Terveystalo (TTALO) investor relations material

Executive summary

• Q3 2025 revenue declined 5.2% year-over-year to €280.4 million, but adjusted EBIT margin improved to 9.5% and EPS rose 9.7% to €0.13, supported by operational efficiency and a completed profitability program.

• Sweden operations are in turnaround, showing improved efficiency and results, though not yet profitable; focus remains on profitability before growth.

• Portfolio Businesses completed profitability turnarounds, with growth targeted in dental and public market segments.

• Healthcare Services segment maintains high margins, with focus shifting to volume growth via selective M&A and digital investments.

• Consumer-driven businesses and insurance segments are performing well, with brand preference at an all-time high.

Financial highlights

• Adjusted EBIT was €26.8 million, down 1.0% year-over-year, while operating cash flow increased 32.0% to €54.5 million.

• Net debt to EBITDA improved to 2.1, with net debt at €500.5 million and strong cash flow supporting investments.

• Portfolio Businesses revenue fell 17.5% year-over-year, but adjusted EBIT margin rose to 7.4%.

• Sweden's EBIT improved but remains negative due to seasonality; efficiency and occupancy rates are rising.

• Return on equity (LTM) reached 16.4%, up from -2.2% a year earlier.

Outlook and guidance

• Full-year 2025 adjusted EBIT is expected at €155–165 million (2024: €140.5 million), with profitability strengthening across all segments.

• Guidance is based on current demand, employment, and morbidity rates, and excludes significant acquisitions or divestments.

• Q4 baseline adjusted for absence of prior year one-off personnel expenses and accelerated amortizations.

• Market conditions in Sweden and public sector expected to improve over the next 12 months, with positive sales pipeline.

• EPS is targeted to grow by 10% annually in the medium term, with at least 80% of net result distributed as dividends.