lehtoranta, President and CEO:

“I am satisfied with the progress of Caverion’s performance in the fourth quarter. Firstly, Caverion turned back to growth. Our revenue for the fourth quarter increased to EUR 589.0 (587.6) million, which includes the Maintpartner and Huurre acquisitions as of December. These acquisitions together with the Pelsu acquisition are examples of our renewed focus on growth. Excluding the impact of currencies, revenue grew by 1.6 percent in the quarter. At the same time we achieved our result targets and the positive improvement trend seen in the third quarter continued. Adjusted EBITDA improved to EUR 47.0 (11.0) million, or 8.0 (1.9) percent of revenue in the fourth quarter. Operating cash flow before financial and tax items improved to EUR 80.6 (53.7) million. Order backlog increased by 11.8 percent to EUR 1,670.5 (1,494.3) million, supporting our future organic growth.

Measured in local currencies, the Services business revenue grew strongly by 9.1 percent, while the Projects business revenue declined by 8.5 percent in the fourth quarter. The Services business accounted for 61.5 (57.4) percent of Group revenue and had an excellent last quarter with most divisions improving their margins. In the Projects business, we made a material write-down for the one remaining risk project reported under adjusted EBITDA in the fourth quarter of 2019. This negative EBITDA impact was partially offset by a compensation from the previous owners of our German subsidiary related to the cartel case, also reported under adjusted EBITDA. For the full year of 2019, the Projects business profitability was still negatively impacted by old projects. Although the Projects business improved its performance in the second half of 2019, the profitability is still far from the targeted level. Performance management actions will continue.

For the full year of 2019, our adjusted EBITDA improved to EUR 120.4 (53.4) million, or 5.7 (2.4) per cent of revenue. Cash flow was a highlight of 2019. For the full year of 2019, our operating cash flow before financial and tax items improved to EUR 143.7 (21.6) million and cash conversion was 139.5 per cent. Cash flow after investments, including the payments for the acquisitions completed, was EUR 64.5 (1.4) million. Our continued efforts to improve working capital have paid off. In the fourth quarter, our working capital improved to the level of EUR -100.9 (-54.6) million. Net debt excluding lease liabilities amounted to EUR 31.5 (6.9) million at the end of December. The net debt/EBITDA ratio was 1.4x (0.2x).

We launched our updated financial targets and growth strategy at our Capital Markets Day in November. Our mid-term target is to grow organically over 4 percent per annum over the cycle and to further increase the share of our Services business. Organic growth will be complemented with acquisitions. Digitalisation and sustainability are the key themes supporting our future profitable growth. Environmental regulations and legislation are further tightening, requiring increased actions in energy efficiency in buildings, and our enhanced offering is well suited to meet the new demands enabling smart cities and smart buildings. Our future sources of growth include deepening customer partnerships, advisory services and outcome based projects and services, digital solutions as well as smart technologies in selected building technology growth areas.

Finally, I would like to give special thanks to our employees. We have made the best ever results in Finland, Industrial Solutions and Austria. Hard work in turning around Sweden, Germany and Denmark is paying off. Norway has made our best ever profitability in the Services business. Improved performance together with our increasingly important role in fighting climate change is boosting our motivation. The improvements seen in our operations in the second half of 2019 provide a good starting point going forward. In 2020, our target is to grow our revenue and further improve our results.”


Market outlook for Caverion’s services and solutions

The megatrends in the industry, such as the increase of technology in built environments, energy efficiency requirements, increasing digitalisation and automation as well as urbanisation continue to promote demand for Caverion’s services and solutions over the coming years. For Caverion, the key themes driving profitable growth are sustainability and digitalisation. The increasing awareness of sustainability is supported by both EU-driven regulations and national legislation setting targets and actions for energy efficiency and carbon-neutrality. At the same time, end-user expectations for comfortable and safe work spaces are growing, supporting the demand for Caverion’s services and solutions both in new builds and renovations.


The underlying demand for Services is expected to remain good. As technology in buildings increases, the need for new services and digital solutions is expected to increase. Customer focus on core operations continues to open up outsourcing and maintenance as well as technical building management opportunities for Caverion. There is a trend towards a deeper collaboration in order to gain business benefits instead of mere cost savings. International customers are looking for unified operating models across countries, especially within the Nordic region. There is an increasing interest for services supporting sustainability, such as energy management. In Cooling, there is a technical change ongoing from F-gases into CO2-based refrigeration, providing increased need for upgrades and modernisations.


