Outlook, guidance and financial targets
Outlook for the year 2023
The stable growth in the demand for design and consulting services to create sustainable societies is supported by megatrends such as urbanization, renovation backlog, sustainability, and digitalization.
The uncertainty in the market brought by the war in Ukraine, increasing interest rates and inflationary pressures may continue to affect the short-term decision-making of Sitowise’s clients. That said, the effects on the technical consulting business are not quite as significant as in the broader construction industry, which is one of Sitowise’s key customer segments. Following the healthy organic growth and acquisitions made in 2022, Sitowise entered year 2023 with a record high order book.
Demand for digital solutions remains strong and infrastructure business’ outlook is also relatively more stable than construction markets, where uncertainty has continued to increase especially in Finland with an increasing uncertainty relating to starting of new construction projects. Overall, the market outlook has remained somewhat more stable in Sweden.
Sitowise Group estimates that its net sales in euros will increase compared to 2022, and that its adjusted EBITA margin (%) will be broadly at the same level as the adjusted EBITA margin of 2022.
Long-term financial targets:
- Growth: Annual net sales growth of over 10 percent, including acquisitions.
- Profitability: Adjusted EBITA margin of at least 12 percent.
- Leverage: Net debt in relation to adjusted EBITDA should not exceed 2.5x, except temporarily in conjunction with acquisitions