Pihlajalinna Plc Interim Report 28 April 2026 at 8:00 a.m. EEST
Pihlajalinna Interim Report 1 January-31 March 2026
Revenue declined as expected due to expiry of outsourcing agreements, margin remained at the previous year's level
This interim report is unaudited. The comparison figures in brackets refer to the corresponding period in the previous year.
January-March in brief:
- Revenue was EUR 142.1 (181.4) million - decrease of -21.7 per cent due to the expected expiry of outsourcing agreements.
- Comparable1) revenue decrease was EUR -6.0 million, or -4.0 per cent.
- In Healthcare Services, revenue amounted to EUR 117.8 (118.9) million. Comparable1) revenue decrease was -4.7 per cent.
- In Outsourcing Services, revenue amounted to EUR 22.2 (60.7) million. Comparable1) revenue decrease was -2.7 per cent.
- Adjusted operating profit before the amortisation and impairment of intangible assets (EBITA)2? was EUR 14.0 (18.1) million, decrease of -22.2 per cent.
- Adjusted EBITA margin remained at the previous year's levels at 9.9 (9.9) per cent of revenue.
- Earnings per share (EPS) was EUR 0.35 (0.47).
- Pihlajalinna redeemed its EUR 20 million hybrid bond on the Reset Date 27 March 2026.
- To improve the allocation of limited resources and enhance cost-effectiveness, Pihlajalinna announced on 31 March 2026 the initiation of change negotiations affecting 2,100 employees in Healthcare Services. Based on a preliminary assessment, the proposed changes could result in a permanent reduction of up to approximately 270 positions.
- Pihlajalinna's outsourcing of social and healthcare services in Northern Pirkanmaa commenced on 1 April 2026.
¹) Changes in outsourcing agreements, divestments of residential care units and transfers between segments have been excluded from the comparison period 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 to replace the IFRS figures.
| Key figures | ||||
| EUR million | 1-3/2026 | 1-3/2025 | change % | 2025 |
| INCOME STATEMENT | ||||
| Revenue | 142.1 | 181.4 | -21.7 | 652.3 |
| Adjusted EBITA ¹? | 14.0 | 18.1 | -22.2 | 65.3 |
| Adjusted EBITA, % ¹? | 9.9 | 9.9 | 10.0 | |
| Operating profit (EBIT) | 12.2 | 16.4 | -25.6 | 52.7 |
| Operating profit (EBIT), % | 8.6 | 9.0 | 8.1 | |
| Adjusted operating profit (EBIT) ¹? | 12.3 | 16.4 | -25.1 | 58.6 |
| Adjusted operating profit (EBIT), % ¹? | 8.6 | 9.0 | 9.0 | |
| Profit before tax (EBT) | 10.5 | 14.7 | -28.6 | 45.8 |
| SHARE-RELATED INFORMATION | ||||
| Earnings per share (EPS), EUR | 0.35 | 0.47 | -24.2 | 1.58 |
| Equity per share, EUR | 7.36 | 7.92 | -7.0 | 8.48 |
| OTHER KEY FIGURES | ||||
| Return on capital employed (ROACE), % | 10.3 | 10.7 | -3.9 | 10.9 |
| Return on equity (ROE), % | 19.8 | 19.5 | 1.3 | 21.3 |
| Equity ratio, % | 29.2 | 28.0 | 4.0 | 32.2 |
| Gearing, % | 170.3 | 162.8 | 4.6 | 141.1 |
| Interest-bearing net debt | 285.7 | 289.1 | -1.2 | 271.7 |
| Net debt/adjusted EBITDA, 12 months ¹? | 2.7 | 2.8 | -1.7 | 2.5 |
| Interest-bearing net debt excluding IFRS 16 | 100.1 | 95.4 | 4.9 | 81.4 |
| Net debt/adjusted EBITDA, excluding IFRS 16, 12 months ¹? | 1.4 | 1.3 | 3.0 | 1.0 |
| Cash flow from operating activities | 18.3 | 25.8 | -29.0 | 75.6 |
| Average number of personnel (FTE) | 2,866 | 4,237 | -32.4 | 3,928 |
| Personnel at the end of the period (NOE) | 4,096 | 6,301 | -35.0 | 4,540 |
| Number of practitioners | 2,297 | 2,180 | 5.4 | 2,251 |
| NPS, Healthcare Services | 84.0 | 86.0 | -2.3 | 86.0 |
| NPS, Outsourcing Services | 80.0 | 79.0 | 1.3 | 80.0 |
| eNPS (entire Group) | -7.0 |
1) 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.
