In this fundamental analysis report, analyst Ville Nordmark takes a closer look at Tekova Oyj
(“Tekova”), a Finnish commercial construction contractor specializing in standardized turnkey
delivery, with growing exposure to datacenter projects. Despite a weak construction environment,
Tekova operates at record-high revenue levels, with sales expected to increase from 66 EURm in
2024 to approximately 103 EURm on 2025 estimates, reflecting structural decoupling from
traditional construction cycles and a business model centered on execution quality rather than
volume growth. Supported by short project cycles and rapid backlog conversion, with the order
backlog typically converting into revenue within approximately eight months, the asset-light
operating model enables efficient capital recycling and predictable cash flow. While the current
valuation reflects improved profitability following the strategic reset, Tekova’s scalable operating
setup, capable of absorbing approximately 48% revenue growth without incremental resources,
combined with quality-driven pricing power and continued datacenter-related demand supports a
constructive fundamental outlook. An equally weighted DCF and peer valuation imply an upside
potential of 75% from current levels.
Investment Thesis
● Structural demand from commercial construction and datacenter investments supports resilient
order intake
● Standardized turnkey model enables scalable growth without incremental resources, supporting
margin durability
● Asset-light business model and rapid backlog conversion drive strong cash conversion and
balance sheet resilience