Pihlajalinna Plc Interim Report 31 October
2025 at 8:00 a.m. EET
Pihlajalinna Interim Report 1 January-30 September 2025
Pihlajalinna's profitability improved despite weaker demand compared to
comparison period
This Interim Report is unaudited. The comparison figures in brackets refer to
the corresponding period in the previous year.
July-September in brief:
· Revenue amounted to EUR 148.7 (164.0) million - a decrease of -9.3 per cent.
· Comparable organic revenue decrease[1)] was EUR -3.3 million, or -2.2 per
cent.
· In Private Healthcare Services segment, revenue amounted to EUR 105.3
(103.7) million. Revenue increased 1.5 per cent.
· In Public Services segment, revenue amounted to EUR 46.3 (62.9) million.
Changes in outsourcing agreements decreased revenue by EUR -9.2 million.
Comparable organic[1)] revenue decrease was -9,2 per cent.
· Adjusted EBITA[2)] was EUR 14.4 (13.5) million, an increase of 6.9 per cent.
· Net cash flow from operating activities amounted to EUR 7.3 (9.0) million.
· Earnings per share (EPS) was EUR 0.51 (0.26)[3)].
· In late September, Pihlajalinna initiated a group-wide reform to renew its
operational model and change negotiations related to it. According to estimate,
the planned changes could lead to a reduction of up to 90 roles, primarily
administrative roles, and substantial changes up to 120 positions.
January-September in brief:
· Revenue amounted to EUR 501.4 (522.0) million - a decrease of -3.9 per cent.
· Comparable organic revenue growth[1) ]was EUR 4.2 million, or 0.8 per cent.
· In Private Healthcare Services segment, revenue amounted to EUR 346.0
(330.6) million. Revenue increased 4.7 per cent.
· In Public Services segment, revenue amounted to EUR 165.3 (201.7) million.
Changes in outsourcing agreements decreased revenue by EUR -21.1 million.
Comparable organic[1)] revenue decrease was -6.6 per cent.
· Adjusted EBITA[2)] was EUR 47.1 (39.8) million - an increase of 18.2 per
cent.
· Net cash flow from operating activities amounted to EUR 58.2 (67.7) million.
· Earnings per share (EPS) was EUR 1.35 (0.75)[3)].
[1)] Changes in outsourcing agreements and divestments have been excluded from
the comparison period revenue.
[2)] Alternative performance measure. In addition to the IFRS figures,
Pihlajalinna presents additional, alternative performance indicators which the
company monitors internally, and which provide the company's management,
investors, stock market analysts and other stakeholders with important
additional information concerning the company's financial performance, financial
position and cash flows. These performance indicators should not be reviewed
separately from the IFRS figures, and they should not be considered as replacing
the IFRS figures.
[3)] Earnings per share was increased by the sales gain from the divestment of
residential care units, changes in non-controlling interests and previously
unrecognised deferred tax assets from tax losses within the Group.
Key figures
EUR million 7-9/20 7-9/20 change 1-9/20 1-9/20 change 2024
25 24 % 25 24 %
INCOME
STATEMENT
Revenue 148.7 164.0 -9.3 501.4 522.0 -3.9 704.4
Adjusted EBITA 14.4 13.5 6.9 47.1 39.8 18.2 55.2
¹⁾
Adjusted 9.7 8.2 9.4 7.6 7.8
EBITA, % ¹⁾
Operating 14.8 11.7 26.8 44.2 33.9 30.2 48.5
profit (EBIT)
Operating 10.0 7.1 8.8 6.5 6.9
profit (EBIT),
%
Adjusted 12.8 11.7 9.7 42.2 34.2 23.2 47.7
operating
profit
(EBIT) ¹⁾
Adjusted 8.6 7.1 8.4 6.6 6.8
operating
profit
(EBIT), % ¹⁾
Profit before 13.0 9.5 37.7 38.9 26.4 47.6 38.6
tax (EBT)
SHARE-RELATED
INFORMATION
Earnings per 0.51 0.26 99.3 1.35 0.75 79.7 1.13
share (EPS),
EUR
Equity per 8.22 7.20 14.2 7.59
share, EUR
OTHER KEY
FIGURES
Return on 12.2 6.4 91.8 9.7
capital
employed
(ROACE), %
Return on 23.7 9.3 153.8 19.2
equity (ROE),
%
Equity ratio, 31.0 26.0 19.2 26.8
%
Gearing, % 145.9 201.9 -27.8 175.5
Interest 272.3 324.4 -16.0 296.6
-bearing net
debt
Net 2.6 3.4 -24.2 2.9
debt/adjusted
EBITDA, 12
months ¹⁾
Interest 86.8 124.6 -30.3 101.8
-bearing net
debt
excluding IFRS
16
Net 1.2 1.9 -39.8 1.46
debt/adjusted
EBITDA,
excluding IFRS
16, 12 months
¹⁾
Cash flow from 7.3 9.0 -19.6 58.2 67.7 -14.0 100.8
operating
activities
Average number 4,181 4,449 -6.0 4,416
of personnel
(FTE)
Personnel at 4,890 6,505 -24.8 6,493
the end of the
period (NOE)
Number of 2,233 2,098 6.4 2,145
practitioners
NPS, Private 83.0 86.0 84.0 84.0 0.0 85.0
Healthcare
Services
NPS, Public 80.0 76.0 79.0 78.0 1.3 78.0
Services
eNPS (entire 12.0 1.0 1,100 9.0
Group)
[1)] Pihlajalinna has changed the definition of adjustment items affecting
comparability effective from 1 January 2025. The change simplifies the previous
definition. The comparison figures have not been adjusted, as the change does
not materially affect the adjusted key figures reported for the year 2024.
