Terveystalo Plc, Interim Report 24 April 2026 at 09:00 EEST
This release is a summary of Terveystalo's Interim Report January-March 2026. 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/
January-March 2026 in brief
- Revenue decreased by 11.2 percent year-on-year to EUR 308.2 (346.9) million.
- In Healthcare Services, revenue decreased by 9.6 percent and was EUR 253.6 (280.6) million.
- In Portfolio Businesses, revenue decreased by 22.4 percent and was EUR 39.3 (50.6) million.
- In Sweden, revenue decreased by 2.8 percent and amounted to EUR 20.0 (20.6) million.
- The number of working days was unchanged year-on-year.
- Adjusted1) operating profit (EBIT) decreased by 29.6 percent and amounted to EUR 33.7 (47.8) million, representing 10.9 (13.8) percent of revenue.
- In Healthcare Services, adjusted EBIT decreased due to the decline in revenue. Operating efficiency remained at a good level, and during the quarter, the cost structure was adjusted to the weak demand environment.
- In Portfolio Businesses, adjusted EBIT weakened due to the decline in revenue. Profitability was supported by the expiry of low-margin outsourcing contracts and improved operating efficiency.
- In Sweden, adjusted EBIT improved slightly. Cost savings achieved through the profit improvement programme offset the negative impact of the revenue decline.
- Items affecting comparability1) with an adverse effect on EBIT were EUR 7.0 (1.5) million.
- Operating profit (EBIT) decreased by 42.6 percent and amounted to EUR 26.6 (46.4) million.
- The result for the period was EUR 17.2 (33.4) million.
- Earnings per share (EPS) decreased by 48.6 percent and amounted to EUR 0.14 (0.26).
- Net debt/EBITDA was 2.4 (2.2).
- Net debt/adjusted EBITDA was 2.2 (2.0).
- Cash flow from operating activities was EUR -2.5 (27.3) million.
- NPS (Net Promoter Score) for appointments was 88.1 (88.0). NPS for hospitals was 96.3 (95.4).
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 for the reporting period are described in more detail in the section "Profit improvement and development programmes and items affecting comparability."
President and CEO Ville Iho: Despite the difficult demand environment, profitability remained at a good level
In the first quarter of 2026, the operating environment was exceptionally challenging, and demand for health services clearly weakened year over year across all customer groups. Despite market headwinds, our profitability remained at a good level, driven by strong operational efficiency and cost control. We adjusted our operations and costs to meet the demand, but above all, we continued to implement our strategy with determination, investing in our customer service, our occupational health development programme, and even better digital services.
Outlook and guidance
Our guidance for 2026 remains unchanged. We are responding to the negative cycle with cost adjustments and investing in future growth, supported by megatrends. The strong foundation built in recent years enables us to continue investing in the accessibility, medical effectiveness and fluency of our services for the benefit of our patients and customers.
Market and demand situation
The market and demand situation for Finnish health services was exceptionally weak in the first quarter. Demand was clearly lower than in the comparison period, which was affected by very low consumer confidence, the weak flu season, companies' cost-cutting measures and the Wellbeing Services Counties' caution in purchasing services. The decline in demand is historically exceptional and, in addition to the weak macroeconomic situation, partly structural. However, the long-term demand drivers and fundamentals have not changed, and the megatrends supporting the demand for health services remain very positive. We continue to expect the demand environment to gradually recover during 2026, although the first half of the year will be very challenging. Post-quarter, we have continued actions to address the cost base and adjust to weak demand.
Financial performance and profitability
The exceptionally weak demand environment and volume development had a broad impact on revenue, which decreased by approximately 11 percent year-on-year to EUR 308 million. The decline in volumes also impacted the margins. The adjusted EBIT margin was around 11 percent - still a historically good level, thanks to operational efficiency and despite the exceptionally strong comparables in the first quarter.
We adjust our cost structure according to demand to ensure profitability, even in low-volume environments. The work continues throughout the organisation, and we continue to emphasise measures that will strengthen our performance in the long term, including more accurate and flexible resource allocation, process simplification and automation, and solutions that improve the productivity of back-office operations.
