Financial Performance - Net sales for the first half of 2025 totaled EUR 371.8 million, a decrease of 3.2% compared to EUR 384.2 million in the same period last year [3][6][13] - Adjusted operating profit for January–June was EUR 17.6 million, up 38.5% from EUR 12.7 million in the previous year [3][6][13] - Net cash flow from operating activities after investments improved to EUR 2.4 million from a negative EUR 3.7 million in the comparison period [3][6][29] Business Segments - In the Circular Economy Business, net sales for January–June were EUR 199.4 million, down from EUR 208.2 million, with adjusted operating profit slightly declining to EUR 16.0 million [18][19] - Facility Services Finland saw a decrease in net sales to EUR 115.3 million from EUR 121.8 million, but operating profit improved significantly to EUR 6.3 million from EUR 1.9 million [24][25] - Facility Services Sweden's net sales increased to EUR 58.2 million from EUR 55.7 million, with adjusted operating loss decreasing to EUR -3.1 million from EUR -4.6 million [27][28] Strategic Developments - The company is progressing with a partial demerger plan to separate its Circular Economy business into a new publicly listed company, with the Board of Directors approving the demerger plan on August 7, 2025 [9][70] - The acquisition of Stena Recycling's pallet business, completed on June 2, 2025, is expected to enhance the service offering and support growth in the Circular Economy Business [21] - A two-year environmental construction project for Boliden Harjavalta was launched in May 2025, involving the expansion of a landfill site [5][20] Sustainability and Efficiency - The company's carbon footprint decreased by 22% compared to the previous year, driven by the use of renewable fuels and investments in a low-emission fleet [8][40] - The efficiency program initiated in 2025 aims for an annual performance improvement of at least EUR 8 million by the end of 2026, with fixed costs decreasing by approximately EUR 2 million in the first half of 2025 [37] - The recycling rate of material flows managed by the company rose to 61.7%, up from 58.9% in the previous year [40][41] Financial Position - Interest-bearing liabilities at the end of the review period amounted to EUR 195.3 million, down from EUR 214.5 million [30] - The average interest rate on long-term loans decreased to 3.2% from 4.0% [30] - The equity ratio was 34.0%, slightly down from 34.5% in the previous year [36]

Core Viewpoint - Lassila & Tikanoja plc reported a strong start to 2025, with improved adjusted operating profit despite a decrease in net sales, and is progressing with plans for a partial demerger to enhance shareholder value [3][6][49]. Financial Performance - Net sales for Q1 2025 totaled EUR 175.5 million, a decrease of 5.1% compared to EUR 185.0 million in Q1 2024 [10][8]. - Adjusted operating profit was EUR 2.7 million, significantly improved from EUR 0.0 million in the previous year, representing 1.5% of net sales [10][3]. - Operating profit improved to EUR 3.7 million from a loss of EUR 1.7 million in the previous year, with an operating margin of 2.1% [10][8]. - Net cash flow from operating activities after investments was EUR 6.6 million, an improvement of EUR 16 million from the comparison period [3][18]. Business Segments Circular Economy Business - Net sales for the Circular Economy Business were EUR 89.5 million, down from EUR 93.0 million, with adjusted operating profit slightly decreasing to EUR 2.5 million [11][13]. - Demand for recycling and waste management services in the construction industry decreased, but demand in hazardous waste remained stable [4][13]. Facility Services Facility Services Finland - Net sales decreased to EUR 58.3 million from EUR 63.3 million, but operating profit improved to EUR 2.1 million from a loss of EUR 0.1 million [14][15]. - Strong demand for digital services contributed to profitability improvements despite the decrease in net sales [5][15]. Facility Services Sweden - Net sales were EUR 28.3 million, down from EUR 29.5 million, with operating loss reduced to EUR -1.5 million from EUR -2.1 million [16][17]. - New customer contracts and ongoing efficiency measures are expected to support a turnaround in 2025 [5][17]. Strategic Developments - The company is planning a partial demerger to separate its circular economy and facility services businesses into two independent listed companies, which is expected to enhance shareholder value [6][49]. - An efficiency program was launched aiming for an annual performance improvement of at least EUR 8 million by the end of 2026 [52][48]. Sustainability and Personnel - The company reported a favorable development in its carbon footprint, attributed to increased use of renewable fuels and a mild winter [26][27]. - The average number of employees converted into full-time equivalents was 5,857, a decrease from 6,305 in the previous year [28][30]. Shareholder Information - The Annual General Meeting resolved to pay a dividend of EUR 0.50 per share, totaling EUR 19.1 million, on 7 April 2025 [24][42]. - The market capitalization at the end of the review period was EUR 319.7 million, down from EUR 335.9 million [32].