Pihlajalinna's definition of adjustment items affecting comparability effective
from 1 January 2025:
Items affecting comparability are non-recurring and material events that are not
part of normal day-to-day operations. Items affecting comparability include,
among other items, costs related to business acquisitions, costs related to
restructuring measures, impairment of assets, and gains and losses arising from
the sale or discontinuation of business operations. Items affecting
comparability only include events with an impact on profit or loss of more than
EUR 0.1 million.
Pihlajalinna's definition of adjustment items affecting comparability that was
used until 31 December 2024:
Significant transactions that are not part of the normal course of business, are
related to business acquisition costs (IFRS 3), are infrequently occurring
events or valuation items that do not affect cash flow are treated as adjustment
items affecting comparability between review periods. According to
Pihlajalinna's definition, such items include, for example, restructuring
measures, impairment of assets and the remeasurement of previous assets held by
subsidiaries, the costs of closing businesses and business locations, gains and
losses on the sale of businesses, costs arising from operational restructuring
and the integration of acquired businesses, costs related to the termination of
employment relationships as well as fines and corresponding compensation
payments. Pihlajalinna has also presented costs according to the IFRS
Interpretations Committee's Agenda Decision concerning cloud computing
arrangements, and reversals of amortisation, as adjustment items. Cloud
computing arrangements costs and reversals of amortisation according to the IFRS
Interpretations Committee's Agenda Decision has not been presented as adjustment
items since 1 Jan 2024.
According to the updated definition, adjusted operating profit before
amortisation of intangible assets (EBITA) for the comparison period 1 January-30
September 2024 would have been EUR 39.5 million, and adjusted EBITA for the
financial year 1 January-31 December 2024 would have been EUR 54.4 million.
EBITDA adjustments during the review period amounted to EUR -6.0 (0.3) million
and EUR -2,6 (0,0) million in the quarter. Adjustments to operating profit
during the review period amounted to EUR -2.0 (0.3) million and EUR -2,0 (0,0)
million in the quarter.
Pihlajalinna's outlook for 2025, updated 30 October 2025
In 2025, Pihlajalinna will focus on organic growth, especially in Private
Healthcare Services, and continued improvement in profitability.
· The Group estimates the revenue to be approximately EUR 650 million (EUR
704.4 million in 2024)
· The Group estimates the adjusted operating profit before the amortisation
and impairment of intangible assets (EBITA) increase to at least EUR 65 million
(EUR 55.2 million in 2024).
Tuomas Hyyryläinen, CEO:
The third quarter of 2025 was an eventful period for Pihlajalinna. We launched a
surgical collaboration pilot in Savonlinna and initiated the 65plus services in
line with Kela's freedom-of-choice pilot. We also began reforming our operating
model, including related change negotiations. After the review period, the
Wellbeing Services County of Pirkanmaa selected Pihlajalinna as the service
provider for the outsourcing of services in Northern Pirkanmaa.
Our profitability continued to strengthen. Adjusted EBITA increased to EUR 14.4
(13.5) million, with an adjusted EBITA margin of 9.7 per cent (8.2). Our
financial position continued to strengthen, and the net debt/adjusted EBITDA
ratio was 2.6. Revenue decreased as expected to EUR 148.7 (164.0) million due to
the controlled transfer of outsourcing agreements to the Wellbeing Services
Counties. Additionally, the divestments of residential care units also
contributed to the decrease in revenue but partly increased earnings per share
to EUR 0.51 (0.26).
