Pihlajalinna (PIHLIS) Q3 2025 earnings summary

Executive summary

• Profitability improved in Q3 2025, with adjusted EBITA margin rising to 9.7% and EPS increasing to €0.51 from €0.26 year-over-year, aided by one-time gains and efficiency measures.

• Revenue declined 9.3% year-over-year to €148.7 million due to weaker demand, contract changes, and divestments, especially in Public Services.

• Strategic focus shifted towards Private Healthcare Services, now accounting for 68% of total revenue.

• Major new outsourcing contract secured for Northern Pirkanmaa, valued at least €222 million over five years.

• Group-wide operational reform initiated, targeting up to 90 administrative role reductions and changes to 120 positions.

Financial highlights

• Q3 2025 revenue: €148.7 million (down 9.3% year-over-year); 9M revenue: €501.4 million (down 3.9%).

• Q3 adjusted EBITA: €14.4 million (9.7% margin); 9M adjusted EBITA: €47.1 million (9.4% margin).

• Q3 EPS: €0.51 (up from €0.26); 9M EPS: €1.35 (up from €0.75), boosted by divestment gains and tax asset recognition.

• Net debt/adjusted EBITDA: 2.6x, improved from 3.4x.

• Net cash flow from operating activities: €7.3 million in Q3, €58.2 million for 9M.

Outlook and guidance

• 2025 revenue expected to be approximately €650 million (down from €704.4 million in 2024).

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

• Focus on organic growth in Private Healthcare Services and continued profitability improvement.