Luotea's Financial Statements Release 2025: The partial demerger was completed at year end; significant profitability improvement in continuing operations in 2025

Core Viewpoint - Luotea Plc has shown significant profitability improvement in continuing operations for the year 2025, following the completion of a partial demerger that separated its Circular Economy business into an independent entity named New Lassila & Tikanoja Plc [1][8]. Continuing Operations - For the fourth quarter of 2025, net sales were EUR 88.7 million, a decrease of 1.2% compared to the previous year [7]. - Adjusted EBITA for the fourth quarter was EUR -0.3 million, representing -0.3% of net sales [7]. - For the full year 2025, net sales totaled EUR 346.0 million, down 1.0% from 2024 [7]. - Adjusted EBITA for the year was EUR 7.0 million, which is 2.0% of net sales, a significant increase from EUR 1.2 million (0.3%) in 2024 [7]. Discontinued Operations - The operating profit for discontinued operations in the fourth quarter was EUR 10.8 million, up from EUR 8.7 million in the previous year [7]. - For the full year, the operating profit of discontinued operations was EUR 44.2 million, compared to EUR 41.6 million in 2024 [7]. Outlook for 2026 - The adjusted EBITA for 2026 is expected to increase significantly compared to the adjusted EBITA of EUR 7.0 million for 2025 [6]. Management Insights - The company focused on customer profitability, product development, and data utilization in service production, leading to improved profitability indicators in a challenging market [8]. - Investments were made in occupational safety and employee training, enhancing leadership and sustainability competencies [9]. - The company achieved a Net Promoter Score (NPS) of 18, indicating improved customer satisfaction [9]. Sustainability and Financial Health - Luotea received a Gold level in ECOVADIS, ranking among the top 2% of assessed companies, reflecting its commitment to sustainability [11]. - The company has low net debt and strong cash flow, allowing for a proposed dividend of EUR 0.07 per share for 2025 [11][14]. Future Goals - Luotea aims for profitable growth as an independent company, targeting EUR 400 million in revenue and an EBITA margin of 5% in the medium term [12].