Terveystalo Oyj: Terveystalo Group Interim Report January-September 2025: Revenue challenges were offset by robust operational performance, resulting in solid profitability

Terveystalo Plc, Interim Report, 23 October 2025 at 09:00 EEST

This release is a summary of Terveystalo's Interim Report January-September 2025. The full release is attached to this stock exchange release and is available on our website at: https://www.terveystalo.com/en/company/investors/reports-and-presentations/

July-September 2025 in brief

• Revenue decreased by 5.2 percent year-on-year to EUR 280.4 (295.8) million.
  The number of working days was flat year-on-year.
  The Healthcare Services segment revenue decreased by 2.3 percent and was EUR 226.6 (232.0) million.
  Portfolio Businesses' revenue decreased by 17.5 percent and was EUR 45.0 (54.5) million. The revenue from Sweden decreased by 5.3 percent and amounted to EUR 13.5 (14.2) million.
• Adjusted¹⁾ operating profit (EBIT) amounted to EUR 26.8 (27.0) million, representing 9.5 (9.1) percent of revenue.
  In the Healthcare services, adjusted operating profit (EBIT) weakened from the comparison period due to lower revenue; however, the operational efficiency remained strong. In the Portfolio Businesses, adjusted EBIT increased due to the termination of low margin outsourcing contracts and improved operational efficiency. In Sweden, adjusted EBIT improved primarily due to strengthened operational efficiency.
• Items affecting comparability¹⁾ with an adverse effect on EBIT were EUR 1.4 (2.1) million.
• Operating profit (EBIT) increased by 1.7 percent and amounted to EUR 25.4 (25.0) million.
• The result for the period was EUR 16.2 (14.7) million.
• Earnings per share (EPS) increased by 9.7 percent and amounted to EUR 0.13 (0.12).
• Cash flow from operating activities was EUR 54.5 (41.3) million.
• NPS (Net Promoter Score) for appointments was 87.2 (86.8). NPS for hospitals was 96.9 (96.0).

January-September 2025 in brief

• Revenue decreased by 3.8 percent year-on-year to EUR 948.9 (986.1) million.
  There were two fewer working days than during the comparison period.
  The revenue of the Healthcare Services segment increased by 0.4 percent to EUR 764.6 (761.5) million. The revenue of the Portfolio Businesses decreased by 20.5 percent to EUR 144.6 (181.8) million. The revenue from Sweden decreased by 8.2 percent to EUR 54.5 (59.4) million.
• Adjusted¹⁾ operating profit (EBIT) increased by 9.0 percent year-on-year to EUR 111.3 (102.1) million, representing 11.7 (10.4) percent of revenue.
  Profitability strengthened in the Healthcare Services and Portfolio businesses due to improved operational efficiency and commercial measures. Profitability in Sweden improved slightly, following the planned progress of the profit improvement programme.
• Items affecting comparability¹⁾ with an adverse effect on EBIT were EUR 6.1 (16.9) million.
• The result for the period was EUR 71.8 (52.7) million.
• Earnings per share (EPS) increased by 36.2 percent and amounted to EUR 0.57 (0.42).
• Net debt/EBITDA was 2.1 (2.5).
• Net debt/adjusted EBITDA was 2.0 (2.3).
• Cash flow from operating activities was EUR 122.4 (134.9) million.

The figures in parentheses refer to the corresponding period one year ago.

^{1) Adjustments are material items outside the ordinary course of business, associated with acquisition-related expenses, restructuring-related expenses, gains and losses on the sale of assets, impairment losses, strategic projects, and other items affecting comparability. Adjustments related to the profit improvement programs were approximately EUR -0.3 (1.9) million during the third quarter and EUR 4.9 (11.3) million during January-September.}

President and CEO Ville Iho: Revenue challenges were offset by robust operational performance, resulting in solid profitability

Terveystalo's relative profitability continued to strengthen in the third quarter of 2025 due to improved operational efficiency. Adjusted operating profit (EBIT) was EUR 26.8 million, corresponding to 9.5 per cent of revenue. Earnings per share increased by 9.7 per cent year-on-year to EUR 0.13. Improved operational efficiency supported relative profit development despite revenue decreasing by five per cent year-on-year to EUR 280 million.

