Pihlajalinna Plc Financial Statements Release 12 February 2026 at 8:00 a.m. EET
Pihlajalinna Financial Statements Release 1 January-31 December 2025
Strong profitability development continued in 2025
This Financial Statements Release is unaudited. The comparison figures in brackets refer to the corresponding period in the previous year.
October-December in brief:
- Revenue amounted to EUR 150.9 (182.5) million - a decrease of -17.3 per cent.
- Comparable organic revenue decrease1) was EUR -5.6 million, or -3.6 per cent.
- In Private Healthcare Services segment, revenue amounted to EUR 119.2 (120.9) million. Revenue decreased -1.4 per cent.
- In Public Services segment, revenue amounted to EUR 33.8 (65.9) million. Changes in outsourcing agreements and the divestments of residential care units decreased revenue by EUR -24.7 million.
- Adjusted EBITA2? was EUR 18.2 (15.4) million, an increase of 18.6 per cent.
- Net cash flow from operating activities amounted to EUR 17.3 (33.1) million.
- Earnings per share (EPS) was EUR 0.24 (0.38)3).
- As a result of the change negotiations initiated in the autumn in connection with the restructuring, total of 88 roles, primarily administrative, were reduced from the Group and approximately 92 roles underwent substantial changes.
- Pihlajalinna was selected as the service provider for the outsourcing of services in Northern Pirkanmaa.
January-December in brief:
- Revenue amounted to EUR 652.3 (704.4) million - a decrease of -7.4 per cent.
- Comparable organic revenue decrease1) was EUR -1.4 million, or -0.2 per cent.
- In Private Healthcare Services segment, revenue amounted to EUR 465.2 (451.5) million. Revenue increased 3.0 per cent.
- In Public Services segment, revenue amounted to EUR 199.2 (267.6) million. Changes in outsourcing agreements and the divestments of residential care units decreased revenue by EUR -49.4 million.
- Adjusted EBITA2? was EUR 65.3 (55.2) million - an increase of 18.3 per cent.
- Net cash flow from operating activities amounted to EUR 75.6 (100.8) million4).
- Net debt to adjusted EBITDA was 2.5 (2.9).
- Earnings per share (EPS) was EUR 1.58 (1.13)3).
- The Board of Directors proposes a dividend of EUR 0.53 (0.38) per share for the financial year ending on 31 December 2025.
1) Changes in outsourcing agreements and divestments have been excluded from the comparison period's revenue.
2) Alternative performance measure. In addition to the IFRS figures, Pihlajalinna presents additional, alternative performance indicators which the company monitors internally, and which provide the company's management, investors, stock market analysts and other stakeholders with important additional information concerning the company's financial performance, financial position and cash flows. These performance indicators should not be reviewed separately from the IFRS figures, and they should not be considered as replacing the IFRS figures.
3) Earnings per share for the quarter was negatively affected by non-recurring costs related to the operating model renewal and the associated change negotiations, as well as write-downs of tangible assets. Earnings per share for the full year was increased by the sales gain from the divestment of residential care units, changes in non-controlling interests and previously unrecognised deferred tax assets from tax losses and net interest expenses.
4) Transfer of outsourcing agreements to the wellbeing services counties in Public Services has changed the Group's working capital structure. Compared to Public Services, Private Healthcare Services tie up significantly more working capital in accounts receivable.
