Taaleri (TAALA) Q1 2025 earnings summary

Executive summary

• Revenue and profit declined sharply year-over-year, mainly due to lower investment income and market volatility, while private asset management, especially renewable energy, showed improved continuing earnings and profitability.

• Segment reporting was updated to improve transparency, now including an investment segment and revised business structure.

• Strategic partnership formed in real estate with Keva for build-to-rent investments; bioindustry projects advanced with Joensuu Biocoal and Fintoil biorefinery ramping up.

• Garantia's market share in mortgage guarantees increased, but insurance and investment results declined due to weak housing market and lower equity values.

• CEO transition occurred in Q1 2025, with a new CFO to start by May 2025.

Financial highlights

• Revenue dropped 49.5% year-over-year to EUR 8.6 million (Q1 2024: EUR 17.0 million).

• Operating profit fell to EUR 0.5 million (Q1 2024: EUR 9.6 million), margin 5.3%.

• Earnings per share declined to EUR 0.02 (Q1 2024: EUR 0.26).

• Assets under management in Private Asset Management stable at EUR 2.7 billion.

• Group assets total EUR 291 million; cash and cash equivalents at EUR 27.5 million.

Outlook and guidance

• Private Asset Management's 2025 profit depends on SolarWind III Fund's final size and wind fund exits.

• Other private asset management expected to remain loss-making but improve over 2024.

• Investment segment results will fluctuate with fair value changes and exit timing.

• Garantia's earnings expected slightly below prior year due to weak housing market; investment income to decrease from strong 2024.

• Group cost level expected to remain stable.