In the Healthcare Services, the volumes from individual customers continued to strengthen, supported by strong insurance-backed demand and the freedom of choice experiment for people over 65 years of age. Our enhanced brand preference further supports this development, positioning us as the consumers' first choice. However, subdued demand for occupational health turned revenue downwards. The development of occupational health care is due to three factors: a decrease in the number of employees connected to occupational health care, lower morbidity compared to 2024, and more limited use of services and contract coverage for corporate customers due to the uncertain economic environment. Despite part of the decline being cyclical, we have a clear plan to address the revenue headwind. We are renewing our offering to better reflect the diverse needs of different customer segments, streamlining our delivery and introducing a brand-new digital platform for employers. To leapfrog the development, we established a joint venture with the Swedish technology company MedHelp. The joint development will elevate Terveystalo's digital solutions for companies to a clear leadership position in the market by spring. The AI-based health platform will provide employers with best-in-class insights, transparency and the ability to steer services to gain maximum impact and reduce sickness absences. The new platform will gradually replace our current occupational health solutions, starting in Q1.

The freedom of choice pilot for people over the age of 65, which started in September, got off to a brisk start and had a positive impact on consumer demand for the Healthcare Services segment. During the first month, nearly 10,000 customers over the age of 65 visited Terveystalo's appointments in different parts of Finland, and the excellent customer feedback is a clear sign of a successful operational launch. There is not only demand for the service but also a clear need, as approximately half of those who have used the service are new customers. People have felt they received the help and care they needed within the framework of the freedom of choice experiment. We expect the experiment to bring significant new volume to the Healthcare Services network, and that demand will increase as awareness increases. The pilot runs until the end of 2027.

The profitability of the Portfolio Businesses continued to strengthen despite the expected decline in revenue. The public market saw also some larger partnership tenders, in addition to smaller tenders mainly focused on digital and staffing services. The demand for consumer-driven oral health services continued to increase, and revenue growth picked up year-on-year.

The profitability of the Swedish business strengthened year-on-year due to the profit improvement programme, which progressed as planned despite the decline in revenue. Improved competitiveness through operational efficiency provides a good platform for future growth, which will be the focus of our 2026 agenda.

The strong operational foundation provides us with an excellent base for further developing our services across all customer segments. We are investing heavily in customer-focused product development and technology-led reduction of production costs to facilitate volume growth across customer groups. Our Ella platform for professionals continues to ramp up, improving productivity, and our Occupational Health platform renewal has been fast-tracked. Our solutions for individual customers are already best in class. Still, we are further boosting the development with our digital 10x strategy, tying seamlessly together super-efficient processing of customer contacts, intelligent customer and patient steering and truly scalable digital service components. We continue building our digital ecosystem and aim to transform healthcare comprehensively in the coming years. We strive to make our services more effective, accessible, and affordable for everyone.

Meaningful matters,

Ville Iho

Guidance for 2025

(unchanged)

Terveystalo clarified the structure of its guidance in connection with the half-year report and provided a range for adjusted EBIT in euros instead of revenue and adjusted EBIT margin.

Terveystalo expects its full-year 2025 adjusted EBIT to be EUR 155-165 million (2024: EUR 140.5 million).

The estimates are based on the current demand environment, employment levels, and morbidity rates. The estimates account for a decrease of approximately EUR 30 million in revenue within the Portfolio Businesses segment's outsourcing operations due to the ending of contracts. Profitability is expected to strengthen in all business segments. The estimates do not account for significant acquisitions or divestments.

Medium term financial targets

Profitable growth:

• EPS to grow on average by 10 percent p.a.
• We expect faster earnings per share growth in 2025, as fewer items affecting comparability are expected.

Moderate leverage ratio:

• Net debt to EBITDA not to exceed 2.5x
• Indebtedness may temporarily surpass the target level, particularly in conjunction with acquisitions.

Attractive dividends:

• At least 80 percent of net result to be distributed as dividends
• The dividend proposal must consider the company's long-term potential and financial status.

