GLASTON CORPORATION HALF-YEAR FINANCIAL REPORT 2025 8.8.2025 at 8:30 EEST
This release is a summary of Glaston Corporation's Half-Year January-June 2025 financial report. The complete report is attached to this release as a pdf-file. The release is also available on the company's website at the address www.glaston.net.
APRIL-JUNE 2025 IN BRIEF
- Orders received totaled EUR 38.1 (50.2) million
- Net sales totaled EUR 51.7 (49.9) million
- Comparable EBITA was EUR 3.1 (3.3) million, i.e. 6.1 (6.6)% of net sales
- The operating result (EBIT) was EUR -0.5 (1.0) million
- Comparable earnings per share were EUR 0.019 (0.042)
JANUARY-JUNE 2025 IN BRIEF
- Orders received totaled EUR 85.2 (96.8) million
- Net sales totaled EUR 103.3 (105.7) million
- Comparable EBITA was EUR 6.3 (6.9) million, i.e. 6.1 (6.5)% of net sales
- The operating result (EBIT) was EUR 0.5 (3.0) million
- Comparable earnings per share were EUR 0.049 (0.079)
GLASTON'S OUTLOOK FOR 2025
On July 22, 2025, Glaston announced a profit warning and lowered its net sales and comparable EBITA outlook for the full year 2025. The outlook remains unchanged since the announcement.
During the first half of the year, the softness of the Architectural market increased. The prevailing uncertainty in the market environment and the US tariff situation have increasingly affected customers' investment decisions.
Glaston expects market activity to remain slow throughout the year. To mitigate the effects of weakening demand, Glaston will, in addition to the already ongoing cost-control measures, start actions to improve the company's organizational efficiency and reduce costs to ensure profitable performance.
Glaston Corporation estimates that its net sales and comparable EBITA will decrease from the level of the previous year. Glaston expects net sales to be EUR 206-215 million and comparable EBITA to amount to EUR 13.1-15.1 million. In 2024, Group net sales totaled EUR 217.9 million and comparable EBITA was EUR 15.3 million.
CEO MIIKA ÄPPELQVIST:
"In the second quarter, the demand environment weakened, and order intake clearly fell short of our targets. The global economic outlook remained uncertain and our customers became more cautious with their investment plans.
In addition to the hesitation to invest that has been evident in EMEA and APAC since the beginning of the year, the uncertainty over trade policies and the lack of clarity regarding US tariffs had a bigger impact on our US customers' decision-making in Q2 than what was anticipated at the beginning of the year. Glaston's second-quarter order intake was down 24% year-on-year mainly due to the low order intake for Tempering and Laminating Technologies. Order intake for Insulating Glass Technologies increased but was at a rather low level. Services' order intake fell slightly.
Second-quarter net sales were up 4% to EUR 51.7 million with both machines and services businesses contributing to the outcome. Comparable EBITA was almost at the same level as in the comparison period and was EUR 3.1 million. We will take further actions to mitigate the effect of weakening demand. In the short term, our goal is to continually improve relative profitability.
Due to the significantly lower demand in the second quarter and the Architectural glass equipment market showing no signs of significant recovery, we lowered our net sales and comparable EBITA outlook for the full year 2025 on July 22. To mitigate the impact of prolonged low market activity, we announced today actions to improve our organizational efficiency and reduce costs to ensure profitable performance.
We have initiated planning concerning measures to adapt our operating model and ways of working to the lower than expected demand. The plan covers all business and global functions and concern both temporary lay-offs and termination of employment contracts, and could lead to the termination of up to 40 employment contracts. We estimate that these measures, in combination with the already ongoing profitability-improving actions, would result in annual cost savings reaching approximately EUR 6 million. The savings would be realized throughout 2026.
I have had the pleasure of working in the glass processing industry for the past 15 years and I am honored to continue my journey in this industry as the new CEO of Glaston. The investment environment in our main markets, Architecture and Mobility, is not at its best; however, I see this as an opportunity to develop the company to be more resilient and to build future growth. I am happy that we have a strong and dedicated leadership team in place as we set off to take the next steps on our common journey. We have already started a strategy update process in order to ensure that the planned actions lead us to the strategic targets we have set for the medium-term, both in terms of growth and profitability.
