Pihlajalinna (PIHLIS) investor relations material

Executive summary

• Revenue declined to EUR 142.1 million in Q1 2026, a 21.7% year-over-year drop, mainly due to the expiry of outsourcing agreements and divestments of residential care units.

• Adjusted EBITA decreased to EUR 14.0 million from EUR 18.1 million, with the margin stable at 9.9%.

• Net profit was EUR 8.7 million, with EPS at EUR 0.35, down from EUR 0.47 a year earlier.

• Significant workforce reductions and change negotiations were initiated to improve cost-effectiveness.

• The company redeemed its EUR 20 million hybrid bond in March 2026.

Financial highlights

• Healthcare Services revenue was EUR 117.8 million, nearly flat year-over-year.

• Outsourcing Services revenue dropped sharply to EUR 22.2 million from EUR 60.7 million.

• Adjusted EBITA margin for Healthcare Services was 8.6% (down from 10.9%), and for Outsourcing Services 18.4% (down from 9.9%).

• Operating profit (EBIT) was EUR 12.2 million (margin 8.6%).

• Cash flow from operations was EUR 18.3 million in Q1 2026.

Outlook and guidance

• Revenue for 2026 is expected to be EUR 570–600 million, down from EUR 652.3 million in 2025, reflecting the expiry of outsourcing agreements and divestments.

• Adjusted EBITA margin guidance is 9–10% for 2026, compared to 10.0% in 2025.

• Focus remains on organic growth and profitability improvement.

• Economic environment and demand trends may impact results more than currently anticipated.