Why invest in Luotea?

Luotea is a responsible investment opportunity that offers comprehensive solutions for the entire life cycle of real estate, combining energy efficiency and smart technology. We offer our investors stable financial returns and the opportunity to be part of responsible business that enhances the value of real estate. Read why it is worth investing in Luotea.

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Large and resilient growth markets

Luotea operates in the Finnish and Swedish facility services markets, which are both structurally growing and resilient through economic cycles. Demand is driven by essential, recurring maintenance services that are required regardless of broader macroeconomic conditions.

Strong position with differentiated spearhead offerings

Luotea has a distinctive spearhead service portfolio that includes data-driven solutions, strategic sustainability services, and energy management offerings. These capabilities enable the creation of new service packages, drive cross-selling, strengthen long-term customer partnerships, and serve as a significant source of growth.

Diversified and sticky customers with healthy contract portfolio

Luotea’s customer base is broad, spans multiple industries, and is built on long-standing relationships. Most contracts are multi-year agreements, providing strong revenue visibility and predictability. These factors make customer relationships highly durable and give the company a clear outlook on future demand.

Margin expansion through an improved operating model

The company is focused on driving profitability through improvements in its operating model. Standardized processes, optimized service delivery, and harmonized ways of working collectively support margin expansion.

Significant upside from large customer base and innovation-enabled offering

Luotea has substantial untapped potential within its existing customer base — particularly through cross-selling opportunities. Innovation-driven solutions, such as data-enabled maintenance and energy optimization, accelerate additional sales to current customers and open new, profitable avenues for growth.

Contracted business model with potential for high cash generation and capital returns

Luotea’s business is built on long-term service contracts and a high degree of recurring revenue. This creates a predictable revenue base and enables strong operating cash flow and attractive returns on capital — a structurally advantageous combination for a listed service company.

Favorable regulatory tailwinds

Energy consumption regulation

The EU’s energy efficiency and consumption targets are tightening rapidly. By 2030, the Union aims to reduce final energy consumption by 11.7%, requiring substantial efficiency improvements in buildings. In Finland, 8,500 properties will be required to install smart building systems by 2025. These changes are driving customers to adopt more data-driven maintenance and energy management solutions — areas where Luotea has a particularly strong offering.

EU sustainability regulation

The EU’s new sustainability reporting requirements (including CSRD) increase transparency expectations across the entire value chain starting in 2024. In addition, the EU has set a target to reduce greenhouse gas emissions by 55% by 2030, accelerating energy efficiency initiatives and emission-reduction actions in buildings. Organizations need reliable data and standardized reporting — capabilities that Luotea’s services directly support.

Reform of public procurement legislation

Finland’s new public procurement legislation is expected to enter into force in 2026, accelerating outsourcing particularly within wellbeing services counties and municipalities. The reform introduces, among other changes, a 10% ownership cap for in-house entities when procuring services, as well as a requirement to re-tender if only one bid is received. This reform opens a sizeable market for outsourced support services — an area where Luotea has strong references and nationwide capabilities.