Business area development
Occupational health remained at the heart of our development in Healthcare Services. In addition to negative volume drivers linked to temporary market headwinds in the operating environment and a decline in the total number of employed people, the number of Terveystalo's occupational health end users continued to decline year-on-year. We estimate that the bottom has now been reached and expect the number of connected employees to begin increasing over the next few quarters. The occupational health development programme has progressed as planned, and we will continue to invest in service and product renewal, the ease of doing business, and the usability of data as part of proactive work ability management. We launched a next-generation digital platform for our first client companies, which enables technology to be harnessed more efficiently to anticipate work ability risks, reduce sickness absence, and improve work ability.
Revenue from insurance customers decreased year-on-year as overall market segment volume declined. However, our relative position strengthened. We will continue to build solutions for insurance companies that improve cost-effectiveness, cost predictability, and the monitoring of care pathway effectiveness, and to support profitable volume growth in the future.
The freedom-of-choice experiment for consumers over the age of 65 has achieved its main goal: to bring completely new customers within the scope of smooth private health services. To serve customers even better, the range of services must be expanded, and the restrictions on the number of visits relaxed. Based on experience, we believe that the Kela system should generally be developed by allocating reimbursements to fewer services, but more effectively. In addition to expanding the experiment for people aged 65 and over, investments in oral health care and mental health for children and young people would be excellent next steps.
As expected, the revenue of the Portfolio Businesses declined due to the expiry of outsourcing agreements and lower purchases by the Wellbeing Services Counties. Demand for staffing services was weak, and revenue continued to fall. Digital services in the public sector were a clear positive exception to the overall trend in publicly funded services.
Demand for dental health services was stable, and revenue was close to stable year-on-year. The progress of the Hohde acquisition is awaiting approval from the competition authorities. If completed, the transaction will double the size of the dental services business and clearly strengthen our offering to different customer groups.
In Sweden, market weakness continued, but profitability improved slightly and operational efficiency improved year-on-year. The sales pipeline has developed favourably, which supports the outlook for a gradual recovery as demand normalises. In 2026, we will focus on strengthening our revenue, which we can also support through acquisitions.
Strategy implementation and digital development
Our goal is to be a pioneer in renewing healthcare service models and to harness technology's potential for the benefit of all our stakeholders. Although the operating environment has been challenging, we are not reducing our investment in the future. Structural shifts in demand are driving our investments to increase automation, improve customer service, and streamline our professionals' work by reducing and automating non-value-added phases.
The most significant and concrete developments of the year include the introduction of a digital occupational health platform developed with our joint venture partner MedHelp, the scaling of the previously launched Ella professional user interface and increased digital health productivity through new AI-assisted appointments, among other things.
The development cycle of our digital services has accelerated significantly over the past few quarters. The insourcing of development work we started earlier, combined with the extensive use of AI, has significantly enhanced both service design and application coding. At the same time, we have brought the entire development process closer to the end users, both our customers and healthcare professionals. The industry's transformation is accelerating, and we will continue to be at the forefront of development. Through long-term measures, we ensure we can create value for our customers, employees and owners in the changing healthcare environment, now and in the future.
Ville Iho
Guidance for 2026
Terveystalo expects its full-year 2026 adjusted EBIT to be EUR 135-165 million (2025: EUR 156.3 million).
The estimates are based on a gradually improving demand environment. The prevalence of upper respiratory infections is expected to remain low during the first half of the year and return to the long-term average in the second half. Profitability in the first half of 2026 is expected to be below that in the first half of 2025. Revenue from the Portfolio Businesses segment's outsourcing operations is projected to decrease by approximately EUR 20 million due to expiring contracts. These estimates do not include the Hohde transaction or any other significant acquisitions or divestments.
Medium-term financial targets
Profitable growth:
- EPS to grow on average by 10 percent p.a.
