Wetteri Plc
Stock Exchange Release
28 August, 2025 at 10 a.m. EET
Wetteri Plc half-year report 1 January to 30 June 2025
In challenging market, revenue and adjusted operating profit decreased - turnaround measures underway
The key figures and information presented in the summaries for the 2025 and 2024 financial years only include the Group's continuing operations.
Summary of the review period 1 April to 30 June 2025
- The Group's revenue was EUR 109.0 million (EUR 117.3 million), with a decrease of 7%
- Adjusted EBITDA was EUR 2.3 million (EUR 2.8 million)
- The adjusted operating profit was EUR -1.4 million (EUR -0.7 million)
- The operating profit was EUR -2.0 million (EUR -2.0 million)
- The revenue of the Passenger Cars segment decreased by EUR 9.2 million (-10%) year-on-year; invoiced sales of used cars decreased by 17.4%
- The revenue of the Maintenance Services segment decreased by EUR 1.7 million (-7%) year-on-year
- The revenue of the Heavy Equipment segment increased by EUR 2.6 million (49%) year-on-year
Summary of the review period 1 January to 30 June 2025
- The Group's revenue was EUR 224.5 million (EUR 244.1 million), with a decrease of 8%
- Adjusted EBITDA was EUR 4.6 million (EUR 6.7 million)
- The adjusted operating profit was EUR -2.8 million (EUR 0.1 million)
- The operating profit was EUR -4.2 million (EUR -2.6 million)
- The profit for the period was EUR 7.2 million as a result of the sale of Wetteri Power Oy in January 2025
- The revenue of the Passenger Cars segment decreased by EUR 23.5 million (-13%) year-on-year; invoiced sales of used cars decreased by 15.4%
- The revenue of the Maintenance Services segment decreased by EUR 3.1 million (-6%) year-on-year
- The revenue of the Heavy Equipment segment increased by EUR 7.0 million (99%) year-on-year
Key performance indicators
| EUR thousand | 1 Apr to 30 Jun 20251 | 1 Apr to 30 Jun 20241 | Change | 1 Jan to 30 Jun 20251 | 1 Jan to 30 Jun 20241 | Change | 1 Jan to 31 Dec 20241 |
| Revenue | 109,000 | 131,154 | -17% | 224,509 | 278,041 | -19% | 514,519 |
| EBITDA | 2,206 | 3,654 | -40% | 4,224 | 9,092 | -54% | 17,638 |
| EBITDA, % of revenue | 2% | 3% | 2% | 3% | 3% | ||
| Adjusted EBITDA2 | 2,298 | 4,462 | -49% | 4,566 | 10,710 | -57% | 20,663 |
| Adjusted EBITDA, % of revenue | 2% | 3% | 2% | 4% | 4% | ||
| Operating profit (loss) (EBIT) | -2,036 | -817 | - | -4,177 | 373 | - | -188 |
| Operating profit (loss), % of revenue | -2% | -1% | -2% | 0% | 0% | ||
| Adjusted operating profit2 | -1,429 | 544 | -362% | -2,806 | 3,151 | -189% | 5,088 |
| Adjusted operating profit, % of revenue | -1% | 0% | -1% | 1% | 1% | ||
| Profit (loss) before tax | -4,547 | -4,041 | - | -8,840 | -5,494 | - | -12,063 |
| Profit (loss) before tax, % of revenue | -4% | -3% | -4% | -2% | -2% | ||
| Profit (loss) for the period | -3,639 | -1,102 | - | 7,240 | -2,384 | - | -7,139 |
| Profit (loss) for the period, % of revenue | -3% | -1% | 3% | -1% | -1% | ||
| Earnings per share from continuing operations, basic (EUR) | -0.02 | -0.03 | -0.05 | -0.05 | -0.10 | ||
| Earnings per share from continuing operations, diluted (EUR) | -0.02 | -0.03 | -0.05 | -0.05 | -0.10 | ||
| Earnings per share, basic (EUR) | -0.02 | -0.01 | 0.04 | -0.02 | -0.05 | ||
| Earnings per share, diluted (EUR) | -0.02 | -0.01 | 0.04 | -0.02 | -0.05 | ||
| Return on equity (ROE), % | -35% | -41% | -39% | -29% | -30% | ||
| Return on investment (ROI), % | -19% | -16% | -18% | -13% | -15% | ||
| Equity ratio, % | 20% | 16% | 20% | 16% | 15% | ||
| Liquidity, % | 89% | 85% | 89% | 85% | 74% | ||
| Average number of personnel during the review period | 791 | 1,025 | 775 | 1,039 | 1,016 | ||
| Invoiced sales of new passenger cars (pcs) | 960 | 924 | 1,989 | 1,994 | 3,472 | ||
| Invoiced sales of used passenger cars (pcs) | 2,083 | 2,522 | 4,200 | 4,965 | 9,082 | ||
| Invoiced sales of used commercial trucks (pcs) | 114 | 124 | 217 | 176 | 406 | ||
| Orders: new passenger cars (pcs) | 1,041 | 887 | 2,110 | 1,889 | 3,647 | ||
| Passenger cars: order backlog at the end of the period | 37,574 | 36,476 | 37,574 | 36,476 | 36,606 | ||
| Passenger car repair shop: hours sold | 85,938 | 87,342 | 173,272 | 176,392 | 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 18 of the interim report.
