Core Viewpoint - KH Group Plc has successfully sold its 58.3% stake in Indoor Group, achieving its strategic goal to exit this investment in 2025, while also establishing financing arrangements related to the sale [1][2][5]. Group 1: Transaction Details - The transaction involved a nominal purchase price for the shares sold to a company controlled by Indoor Group's CEO, Kati Kivimäki [1][2]. - Indoor Group has been valued at an enterprise value of EUR 26 million, factoring in its interest-bearing net debt, excluding lease liabilities [2]. - KH Group repaid EUR 2.0 million of Indoor Group's debt to the financing bank and forgave receivables totaling EUR 3.5 million, which included a prior write-down of EUR 2.4 million [2]. Group 2: Financial Impact - KH Group will incur a total loss of EUR 3.3 million in its financial results for 2025 after accounting for transaction-related costs [4]. - The transaction does not affect KH Group's profit guidance for 2025 regarding its continuing operations [4]. Group 3: Strategic Implications - The sale allows KH Group to focus on its core businesses, specifically in earth-moving machinery and rescue vehicles, thereby opening new opportunities for development [5]. - The company's negotiating position for future financing has significantly improved, enabling better resource allocation towards core business development [6]. - Indoor Group's operational continuity is expected to be supported by its new ownership structure, with the CEO being a significant stakeholder [6].

Core Insights - KH Group's net sales increased in the first three quarters of 2025, but operating profit decreased year-on-year [4][8] - The company is focusing on long-term financing and the sale process of Indoor Group, while revising its strategy regarding Nordic Rescue Group [3][12] Financial Performance - For the July–September 2025 period, net sales from continuing operations were EUR 45.3 million, up from EUR 39.7 million, while comparable operating profit decreased to EUR 1.2 million from EUR 1.4 million [8] - For the January–September 2025 period, net sales reached EUR 141.3 million, an increase from EUR 132.3 million, with comparable operating profit declining to EUR 2.2 million from EUR 3.8 million [8] - The updated guidance for 2025 estimates net sales of EUR 190–200 million and comparable operating profit of EUR 5–6 million [4][14] Business Segments - KH-Koneet's net sales increased, but operating profit decreased, with growth in the machine dealership and rental business in Finland, while Sweden's machine rental business performed well [4] - Nordic Rescue Group experienced an increase in both net sales and operating profit in the third quarter, with a favorable order book outlook for 2026 and 2027 [5] Strategic Developments - The company has decided to no longer actively seek a new owner for Nordic Rescue Group, focusing instead on its development within the Group structure [3][12] - The ongoing sale process for Indoor Group is expected to be completed by the end of 2025, with a financial advisor engaged to explore options [7][12] Leadership Changes - A new CEO for KH-Koneet is being recruited following the decision of the long-standing CEO, Teppo Sakari, to step down in the first half of 2026 [6]

Group 1 - KH Group Plc has appointed Carl Haglund as the new CEO, effective September 19, 2025, while he will also continue as Chair of the Board of Directors of Nordic Rescue Group [1][2] - Carl Haglund has extensive experience, having served as CEO of Veritas Pension Insurance Company and held senior roles at Accenture and Sunshine Kaidi New Energy Group, as well as positions in Finnish Parliament and European Parliament [2] - The previous CEO, Ville Nikulainen, will leave his position but will remain with the company to assist in the strategic transformation process until the end of 2025 [2][3] Group 2 - The Board of Directors of KH Group, led by Juha Karttunen, expressed gratitude to Ville Nikulainen for his contributions during the company's transformation journey [3] - KH Group is a Nordic conglomerate involved in construction and earth-moving equipment, rescue vehicle manufacturing, and interior decoration retail, with a strategy focused on creating an industrial group around KH-Koneet [4]

Core Insights - KH Group's net sales from continuing operations increased by 4% year-on-year to EUR 95.9 million for the first half of 2025, while operating profit decreased [6][10] - The profitability of KH-Koneet declined despite a 9% increase in net sales, indicating challenges in maintaining margins [6][10] - The Nordic Rescue Group experienced a decline in net sales, but its operating profit remained stable compared to the previous period [3][10] Financial Performance - For the second quarter of 2025, net sales were EUR 54.2 million, up from EUR 52.2 million in the same period last year, with a comparable operating profit of EUR 0.8 million, down from EUR 2.4 million [8][9] - The first half of 2025 saw comparable operating profit at EUR 1.0 million, a decrease from EUR 2.3 million in the previous year [10] - The Group's equity per share decreased to EUR 0.83 from EUR 1.25, with a return on equity for the rolling 12 months at -40.8% [6] Strategic Developments - KH Group is in the process of divesting its Indoor Group business, with a financial advisor engaged to explore options, aiming for completion in 2025 [4][12] - A reform program in Indoor Group is expected to improve operating profit by at least EUR 10 million annually by the end of 2026, with significant savings already realized in 2025 [5][12] - The company aims to focus on the growth of its core business, KH-Koneet, while assessing exit opportunities for other business areas [12][13] Future Outlook - The guidance for 2025 estimates that net sales will remain around EUR 194.0 million, with comparable operating profit expected to be approximately EUR 7.2 million, maintaining levels from the previous year [13][14] - The company plans to invest in core business growth and pay dividends after significant exits, adhering to its balance sheet structure and financing agreements [12][13]

Core Viewpoint - KH Group is undergoing change negotiations in its Indoor Group division to enhance profitability, with a focus on restructuring and management model renewal [1][2]. Group 1: Change Negotiations - The change negotiations initiated on May 19, 2025, involved 83 employees, with an initial estimate of up to 30 positions potentially being terminated [1]. - The outcome of the negotiations will result in the termination of up to 21 employment relationships and temporary layoffs by the end of May 2026 [2]. Group 2: Profitability Improvement Measures - The negotiations aim to improve profitability by approximately EUR 2 million through management model renewal and function reorganization [2]. - These measures are part of a broader operational model reform expected to enhance Indoor Group's annual operating profit by at least EUR 10 million by the end of 2026 [2]. Group 3: Company Overview - KH Group Plc operates in various sectors, including construction and earth-moving equipment, rescue vehicle manufacturing, and furniture retail [3]. - The company's strategy focuses on creating an industrial group centered around its KH-Koneet business [3].

