ETTEPLAN OYJ Half Year Financial Report August 6, 2025, at 1.00 p.m.
ETTEPLAN Q2 2025: Strategy implementation progressing despite the difficult market situation
Key points April-June 2025
- The Group's revenue decreased by 1.3 percent and was EUR 91.4 million (4-6/2024: EUR 92.6 million). At comparable exchange rates, revenue decreased by 1.9 percent.
- Operating profit (EBITA) decreased by 12.1 percent and was EUR 6.0 (6.8) million, or 6.6 (7.4) percent of revenue.
- Operating profit (EBIT) decreased by 17.8 percent and was EUR 4.4 (5.3) million, or 4.8 (5.8) percent of revenue.
- The combined effect of non-recurring items on operating profit (EBITA) and operating profit (EBIT) in April-June was EUR -0.9 (-0.4) million.
- Operating cash flow declined and was EUR 6.9 (9.0) million.
- Basic earnings per share was EUR 0.10 (0.13).
- At the end of June, the share of revenue represented by AI-driven service solutions developed by Etteplan rose to 4 percent.
- Etteplan issued a profit warning on July 28, 2025, and lowered its previous estimate of revenue and operating profit (EBIT) for 2025 due to uncertainty in market demand and weaker-than-expected business development. According to the new estimate, revenue is estimated to be EUR 365-385 (2024: 361.0) million, and operating profit (EBIT) will be EUR 19-24 (2024: 18.4). In connection with the profit warning, Etteplan provided preliminary information on its revenue and operating profit (EBIT) for the second quarter.
Key points January-June 2025
- The Group's revenue decreased by 1.8 percent and was EUR 186.3 million (1-6/2024: EUR 189.7 million). At comparable exchange rates, revenue decreased by 2.3 percent.
- Operating profit (EBITA) decreased by 21.5 percent and was EUR 11.8 (15.0) million, or 6.3 (7.9) percent of revenue.
- Operating profit (EBIT) decreased by 29.0 percent and was EUR 8.5 (12.0) million, or 4.6 (6.3) percent of revenue.
- The combined effect of non-recurring items on operating profit (EBITA) and operating profit (EBIT) in January-June was EUR
- -2.3 (-0.7) million.
- Operating cash flow declined and was EUR 12.0 (17.0) million.
- Basic earnings per share was EUR 0.19 (0.29).
Etteplan also monitors non-IFRS performance measures because they provide additional information on Etteplan's development. More information on performance measures is provided at the end of the release.
Key figures
| EUR 1,000 | 4-6/2025 | 4-6/2024 | 1-6/2025 | 1-6/2024 | 1-12/2024 |
| Revenue | 91,430 | 92,623 | 186,298 | 189,741 | 361,020 |
| Operating profit (EBITA) | 6,002 | 6,826 | 11,781 | 15,012 | 24,373 |
| EBITA, % | 6.6 | 7.4 | 6.3 | 7.9 | 6.8 |
| Operating profit (EBIT) | 4,388 | 5,335 | 8,543 | 12,031 | 18,410 |
| EBIT, % | 4.8 | 5.8 | 4.6 | 6.3 | 5.1 |
| Basic earnings per share, EUR | 0.10 | 0.13 | 0.19 | 0.29 | 0.41 |
| Equity ratio, % | 38.4 | 38.2 | 38.4 | 38.2 | 40.5 |
| Operating cash flow | 6,946 | 8,973 | 11,959 | 17,028 | 30,961 |
| ROCE, % | 8.3 | 10.8 | 8.2 | 12.0 | 9.4 |
| Personnel at end of the period | 3,870 | 3,900 | 3,870 | 3,900 | 3,803 |
President and CEO Juha Näkki:
The second quarter of the year was short and still a difficult period for us. The escalation of the trade war further slowed down our customers' decision-making on new investments, and even some projects that had already been agreed upon were postponed or canceled. Only the demand from the defense industry and the energy industry remained at the previous level. As a result, the demand situation weakened further, contrary to our expectations, and we had to issue a profit warning and adjust our financial guidance downwards.
