Taaleri (TAALA) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue rose 8.3% year-over-year to EUR 12.9 million, with operating profit at EUR 4.5 million and a margin of 34.8%, driven by Private Asset Management and SolarWind III Fund growth.

• SolarWind III Fund fundraising exceeded EUR 503 million, becoming Finland's largest infrastructure fund, with 56% from international investors.

• Bioindustry projects advanced, with Joensuu Biocoal plant shipping first test batches and Fintoil's biorefinery nearing full capacity.

• Strategic hires and partnerships included a new CFO, new heads for bioindustry and institutional sales, and Eden Living's first investment with Keva.

• H1 2025 revenue fell 25.7% to EUR 21.5 million, with operating profit down 64.6% to EUR 4.9 million, mainly due to lower net investment income.

Financial highlights

• Continuing earnings in private asset management grew 34.5% year-over-year, mainly from retroactive management fees.

• Garantia's investment result was +EUR 2.8 million in Q2, reversing a negative Q1, but insurance service result declined to EUR 2.4 million due to higher expenses.

• Q2 profit for the period was EUR 2.1 million (down 38.6% year-over-year); H1 profit was EUR 2.9 million (down 73.9%).

• Exchange rate fluctuations negatively impacted Q2 by EUR 1.2 million; investments segment Q2 revenue was EUR -1.2 million.

• Dividend for 2024: EUR 0.50 per share, paid in two instalments; total EUR 14.1 million resolved.

Outlook and guidance

• Exits from Taaleri Wind II and III Funds likely after 2025 due to slow transaction markets and electricity price forecasts.

• Renewable energy earnings growth for 2025 depends on final SolarWind III Fund size, fundraising, performance fees, 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 include at least 15% growth in continuing earnings and performance fees, ROE of at least 15%, and dividend payout of at least 50% of profit.

• Positive profitability expected in other private asset management, though still negative but improving.