Sentia: A New Dividend Contender on Oslo Børs
With a high public-sector share, solid backlog, and an estimated 7% yield, this newcomer ticks the right boxes for Gullinbursti
As announced two days ago, we’ve added Sentia (SNTIA.OL) to the Gullinbursti Dividend Portfolio, buying shares at NOK 57.19. This newly listed construction group offers a compelling blend of yield, visibility, and stability, and stands out as one of the most attractive dividend opportunities currently on Oslo Stock Exchange.
1. ~7% Dividend Yield – With Room to Grow
At our entry price, we estimate a dividend yield of roughly 7%, positioning Sentia as a high-yield standout in the sector. That compares favourably with:
Veidekke (VEI.OL) (Norway): ~5.8%
AF Gruppen (AFG.OL) (Norway): ~3.2%
Peab (PEAB-B.ST) (Sweden): ~3.4%
NCC (NCC-B.ST) (Sweden): ~4.7%
Skanska (SKA-B.ST) (Sweden): ~3.5%
Sentia has communicated a clear dividend policy: 70–100% of net profit is to be paid out over time, depending on capital requirements. The business model is capital-light, and the company has no plans to tie up significant capital in development projects. This means strong free cash flow conversion and a high potential for consistent payouts.
2. Exposure to Stable, Non-Cyclical Demand
Sentia stands apart from the traditional cyclical contractors. In 2024, 68% of revenue came from the public sector, including hospitals, schools, police buildings, and defence facilities. That puts the company in a strong position:
Less exposed to downturns in private residential or commercial construction
Higher project visibility and longer contract horizons
Anchored in infrastructure critical to society
Positioned to benefit from increased defence spending, as Norway and Sweden ramp up military infrastructure investment
It’s also worth noting that ~80% of revenue stems from repeat customers, a rare and valuable feature in this space.
3. Strong Order Backlog and Growth Ambitions
The group had a total backlog of NOK 16.1 billion as of year-end 2024, of which:
NOK 13.3 billion is with HENT (Norwegian operations)
NOK 2.7 billion is with Sentia Sweden (formerly Betonmast)
A large portion of this backlog is expected to be realised in 2025, giving excellent short-term revenue visibility.
Looking ahead, management has set an ambition of NOK 15 billion in revenue by 2030 with an EBIT margin of 5%. This compares with ~NOK 10.5 billion in revenue and ~5.4% EBIT margin in 2024. The current market capitalisation stands at roughly NOK 5.7 billion.
4. Post-IPO Setup, Strong Debut and Institutional Support
Sentia’s IPO was a secondary sale by its largest shareholder and did not involve the issuance of new shares. However, it marked a significant milestone by boosting the company’s public visibility and attracting a strong institutional investor base. The offering was nearly 15x oversubscribed, with cornerstone investors such as DNB Asset Management, Arctic Fund Management, Tind Asset Management, and Amundsen Investment Management coming on board. The stock gained 14% on its first trading day, leaping from the IPO price of NOK 50 to NOK 57 – a strong vote of confidence from the market. Although the company didn’t raise fresh capital, the listing improves strategic flexibility, including potential for bolt-on acquisitions.
Final Thoughts
Sentia stands out as a rare find: a newly listed company combining a proven operating history, stable income from long-term public contracts, and an attractive, sustainable dividend yield. Its public-sector tilt gives it lower cyclicality, while the capital-light model and payout policy offer strong income potential.
While still early in its public life, Sentia trades at a notable discount to Veidekke and AF Gruppen – despite having a higher share of revenue from the public sector and a cleaner, capital-light model. This valuation gap suggests meaningful upside potential, especially if the market begins to reprice the company’s stability and dividend capacity in line with its larger peers.
💬 Want to dive deeper or share your view? Join the discussion about Sentia's potential in the Nordic Alpha Discord (invite link valid for one week).
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Always conduct your own research or consult a financial advisor before making investment decisions. The author may hold positions in the mentioned securities.