We again implemented new adaptation measures during the review period, which caused significant non-recurring costs and weakened our profitability. We have now adapted our organizational structure to a level that enables us to operate even in the prevailing uncertain and unpredictable market environment. We will continue to look after our operational efficiency, but we expect non-recurring costs to drop to a clearly lower level in the second half of the year.
We continued to invest in the development of our service offering and the implementation of our strategy. New service solutions improve our competitiveness and deliver significant benefits to our customers. Investments in artificial intelligence delivered results in particular, and we succeeded in doubling the share of revenue derived from AI-driven service solutions to four percent. We saw positive development in the Technical Communication and Data Solutions service area in particular. The result is encouraging and creates a foundation for growth and improving profitability in the future.
We enter the second half of the year in a highly uncertain situation. The emerging trade agreement between the EU and the United States may improve the situation, but its impact on the current year is very difficult to assess at this point. Nevertheless, we will continue the implementation of our strategy with determination, and we expect our business to develop positively as the implementation of the strategy progresses.
Market outlook 2025
The most important factor affecting Etteplan's business is the global development of the machinery and metal industry. Due to geopolitical tensions and the trade war, market uncertainty increased further. The increased uncertainty has further slowed down customers' investment decisions, and even projects that have already started are being suspended, postponed or even canceled. This weakens our demand situation and makes it very challenging to predict the market situation. Investments in the defense industry continue to increase, and investments in the energy industry are at a moderate level. In our other customer industries, investments are at a low level and the demand situation is difficult at present.
Financial guidance 2025
Etteplan issued a profit warning on July 28, 2025, and lowered its previous estimate of revenue and operating profit (EBIT) for 2025.
Current financial guidance for 2025:
Etteplan issues guidance for revenue and operating profit (EBIT) as a numerical range and issues the following estimate:
Revenue in 2025 is estimated to be EUR 365-385 (2024: EUR 361.0) million, and
operating profit (EBIT) in 2025 is estimated to be EUR 19-24 (2024: 18.4) million.
Previous financial guidance for 2025 (May 5, 2025):
Etteplan specifies its financial guidance for revenue and operating profit (EBIT) within the previously communicated range and issues the following estimate:
Revenue in 2025 is estimated to be EUR 365-395 (2024: 361.0) million, and
operating profit (EBIT) in 2025 is estimated to be EUR 23-28 (2024: 18.4).
Disclosure procedure
This stock exchange release is a summary of Etteplan's January-June 2025 Half Year Financial Report. The complete Half Year Financial Report is attached to this stock exchange release in pdf format and is also available on Etteplan's website at www.etteplan.com.
Conference call and live webcast today, August 6, 2025
Etteplan's President and CEO Juha Näkki will present the Company's results for January-June 2025 in a conference call and a live webcast, held in English language, on August 6, 2025 starting at 2.30 p.m. (EEST).
Questions can be asked in Finnish and in English after the President and CEO's presentation only through conference call connection. Participants must register through this link https://palvelu.flik.fi/teleconference/?id=50051397 to ask questions through the conference call lines. After registering the participants will receive a teleconference number and a code to join the call. The participants are asked to press *5 to join the queue for questions.
Juha Näkki's presentation can be followed as a live webcast on https://etteplan.events.inderes.com/q2-2025. The webcast starts at 2.30 p.m. (EEST). A recording of the webcast will be later available at www.etteplan.com.
Espoo, August 6, 2025
Etteplan Oyj
Board of Directors
Additional information:
Juha Näkki, President and CEO, tel. +358 10 307 2077
Outi Torniainen, SVP, Marketing and Communications, tel. +358 10 307 3302
The information presented herein has not been audited.
Releases and other corporate information are available on Etteplan's website at www.etteplan.com.
DISTRIBUTION:
Nasdaq Helsinki
Major media
www.etteplan.com
Etteplan in brief
Etteplan is a growing technology service company with the purpose of bringing people and technology together to change things for the better. Together with our customers, we are building a world where every system, process, and product can be made smarter, more efficient, and more sustainable. Our customers include world's leading companies in the manufacturing industry. In 2024, we had a revenue of EUR 361.0 million and around 4,000 professionals in Finland, Sweden, the Netherlands, Germany, Poland, Denmark and China. Etteplan's shares are listed on Nasdaq Helsinki Ltd under the ETTE ticker. www.etteplan.com