Our number one priority for the rest of the year is to secure the order intake. We have the potential to grow the service business even if the investment cycle is not at its top. At the same time, we will adjust our fixed costs to meet the current business environment. Despite the challenges we currently face, I have full confidence in the company and its future. Glaston has a long tradition as a technology frontrunner and we will continue to build on this legacy. We will continue to work together with our customers. I strongly believe that collaborative innovation and a customer-first culture are key to shared success."
GLASTON GROUP'S KEY FIGURES
| MEUR | 4-6/ 2025 | 4-6/ 2024 | Change% | 1-6/ 2025 | 1-6/ 2024 | Change % | 1-12/ 2024 |
| Orders received | 38.1 | 50.2 | -24.1% | 85.2 | 96.8 | -12.0% | 202.7 |
| of which service operations | 17.8 | 18.8 | -5.6% | 35.5 | 37.7 | -5.9% | 77.5 |
| of which service operations, % | 46.7% | 37.5% | 41.7% | 39.0% | 38.2% | ||
| Order book at end of period | 77.4 | 101.2 | -23.5% | 77.4 | 101.2 | -23.5% | 98.2 |
| Net sales | 51.7 | 49.9 | 3.6% | 103.3 | 105.7 | -2.3% | 217.9 |
| of which service operations | 19.5 | 18.9 | 3.1% | 39.4 | 36.7 | 7.5% | 78.6 |
| of which service operations, % | 37.8% | 37.9% | 38.2% | 34.7% | 36.1% | ||
| EBITDA | 1.7 | 3.2 | -45.6% | 4.9 | 7.2 | -31.7% | 14.3 |
| Items affecting comparability (1 | 2.5 | 1.2 | 108.9% | 3.5 | 1.8 | 98.5% | 5.2 |
| Comparable EBITDA | 4.2 | 4.4 | -2.8% | 8.5 | 9.0 | -6.0% | 19.6 |
| Comparable EBITDA, % | 8.2% | 8.8% | 8.2% | 8.5% | 9.0% | ||
| Comparable EBITA | 3.1 | 3.3 | -4.7% | 6.3 | 6.9 | -8.7% | 15.3 |
| Comparable EBITA, % | 6.1% | 6.6% | 6.1% | 6.5% | 7.0% | ||
| Operating result (EBIT) | -0.5 | 1.0 | -148.7% | 0.5 | 3.0 | -83.9% | 5.8 |
| Profit/loss for the period | -1.5 | 0.5 | -393.4% | -1.3 | 1.3 | -197.1% | 2.5 |
| Comparable earnings per share, EUR | 0.019 | 0.042 | -53.2% | 0.049 | 0.079 | -37.5% | 0.185 |
| Cash flow from operating activities | 2.0 | -4.0 | 151.4% | 1.9 | -10.8 | -117.4% | 1.5 |
| Return on capital employed (ROCE), %, (annualized) | 1.3% | 6.0% | 6.0% | ||||
| Comparable return on capital employed (ROCE), %, (annualized) | 6.4% | 9.1% | 12.6% | ||||
| Equity ratio, % | 42.2% | 43.4% | 43.4% | ||||
| Net gearing, % | 40.0% | 43.4% | 29.6% | ||||
| Number of employees at end of period | 814 | 823 | -1.1% | 817 |
- + cost, - income
ANALYST AND PRESS MEETING
Glaston's CEO Miika Äppelqvist and CFO Magnus Sjöblom will present the financial result to analysts, investors and media representatives today day at 11.00 a.m. (Finnish time) in English. The live webcast can be accessed through the link: Glaston Half-year financial report January-June 2025.
An on-demand version of the presentation will be available on the company's website later during the same day.
For further information, please contact:
CEO Miika Äppelqvist, tel. +358 10 500 500
CFO Magnus Sjöblom, tel. +358 10 500 500
GLASTON CORPORATION
Pia Posio
VP, Communications, Marketing and IR
Tel. +358 10 500 5076
Glaston in brief
Glaston is the glass processing industry's innovative technology leader supplying equipment, services and solutions to the architectural, mobility, display and solar industries. The company also supports the development of new technologies integrating intelligence to glass.
Glaston is committed to providing its clients with both the best know-how and the latest technologies in glass processing, with the purpose of building a better tomorrow through safer, smarter, and more energy efficient glass solutions. Glaston operates globally with manufacturing, services and sales offices in nine countries and its shares (GLA1V) are listed on Nasdaq Helsinki Ltd.
Distribution: Nasdaq Helsinki Ltd., key media, www.glaston.net
