Terveystalo (TTALO) investor relations material

Executive summary

• Q1 2026 revenue declined 11.2% year-over-year to EUR 308.2 million amid exceptionally weak demand across all segments and customer groups.

• Adjusted EBIT fell 30% to EUR 34 million, with EPS down 49% to EUR 0.14, reflecting the challenging market.

• Operational efficiency and cost control maintained profitability at a relatively strong level, with an adjusted EBIT margin of 10.9%.

• Management expects the market and company performance to have bottomed out, with gradual improvement anticipated from H2 2026.

• Strategic focus remains on growth, digital transformation, and efficiency improvements across all business segments.

Financial highlights

• Revenue for Q1 2026 was EUR 308.2 million, down 11.2% year-over-year; adjusted EBIT was EUR 34 million, reported EBIT EUR 26.6 million after EUR 7 million in adjustment items.

• EBITDA for Q1 was the third-best ever in absolute terms, though relative profitability declined year-over-year.

• Net income dropped 48.6% to EUR 17.2 million; EPS was EUR 0.14.

• Net debt/EBITDA increased to 2.4x, driven by weak cash flow and reduced profitability.

• Cash flow from operating activities was EUR -2.5 million, compared to EUR 27.3 million last year.

Outlook and guidance

• Full-year 2026 adjusted EBIT guidance reiterated at EUR 135–165 million, with scenarios pointing below the midpoint.

• Profitability in H1 2026 expected to be below H1 2025; gradual improvement anticipated in H2 as demand recovers.

• Portfolio Businesses segment revenue projected to decrease by EUR 20 million due to expiring contracts.

• Medium-term targets: EPS growth of 10% p.a., net debt/EBITDA ≤2.5x, and at least 80% of net result distributed as dividends.

• Q2 2026 will remain weak, with sequential improvement expected from Q3 and more visible impacts in Q4.