Key figures
EUR million | 10-12 | 10-12 | change % | 1-12 | 1-12 | change % |
INCOME STATEMENT | ||||||
Revenue | 150.9 | 182.5 | -17.3 | 652.3 | 704.4 | -7.4 |
Adjusted EBITA ¹? | 18.2 | 15.4 | 18.6 | 65.3 | 55.2 | 18.3 |
Adjusted EBITA, % ¹? | 12.1 | 8.4 | 10.0 | 7.8 | ||
Operating profit (EBIT) | 8.6 | 14.6 | -41.3 | 52.7 | 48.5 | 8.7 |
Operating profit (EBIT), % | 5.7 | 8.0 | 8.1 | 6.9 | ||
Adjusted operating profit (EBIT) ¹? | 16.5 | 13.5 | 22.1 | 58.6 | 47.7 | 22.9 |
Adjusted operating profit (EBIT), % ¹? | 10.9 | 7.4 | 9.0 | 6.8 | ||
Profit before tax (EBT) | 6.8 | 12.3 | -44.4 | 45.8 | 38.6 | 18.4 |
SHARE-RELATED INFORMATION | ||||||
Earnings per share (EPS), EUR | 0.24 | 0.38 | -37.6 | 1.58 | 1.13 | 40.1 |
Equity per share, EUR | 8.48 | 7.59 | 11.6 | |||
Dividend per share, EUR (Board of Directors proposal) | 0.53 | 0.38 | ||||
OTHER KEY FIGURES | ||||||
Return on capital employed (ROACE), % | 10.9 | 9.7 | 11.4 | |||
Return on equity (ROE), % | 21.3 | 19.2 | 11.0 | |||
Equity ratio, % | 32.2 | 26.8 | 20.1 | |||
Gearing, % | 141.1 | 175.5 | -19.6 | |||
Interest-bearing net debt | 271.7 | 296.6 | -8.4 | |||
Net debt/adjusted EBITDA, 12 months ¹? | 2.5 | 2.9 | -15.1 | |||
Interest-bearing net debt excluding IFRS 16 | 81.4 | 101.8 | -20.1 | |||
Net debt/adjusted EBITDA, excluding IFRS 16, 12 months ¹? | 1.0 | 1.46 | -28.4 | |||
Cash flow from operating activities | 17.3 | 33.1 | -47.7 | 75.6 | 100.8 | -25.1 |
Average number of personnel (FTE) | 3,928 | 4,416 | -11.0 | |||
Personnel at the end of the period (NOE) | 4,540 | 6,493 | -30.1 | |||
Number of practitioners | 2,251 | 2,145 | 4.9 | |||
NPS, Private Healthcare Services | 83.0 | 87.0 | 84.0 | 85.0 | -1.2 | |
NPS, Public Services | 80.0 | 78.0 | 79.0 | 78.0 | 1.3 | |
eNPS (entire Group) | -7.0 | 9.0 | -178 |
1) Pihlajalinna has changed the definition of adjustment items affecting comparability effective from 1 January 2025. The change simplifies the previous definition. The comparison figures have not been adjusted, as the change does not materially affect the adjusted key figures reported for the year 2024.
Pihlajalinna's definition of adjustment items affecting comparability effective from 1 January 2025:
Items affecting comparability are non-recurring and material events that are not part of normal day-to-day operations. Items affecting comparability include, among other items, costs related to business acquisitions, costs related to restructuring measures, impairment of assets, and gains and losses arising from the sale or discontinuation of business operations. Items affecting comparability only include events with an impact on profit or loss of more than EUR 0.1 million.
Pihlajalinna's definition of adjustment items affecting comparability that was used until 31 December 2024:
Significant transactions that are not part of the normal course of business, are related to business acquisition costs (IFRS 3), are infrequently occurring events or valuation items that do not affect cash flow are treated as adjustment items affecting comparability between review periods. According to Pihlajalinna's definition, such items include, for example, restructuring measures, impairment of assets and the remeasurement of previous assets held by subsidiaries, the costs of closing businesses and business locations, gains and losses on the sale of businesses, costs arising from operational restructuring and the integration of acquired businesses, costs related to the termination of employment relationships as well as fines and corresponding compensation payments. Pihlajalinna has also presented costs according to the IFRS Interpretations Committee's Agenda Decision concerning cloud computing arrangements, and reversals of amortisation, as adjustment items. Cloud computing arrangements costs and reversals of amortisation according to the IFRS Interpretations Committee's Agenda Decision has not been presented as adjustment items since 1 Jan 2024.
According to the updated definition, adjusted operating profit before amortisation of intangible assets (EBITA) for the financial year 1 January-31 December 2024 would have been EUR 54.4 million.
EBITDA adjustments during the financial year amounted to EUR -0.7 (-0.8) million and EUR 5.3 (-1.1) million in the quarter. Adjustments to operating profit during the financial year amounted to EUR 5.9 (-0.8) million and EUR 7.9 (-1.1) million in the quarter.
Pihlajalinna's outlook for 2026
Pihlajalinna's revenue declines as expected by approximately EUR 83 million from 2025 levels due to the expiry of outsourcing agreements and the divestment of residential care units.
In 2026, Pihlajalinna will focus on organic growth and further improvement in profitability. The new operating model which entered into effect at the beginning of the year, will ensure that development and growth align with our strategy and respond to the transformation of our business.
- The Group estimates revenue to be approximately EUR 570-600 million (EUR 652.3 million in 2025).
- The Group estimates the adjusted operating profit before the amortisation and impairment of intangible assets (EBITA) to be 9-10 per cent of revenue (10,0 per cent of revenue in 2025).
Development in demand and general economic environment may have a more significant impact on Pihlajalinna's financial result than currently expected.
