Investors
Business model
GRK Infra is a Finnish company focused on infrastructure construction, operating in Finland, Sweden and Estonia. Our service selection broadly covers various areas of infrastructure construction, such as road and rail construction, civil engineering, industrial construction, and related design. The business areas are mutually supportive, enabling us to offer a very comprehensive range of infrastructure construction services.
Value is created from extensive infrastructure construction services
We have four mutually supportive business areas that enable us to offer a very comprehensive range of infrastructure construction services:
Civil engineering and road construction
GRK builds roads, streets, and municipal infrastructure, and improves existing roads. We specialize in demanding bridge construction work, including over-water and railway bridges. Our services cover municipal engineering construction, as well as concrete, steel, and composite structures, foundation construction, industrial construction, civil engineering and renovation sites, as well as foundation, excavation, support, and blasting works. Civil engineering and road construction also includes paving.
Rail business
Our comprehensive rail construction services cover the entire life cycle of rail construction in Finland. We also offer rail construction services in Sweden and Estonia. The areas of expertise in rail construction cover systems and structures for railways, metro lines and tram lines. Our services cover track engineering, track electrification, safety equipment, and demanding structural engineering projects from foundations to telecom tower structures. We are responsible for the maintenance of tracks in several areas, for example, in southern Finland.
Environmental services
Our environmental technology business covers the reception, processing, and utilization of various waste materials and by-products from industry and power plants. In addition to material reception, the environmental services business offers comprehensive services for, e.g., sports facility construction. The environmental technology business also includes bioproduct businesses, such as the production and sale of biochar and pellets.
Power
GRK Power, launched in 2025, focuses primarily on the construction of electricity transmission networks (110/400 kV) and substations. There are significant synergies between electricity network construction and our existing operations. Heavy transmission lines require extensive foundation and road infrastructure, which GRK has successfully delivered for many years. In substation construction, GRK’s experience in the rail sector provides expertise, as railway substations are largely similar. Circular economy materials can also be utilized in our projects.
Our business is mainly project-based
Our business primarily consists of fixed-price projects in which we act as the main contractor. We often agree on prices in advance for projects, but for some materials, contracts can also be linked to price indices, which reduces the impact of possible cost volatility on the profitability of the contract. Cost risk is calculated by establishing fixed purchase prices with suppliers and subcontractors at the beginning of projects.
Maintenance and circular economy services generate recurring revenue, complementing our service offering in large, comprehensive projects, but their share of total revenue is still relatively small. Maintenance services focus, for example, on railway maintenance and damage repair. Maintenance contracts typically have a duration of 5 years. Our circular economy services cover the reception, processing, and utilization of various waste materials and by-products from manufacturing and power plants.
Due to the project-based nature of our business, our investment needs are quite moderate, resulting in a strong return on capital. It also enables us to grow our business without external financing.
Return on equity development
The public sector is prominent in our customer base
Among customer groups, the public sector accounts for the largest share of our revenue, which creates stability in our business. Large infrastructure projects and investments are often driven by the public sector, and their demand is not very dependent on the economic situation. As the economy weakens, stimulus measures are often initiated by national and local governments, which even brings counter-cyclical features to our business. From the public sector, our customers include states, municipalities, and other public operators.
The rest of our revenue comes from private customers, which include, for example, construction companies, industrial investment commissioners/developers, and other large companies.
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