Wetteri Plc Interim report on 19 May 2025 at 10:00 a.m. EET
Summary of the review period 1 January to 31 March 2025
The key figures and information for the financial years 2025 and 2024 presented in the summary include only the Group's continuing operations.
- The Group's revenue was EUR 115.5 million (EUR 126.8 million), with a decrease of 9%
- Adjusted EBITDA was EUR 2.3 million (EUR 4.0 million)
- Adjusted operating profit was EUR -1.4 million (EUR 0.8 million)
- Operating profit was EUR -2.1 million (EUR -0.6 million)
- Profit for the period was EUR 10.9 million due to the divestment of Wetteri Power Oy in January 2025
- The Passenger Cars operating segment's revenue decreased by EUR 14.3 million (-15%) compared to the corresponding period last year, the invoicing of used cars decreased by 13%
- The Heavy Equipment segment's revenue increased by EUR 4.5 million (235%) compared to the corresponding period last year
- The Service segment's revenue decreased by EUR 1.4 million (-5%) compared to the corresponding period last year
Key performance indicators
| EUR thousand | 1 Jan to 31 Mar 20251 | 1 Jan to 31 Mar 20241 | Change | 1 Jan to 31 Dec 20241 |
| Revenue | 115,509 | 146,887 | -21% | 514,519 |
| EBITDA | 2,018 | 5,438 | -63% | 17,638 |
| EBITDA, % of revenue | 2% | 4% | 3% | |
| Adjusted EBITDA2 | 2,268 | 6,247 | -64% | 20,663 |
| Adjusted EBITDA, % of revenue | 2% | 4% | 4% | |
| Operating profit (loss) (EBIT) | -2,141 | 1,190 | -280% | -188 |
| Operating profit (loss), % of revenue | -2% | 1% | 0% | |
| Adjusted operating profit2 | -1,377 | 2,607 | -153% | 5,088 |
| Adjusted operating profit, % of revenue | -1% | 2% | 1% | |
| Profit (loss) before tax | -4,293 | -1,453 | - | -12,063 |
| Profit (loss) before tax, % of revenue | -4% | -1% | -2% | |
| Profit (loss) for the period | 10,879 | -1,281 | - | -7,139 |
| Profit (loss) for the period, % of revenue | 9% | -1% | -1% | |
| Earnings per share from continuing operations, basic (EUR) | -0.02 | -0.02 | -0.10 | |
| Earnings per share from continuing operations, diluted (EUR) | -0.02 | -0.02 | -0.10 | |
| Earnings per share, basic (EUR) | 0.07 | -0.01 | -0.05 | |
| Earnings per share, diluted (EUR) | 0.07 | -0.01 | -0.05 | |
| Return on equity (ROE), % | -36% | -14% | -30% | |
| Return on investment (ROI), % | -17% | -9% | -15% | |
| Equity ratio, % | 22% | 16% | 15% | |
| Liquidity, % | 86% | 87% | 74% | |
| Average number of personnel during the financial year | 779 | 1,053 | 1,016 | |
| Invoiced sales of new passenger cars (pcs) | 1,029 | 1,070 | 3,472 | |
| Invoiced sales of used passenger cars (pcs) | 2,117 | 2,443 | 9,082 | |
| Invoiced sales of used commercial trucks (pcs) | 103 | 52 | 406 | |
| Orders: new passenger cars (pcs) | 1,069 | 1,002 | 3,647 | |
| Passenger cars: order backlog at the end of the period | 38,543 | 47,249 | 36,606 | |
| Passenger car repair shop: hours sold | 87,333 | 89,050 | 349,404 |
1The financial performance figures for the 2025 and 2024 financial years include both the Group's continuing and discontinued operations unless the name of the key figure indicates otherwise. The training business operations sold in the first half of 2024 and the subsidiary Wetteri Power Oy, sold at the beginning of 2025, are presented as discontinued operations in the interim report. Correspondingly, the income statement items of the discontinued operations are presented in the consolidated income statement for the financial year as part of the profit (loss) of the Group's discontinued operations, separately from the income statement items of the Group's continuing operations.
2The adjusted EBITDA and operating profit do not take items affecting the comparability of the Group's EBITDA and operating profit into account, such as significant non-recurring items of income and expenses, and amortisation of the fair value of assets recognised on the balance sheet by means of acquisition calculations. The purpose of the adjusted EBITDA and operating profit is to improve the comparability of the Group's EBITDA and operating profit between periods. The reconciliation of the adjusted EBITDA and operating profit is presented on page 16 of the interim report.
Aarne Simula, CEO:
"The start of the first quarter was subdued in the car trade. In January-March, the number of registrations of new passenger cars was 9.5% lower than in the corresponding period in the previous year. The Group's revenue in the first quarter was EUR 115.5 million, and its adjusted EBITDA was EUR 2.3 million. The adjusted operating profit turned into a loss and was EUR -1.4 million. Profit for the review period increased significantly and was EUR 10.9 million due to the divestment completed in January 2025. However, in light of our order figures, we recognise cautious signs of a pick-up in the car trade, with orders for passenger cars in the first quarter increasing cumulatively by 23% compared with the previous year.