Pihlajalinna's medium-term strategic objectives
- Revenue at least EUR 700 million
- Adjusted EBITA 12 per cent of revenue
- Net debt/adj. EBITDA ratio below 2.5x
- Net Promoter Score (NPS) continues to be over 80
- Employee Net Promoter Score (eNPS) exceeds 30
- A dividend at least 1/3 of the annual earnings per share, taking into consideration the company's financial position and financial needs
Tuomas Hyyryläinen, President and CEO:
The year 2025 was a successful year of developing Pihlajalinna's operations. We continued to grow together with our insurance company partners, strengthened our position in the occupational healthcare market, and demonstrated our competitiveness in the public-sector outsourcing market. In the freedom of choice pilot for persons aged 65 and over our revenue exceeded our general market share. In addition, we renewed our operating model and structure to align with our strategy and the transformation of our business.
Our determined measures to strengthen profitability continued. This was also evident in the successful performance of the final quarter of the year, despite a challenging market environment. Adjusted EBITA for the final quarter increased to an all-time high of EUR 18.2 million. For the full year 2025, adjusted EBITA reached the strongest level in the company's history, EUR 65.3 (55.2) million, achieving a 10 per cent margin. Earnings per share increased to EUR 1.58 (1.13), and our financial position remained strong. We demonstrated that our development measures provide a solid foundation for profitable growth.
In Private Healthcare Services, revenue increased to EUR 465.2 (451.5) million in 2025. Growth was particularly strong in insurance company sales, which increased by 6 per cent from the previous year. Adjusted EBITA improved to EUR 38.6 (33.6) million. In line with our strategy, we focused on ensuring overall value-based care pathways by enhancing collaboration with insurance companies. In occupational healthcare, we prioritised the management of fixed-price contracts and commercial measures to secure a profitable corporate customer base. In addition, we further developed our value-based services, for example we achieved a 99 percent reduction in risk group sickness absences within one client organisation.
In Public Services, 2025 was a year of significant changes. We transferred the service production of Jämsän Terveys and Jokilaakso hospital to the Wellbeing Services County of Central Finland, gradually handed over Kuusiolinna Terveys operations in South Ostrobothnia by year-end, and adjusted our operations in Northern Pirkanmaa to meet the needs of the wellbeing services county. We also divested our residential care units to streamline our business portfolio. As expected, the segment's revenue decreased year on year, but adjusted EBITA improved to EUR 26.7 (21.5) million. Effective day-to-day operational management and targeted measures enabled us to maintain high service production efficiency while delivering excellent customer experience.
In 2025, the operating environment in the healthcare sector remained challenging. The financial situation of the wellbeing services counties continued to be strained, and general unemployment increased. The overall rise in cost levels and the pressure on public healthcare particularly affected the cost structures of insurance companies. Throughout the year, we delivered a cost-efficient, value-based nationwide option for corporate partnerships and demonstrated our competitiveness in the Northern Pirkanmaa outsourcing tender as well as in surgical backlog reduction. We also enabled and further developed efficient care navigation solutions for our partners.
We will continue the determined development of our operations in Private Healthcare Services and, based on our assessment, in the gradually opening public-sector market to secure profitable growth. In line with our strategy, we ensure comprehensive cost-effective and value-based care pathways that respond to the needs of our customers and partners, together with our professionals. My warmest thanks to all Pihlajalinna employees and partners for the year 2025. We have demonstrated that strong collaboration enables cost-efficient operations for all of us.
Webcast for analysts, media and investors
Pihlajalinna will organize a live webcast meeting for analysts, media and investors today, on 12 February 2026 at 10:00 a.m. at https://pihlajalinna.events.inderes.com/q4-2025. The event will be conducted in Finnish. The recording of the event will be available later on the same webpage as the live webcast.
Pihlajalinna Plc's full Financial Statements Release for January-December 2025 is attached to this release and available at company's website.
Pihlajalinna Plc
Further information:
Tuula Lehto, EVP, Communications, Marketing and Sustainability
tel. +358 40 588 5343, tuula.lehto@pihlajalinna.fi
Distribution:
Nasdaq Helsinki
Major media
pihlajalinna.fi/en/investors
Pihlajalinna in brief
Pihlajalinna is a healthcare reformer, building effective care pathways and the most attractive corporate culture in the industry. Pihlajalinna is the most committed partner for insurance partners', corporations' and the public sector's success. The Group provides comprehensive, high-quality services through private clinics, hospitals, remote channels, work ability-supporting occupational healthcare as well as social and healthcare solutions for the public sector that deliver overall cost effectiveness. Approximately 4,500 employees and 2,300 practitioners work at Pihlajalinna. In 2025, Pihlajalinna's revenue was 652 million euros. Pihlajalinna's shares are listed on Nasdaq Helsinki Oy. Read more www.pihlajalinna.fi.