Revenue from Private Healthcare Services segment increased to EUR 105.2 (103.7)
million, with the adjusted EBITA margin remaining at 7 per cent, the same level
as the comparison period. While our service offering remained strong during the
summer months, demand was weaker than in the previous year. Public sector cost
-saving pressures kept service voucher purchases and direct procurement volumes
low. A temporary change in customer guidance by an insurance partner in the
second quarter also affected the number of care pathways in the third quarter.
Fixed-price occupational healthcare contracts continued to weigh on
profitability, but our actions in them are progressing as planned. We continued
to implement measures aimed at business growth and profitability, with results
gradually becoming visible in Private Healthcare Services.
In Public Services segment, revenue decreased as expected to EUR 46.3 (62.9)
million. The segment's adjusted EBITA margin rose to 16.4 per cent (9.9 per
cent). We continued the controlled transfer of outsourcing agreements' services
to the Wellbeing Services Counties. At the end of August operations of Jämsän
Terveys and Jokilaakso hospital were transferred to the Wellbeing Services
County of Central Finland. Similarly, the social services of Kuusiolinna Terveys
were transferred to the Wellbeing Services County of South Ostrobothnia. The
quarter also included the sale of two residential care units. Customer
experience in Public Services improved to 80 (76). We have been able to deliver
high-quality customer-oriented services in a changing operating environment.
In September, a new model of public-private partnership was launched at
Savonlinna hospital, leveraging our unique expertise developed at Jokilaakso
Hospital. In collaboration with the Wellbeing Services County of South Savo, we
primarily provide joint replacement surgeries. As part of the pilot, we also
offer outpatient and surgical services to private and insurance customers.
Together with our partner, we are reforming healthcare in a cost-effective and
impactful way.
The Kela freedom-of-choice pilot for people aged 65 and over began, and
Pihlajalinna's 65plus services were successfully launched. The number of
customers aligns with our market share, and customer satisfaction is excellent
(NPS 98). We have welcomed new customers to our services and are expanding our
offering based on demand to support access to care for the elderly and ease the
burden on wellbeing services counties.
After the review period, we received confirmation that the Wellbeing Services
County of Pirkanmaa had selected Pihlajalinna as the service provider for the
outsourcing of services in Northern Pirkanmaa, starting next spring. Together
with the Wellbeing Services County, we get to develop even more impactful cost
-effective value-based social and healthcare services for the region's
residents. The estimated total value of the procurement over the five-year
contract period is at least EUR 222 million.
In spring 2025, we renewed our strategy and are transitioning to a new operating
model. We are clarifying responsibilities, accelerating decision-making, and
harmonising service production. These improvements will benefit both our
professionals in their daily work and our partners through even higher-quality
services and collaboration.
Webcast for analysts, investors and media
Pihlajalinna will organise a live webcast meeting for analysts, investors and
media on Friday, 31 October, 2025 at 10:00 a.m. EET.
at https://pihlajalinna.events.inderes.com/q3-2025. The event will be conducted
in Finnish. The recording of the event will be available later on the same
website as the live webcast.
Pihlajalinna Plc's full Interim Report 1 January-30 September 2025 is attached
to this release and available at company's
website (https://investors.pihlajalinna.fi/?sc_lang=en).
Pihlajalinna Plc
Further information:
Tuula Lehto, Executive Vice President, Communications and Sustainability
+358 40 588 5343, tuula.lehto@pihlajalinna.fi
Distribution:
Nasdaq Helsinki
Key media
investors.pihlajalinna.fi
Pihlajalinna in brief
Pihlajalinna is a healthcare reformer, building effective care pathways and the
most attractive corporate culture in the industry. Pihlajalinna offers customer
-driven and effective service models to its partners: insurance companies,
corporations and wellbeing services counties. The Group provides comprehensive,
high-quality services through private clinics, hospitals, remote channels,
occupational healthcare, and tailored social and healthcare solutions for the
public sector. Approximately 5,000 employees and 2,200 practitioners work at
Pihlajalinna. In 2024, Pihlajalinna's revenue was 704 million euros.
Pihlajalinna's shares are listed on Nasdaq Helsinki Oy. Read more
www.pihlajalinna.fi.