Nurminen Logistics PlcStock Exchange Release23 October 2024 at 9.00 am
This is a summary of Nurminen Logistics' Business Review July-September 2025.
The full report is attached to this release and is also available on Nurminen
Logistics' websiteat http://nurminenlogistics.com/investors/publications/
JULY-SEPTEMBER 2025
• Net sales were EUR 23.8 million (24.2), showing a decrease of 1.3%
• EBITDA was EUR 5.5 million (8.6), or 23.2% (35.4%) of net sales
• EBITA amounted to EUR 3.4 million (7.6), or 14.3% (31.4%) of net sales
• Comparable EBITA was EUR 3.8 million (5.6), or 16.0% (23.3%) of net sales
• Result for the review period totalled EUR 1.6 million (6.7)
• Earnings per share were EUR 0.05 (0.08)
KEY FIGURES
EUR million 7-9/2025 7-9/2024 1-9/2025 1-9/2024
Net sales 23.8 24.2 84.2 81.9
EBITDA 5.5 8.6 19.5 20.5
EBITDA, % 23.2% 35.4% 23.1% 25.0%
Comparable EBITA 3.8 5.6 14.6 15.5
Comparable EBITA, % 16.0% 23.3% 17.3% 18.9%
EBITA 3.4 7.6 13.9 16.8
EBITA % 14.3% 31.4% 16.5% 20.5%
Result for the review period 1.6 6.7 6.9 11.3
Return on equity (ROE), % 3.9% 4.6% 16.4% 15.4%
Equity ratio, % 43.0% 55.1%
Gearing, % 61.0% 41.0%
Interest-bearing net debt / 0.73 0.42
EBITDA
Earnings per share, 0.05 0.08
undiluted (EUR)
Cash flow from operating 14.1 9.7
activities
Cash and cash equivalents at 17.0 5.3
the end of the review period
Number of personnel at the 184 172
end of the review period
UPDATED FINANCIAL GUIDANCE FOR 2025
According to the previous financial guidance (27th February 2025), the Group
estimated that its net sales and comparable EBITA will increase in 2025. The
projected growth in net sales and operating profit is based on the growing rail
operations in the Group's market areas.
According to the updated financial guidance (20th October 2025), the Group
estimates that net sales will grow in 2025, but comparable EBITA will be
slightly behind or on the previous year's level due to weaker-than-expected
development in the volume of its Baltic operations.
PRESIDENT AND CEO'S REVIEW
Nurminen Logistics' net sales for the third quarter amounted to EUR 23.8 million
(24.2), slightly below the comparison period. Comparable EBITA amounted to EUR
3.8 million (5.6), or 16.0% of net sales. The decrease in net sales and EBITA
compared to the comparison period was due to the continued challenging market
situation in the Baltic countries and a non-recurring revenue recognition item
of approximately EUR 1.3 million affecting both net sales and EBITA in North
Rail's operations for the comparison period.
In the Finnish terminal business and freight forwarding, profitability improved
year-on-year and we succeeded in acquiring new customers in a highly competitive
market. We achieved a clearly positive result and new long-term agreements with
key industrial customers strengthen the positive development of business
operations.
In the Baltic countries, demand has remained weak since the spring. Signs of a
slight recovery can be seen towards the end of the year, but no clear recovery
to the usual levels can be seen so far. The Baltic operations' share of the
Group's net sales has decreased to 25.4%, from 38.8% in the comparison period.
Our railway business grew by 20.3% from EUR 14.8 million in the previous year to
EUR 17.8 million, driven by international energy raw material transport and
consumer goods transport, while domestic railway business remained stable.
Ongoing renovation and expansion of the Central European railway infrastructure
has had a more negative impact than expected on transport volumes between
Central Europe and Sweden, particularly due to the slowdown in wagon turnover.
Our balance sheet continued to strengthen and cash flow was strong. It should be
noted that the items affecting comparability recognised in the comparison
period's result did not affect cash flow during the review period, so the
Group's comparatively good performance was reflected in operating cash flow,
with operating cash flow in the third quarter amounting to EUR 2.9 million,
which is more than twice as much as in the comparison period. Also, cash flow
from operating activities for the full year, EUR 14.1 million, was EUR 4.4
million, or 46% stronger than in the comparison period. The Group's cash and
cash equivalents at the end of the review period amounted to EUR 17.0 million
(5.3). The ratio of interest-bearing net debt to 12-month EBITDA adjusted for
the Group's IFRS16 lease liabilities decreased to 0.29. The strong cash position
and low debt-to-equity ratio make it possible to prepare for international
investments required by new business initiatives and to prepare for potential
acquisitions that support the strategy.