Despite increased uncertainties in the economic environment, the Projects market in the non-residential construction market segment is expected to remain stable in other Caverion countries than Sweden. In Sweden, the activity level in residential and commercial projects is slowing down, while the infrastructure market is expected to be active. In other main Caverion countries, stable demand is expected to continue in both private and public sectors. Customer demand for total technical deliveries, life cycle projects and different types of partnership projects such as alliance projects is increasing, mainly driven by risk management. However, price competition is expected to remain tight. Low interest rates and the availability of financing continue to support investments. The requirements for increased energy efficiency, better indoor climate and tightening environmental legislation are increasing the costs of investing in building systems.

Guidance for 2020

In 2020, Caverion Group’s revenue (2019: EUR 2,123.2 million) and adjusted EBITA (2019: EUR 67.2 million) will grow compared to 2019.

EBITA = Operating profit + amortisation and impairment on intangible assets

Adjusted EBITA = EBITA before items affecting comparability (IAC)

Items affecting comparability (IAC) are material items or transactions, which are relevant for understanding the financial performance of Caverion when comparing the profit of the current period with that of the previous periods. These items can include (1) capital gains and/or losses and transaction costs related to divestments and acquisitions; (2) write-downs, expenses and/or income from separately identified major risk projects; (3) restructuring expenses and (4) other items that according to Caverion management’s assessment are not related to normal business operations.

Adjusted EBITA and items affecting comparability (IAC):

  1–3/19 4–6/19 7–9/19 10–12/19 1–12/19 1–12/18
EUR million (IFRS 16) (IFRS 16) (IFRS 16) (IFRS 16) (IFRS 16) (non IFRS 16)
EBITA 9.3 -4.1 22.1 22.5 49.8 -15.4
EBITA margin, % 1.8 -0.8 4.4 3.8 2.3 -0.7
Items affecting comparability (IAC)            
  • Capital gains and/or losses and transaction costs related to divestments and acquisitions
2.3 0.3 0.2 2.1 4.8 5.5
  • Write-downs, expenses and income from major risk projects*
1.6     15.5 17.1 9.3
  • Restructuring costs
0.5 0.5 0.7 2.9 4.6 5.3
  • Other items**
0.1 0.1 0.1 -9.3 -9.0 42.1
Adjusted EBITA 13.8 -3.2 23.0 33.7 67.2 46.8
Adjusted EBITA margin, % 2.7 -0.6 4.5 5.7 3.2 2.1

* Major risk projects include only one risk project in Germany in 2019 and 2020. In 2018, major risk projects included three completed Large Projects from Industrial Solutions.

** Including mainly the German anti-trust fine and related legal and other costs and a compensation from the previous owners of a German subsidiary related to the cartel case

In its revenue guidance Caverion applies the following guidance terminology.

Positive change Lower limit Upper limit
  % %
Grows 0%  
Negative change Lower limit Upper limit
  % %
Decreases   0%


In its adjusted EBITA guidance Caverion applies the following guidance terminology, with a +/- 2pp (percentage point) threshold to the said limits.

Positive change Lower limit Upper limit
  % %
At last year’s level -5% 5%
Grows 5% 30%
Grows significantly 30%  
Negative change Lower limit Upper limit
  % %
Decreases -30% -5%
Decreases significantly   -30%



Caverion will hold a news conference and webcast on the Financial Statement Release on Friday, 7 February 2020, at 2:00 p.m. (Finnish time, EET) at Hotel Kämp, Kluuvikatu 2, Helsinki, Finland. The news conference can also be viewed live on Caverion’s website at www.caverion.com/investors. It is also possible to participate in the event through a conference call by calling the assigned number +44 (0)330 336 9105 at 1:55 p.m. (Finnish time, EET) at the latest. The participant code for the conference call is “9210056/ Caverion”. More practical information on the news conference can be found on Caverion's website, www.caverion.com/investors.

Financial information to be published in 2020

The Annual Review, including the financial statements for 2019, will be published on Caverion's website and IR App in English and Finnish during week 9/2020, at the latest. Interim/Half-yearly Reports will be published on 30 April, 6 August and 5 November 2020.

Financial reports and other investor information are available on Caverion's website, www.caverion.com/investors, and IR App. The materials may also be ordered by sending an e-mail to IR@caverion.com.


Distribution: Nasdaq Helsinki, principal media, www.caverion.com


Contact us or subscribe

For more information, please contact: Martti Ala-Härkönen, Chief Financial Officer, Caverion Corporation, tel. +358 40 737 6633, martti.ala-harkonen@caverion.com Milena Hæggström, Head of Investor Relations and External Communications, Caverion Corporation, tel. +358 40 5581 328, milena.haeggstrom@caverion.com
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