Lassila & Tikanoja plc: Interim Report 1 January–30 September 2025

Core Insights - The company reported significant profitability improvement in its Facility Services businesses, while the Circular Economy Business showed stable performance despite a slight decline in adjusted operating profit [3][4][11]. Financial Performance - For January to September 2025, net sales totaled EUR 571.4 million, a decrease of 0.9% compared to the previous year [6][13]. - Adjusted operating profit for the same period was EUR 37.7 million, up 15.5% from EUR 32.7 million in the previous year [6][13]. - The third quarter net sales were EUR 199.5 million, representing a year-on-year increase of 3.8% [10][17]. - Adjusted operating profit for the third quarter was EUR 20.1 million, slightly up from EUR 20.0 million in the previous year [10][17]. Business Segments Circular Economy Business - Net sales for the Circular Economy Business in January to September were EUR 315.5 million, down from EUR 318.6 million [19]. - Adjusted operating profit for this segment was EUR 31.1 million, a decline from EUR 33.0 million in the previous year [19]. - Demand for recycling and waste management services decreased, particularly in the construction industry [4][20]. Facility Services - Facility Services Finland reported net sales of EUR 170.2 million, down from EUR 179.2 million, but adjusted operating profit improved to EUR 11.1 million from EUR 6.8 million [26][27]. - Facility Services Sweden saw an increase in net sales to EUR 87.3 million from EUR 80.9 million, with adjusted operating results improving to a loss of EUR 2.9 million from a loss of EUR 6.0 million [29][30]. Outlook - The company estimates that net sales in 2025 will be at the same level as in the previous year, with adjusted operating profit projected to be between EUR 44 million and EUR 48 million [2][77]. Sustainability Performance - The company's carbon footprint decreased by 19% compared to the previous year, driven by the use of renewable fuels and investments in a low-emission fleet [8][45]. - Customer satisfaction reached an all-time high with a Net Promoter Score (NPS) of 41 [8][45]. Demerger Plans - The company is preparing for a partial demerger to separate its Circular Economy business into a new publicly listed company, with the plan approved by the Board of Directors on August 7, 2025 [9][75]. - The demerger is subject to approval at an Extraordinary General Meeting scheduled for December 4, 2025, with an effective date planned for December 31, 2025 [9][76].