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 the net result is 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 | 1-3/2026 | 1-3/2025 | Change, % | 2025 |
| Revenue | 308.2 | 346.9 | -11.2 | 1,278.9 |
| Adjusted EBITA * 1) | 39.3 | 53.7 | -26.8 | 179.3 |
| Adjusted EBITA, % * 1) | 12.8 | 15.5 | - | 14.0 |
| EBITA 1) | 33.4 | 52.3 | -36.0 | 164.6 |
| EBITA, % 1) | 10.9 | 15.1 | - | 12.9 |
| Adjusted operating profit (EBIT) * 1) | 33.7 | 47.8 | -29.6 | 156.3 |
| Adjusted operating profit (EBIT), % * 1) | 10.9 | 13.8 | - | 12.2 |
| Operating profit (EBIT) 1) | 26.6 | 46.4 | -42.6 | 137.5 |
| Operating profit (EBIT), % 1) | 8.6 | 13.4 | - | 10.8 |
| Return on equity (ROE) (LTM), % 1) | 13.9 | 14.4 | - | 16.4 |
| Equity ratio, % 1) | 36.0 | 41.5 | - | 40.7 |
| Earnings per share, EUR | 0.14 | 0.26 | -48.6 | 0.73 |
| Weighted average number of shares outstanding, in thousands | 126,707 | 126,622 | - | 126,647 |
| Net debt 1) | 534.7 | 497.3 | 7.5 | 505.5 |
| Gearing, % 1) | 103.1 | 85.1 | - | 86.5 |
| Net debt/EBITDA (LTM) 1) | 2.4 | 2.2 | - | 2.1 |
| Net debt/Adjusted EBITDA (LTM) * 1) | 2.2 | 2.0 | - | 2.0 |
| Average personnel, FTE2) | 5,048 | 5,602 | -9.9 | 5,526 |
| Non-employees (end of period)3) | 6,010 | 6,055 | -0.7 | 6,017 |
| Sustainability | ||||
| PEI-index, %4) | 74.1 | 70.8 | 4.7 | 70.7 |
| Net Promoter Score (NPS), appointments | 88.1 | 88 | 0.1 | 87.6 |
| Net Promoter Score (NPS), hospitals | 96.3 | 95.4 | 0.9 | 95.4 |
| Engagement index5) | 4.1 | |||
| * 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. Adjustments for the reporting period are described in more detail in the section "Profit improvement and development programmes and 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 with significant additional information regarding 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) Financial years 2026 and 2025 do not include Medimar Scandinavia Ab, Cityläkarna Mariehamn Ab,Turun Silmälaser Oy and Silmäsairaala Pilke Oy. Recuror Oy and Veikkolan hammaslääkäriasema Oy are included since the merger to Suomen Terveystalo Oy in financial year 2025. | ||||
| 3) Financial year 2025 does not include Turun Silmälaser Oy and Silmäsairaala Pilke Oy which were acquired 31.12.2025. | ||||
| 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 24 April 2026, starting at 10:30 EEST. You can watch the webcast online at: https://terveystalo.events.inderes.com/q1-2026
Conference call: https://events.inderes.com/terveystalo/q1-2026/dial-in
You can access the teleconference by registering through the link above. After the registration you will be provided phone numbers and a conference ID to access the conference.
Helsinki, 23 April 2026
Terveystalo Plc
Board of Directors
For further information, please contact:
CFO Juuso Pajunen
Tel. +358 40 584 9722
Kati Kaksonen, Vice President, Investor Relations & Sustainability
Tel. +358 10 345 2034
kati.kaksonen@terveystalo.com
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 both Finland and Sweden.
We aim to create seamless, compassionate, and effective healthcare of the future. We offer comprehensive primary care, specialised care, and well-being services for corporate clients, insurance companies, consumers and public-sector customers. Terveystalo's digital appointments are available anytime, anywhere, 24/7. The Terveystalo app has around 2.7 million registered users. We provide services through our extensive network of clinics and hospitals across Finland. In Sweden, we offer preventive occupational health services through our subsidiary, Feelgood.
In 2025, Terveystalo served approximately 2.1 million individual customers, and there were around 7.2 million customer visits in Finland. Terveystalo employs around 14,400 professionals in healthcare and other fields.
Terveystalo is listed on Nasdaq Helsinki and has a strong Finnish ownership base. www.terveystalo.com
