Risks and uncertainties
The European economic outlook is expected to slowly improve after several years of low economic growth. 2025 forecasts related to construction activity in all Nordic countries have become cautiously more positive than a year ago.
With the current significant portion of operations taking place in Sweden and Norway, there is a currency risk due to the fluctuations in the exchange rate between SEK and EUR and between NOK and EUR. The company has continued efforts to protect itself against currency risks in the contracts and agreements it has entered.
The war in Ukraine and related geopolitical tensions continue to impose risks related to cyber and hybrid threats. Consequently, the company has continued making significant investments and increased focus on cyber and physical security.
Availability of key raw materials and components within the Defence sector has become more scarce as a result of the increasing demand of Defence products and therefore sourcing remains a key focus area.
Prospects for 2025
The outlook for infrastructure construction is cautiously positive versus the past few years. The expectations in the mining segment are neutral versus 2024. Main concerns for 2025 are related to the expected rebound in the general European and Nordic economic outlook. Competition in the civil explosives market continues to be stiff. However, by sustaining its good level of competitiveness, and with continued focus on development and efficiency, the company expects FORCIT Explosives to be able to continue profitable operations in its main markets.
FORCIT Defence order book remained at a high level during 2024, and with investments made into increased production capacity and acquisitions to strengthen its position, the company is confident in its ability to continue growing its Defence business in 2025.
FORCIT Consulting has a strong market position and is well-positioned for further growth through geographical expansion and development of its service offering. Expectations are also that the Nordic construction activity will start to develop more positively in 2025 after several challenging years.
In summary, the company expects an increase in sales in 2025 compared to 2024, driven mainly by an increased demand in Defence products. The company expects the growth to be profitable.