Pihlajalinna (PIHLIS) Q2 2025 earnings summary

Executive summary

• Profitability improved in H1 2025, with adjusted EBITA up 24% to €32.6M and margin rising to 9.2%; EPS more than doubled year-over-year.

• Private Healthcare Services revenue grew 6.1% in H1 and 4.2% in Q2, now representing 66% of total revenue.

• Insurance company sales increased 7.7% in Q2 and 9.1% for H1; Public Services revenue fell 14.2% due to contract changes and divestments.

• Financial position strengthened, with net debt/adjusted EBITDA improving to 2.5x.

• Sale of special housing service units completed, generating a €5.8M gain.

Financial highlights

• H1 2025 revenue was €352.7M, down 1.5% year-over-year; Q2 revenue was €171.3M, down 2%.

• Adjusted EBITA rose to €32.6M (+24% year-over-year), with margin up to 9.2% from 7.3%.

• EPS increased to €0.83 from €0.49 year-over-year.

• Net cash flow from operations was €51.0M, down from €58.7M year-over-year.

• Net debt/adjusted EBITDA improved to 2.5x from 3.6x year-over-year.

Outlook and guidance

• 2025 revenue expected to fall slightly below 2024 due to contract expirations and divestments.

• Adjusted EBITA forecast to increase to at least €65M (from €55.2M in 2024).

• Medium-term targets: revenue ≥ €700M, adjusted EBITA margin 12%, net debt/EBITDA <2.5x.

• Demand expected to remain stable, but slow economic growth may impact results.

• Dividend policy: at least 1/3 of annual EPS, subject to financial position and needs.