GRK as an investment target

Why invest in GRK?

GRK’s operations are built on a broad range of infrastructure services and specialization in infrastructure construction, a committed and skilled workforce, a rewarding performance-based incentive system, and, according to the company’s management, a unique work culture based on an entrepreneurial master-apprentice learning model.

1. Operations in Complementary Markets with Strong Growth Drivers

GRK operates in stable infrastructure construction markets in Finland, Sweden, and Estonia. The size of the target infrastructure construction market in these countries was approximately €30 billion in 2023, and it is expected to grow at an average annual rate of 3.2% between 2023 and 2026. Infrastructure construction, which is typically supported even during economic downturns, is largely funded by public resources. According to the company’s management, demand is driven by factors such as the green transition, urbanization, increased investments in defense and critical infrastructure, a significant infrastructure maintenance backlog, and large-scale publicly funded infrastructure projects. GRK also has a unique railway business offering in Finland, for which demand is expected to grow due to the tightened geopolitical situation.

2. Leading Market Position and Comprehensive Service Offering

GRK is one of the leading infrastructure construction companies in Finland, with an estimated market share ranking third in the sector. The company’s core competencies include planning and executing large-scale infrastructure projects, project management for both major and minor projects, urban environment construction, and extensive railway construction expertise. By integrating its service offering, GRK can provide comprehensive turnkey solutions, gaining a competitive edge by avoiding the need to divide projects among multiple contractors. Key strengths include design and cost estimation expertise, as well as a focus on environmental and maintenance business areas, particularly in railway construction, ensuring steady and continuous revenue streams.

3. Skilled, Motivated, and Committed Workforce

A skilled workforce plays a crucial role in GRK’s business, enabling profitable growth and high-quality project execution. A strong employer brand, an attractive performance-based bonus system, and engaging projects help GRK attract talented and motivated professionals. Employee skills are continuously developed through training programs, including mentorship programs and the GRK Site Academy.

4. Entrepreneurial Culture

GRK’s entrepreneurial culture and working methods are guided by core values that shape daily business operations and interactions with customers and employees. The company’s culture emphasizes courage, proactiveness, and a strong sense of responsibility. A significant portion of GRK’s shareholders are employees at various levels of the organization, which, according to management, enhances employee motivation and strengthens their entrepreneurial approach to work.

5. Rewarding Performance-Based Incentive System

GRK’s performance-based incentive system plays a key role in motivating employees to strive for continuous improvement and deliver projects that meet profitability targets. The model is particularly important in recruiting new employees, risk management, and employee retention. The system primarily targets GRK’s site management teams, with bonuses linked to project margins exceeding budget expectations or the company’s operating profit. Additionally, the bonus system includes quality and safety criteria to ensure that projects are executed with high standards and in a safe manner.

6. Capability for Strong Growth, High Profitability, and Operational Stability

Over recent years, GRK has maintained strong profitability and growth, outperforming competitors. The company’s profitability has remained stable, with an average operating profit margin of 4.6% between 2019 and 2024. A strong balance sheet and positive operational cash flow have enabled investments to support future growth. GRK has established clear and concrete strategic initiatives and goals extending to 2028, designed to secure profitable growth in the long term. 