Sweco (OM:SWEC B): Is There More Value as Revenue and European Infrastructure Wins Grow?

Sweco (OM:SWEC B) has caught the market’s eye after reporting higher revenue and profit for the third quarter and first nine months of 2025, as well as fresh engineering agreements across major European infrastructure projects.

See our latest analysis for Sweco.

After a fairly subdued start to the year, Sweco’s recent wins in infrastructure contracts and its robust Q3 results have reignited investor interest. The stock posted a 7% share price return over the past month and 12% in the last 90 days. Although the total shareholder return is marginally negative at -0.8% over the last year, the impressive 113% total return over three years tells a story of significant long-term value creation and momentum that is starting to build again.

If you’re keen to spot more companies leveraging European infrastructure and environmental trends, it’s a great time to explore fast growing stocks with high insider ownership.

But with the stock showing double-digit gains in recent months and strong growth already reflected in its latest results, investors have to ask: is there still value left to unlock, or is future upside already factored in?

Most Popular Narrative: 9% Undervalued

Sweco's fair value, according to the most closely followed narrative, stands well above the last close price, signaling strong upside potential versus the current market level.

Sweco's focus on operational efficiency, including higher pricing, improved billing ratios, and cost control measures, is expected to enhance margins and profitability, supporting higher future earnings. The company's strong order backlog, driven by continuous project wins in growth segments such as energy, infrastructure, and digitalization, is anticipated to contribute to future revenue stability and growth.

Read the complete narrative.

Curious what ambitious financial targets lie behind this market optimism? There's a hidden combination of future earnings growth and margin expansion that could redefine Sweco's valuation narrative. Get the full details to discover what could truly move the needle for this stock.

Result: Fair Value of $189 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent weakness in Nordic real estate and the potential for further restructuring costs could challenge Sweco's ability to sustain its projected growth momentum.

Find out about the key risks to this Sweco narrative.

Another View: Are the Valuation Multiples Telling a Different Story?

While the current fair value calculation paints Sweco as undervalued, the market’s valuation ratio of 28.7x stands far above both the European construction industry average of 14.2x and the peer group average of 17.3x. This is also higher than the fair ratio of 25x, suggesting extra risk if sentiment cools. Does this premium reflect future potential, or could it weigh on returns?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Sweco Narrative

If you want to put the numbers and stories together for yourself, the tools to craft your personal view of Sweco are at your fingertips: Do it your way.

A great starting point for your Sweco research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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