Lamor Corporation Plc | Stock Exchange Release | July 31, 2025 at 09:00:00 EEST
After the second quarter, Lamor's profitability and order intake are above the comparison period, but in terms of revenue, the company fell further back from the comparison period than anticipated. The market demand for environmental protection equipment remained strong. However, increased volatility in the global economic outlook has led to delays in customer decision-making related to service projects. To improve profitability, Lamor is accelerating operational efficiency initiatives according to the strategy. The aim is to achieve annual savings worth EUR 8 million by the end of 2026 compared to the level of 2024.
April-June 2025 in brief
- Revenue was EUR 21.1 million (27.1), a decrease of 22.1%
- EBIT was EUR 1.0 million (1.3) or 4.5% of revenue (4.8%), a decrease of 26,4%
- Adjusted EBIT was EUR 1.0 million (1.4) or 4.9% of revenue (5.2%), a decrease of 25.9%
- Net cash flow from operating activities was EUR +1.4 million (+1.8)
- Earnings per share (basic) was EUR -0.01 (-0.02)
- Orders received was EUR 20.3 million (13.6*), an increase of 49.0%
January-June 2025 in brief
- Revenue was EUR 40.2 million (51.0), a decrease of 21.3%
- EBIT was EUR 2.6 million (1.7) or 6.4% of revenue (3.3%), an increase of 52.3%
- Adjusted EBIT was EUR 2.8 million (1.9) or 6.9% of revenue (3.7%), an increase of 46.9%
- Net cash flow from operating activities was EUR -4.3 million (-11.3)
- Net working capital decreased by 33,9% compared to Q2/2024, amounting to EUR 51.4 million euros at the end of the period (77.8).
- Earnings per share (basic) was EUR -0.01 (-0.03)
- Orders received was EUR 47.9 million (29.7*), an increase of 61.4%
The figures in brackets refer to the comparison period, which is the same period the previous year, unless otherwise stated.
*Order intake and the order backlog for the second quarter of 2024 have been adjusted in the Q4/2024 report to reflect the updated order for the NEOM project.
Johan Grön, CEO
After the second quarter, Lamor is ahead of last year in terms of profitability and order intake, but revenue fell further back from the comparison period than anticipated. The strong momentum in environmental protection orders that began last year has continued into this year. This is supported by Lamor's strong market position, sustained geopolitical risks driving demand, our active sales organisation, and an increasingly efficient agent network. At the same time, global economic uncertainties have delayed customer decision-making regarding larger service projects, which are essential for our growth alongside equipment sales.
Due to these delays, our turnaround is taking longer than we anticipated at the beginning of the year. We now expect the third quarter to fall clearly short of the comparison period in terms of both revenue and profitability. We expect order volumes to grow across all product lines this year. That said, achieving our guidance will require a very strong fourth quarter and a solid order intake, especially in the coming months. The revenue figures of the comparison periods are affected by the NCEC project that ended at the end of last year.
In terms of profitability, I am pleased that despite the low revenue level, we came close to the comparison period in the second quarter, and after the first half of the year, our profitability is ahead of last year. The improvement in results during the rest of the year relies heavily on the fourth quarter. To improve our profitability, we have accelerated the implementation of our efficiency initiatives. We are targeting a significant positive impact on our profitability by the end of 2026, through lower fixed costs and increased operative efficiency.
In line with our strategy, we continue to strengthen our foothold in key markets. In June, we achieved strategically significant wins in several regions: we are launching our first soil remediation project in Europe this summer, and in South America, we are starting a new feasibility study for a technically challenging remediation project. These are important steps as we continue to strengthen our market position. We are also in negotiations for several soil remediation and material recycling projects, especially in South America and the Middle East.
Our new service center opening this autumn in Saudi Arabia will support all our sales, maintenance, and training activities and enable the production of locally manufactured technology for the entire Middle Eastern market. Our installed equipment base has grown significantly in the region, during recent years. We also continue to develop our agent network. A good example of this is the strengthening of our network in Africa, where in June we received our largest-ever order from the continent.
Regarding circular oil production, we continued preparations for the production process at the Kilpilahti concept plant during the second quarter. Most of the installations at the production facility are complete, but commissioning of the process equipment will be delayed, and we will provide a more detailed estimate with our next quarterly results. The market outlook remains unchanged: circular oil production represents a significant opportunity for Lamor.
We are progressing with our strategy decisively. We have just signed a multi-year extension agreement with a South American oil refinery. This customer site service now spans over ten years, which is an excellent example of our role as a long-term partner to our clients. The equipment market is also evolving continuously. Our environmental service technology and maintenance services are increasingly being used in new situations. For example, in June, we received an order in the Middle East related to the protection of large water intake facilities.
