Taaleri (TAALA) Q1 2025 earnings summary

Executive summary

• Group revenue and profit declined sharply year-over-year, mainly due to lower investment income and market volatility, while Private Asset Management earnings and profitability improved, especially in renewable energy.

• Segment reporting was updated for improved transparency, now reflecting private asset management, investment, and Garantia segments.

• Strategic partnership formed in real estate with Keva for build-to-rent investments, though no capital deployed yet.

• Bioindustry projects advanced, with Joensuu Biocoal producing first torrefied biomass and Fintoil biorefinery increasing output.

• Garantia's market share in mortgage guarantees increased, but insurance and investment results declined.

Financial highlights

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

• Operating profit fell 95.2% 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).

• Liquidity remains strong at EUR 27.5 million; first dividend installment of EUR 0.25 paid in April.

• Equity ratio at 74.0% (Q1 2024: 69.1%).

Outlook and guidance

• Private Asset Management's 2025 profit depends on SolarWind III Fund size and exit timing for Wind II/III; other private asset management expected to remain loss-making but improve.

• Investment segment profit will remain volatile, driven by fair value changes and exit timing.

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

• Group cost level expected to remain stable.

• Long-term targets: at least 15% growth in continuing earnings and performance fees, ROE at least 15%, dividend payout at least 50% of profit.