ETTEPLAN OYJ Half Year Financial Report August 6, 2025, at 1.00 p.m.
ETTEPLAN Q2 2025: Strategy implementation progressing despite the difficult
market situation
Key points April-June 2025
· The Group's revenue decreased by 1.3 percent and was EUR 91.4 million
(4-6/2024: EUR 92.6 million). At comparable exchange rates, revenue decreased by
1.9 percent.
· Operating profit (EBITA) decreased by 12.1 percent and was EUR 6.0 (6.8)
million, or 6.6 (7.4) percent of revenue.
· Operating profit (EBIT) decreased by 17.8 percent and was EUR 4.4 (5.3)
million, or 4.8 (5.8) percent of revenue.
· The combined effect of non-recurring items on operating profit (EBITA) and
operating profit (EBIT) in April-June was EUR -0.9 (-0.4) million.
· Operating cash flow declined and was EUR 6.9 (9.0) million.
· Basic earnings per share was EUR 0.10 (0.13).
· At the end of June, the share of revenue represented by AI-driven service
solutions developed by Etteplan rose to 4 percent.
· Etteplan issued a profit warning on July 28, 2025, and lowered its previous
estimate of revenue and operating profit (EBIT) for 2025 due to uncertainty in
market demand and weaker-than-expected business development. According to the
new estimate, revenue is estimated to be EUR 365-385 (2024: 361.0) million, and
operating profit (EBIT) will be EUR 19-24 (2024: 18.4). In connection with the
profit warning, Etteplan provided preliminary information on its revenue and
operating profit (EBIT) for the second quarter.
Key points January-June 2025
· The Group's revenue decreased by 1.8 percent and was EUR 186.3 million
(1-6/2024: EUR 189.7 million). At comparable exchange rates, revenue decreased
by 2.3 percent.
· Operating profit (EBITA) decreased by 21.5 percent and was EUR 11.8 (15.0)
million, or 6.3 (7.9) percent of revenue.
· Operating profit (EBIT) decreased by 29.0 percent and was EUR 8.5 (12.0)
million, or 4.6 (6.3) percent of revenue.
· The combined effect of non-recurring items on operating profit (EBITA) and
operating profit (EBIT) in January-June was EUR
· -2.3 (-0.7) million.
· Operating cash flow declined and was EUR 12.0 (17.0) million.
· Basic earnings per share was EUR 0.19 (0.29).
Etteplan also monitors non-IFRS performance measures because they provide
additional information on Etteplan's development. More information on
performance measures is provided at the end of the release.
Key figures
EUR 1,000 4-6/2025 4-6/2024 1-6/2025 1-6/2024 1-12/2024
Revenue 91,430 92,623 186,298 189,741 361,020
Operating 6,002 6,826 11,781 15,012 24,373
profit (EBITA)
EBITA, % 6.6 7.4 6.3 7.9 6.8
Operating 4,388 5,335 8,543 12,031 18,410
profit (EBIT)
EBIT, % 4.8 5.8 4.6 6.3 5.1
Basic earnings 0.10 0.13 0.19 0.29 0.41
per share, EUR
Equity ratio, % 38.4 38.2 38.4 38.2 40.5
Operating cash 6,946 8,973 11,959 17,028 30,961
flow
ROCE, % 8.3 10.8 8.2 12.0 9.4
Personnel at 3,870 3,900 3,870 3,900 3,803
end of the
period
President and CEO Juha Näkki:
The second quarter of the year was short and still a difficult period for us.
The escalation of the trade war further slowed down our customers' decision
-making on new investments, and even some projects that had already been agreed
upon were postponed or canceled. Only the demand from the defense industry and
the energy industry remained at the previous level. As a result, the demand
situation weakened further, contrary to our expectations, and we had to issue a
profit warning and adjust our financial guidance downwards.
We again implemented new adaptation measures during the review period, which
caused significant non-recurring costs and weakened our profitability. We have
now adapted our organizational structure to a level that enables us to operate
even in the prevailing uncertain and unpredictable market environment. We will
continue to look after our operational efficiency, but we expect non-recurring
costs to drop to a clearly lower level in the second half of the year.
We continued to invest in the development of our service offering and the
implementation of our strategy. New service solutions improve our
competitiveness and deliver significant benefits to our customers. Investments
in artificial intelligence delivered results in particular, and we succeeded in
doubling the share of revenue derived from AI-driven service solutions to four
percent. We saw positive development in the Technical Communication and Data
Solutions service area in particular. The result is encouraging and creates a
foundation for growth and improving profitability in the future.
We enter the second half of the year in a highly uncertain situation. The
emerging trade agreement between the EU and the United States may improve the
situation, but its impact on the current year is very difficult to assess at
this point. Nevertheless, we will continue the implementation of our strategy
with determination, and we expect our business to develop positively as the
implementation of the strategy progresses.