Group 1 - KH Group's subsidiary Saurus Oy secured an order from Finland's Defence Forces for 14 fire engines and one foam unit, valued at approximately 10 million euros [1] - This order reinforces the long-term relationship between Saurus Oy and Finland's Defence Forces, highlighting the company's role in national security [2] - Nordic Rescue Group, which includes Saurus Oy and Sala Brand AB, reported net sales of 44.2 million euros in 2024, establishing its position as a leading rescue vehicle supplier in the Nordic countries [2] Group 2 - KH Group operates in various business areas, including construction and earth-moving equipment, rescue vehicle manufacturing, and furniture retail [3] - The company's strategy aims to create an industrial group centered around the business of KH-Koneet [3] - KH Group's shares are listed on Nasdaq Helsinki, indicating its presence in the public market [3]

Group 1 - Indoor Group will initiate change negotiations to improve profitability, covering 84 employees in support functions [1][2] - The goal of the negotiations is to achieve a profitability improvement of approximately EUR 2 million as part of a broader operating model reform aimed at an annual operating profit increase of at least EUR 10 million by the end of 2026 [2] - Indoor Group reported an operating loss of EUR 2.5 million in the first quarter, making these profitability improvement measures necessary [3] Group 2 - KH Group operates in various business areas, including construction equipment, rescue vehicles, and furniture retail, with a strategy to create an industrial group around KH-Koneet [3] - KH Group's shares are listed on Nasdaq Helsinki, indicating its presence in the public market [3]

Group 1 - KH Group's subsidiary Indoor Group has updated its financing agreement, extending its validity until 31 August 2025, with conditions that prevent the repayment of loans [1] - There is uncertainty in Indoor Group's financing due to a breach of covenants on 30 September 2024, which may affect its ability to continue as a going concern [2] - KH Group's overall operations are not immediately impacted by Indoor Group's financing situation, as the Group companies have ring-fenced financing [2] Group 2 - KH Group Plc operates in various business areas, including construction and earth-moving equipment, rescue vehicle manufacturing, and furniture retail [3] - The company's strategy aims to create an industrial group centered around the business of KH-Koneet [3] - KH Group's shares are listed on Nasdaq Helsinki [3]

Core Points - KH Group Plc held its Annual General Meeting on 6 May 2025, where all proposals were supported, including the adoption of financial statements for 2024 and the discharge of the Board of Directors and CEO from liability for that period [1] - The General Meeting decided not to distribute any dividends for the financial period ended 31 December 2024 [2] - The remuneration for the Board of Directors remains unchanged, with the Chairman receiving EUR 3,550 per month and each member EUR 2,300 per month [3] - The number of Board members was confirmed at six, with specific individuals elected to serve until the closing of the Annual General Meeting of 2026 [4] - Ernst & Young Oy was elected as the company's auditor and sustainability reporting assurance provider, with Timo Eerola acting as the principally responsible auditor [5][6] - The General Meeting authorized the Board of Directors to issue up to 11,400,000 shares and to repurchase a maximum of 5,700,000 shares, effective until 30 June 2026 [8][10] - The Board of Directors elected Juha Karttunen as Chairman and established an Audit Committee with specific members [13] - All members of the Board of Directors were considered independent of the company and significant shareholders [14]

Core Insights - KH Group Plc experienced moderate growth in net sales and operating profit during the January–March 2025 period compared to the previous year [3] - The company aims to focus on its core business, KH-Koneet, while divesting other business areas [8] Financial Performance - Net sales for the period amounted to EUR 41.8 million, an increase from EUR 40.4 million year-on-year [7] - Comparable operating profit was EUR 0.2 million, improving from a loss of EUR 0.1 million [7] - The net profit from continuing operations was EUR -0.4 million, an improvement from EUR -1.7 million [7] - Earnings per share from continuing operations were EUR -0.01, compared to EUR -0.03 in the previous year [7] - Equity per share decreased to EUR 0.85 from EUR 1.30 [7] - Gearing at the end of the review period was 291.3%, up from 225.3% [7] Business Segments - KH-Koneet saw an increase in net sales and operating profit in Finland and Sweden, particularly in heavy crawler excavators [3] - Nordic Rescue Group's net sales declined, but operating profit remained stable compared to the previous year [3] - Indoor Group faced challenges due to market uncertainty, but a reform program aims for an annual operating profit improvement of at least EUR 10 million by the end of 2026 [4] Strategic Developments - KH Group initiated a sale process for Indoor Group and aims to complete it during 2025 [5] - The company acquired the remaining minority shares of KH-Koneet Group Oy for EUR 2.0 million, making it a fully-owned subsidiary [5] - A performance-based share scheme for key employees of KH-Koneet was established to align their goals with shareholder interests [6] Future Outlook - The company estimates that net sales for 2025 will be approximately EUR 194.0 million, with comparable operating profit remaining around EUR 7.2 million [9] - The focus will be on securing net sales and improving working capital efficiency [6]