The compensation claim made against Finnmap Infra is based on an alleged breach of contract. In our view, such disagreements and disputes are somewhat common, but we note that the total amount of the claim is significant relative to Solwers' current earnings and cash flow level. In Kreate's size class, the amount is moderate.

In 2024, Kreate was able to improve margins and this year, revenue growth will drive earnings growth. Beyond the subdued short-term market outlook, the expected return is attractive thanks to earnings growth and the dividend.

In 2024, we expect Kreate to have successfully improved margins, and in 2025, revenue growth will drive earnings growth. However, the short-term market outlook is weak (H1'25) and we have slightly lowered our forecasts. However, after the share price decline, we believe the earnings outlook is attractive given the improving market and earnings levels of Kreate in the coming years. 

The Q3 result was good and strengthened our confidence in Kreate's profitability improvement. However, the outlook for infrastructure construction has deteriorated in the short term and we expect the recovery next year to be rather H2-oriented. This outlook has led us to slightly lower our forecasts for the next few years, which also prompted us to revise our target price downwards. The market will eventually start to recover, but in the short term, we believe the drivers for significant price increases are limited.