Q2 2025 Terveystalo Oyj Earnings Call Transcript
Key Points
- Terveystalo PLC (FRA:4TS) achieved an all-time high in absolute profitability for Q2 2025, with an EBIT of EUR 36.7 million and an EBIT margin of 11.4%.
- The company's turnaround program in Sweden is progressing as planned, showing improved efficiency and profitability despite lower revenue.
- The Kela 65 pilot program is expected to significantly boost revenue in H2, as it allows citizens over 65 to use private services at public service fees.
- Terveystalo's digital transformation is enhancing efficiency, with plans to launch new technological solutions that will improve customer service and operational efficiency.
- The company maintains a strong balance sheet with a solid leverage ratio, allowing for continued investment in organic growth and disciplined M&A activities.
- Revenue for Q2 2025 was slightly lower than the previous year, with a 6% year-over-year decline in volumes for Healthcare Services.
- The occupational health segment experienced softness due to reduced buying behavior from existing customers, influenced by macroeconomic pressures.
- There was a 4% decline in contracted employees within occupational health care, impacting revenue negatively.
- The company faced headwinds in the staffing market and terminated low-margin outsourcing contracts, affecting revenue.
- Operating cash flow was lower compared to the previous year, influenced by normal seasonality and timing of tax payments.
Good morning, everybody, and welcome to Terveystalo's Q2 results call and webcast. My name is Kati Kaksonen. I'm responsible for Terveystalo's Investor Relations and Sustainability. As usual, present -- our CEO, Ville Iho; and our CFO, Juuso Pajunen, will present the results, followed by Q&A. We'll take questions, both via the phone lines as well as from the webcast after the presentation.
Without further ado, over to you, Ville.
Thank you, Kati. So let's dive straight to the key highlights of Q2. So Terveystalo profitability journey continues. Q2 '25 was all-time high in absolute profitability. EBIT of EUR36.7 million and relative profitability, with EBIT margin of 11.4%. This was done even with slightly lower revenue than previous year. Basically all of the KPIs that we are reporting on a very high level, except for the revenue, and that one, we'll discuss in
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