Lassila & Tikanoja plc: Half-Year Financial Report 1 January–30 June 2025
Lassila & Tikanoja plc Stock exchange release 7 August 2025 at 8:00 a.m
Lassila & Tikanoja plc: Half-Year Financial Report 1 January–30 June 2025
STABLE PERFORMANCE IN CIRCULAR ECONOMY BUSINESS, PROFITABILITY IMPROVED IN FACILITY SERVICES BUSINESSES
Unless otherwise mentioned, the figures in brackets refer to the corresponding period in the previous year.
Net sales for the second quarter were EUR 196.3 million (199.2). Net sales decreased by 1.5%.
Adjusted operating profit for the second quarter was EUR 14.9 million (12.7), representing 7.6% (6.4) of net sales. Operating profit was EUR 13.0 million (11.0), representing 6.6% (5.5) of net sales. Earnings per share were EUR 0.21 (0.18)
Net sales for January–June were EUR 371.8 million (384.2). Net sales decreased by 3.2%.
Adjusted operating profit for January–June was EUR 17.6 million (12.7) and operating profit was EUR 16.7 million (9.3).
Net cash flow from operating activities after investments totalled EUR 2.4 million (-3.7) in the first half of the year.
Earnings per share for January–June were EUR 0.30 (0.16) and net cash flow from operating activities after investments per share was EUR 0.06 (-0.10).
The pallet repair and recycling business grew following the acquisition of Stena Recycling's pallet business as of 2 June 2025.
The preparation for the partial demerger, initiated in December 2024, progressed as planned during the review period. On 7 August 2025, the Board of Directors of Lassila & Tikanoja plc approved a demerger plan to separate the circular economy business operations into a new publicly listed company. Further information on the demerger plan will be provided in a separate stock exchange release.
Outlook for the year 2025
Net sales in 2025 are estimated to be at the same level as in the previous year, and adjusted operating profit is estimated to be at the same level or better compared to the previous year.
PRESIDENT AND CEO EERO HAUTANIEMI:
"Net sales for the first half of 2025 totalled EUR 371.8 million (384.2). Adjusted operating profit was EUR 17.6 million (12.7). Adjusted operating profit improved significantly in Facility Services Businesses. In the Circular Economy Business, adjusted operating profit declined slightly compared to the previous year, but due to successful efficiency measures, relative profitability remained stable despite the challenging market environment. Net cash flow from operating activities after investments improved by EUR 6 million from the comparison period to EUR 2.4 million.
In Circular Economy Business, relative profitability remained at the level of the comparison period, although the challenging economic cycle affected demand in the first half of the year. Especially in the construction industry customer segment, the demand for recycling and waste management services decreased compared to the comparison period. In the hazardous waste business line, both net sales and profitability remained at a good level. In process cleaning, net sales were expectedly lower than in the strong comparison period. However, annual maintenance breaks in the industrial sector were carried out as planned, and project resourcing was mostly successful. In the environmental construction business, the weak economic situation in the Finnish construction market was reflected in a decrease in the volumes of material flows delivered to material treatment centres. The efficiency measures implemented in 2024 helped to adjust the costs of service production to the current market situation. At the end of the review period, the pallet repair and recycling business grew following the acquisition of Stena Recycling's pallet business. The transaction strengthens L&T's service offering and supports the growth of the Circular Economy Business in line with strategy.
In May 2025, a two-year environmental construction project was launched for Boliden Harjavalta. As part of the construction project, L&T is expanding Boliden Harjavalta's current landfill site, which processes copper and nickel. The extensive expansion project involves building over 16 hectares of new landfill site.
In Facility Services businesses, profitability improved in both Finland and Sweden. In Facility Services Finland, net sales declined during the first half of the year due to a mild winter and the planned optimisation of the customer portfolio. The demand for digital services, such as data-driven cleaning services and AI-assisted energy efficiency services, remained strong. Measures to streamline the cost structure and efficiency of the operations continued, leading to a clear improvement in the division's operating profit. In Facility Services Sweden, operating loss decreased as expected during the first half of the year. Measures to simplify operating models and adjust the cost level continued. The new customer contracts won in late 2024, along with ongoing efforts to enhance profitability, provide a solid foundation for achieving a turnaround in Facility Services Sweden in 2025.
L&T's sustainability performance remained strong during the first half of the year. The company's carbon footprint (Scope 1–2) decreased by 22% compared to the reference period, and customer satisfaction (NPS) reached an all-time high of 41. The reduction in carbon footprint was driven by the expanded use of renewable fuels and investments in low-emission fleet.
