Pihlajalinna (PIHLIS) Q4 2025 earnings summary

Executive summary

• Full-year revenue for 2025 was €652.3 million, down 7.4% year-over-year, mainly due to expiring outsourcing agreements and divestments in Public Services.

• Adjusted EBITA reached a record €65.3 million, up 18.3% year-over-year, with a Q4 margin of 12.1%.

• EPS rose to €1.58 from €1.13, supported by sales gains from divestments and tax asset recognition.

• The Board proposes a dividend of €0.53 per share for 2025, a 39% increase from the prior year.

• The healthcare services market remained challenging, with cost control a priority and gradual public market opening.

Financial highlights

• Q4 revenue was €150.9 million, down 17.3% year-over-year; full-year revenue fell 7.4%.

• Adjusted EBITA for Q4 was €18.2 million, up 18.6% year-over-year; full-year adjusted EBITA was €65.3 million, up 18.3%.

• Net cash flow from operating activities was €75.6 million, down from €100.8 million.

• Net debt/adjusted EBITDA improved to 2.5x from 2.9x; equity ratio increased to 32.2%.

• Gross investments totaled €46.6 million, up from €31.3 million.

Outlook and guidance

• 2026 revenue is expected at €570–600 million, reflecting contract expirations and divestments.

• Adjusted EBITA margin forecast at 9–10% of revenue.

• Focus will be on organic growth and further profitability improvement.

• Medium-term targets: revenue ≥ €700 million, adjusted EBITA margin 12%, net debt/EBITDA <2.5x, NPS >80.

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