Core Insights - The company reported significant profitability improvement in its Facility Services businesses while maintaining stable performance in its Circular Economy Business [4][5][11] - The outlook for 2025 estimates net sales to remain at the same level as the previous year, with adjusted operating profit projected between EUR 44 million and EUR 48 million [3][83] Financial Performance - For January-September 2025, net sales totaled EUR 571.4 million, a decrease of 0.9% compared to EUR 576.5 million in the same period last year [4][14] - Adjusted operating profit for the same period was EUR 37.7 million, up 15.5% from EUR 32.7 million, indicating improved profitability [14][17] - In the third quarter, net sales increased by 3.8% to EUR 199.5 million, with adjusted operating profit slightly up to EUR 20.1 million [10][14] Business Segments - In the Circular Economy Business, net sales for January-September were EUR 315.5 million, down from EUR 318.6 million, with adjusted operating profit declining to EUR 31.1 million from EUR 33.0 million [21][22] - Facility Services Finland experienced a decrease in net sales to EUR 170.2 million, but adjusted operating profit improved significantly to EUR 11.1 million from EUR 6.8 million [27][28] - Facility Services Sweden saw an increase in net sales to EUR 87.3 million, with adjusted operating results improving to a loss of EUR 2.9 million from a loss of EUR 6.0 million [31][32] Sustainability and Efficiency - 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][47] - An efficiency program was launched aiming for an annual performance improvement of at least EUR 8 million by the end of 2026, with fixed costs decreasing by approximately EUR 3 million in the review period [43][43] 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][80] - 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 [81][82]

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].

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].