CEO Pietu Parikka's review
"The car market continued to be challenging in the second quarter of 2025. During April-June, the revenue of Wetteri's con-tinuing operations were EUR 109.0 million (117.3 million), adjusted EBITDA was EUR 2.3 million (2.8 million), and the adjust-ed operating profit was a loss of EUR -1.4 million (-0.7 million). Wetteri's revenue of continuing operations for January-June was EUR 224.5 (244.1) million, its adjusted EBITDA was EUR 4.6 (6.7) million, and its adjusted operating result was EUR -2.8 (0.1) million. The loss for the period before taxes for continuing operations was EUR -8.8 (-8.3) million. Profitability was bur-dened by subdued market demand and the resulting price competition, low sales efficiency and weak working capital turno-ver.
In January-June, the revenue of Wetteri's Passenger Cars segment decreased by 13% year-on-year and amounted to EUR 162.5 million. The adjusted operating profit of the Passenger Cars segment showed a loss, amounting to EUR -4.1 million.
The number of new car orders during January-June was 2,100 units, which is 11.7 percent more than in the corresponding period of the previous year. An increase in order volumes was seen toward the end of the review period. In January-June, Wetteri's invoiced sales of new cars totalled 1,989 (1,994) units, which was in line with the previous year's figures. Order and invoicing volumes were influenced, among other things, by new car brand representations. In line with our strategy, we ex-panded our operations in early 2025 by opening a new full-service dealership in Lahti, featuring brand representation for Kia, Mitsubishi and Mazda. After the review period, we also announced the launch of Mercedes-Benz representation in Lahti, start-ing in August 2025. The new market area and strong brands provide a solid foundation for increasing sales potential in the Päijät-Häme economic region.
Competition in the used car trade remained intense, while demand was subdued, which was reflected in car prices and slow inventory turnover. During the six-month reporting period, 4,200 (4,965) used cars were sold, and their invoicing decreased by 15.4% year-on-year. The inventory optimisation measures initiated in the first quarter continued into the second quarter, including efforts to improve working capital turnover. The impacts of these measures are expected to materialise during the second half of 2025, providing a strong foundation for a turnaround in the profitability of the used car business. Towards the end of the first half of the year, we began to see positive signs in the unit profitability of sold vehicles and in the development of sales of the Wetteri Turva additional service.
The weak performance in car sales also had an impact on maintenance and repair shop operations. The revenue of the Maintenance Services segment in January-June was EUR 46.2 (49.3) million, and its adjusted operating profit was EUR 1.0 (2.4) million. The number of damage repairs decreased as a result of the mild winter. Due to the uneven distribution of demand, there were significant differences in profitability between locations. For example, the maintenance and damage repair workshops at our new locations in Lempäälä and Lahti were still in the start-up phase during the review period. Performance improvement measures will be planned for low-profitability locations during the remainder of the year.
The revenue of the Heavy Equipment segment developed favourably during the review period and amounted to EUR 14.1 (7.1) million. During the review period, we discontinued the importing of SANY earth-moving machinery.
