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SWEC B: New Long Term Infrastructure Contracts Will Support Future Earnings

Update shared on 14 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-8.7%
7D
-3.0%

Analysts have raised their price target for Sweco slightly to imply a fair value of €197.00. This reflects modest tweaks to their discount rate and long term valuation assumptions rather than any material change in revenue growth or profit margin expectations.

What's in the News

  • Sweco will support the Swedish Environmental Protection Agency in a Sida funded project to build EU aligned waste management capacity in Ukraine under a framework agreement worth up to SEK 7.5 million running to December 2027 (client announcement).
  • The company has been appointed to lead two major wastewater infrastructure projects in Mykolaiv and Rivne, Ukraine, backed by Impact Fund Denmark and the EBRD, to restore and future proof critical services (client announcement).
  • Sweco signed three framework agreements with Sida, ranked first technically in all, covering sustainable transport, responsible mining and renewable energy advisory, with a maximum order value of SEK 140 million over two years from 2025 and an option for a two year extension (client announcement).
  • A new framework agreement with Dutch agency Rijkswaterstaat will see Sweco provide engineering services over four to six years for large scale infrastructure and water management renewal projects aimed at strengthening climate resilience and mobility in the Netherlands (client announcement).
  • In Poland, Sweco will design the Kamieniec Zabkowicki reservoir for State Water Holding Polish Waters, a climate resilience project estimated at around EUR 288 million, with Sweco’s order value at about EUR 14.6 million and construction targeted to start in 2027 (client announcement).

Valuation Changes

  • Fair Value: Unchanged at €197.00, indicating no revision to the headline valuation target.
  • Discount Rate: Risen slightly from 6.72 percent to approximately 6.72 percent, reflecting a minimal adjustment to the cost of capital assumptions.
  • Revenue Growth: Effectively unchanged at about 6.96 percent, suggesting no material update to top line growth expectations.
  • Net Profit Margin: Stable at roughly 8.36 percent, indicating no meaningful shift in projected profitability.
  • Future P/E: Risen marginally from about 27.28x to 27.28x, pointing to a slightly higher multiple applied in the forward valuation.

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