Solwers Oyj reported weaker-than-expected financial results for the first half of 2026, with Q2 revenue declining 5.1% year-over-year to EUR 20.8 million. The Nordic engineering and consulting group, which operates across Finland, Sweden, and Poland, attributed the drop to reduced billing rates and cost pressures in its Swedish industrial services segment.
For the first six months of 2026, Solwers posted revenue of EUR 41.8 million, a 1.2% decline from the prior year. EBITA totaled EUR 0.3 million, with an adjusted EBITA margin of 0.9%, down sharply from prior periods and well below the company’s long-term target of above 9%. EBITA margin for H1 stood at 0.7%, while return on capital employed fell to 2.4% from 7.7% a year earlier. The company’s equity ratio also declined to 41.1% from 42.3%, though it remains above the 40% target.
Solwers’ share price fell 1.18% in pre-market trading to $1.68, extending a six-month decline of 25% and a 32% drop over the past year. The company’s market capitalization stands at approximately $20 million, with a price-to-book ratio of 0.42, according to InvestingPro. Cash and cash equivalents decreased to EUR 6.2 million at the end of June, down from EUR 11.2 million a year earlier, while net debt rose 12% to EUR 28.2 million.
Operational challenges included a billing rate decline to 79.8% from 82.6% a year ago, alongside a 2% increase in personnel expenses. The company has implemented cost-cutting measures, including staff reductions in Sweden, temporary layoffs in Finland, and office closures, alongside tighter group-wide cost controls. Fixed cost savings of EUR 0.7 million have already been achieved, with further reductions expected to materialize in Q4 2026.
Solwers secured a temporary covenant waiver from its main bank at the end of June and amended its financing agreement on August 24, 2026, extending the facility’s validity until June 13, 2027. The company aims to reduce its net debt-to-EBITA ratio to 3.5 by June 2027, though visibility remains limited, particularly in Sweden’s industrial engineering sector. The company did not provide specific H2 guidance.
Executives acknowledged the underperformance, with CEO Johan Ehrnrooth stating, “Q2 was a disappointment, and by that, the total performance in H1 was not satisfactory.” CFO Teemu Kraus emphasized that the issue was profitability, not debt levels, noting challenges in passing on wage inflation to clients.