Even though the result for the third quarter was below our target level, the
trend is positive in many areas. North Rail's positive performance level, the
gradual improvement of the Baltic market and the strong turnaround in the Cargo
business give confidence for the rest of the year. The acquisition of Essinge
Rail AB has supported the development of our business positively, although the
investments in improving the railway network in Central Europe have hindered the
efficiency of railway transportation more than expected, in terms of increased
transport times, which has also negatively affected the development of the
Swedish business area compared to our expectations. The technology investments
and efficiency improvement measures amounting to more than one million euros in
Group administration will continue during the autumn. Their impacts are
estimated to be fully visible as lower fixed costs during 2026.
In our view, the market conditions in Europe are becoming more volatile in the
long term, and we believe that the coming years will require an even more
flexible and technology-driven operating model. We have begun to restructure the
Group and its operating methods to prepare Nurminen Logistics for the new market
environment - with a stronger balance sheet and as more agile, efficient and
better suited to the real needs of our customers. This allows us to maintain an
industry-leading level of profitability and the prerequisites for growth,
investing in our service offering and adding new services for the benefit of the
customers also geographically. We believe that there will be many changes in the
logistics industry in the near future that will open up new paths for growth.
Amidst this change, Nurminen Logistics is excellently positioned to strengthen
its position in the railway market important to us - both in Europe's internal
traffic and in rail traffic between Europe and Asia. This is supported by the
company's strong expertise, broad clientele and good profitability
As a whole, the logistics market is entering a phase in which growth is
increasingly reliant on efficiency, network management and customer-specific
solution capability. The importance of environmental and sustainability aspects
remains at the heart of decision-making, which supports the demand for rail
transport and strengthens Nurminen Logistics' position as a sustainable
logistics operator.
THE GROUP'S FINANCIAL PERFORMANCE IN JULY-SEPTEMBER 2025
Net sales and financial performance in the review period
Net sales for the review period of EUR 23.8 million (EUR 24.2 million) decreased
by 1.3% compared to the previous year's comparison period due to the challenges
of the Baltic business and North Rail's non-recurring revenue of EUR 1.3 million
recorded in the comparison period 2024. The other units increased their net
sales and improved their results. EBITA for the review period was EUR 3.4
million (EUR 7.6 million) and comparable EBITA was EUR 3.8 million (EUR 5.6
million, including the impact of non-recurring revenue recognition on profit).
Railway business
The railway business grew by 20.3% to EUR 17.8 million year-on-year, driven
particularly by international business. Domestic traffic remained stable. The
non-recurring revenue recognition item of EUR 1.3 million in the comparison
period had a significant impact on comparability between periods, and net sales
growth adjusted for it was 31.9%. Correspondingly, the profitability of the
railway business remained good with comparable EBITA of EUR 2.7 million, while
the comparable EBITA adjusted for the non-recurring revenue recognition for the
comparison period was EUR 2.8 million.
Baltic operations
In the Baltic business, the market situation remained tight as operators
competed for the reduced volumes. The decline in volumes in the market was due
to temporary export restrictions on certain metals transported from Kazakhstan
as well as tariff related uncertainties, to which metal markets reacted quickly.
As a result, net sales declined to EUR 6.1 million (9.4) during the review
period and profitability decreased as a result. However, we kept the relative
profitability on a good level due to low fixed costs. The export restrictions
are expected to be lifted by the end of the year. The Baltic operations
accounted for 25.4% (38.8%) of the Group's net sales for the review period.
EVENTS AFTER THE REVIEW PERIOD
Nurminen Logistics announced on 20th October that it will lower its financial
guidance for 2025.
This business review is not an interim report in accordance with IAS 34 Interim
Financial Reporting. The company complies with the half-yearly reporting in
accordance with the Securities Markets Act, in addition to which the company
publishes business reviews for the first three and nine months of the year. The
business reviews present key information on the Group's financial performance.
The figures in the business review are unaudited.
Nurminen Logistics Plc Board of Directors
For more information, please contact: Olli Pohjanvirta, President and CEO, tel.
+358 40 900 6977
DISTRIBUTION
Nasdaq Helsinki
Major media
nurminenlogistics.com (http://www.nurminenlogistics.com/)
Nurminen Logistics is a Finnish listed company founded in 1886 that offers high
-quality railway transport and terminal and multimodal solutions between Asia
and Europe, in the Nordic countries, and in the Baltic countries.