Market outlook 2025
The most important factor affecting Etteplan's business is the global
development of the machinery and metal industry. Due to geopolitical tensions
and the trade war, market uncertainty increased further. The increased
uncertainty has further slowed down customers' investment decisions, and even
projects that have already started are being suspended, postponed or even
canceled. This weakens our demand situation and makes it very challenging to
predict the market situation. Investments in the defense industry continue to
increase, and investments in the energy industry are at a moderate level. In our
other customer industries, investments are at a low level and the demand
situation is difficult at present.
Financial guidance 2025
Etteplan issued a profit warning on July 28, 2025, and lowered its previous
estimate of revenue and operating profit (EBIT) for 2025.
Current financial guidance for 2025:
Etteplan issues guidance for revenue and operating profit (EBIT) as a numerical
range and issues the following estimate:
Revenue in 2025 is estimated to be EUR 365-385 (2024: EUR 361.0) million, and
operating profit (EBIT) in 2025 is estimated to be EUR 19-24 (2024: 18.4)
million.
Previous financial guidance for 2025 (May 5, 2025):
Etteplan specifies its financial guidance for revenue and operating profit
(EBIT) within the previously communicated range and issues the following
estimate:
Revenue in 2025 is estimated to be EUR 365-395 (2024: 361.0) million, and
operating profit (EBIT) in 2025 is estimated to be EUR 23-28 (2024: 18.4).
Disclosure procedure
This stock exchange release is a summary of Etteplan's January-June 2025 Half
Year Financial Report. The complete Half Year Financial Report is attached to
this stock exchange release in pdf format and is also available on Etteplan's
website at www.etteplan.com (https://www.etteplan.com/investors).
Conference call and live webcast today, August 6, 2025
Etteplan's President and CEO Juha Näkki will present the Company's results for
January-June 2025 in a conference call and a live webcast, held in English
language, on August 6, 2025 starting at 2.30 p.m. (EEST).
Questions can be asked in Finnish and in English after the President and CEO's
presentation only through conference call connection. Participants must register
through this link
https://palvelu.flik.fi/teleconference/?id=50051397 (https://eur02.safelinks.prot
ection.outlook.com/?url=https%3A%2F%2Fpalvelu.flik.fi%2Fteleconference%2F%3Fid%3D
50051397&data=05%7C02%7CMervi.Suuronen%40etteplan.com%7Cab888daa59e84433d14f08dda
ce51e68%7C1f23d6d3b1584e45b7e17631cf28c804%7C0%7C0%7C638856822244382525%7CUnknown
%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIj
oiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=LoSdikFOYu0%2FCI7HdC9HhnRNG7u%2BNwc
o32Mw7JSU7ck%3D&reserved=0) to ask questions through the conference call lines.
After registering the participants will receive a teleconference number and a
code to join the call. The participants are asked to press *5 to join the queue
for questions.
Juha Näkki's presentation can be followed as a live webcast on
https://etteplan.events.inderes.com/q2
-2025 (https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fetteplan
.events.inderes.com%2Fq2
-2025&data=05%7C02%7CMervi.Suuronen%40etteplan.com%7Cab888daa59e84433d14f08ddace5
1e68%7C1f23d6d3b1584e45b7e17631cf28c804%7C0%7C0%7C638856822244322259%7CUnknown%7C
TWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiT
WFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=eUShLnfbI7Y%2FT3WIZKjjmHgG%2BlBKA1Hi8D
OyL9x05rU%3D&reserved=0). The webcast starts at 2.30 p.m. (EEST). A recording of
the webcast will be later available at
www.etteplan.com (https://www.etteplan.com/investors).
Espoo, August 6, 2025
Etteplan Oyj
Board of Directors
Additional information:
Juha Näkki, President and CEO, tel. +358 10 307 2077
Outi Torniainen, SVP, Marketing and Communications, tel. +358 10 307 3302
The information presented herein has not been audited.
Releases and other corporate information are available on Etteplan's website at
www.etteplan.com (https://www.etteplan.com/investors).
DISTRIBUTION:
Nasdaq Helsinki
Major media
www.etteplan.com
Etteplan in brief
Etteplan is a growing technology service company with the purpose of bringing
people and technology together to change things for the better. Together with
our customers, we are building a world where every system, process, and product
can be made smarter, more efficient, and more sustainable. Our customers include
world's leading companies in the manufacturing industry. In 2024, we had a
revenue of EUR 361.0 million and around 4,000 professionals in Finland, Sweden,
the Netherlands, Germany, Poland, Denmark and China. Etteplan's shares are
listed on Nasdaq Helsinki Ltd under the ETTE ticker. www.etteplan.com