In May, we launched a profitability program aimed at achieving an annual improvement of EUR 8 million in profitability by enhancing the quality of revenue and unit margins, improving working capital turnover, and reducing capital tied up in operations as well as indebtedness. The measures will be fully reflected in the results during 2026. Wetteri's financial position already improved in January-June 2025 thanks to the Wetteri Power transaction and profitability measures: interest-bearing debt decreased by a total of EUR 24.8 million, and our equity ratio improved to 20 percent.
During the review period, we made preparations for the sale of our heavy equipment maintenance and spare parts operations in Joensuu and Kajaani. The transaction was signed on 7 July 2025 and will be completed during the second half of 2025. The transaction further strengthens Wetteri's self-sufficiency and creates a foundation for further business development.
I started as the CEO of Wetteri at the beginning of August, after which we also renewed the composition of the management team. In the current challenging market situation, we continue to improve profitability and focus on enhancing efficiency. The strategy update process is also progressing, and we will publish our updated strategy in the second half of 2025.
Due to the company's financial situation and weaker-than-expected market development, we initiated change negotiations on 27 August 2025. The negotiations concern the personnel of Wetteri Yhtiöt Oy and Wetteri Auto Oy, excluding mechanics. The aim is to achieve annual personnel cost savings of approximately EUR 4 million. In addition, the goal is to harmonize job descriptions and align organizational structures. If implemented, the measures may result in certain positions being discontinued or reorganized.
Towards the end of the review period, cautious signs of a pick-up in car sales began to emerge in the market. The used car market is stabilising, and the prices of used cars are beginning to level out. The sales of new cars also appear to be developing positively toward the end of the year, with an increase in demand for electric cars. Affordable new electric vehicle models are entering the market, lowering the average price of new cars and thereby reducing the threshold for customers to purchase a new car. We also believe that the new scrapping bonus campaign presented by the government will support the development of the market.
During the remainder of the year, we will continue measures to achieve synergy benefits from acquisitions and improve profitability. Wetteri holds significant potential, and by harnessing this potential, we can take major steps forward in our development. By focusing on sales management, the more efficient use of financial and human resources and the development of used car sales, and by ensuring an even better customer experience, we are laying a strong foundation for business recovery and sustainable growth."
Estimate of future developments in the industry and the company
The Finnish car trade did not meet growth expectations in the first half of 2025. Registrations of new cars fell short of the levels projected by the automotive forecasting group. Based on the growth outlook for the automotive sector, an increase of around 10% was projected for 2025 at the end of 2024. However, in January-June 2025, registrations of new passenger cars were 4.9% lower than in the corresponding period in the previous year. In the used car trade, the unit price level has been low, but the market is now stabilising and showing signs of percentage growth.
In April, Wetteri launched a profitability programme aimed at achieving an annual improvement of EUR 8 million in profitability. The full impact of the programme is expected to materialise during 2026.
In August 2025, the company initiated change negotiations due to its financial situation and weaker-than-expected market demand. The objective of the negotiations is to achieve annual personnel cost savings of EUR 4 million.
In May, Wetteri withdrew its guidance for 2025 due to increased market uncertainty. The company will review the possibility of issuing new guidance once the strategy work has been completed.
Disclosure of financial information in 2025
- 20 November 2025: Interim report for January-September 2025
H1/2025 webcast on 28 August 2025 at 1 p.m. EET
Wetteri will hold a webcast for investors, analysts and the media on 28 August 2025 at 1 p.m EET. During the webcast, Pietu Parikka, CEO of Wetteri Plc, will discuss the company's first half-year performance and the market outlook for the automotive sector. The webcast can be followed at https://wetteri.events.inderes.com/q2-2025
Oulu 28 August 2025
Wetteri Plc
Board of Directors
Further information:
Pietu Parikka, CEO, Wetteri Plc
Tel. +358 50 344 2886, pietu.parikka@wetteri.fi
Maria Halttunen, CFO, Wetteri Plc
Tel. +358 50 325 4370, maria.halttunen@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/en/.
Distribution:
Nasdaq Helsinki
Major media
www.sijoittajat.wetteri.fi/en/