The challenging early part of the year for car sales was reflected in both new car sales and used car sales. The Passenger Cars segment's revenue decreased by 15 percent compared to the corresponding period last year and was EUR 84.2 million and the adjusted operating profit was EUR -2.4 million. The number of invoices invoiced for used cars decreased by 13.3 per cent to 2,177. In addition, the profitability of the Passenger Cars segment was weakened by the reorganisation measures of the stock of used cars burdening profitability. The subdued development of the car trade was also reflected in the maintenance and repair operations. The net sales of Maintenance Services were EUR 24.1 million and the adjusted operating profit was EUR 1.1 million. The turnover of Heavy Equipment was EUR 6.4 million.
We continued to expand our brand representation to new locations in line with our strategy. Polestar's sales and maintenance operations expanded to Kuopio, and sales started in line with our expectations. Through a business acquisition, our Kia and Mitsubishi representation expanded to Lahti. The transaction also strengthened our negotiation position in terms of other brands. In March, we announced the launch of Mazda sales and maintenance services in Lahti. We will continue to expand our brand representation to new locations. Our strategic target is to achieve at least 15% of the national market potential for each brand we represent.
As part of our performance improvement programme, we continued to take measures to improve our profitability. We restructured our used car stock, reviewed our pricing, and reorganised our operations by assigning personnel where the need was most critical. We improved the utilisation rate of equipment by switching to two-shift work in some of our locations. We will further strengthen our maintenance and repair shop operations by recruiting new mechanics, for example, and will continue to implement efficiency measures throughout the year.
As a result of a slower decrease in the number of older cars, the average age of the passenger car fleet increased to 13.6 years in 2024. This inevitably creates pressure on the car trade to pick up. More affordable electric car models will be introduced, meaning that the average price of new cars will decrease, and this will lower the threshold for consumer customers to buy a new car. At the same time, however, there are major uncertainties in the market. Tariffs imposed by the US administration will put the European automotive industry to the test and may activate the imposition of counter tariffs. Double duties would weaken the competitiveness of the European automotive industry.
In 2025, we will continue our efforts to realise the synergy benefits of acquisitions and improve profitability. We are focusing on growing the passenger car operations as well as development of used car sales. We will also continue to develop the heavy equipment business. After the review period, we announced that we would withdraw from the earthmoving machinery market. Going forward, we will focus on the used commercial truck trade and on maintenance and superstructures. We will support the growth of the repair shop business by investing in both equipment and personnel. We will also consider new business and corporate arrangements that support our growth strategy."
Estimate of future developments in the industry and the company
In the first half of the year, used car sales have been clearly weaker than expected, and new car registrations have fallen short of the level estimated by the automotive industry forecast group. Predictability for the sale of new cars has become more difficult, especially due to the uncertainties brought about by the planned car tariffs.
Based on the growth prospects of the automotive sector, growth of about 10 per cent was still forecast for 2025 at the end of 2024. However, during January-April 2025, the number of new passenger car registrations was 6.7 per cent lower than in the corresponding period of the previous year.
The company has started the process of updating its strategy and will reassess the provision of guidance once the strategy work has been completed. At the same time, Wetteri has started a profitability program with the aim of improving profitability by EUR 8 million annually. The effects of the programme are expected to be fully realised during 2026.
The company's result for the financial year 2025 is expected to be clearly better than in the previous year due to the positive effects of the Wetteri Power divestment.
Disclosure of financial information in 2025
- 28 August 2025: Interim report for January-June 2025
- 20 November 2025: Interim report for January-September 2025
Webcast on 19 May 2025 at 1 pm
Wetteri will host a webcast for investors, analysts and media on May 19, 2025 at 1:00 p.m. EET. In the webcast, Wetteri Plc's CEO Aarne Simula presents the company's first-quarter earnings development and the market outlook for the automotive industry. The webcast can be followed at https://wetteri.events.inderes.com/q1-2025
Oulu 19 May 2025
Wetteri Plc
Board of Directors
Further information:
Aarne Simula, CEO, Wetteri Plc
Tel. +358 400 689 613, aarne.simula@wetteri.fi
Pietu Parikka, CFO, COO, Wetteri Plc
Tel. +358 50 344 2886, pietu.parikka@wetteri.fi
Wetteri Plc - an entrepreneur-driven growth company in the automotive industry
Wetteri Plc is an entrepreneur-driven growth company in the automotive industry. In addition to the retail trade of passenger, commercial and heavy-duty vehicles, the company provides maintenance and damage repair services ranging from passenger cars to heavy-duty vehicles. The company has 35 offices in Finland, and its head office is located in Oulu. The company employs approximately 800 people, of whom approximately 76% work in maintenance and damage repair services. Wetteri is a promoter of the digitalisation of the automotive industry and an important player in the joint journey towards emission-free driving. More information: www.sijoittajat.wetteri.fi.
