Terveystalo (TTALO) Q2 2025 earnings summary

Executive summary

• Q2 2025 adjusted EBIT reached a record €36.7 million (up 5.1% y/y), with margin at 11.4%, and EPS up 55.1% to €0.18, despite revenue declining 5.5% to €321.5–322 million.

• Profitability improved across all segments, driven by operational efficiency, with Healthcare Services showing robust margins and Sweden benefiting from turnaround efforts.

• Revenue softness was mainly due to lower Occupational Health volumes, fewer working days, and planned reductions in outsourcing contracts.

• Strategic focus remains on digitalization, customer-centric solutions, organic and disciplined inorganic growth, and new growth opportunities such as the Kela 65/freedom-of-choice pilot.

• Strong financial position supports ongoing efficiency programs and deleveraging.

Financial highlights

• Q2 2025 adjusted EBIT: €36.7 million (+5.1% y/y), margin 11.4% (up 1.1pp y/y); EPS: €0.18 (+55.1% y/y).

• Revenue declined 5.5% y/y in Q2 to €321.5–322 million; H1 revenue down 3.2% to €668.5 million.

• Healthcare Services Q2 revenue: €257.4 million (down 1.6% y/y), margin 13.9%; Portfolio Businesses Q2 revenue: €49.0 million (down 21.8% y/y), margin 7.7%; Sweden Q2 revenue: €20.5 million (down 7.3% y/y), margin -2.7%.

• Operating cash flow in Q2: €40.5 million (down 8.8% y/y); net debt/EBITDA at 2.2.

• Adjusted EBITDA margin: 18.9% in Q2 (up from 17.8%); return on equity (LTM): 16.3%.

Outlook and guidance

• Full-year 2025 adjusted EBIT expected at €155–165 million (2024: €140.5 million), with margin guidance of 10.7–11.8%.

• Revenue for 2025 expected to grow, with brighter H2 outlook supported by Kela 65/freedom-of-choice pilot, public sector demand, and insurance growth.

• Guidance assumes stable demand, employment, and typical morbidity; excludes major M&A.

• Portfolio Businesses revenue to decrease by €30 million due to expiring outsourcing contracts.

• Medium-term targets: EPS growth of 10% p.a., net debt/EBITDA ≤2.5x, dividend payout ≥80% of net result.