EBITDA adjustments during the review period amounted to EUR 0.1 (0.0) million. Adjustments to operating profit during the review period amounted to EUR 0.1 (0.0) million.
Pihlajalinna's outlook for 2026 unchanged
Pihlajalinna's revenue is expected to decline 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.
Tuomas Hyyryläinen, President and CEO:
Pihlajalinna's first quarter was challenging, particularly compared to the strong comparison period. Overall demand in the healthcare market was weakened by general economic uncertainty and lower morbidity. In addition, the expiry of outsourcing agreements weakened result as expected. Adjusted EBITA declined to EUR 14.0 (18.1) million, however, through strengthened operational capabilities we ensured a stable adjusted EBITA margin of 9.9 per cent (9.9 per cent).
Comparable revenue in Healthcare Services declined by 4.7 per cent in the first quarter. The number of upper respiratory tract infections and insured events in the market decreased compared to the comparison period and the general economic uncertainty among corporate customers persisted. The number of occupational healthcare customers remained at last year's level of 282,000 individuals. The subdued demand in the public sector persisted. However, during the quarter we were successful in tenders related to clearing the treatment backlog. At the same time, in close cooperation with our partners, we carried out efficient care needs assessment in line with our strategy, shifting patient flows towards self-care and our comprehensive remote services. The segment's adjusted EBITA declined to EUR 10.1 (13.0) million. To respond to the development of our operating model and changes in the market environment, we announced extensive change negotiations in service production in March. These measures are expected to support the segment's profitability going forward.
In Outsourcing Services, revenue declined as expected to EUR 22.2 (60.7) million due to the expiry of outsourcing agreements. The segment's adjusted EBITA decreased to EUR 4.1 (6.0) million. The outsourcing arrangement for social and healthcare services in Northern Pirkanmaa provided by Pihlajalinna commenced at the beginning of April. Preparations for the launch of service production were carried out throughout the first quarter. Our strong expertise in cost-effective public social and healthcare services is being transferred to the new contractual agreement.
The limited resources of the healthcare sector must be allocated with ever greater precision. Together with our partners we advance cost-effective healthcare across the industry. Our value-based services Sydänkaista and Kevyt askel are strong examples of this work. In the initial follow-up cohorts, sickness absence has declined by 99 per cent per annum in Sydänkaista, and by 26 per cent already in a six-month sample in Kevyt askel. Through targeted interventions focused on risk groups, we create value not only by reducing sickness absence and improving individual wellbeing, but also by enhancing labour productivity and reducing the risk of premature retirement.
Despite the challenging market environment, I am pleased with our determined efforts to strengthen our ability to adapt to changes in the industry, while at the same time renewing healthcare through value-based service development. We work in close collaboration with professionals, customers, and partners. My sincere thanks to all for our shared and meaningful work.
Webcast for analysts, investors and media
Pihlajalinna will organise a live webcast meeting for analysts, investors and media, on Tuesday, 28 April 2026, at 10:00 a.m. at https://pihlajalinna.events.inderes.com/q1-2026. 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 Interim Report 1 January-31 March 2026 is attached to this release and available at the company's website at pihlajalinna.fi/en/investors.
Pihlajalinna Plc
Further information:
Tuula Lehto
Executive Vice President, Communications, Marketing and Sustainability
tel. +358 40 588 5343, tuula.lehto@pihlajalinna.fi
Distribution:
Nasdaq Helsinki Ltd.
Key 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.