Key figures
| EUR thousand (unless otherwise noted) | Q2 2025 | Q2 2024 | Change % | 1-6/2025 | 1-6/2024 | Change % | 1-12/2024 |
| Revenue | 21,133 | 27,142 | -22.1% | 40,159 | 51,028 | -21.3% | 114,396 |
| EBITDA | 1,618 | 3,036 | -46.7% | 3,920 | 5,171 | -24.2% | 11,587 |
| EBITDA margin % | 7.7% | 11.2% | 9.8% | 10.1% | 10.1% | ||
| Adjusted EBITDA | 1,696 | 3,074 | -44.8% | 4,107 | 5,246 | -21.7% | 12,422 |
| Adjusted EBITDA margin % | 8.0% | 11.3% | 10.2% | 10.3% | 10.9% | ||
| Operating profit or loss (EBIT) | 958 | 1,302 | -26.4% | 2,569 | 1,687 | 52.3% | 5,315 |
| Operating profit (EBIT) margin % | 4.5% | 4.8% | 6.4% | 3.3% | 4.6% | ||
| Adjusted operating Profit (EBIT) | 1,036 | 1,399 | -25.9% | 2,761 | 1,880 | 46.9% | 6,385 |
| Adjusted operating Profit (EBIT) margin % | 4.9% | 5.2% | 6.9% | 3.7% | 5.6% | ||
| Profit (loss) for the period | -235 | -233 | -80 | -626 | -1,273 | ||
| Earnings per share, EPS (basic), euros | -0.01 | -0.02 | -0.01 | -0.03 | -0.06 | ||
| Earnings per share, EPS (diluted), euros | -0.01 | -0.02 | -0.01 | -0.03 | -0.06 | ||
| Return on equity (ROE) % | -0.4% | -0.4% | -0.1% | -1.0% | -2.0% | ||
| Return on investment (ROI) % | 0.8% | 1.0% | 2.1% | 1.4% | 4.5% | ||
| Equity ratio % | 36.2% | 36.2% | 36.2% | 36.2% | 37.5% | ||
| Net gearing % | 91.2% | 89.9% | 91.2% | 89.9% | 62.1% | ||
| Net working capital | 51,407 | 77,801 | -33.9% | 51,407 | 77,801 | -33.9% | 54,751 |
| Orders received* | 20,284 | 13,610 | 49.0% | 47,861 | 29,652 | 61.4% | 80,938 |
| Order backlog* | 86,054 | 103,424 | -16.8% | 86,054 | 103,424 | -16.8% | 88,020 |
| Number of employees at the period end | 534 | 584 | -8.6% | 534 | 584 | -8.6% | 643 |
| Number of employees on average | 585 | 608 | -3.8% | 619 | 659 | -6.1% | 636 |
*Order intake and the order backlog for the second quarter of 2024 have been adjusted in the Q4/2024 report to reflect the updated order for the NEOM project.
Guidance for 2025 (unchanged)
- Revenue is expected to increase compared to the previous year (2024: EUR 114.4 million).
- Adjusted operating profit is expected to increase compared to the previous year (2024: EUR 6.4 million).
Assumptions (updated)
The guidance is based on the existing order backlog, known tenders and offers submitted, and the management's view on market demand and customer decision-making timeline. The company is currently negotiating several significant equipment sales and medium-sized service contracts in all its market areas.
Revenue is expected to be clearly below the comparison period during the third quarter of the year and exceed it clearly during the final quarter. Achieving the revenue guidance requires a strong accumulation of new orders in the third quarter. Revenue from the continuing large service project in Kuwait is expected to be at a lower level than the previous year, while the growth of other revenue outside of large service projects is expected to continue. For plastic recycling no revenue is expected during 2025.
The company estimates that improved margins and strategic efficiency initiatives will support profitability growth. Driven by the level of revenue, operating profit is expected to be below the comparison period in the third quarter and exceed it in the fourth quarter.
Long-term financial targets
The company's long-term financial targets (by the end of 2027) are:
- Growth: Increase revenue to EUR 170 million
- Profitability: Adjusted operating profit (EBIT) over 14% of revenue
- Dividend policy: Aim to distribute dividends, considering business development
- Capital structure: Suitable for the company's strategy, targets, and project portfolio by maintaining a strong balance sheet
Events after the reporting period
The company has not had any significant events after the reporting period.
Financial calendar for 2025
In 2025, Lamor will publish financial reports as follows:
- Interim report January-September 2025 on 30 October 2025
Webcast for shareholders, analysts and media
Webcast for shareholders, analysts and media on the results for the financial period January-June 2025 will be arranged on 31 July 2025 at 10:00 a.m. EEST. The webcast includes a Q&A session, and participants can ask questions in English and Finnish via the event chat room. The webcast can be followed at https://lamor.events.inderes.com/q2-2025.
A recording of the webcast will be available later at the company's website at lamor.com/investors/reports-and-presentations.
Porvoo, 31 July 2025
Lamor Corporation Plc
Board of Directors
Further enquiries
Lamor Corporation Plc:
Johan Grön, CEO,
johan.gron@lamor.com
+358 40 546 4186
Nalle Stenman, CFO,
nalle.stenman@lamor.com
+358 40 566 8918