Key figures

MEUR unless stated otherwise	7-9/2025	7-9/2024	Change, %	1-9/2025	1-9/2024	Change, %	2024
Revenue	280.4	295.8	-5.2	948.9	986.1	-3.8	1,340.0
Adjusted EBITA * 1)	32.4	34.3	-5.5	128.6	124.0	3.8	171.0
Adjusted EBITA, % * 1)	11.5	11.6	-	13.6	12.6	-	12.8
EBITA 1)	31.0	32.5	-4.4	122.5	107.5	14.0	147.6
EBITA, % 1)	11.1	11.0	-	12.9	10.9	-	11.0
Adjusted operating profit (EBIT) * 1)	26.8	27.0	-1.0	111.3	102.1	9.0	140.5
Adjusted operating profit (EBIT), % * 1)	9.5	9.1	-	11.7	10.4	-	10.5
Operating profit (EBIT)	25.4	25.0	1.7	105.2	85.2	23.4	116.1
Operating profit (EBIT), %	9.1	8.4	-	11.1	8.6	-	8.7
Return on equity (ROE) (LTM), % 1)	-	-	-	16.4	-2.2	-	13.5
Equity ratio, % 1)	-	-	-	39.6	37.8	-	39.4
Earnings per share, EUR	0.13	0.12	9.7	0.57	0.42	36.2	0.57
Weighted average number of shares outstanding, in thousands	126,655	126,605	-	126,644	126,605	-	126,597
Net debt 1)	-	-	-	500.5	545.4	-8.2	504.8
Gearing, % 1)	-	-	-	89.1	103.0	-	92.1
Net debt/EBITDA (LTM) 1)	-	-	-	2.1	2.5	-	2.3
Net debt/Adjusted EBITDA (LTM) * 1)	-	-	-	2.0	2.3	-	2.1
Average personnel, FTE2)	-	-	-	5,576	5,889	-5.3	5,841
Non-employees (end of period)3)	-	-	-	6,029	6,037	-0.1	6,015
Sustainability
PEI-index, %4)				70.1	68.5	2.3	69.2
Net Promoter Score (NPS), appointments				87.2	86.8	0.5	87.7
Net Promoter Score (NPS), hospitals				96.9	96.0	0.9	96.2
Engagement index5)				4.2	4.1	2.4	4.2
* Adjustments are material items outside the ordinary course of business and these relate to acquisition-related expenses, restructuring-related expenses, gains and losses on sale of assets (net), impairment losses, strategic projects and other items affecting comparability.
1) Alternative performance measure. Terveystalo presents alternative performance measures as additional information to financial measures defined in IFRS. Those are performance measures that the company monitors internally and they provide management, investors, securities analysts and other parties significant additional information related to the company's results of operations, financial position and cash flows. These should not be considered in isolation or as a substitute to the measures under IFRS.
2) 2025 does not include Recuror Oy, Veikkolan hammaslääkäriasema Oy, Medimar Scandinavia Ab and Cityläkarna Mariehamn Ab. Financial year 2024 does not include Medimar Scandinavia Ab and the companies acquired during 2024 in Finland (SRK Group Oy, Suomen Radiologikeskus Oy, iRad Oy and Kajaanin Radiologikeskus Oy and Cityläkarna Mariehamn Ab).
3) Financial year 2024 does not include the companies acquired during 2024 in Finland (SRK Group Oy, Suomen Radiologikeskus Oy, iRad Oy and Kajaanin Radiologikeskus Oy and Cityläkarna Mariehamn Ab).
4) PEI index (Patient Enablement Instrument) is used to measure whether the patient feels that he is coping with his symptoms or illness much better, better, as before, or worse after the reception. The scale is 1-4. The PEI index is calculated by taking the percentage of patients who felt they are able to cope with their health condition better or much better and comparing it to the total number of respondents.
5) The engagement index for Terveystalo professionals is based on four questions from Terveystalo's annual professional survey. The results are used to calculate the index value, i.e. the average of the results. The questions concern supervisory work, the preconditions for success at work, work communities and commitment. The index is expressed on a scale of 1-5.

Result briefing

Terveystalo will arrange a result webcast and conference call in English on 23 October 2025, starting at 10:30 EEST. You can watch the webcast online at: https://terveystalo.events.inderes.com/q3-2025

Conference call:

You can access the teleconference by registering on the link below. After the registration you will be provided phone numbers and a conference ID to access the conference. https://palvelu.flik.fi/teleconference/?id=50051650

If you wish to ask a question, please, dial *5 on your telephone keypad to enter the queue.

Helsinki, 22 October 2025
Terveystalo Plc
Board of Directors

For further information, please contact:
CFO Juuso Pajunen
Tel. [phone]

Kati Kaksonen, Vice President, Investor Relations & Sustainability
Tel. [phone]
[e-mail]

Distribution:
Nasdaq Helsinki Oy
Main media
www.terveystalo.com

Terveystalo in brief

Terveystalo is the largest private healthcare service provider in Finland in terms of revenue and one of the leading occupational health providers in Finland and Sweden. We aim to create fluent, caring, and effective healthcare of the future. We offer comprehensive primary care, specialized care, and well-being services for corporates, private individuals, and public sector customers. Our digital services are accessible 24/7. We also offer our services in approximately 360 clinics, including 17 hospitals in Finland. In Sweden we offer occupational health services in approximately 140 units. Terveystalo is listed on the Helsinki Stock Exchange.

In 2024, Terveystalo served approximately 1.2 million individual customers in Finland, with around 7.6 million customer appointments. Terveystalo employs approximately 15,000 healthcare and other professionals. www.terveystalo.com