Terveystalo (TTALO) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 0.9% year-over-year to EUR 347 million, but adjusted EBIT rose 19.2% to EUR 47.8 million and EPS increased 41.4% to EUR 0.26, driven by improved profitability and operational efficiency across all segments.

• Healthcare Services grew 4.7%, maintaining strong customer satisfaction (NPS for appointments at 88) and driving overall group performance, while Portfolio Businesses and Sweden segments benefited from efficiency measures.

• Strategic KPIs such as NPS, customer satisfaction, people engagement, and medical quality reached all-time highs, supporting a positive outlook.

• Operating cash flow for Q1 was EUR 27.3 million, down 44.5% year-over-year due to seasonal working capital and tax prepayments.

Financial highlights

• Adjusted EBIT margin increased by 2.3 percentage points year-over-year to 13.8%, with EBITA up 14% and all business segments improving relative profitability.

• Earnings per share rose 41.4% to EUR 0.26, and return on equity (LTM) improved to 14.4%.

• Net debt stood at EUR 497.3 million, with net debt to EBITDA at 2.2, and gearing at 85.1%.

• Organic group growth was 2.6%.

• Cash and cash equivalents at period end were EUR 67.7 million.

Outlook and guidance

• Full-year 2025 guidance is unchanged: revenue is expected to grow, and adjusted EBIT margin is projected at 10.7–11.8% (vs. 10.5% last year).

• Management sees scenarios above the midpoint of guidance as more likely, with stable demand, employment, and morbidity rates assumed.

• Portfolio Businesses segment revenue will decrease by about EUR 25 million due to expiring outsourcing contracts, mainly in the first half.

• EPS is targeted to grow on average by 10% p.a., with at least 80% of net result to be distributed as dividends.

• Net debt/EBITDA is targeted not to exceed 2.5x.