Luotea (LUOTEA) investor relations material

Executive summary

• Group net sales declined by 1% year-over-year, with Finland down 7.8% due to contract terminations and price competition, while Sweden grew 11.5% on stronger additional sales.

• Completed partial demerger at year-end, separating the Circular Economy Business as discontinued operations and continuing with Facility Services as Luotea Plc.

• Adjusted EBITDA/EBITA for Finland and Sweden combined reached EUR 9.9 million, up EUR 6.3 million from last year, reflecting successful efficiency measures and improved profitability.

• Employee and customer satisfaction improved, with staff turnover at historic lows and accident frequency reduced.

• Major new contracts signed with Scandic Hotels in Finland and Jernhusen in Sweden, supporting strategic growth and digital service expansion.

Financial highlights

• Group IFRS reported EBITDA was -EUR 0.3 million for Q4, down from EUR 1.4 million in the prior year, mainly due to IFRS 5-related cost allocations.

• Full-year Adjusted EBITDA/EBITA reported at EUR 7 million, up from EUR 1.2 million; segment-level Adjusted EBITDA was EUR 9.9 million.

• Net debt at year-end was EUR 4.1 million, with a net debt/Adjusted EBITDA ratio of 0.2.

• Cash position at year-end was EUR 15.7 million, with a fully unutilized EUR 10 million revolving credit facility.

• Board proposes a dividend of EUR 0.07 per share, reflecting the unusual IFRS result and balance sheet considerations.

Outlook and guidance

• Adjusted EBITDA/EBITA for 2026 is expected to be better or materially better than EUR 7 million in 2025.

• Group costs are forecasted to be lower in 2026, with finance net and items affecting comparability also expected to decrease.

• Medium-term targets include EUR 400 million in revenue and a 5% EBITA margin.

• Sales in Sweden expected to remain stable, while Finland is projected to see sales growth.

• Focus remains on margin improvement, cost control, and leveraging digital and AI-driven services for efficiency.