In December 2024, the company initiated the planning of the possible separation of its circular economy businesses and facility services businesses into two independent listed companies. The plan is to separate the circular economy businesses into a newly listed company through a partial demerger of Lassila & Tikanoja plc. It is expected that the separation of the circular economy and facility services businesses could increase shareholder value by enabling both businesses to pursue their own strategies and growth opportunities more effectively. The preparation of the partial demerger progressed as planned during the review period, and on 7 August 2025, the Board of Directors of Lassila & Tikanoja plc approved the demerger plan to separate the circular economy business into a new publicly listed company. Further information on the demerger plan will be provided in a separate stock exchange release. The demerger is subject to approval by an Extraordinary General Meeting of the company, which is expected to be held on 4 December 2025. The planned effective date of the demerger is 31 December 2025."
GROUP NET SALES AND FINANCIAL PERFORMANCE
April–JuneNet sales for the second quarter totalled EUR 196.3 million (199.2), representing a year-on-year decrease of 1.5%. The organic decrease in net sales was 1.9%. Adjusted operating profit was EUR 14.9 million (12.7), representing 7.6% (6.4) of net sales. Operating profit was EUR 13.0 million (11.0), representing 6.6% (5.5) of net sales. Operating profit included items affecting comparability totalling EUR 1.9 million. Operating profit was increased by a change of EUR 0.7 million in the fair value of the deferred consideration related to the acquisition of Sand & Vattenbläst i Tyringe AB ("SVB") as well as a release of a provision totalling EUR 0.9 million related to Facility Services Sweden's onerous contracts. Operating profit was decreased by costs affecting comparability totalling EUR 3.5 million consisting mainly of expenses arising from the preparation of the partial demerger, expenses related to business acquisitions as well as expenses related to the ongoing efficiency programme. Earnings per share were EUR 0.21 (0.18).
Net sales increased in Facility Services Sweden and decreased in Circular Economy Business and in Facility Services Finland. Adjusted operating profit improved in Facility Services Finland and Sweden and declined in Circular Economy Business. Operating profit improved in all divisions.
The result of the second quarter was positively affected by the decrease of net financial expenses to EUR -2.0 million (-2.2.). The result of the second quarter was negatively affected by the share of the profit of the joint venture Laania Oy amounting to EUR -0.5 million (0.0). The result of the joint venture Laania was negatively affected by an exceptionally warm spring, which weakened demand for energy wood.
January–JuneNet sales for January-June totalled EUR 371.8 million (384.2), representing a year-on-year decrease of 3.2%. The organic decrease in net sales was 3.5%. Adjusted operating profit was EUR 17.6 million (12.7), representing 4.7% (3.3) of net sales. Operating profit was EUR 16.7 million (9.3), representing 4.5% (2.4) of net sales. Operating profit included items affecting comparability totalling EUR 0.9 million. Operating profit was increased by a change of EUR 2.3 million in the fair value of the deferred consideration related to the acquisition of Sand & Vattenbläst i Tyringe AB ("SVB") as well as a release of a provision totalling EUR 0.9 million related to Facility Services Sweden's onerous contracts. Operating profit was decreased by costs affecting comparability totalling EUR 4.1 million consisting mainly of expenses arising from the preparation of the partial demerger, expenses related to business acquisitions as well as expenses related to the ongoing efficiency programme. Earnings per share were EUR 0.30 (0.16).
Net sales increased in Facility Services Sweden and decreased in Circular Economy Business and in Facility Services Finland. Adjusted operating profit improved in Facility Services Finland and Sweden and declined in Circular Economy Business. Operating profit improved in all divisions.
The result for the review period was improved by the decline of net financial expenses to EUR -3.8 million (-4.0). The share of the profit of the joint venture Laania Oy amounted to EUR 1.2 million (2.1). The result of the joint venture Laania was negatively affected by an exceptionally warm spring, which weakened demand for energy wood.
Financial summary
4-6/2025
4-6/2024
Change %
1-6/2025
1-6/2024
Change %
1-12/2024
Net sales, EUR million
196.3
199.2
-1.5
371.8
384.2
-3.2
770.7
Adjusted operating profit, EUR million
14.9
12.7
17.7
17.6
12.7
38.5
43.2
Adjusted operating margin, %
7.6
6.4
4.7
3.3
5.6
Operating profit, EUR million
13.0
11.0
18.4
16.7
9.3
79.7
9.8
Operating margin, %
6.6
5.5
4.5
2.4
1.3
Adjusted EBITDA, EUR million
29.2
26.8
9.0
45.4
40.6
11.8
99.1
Adjusted EBITDA, %
14.9
13.4
12.2
10.6
12.9
EBITDA, EUR million
27.3
25.1
8.8
44.5
37.2
19.7
89.0
EBITDA, %
13.9
12.6
12.0
9.7
11.5
Earnings per share, EUR
0.21
0.18
16.0
0.30
0.16
84.1
-0.05
Net cash flow from operating activities after investments per share, EUR
