Lassila & Tikanoja plc: Half-Year Financial Report 1 January–30 June 2025
7 augusti, 07:00
Lassila & Tikanoja plc
Stock exchange release
7 August 2025 at 8:00 a.m
Lassila & Tikanoja plc: Half-Year Financial Report 1 January–30 June 2025
STABLE PERFORMANCE IN CIRCULAR ECONOMY BUSINESS, PROFITABILITY IMPROVED IN FACILITY SERVICES BUSINESSES
Unless otherwise mentioned, the figures in brackets refer to the corresponding period in the previous year.
- Net sales for the second quarter were EUR 196.3 million (199.2). Net sales decreased by 1.5%.
- Adjusted operating profit for the second quarter was EUR 14.9 million (12.7), representing 7.6% (6.4) of net sales. Operating profit was EUR 13.0 million (11.0), representing 6.6% (5.5) of net sales. Earnings per share were EUR 0.21 (0.18)
- Net sales for January–June were EUR 371.8 million (384.2). Net sales decreased by 3.2%.
- Adjusted operating profit for January–June was EUR 17.6 million (12.7) and operating profit was EUR 16.7 million (9.3).
- Net cash flow from operating activities after investments totalled EUR 2.4 million (-3.7) in the first half of the year.
- Earnings per share for January–June were EUR 0.30 (0.16) and net cash flow from operating activities after investments per share was EUR 0.06 (-0.10).
- The pallet repair and recycling business grew following the acquisition of Stena Recycling’s pallet business as of 2 June 2025.
- The preparation for the partial demerger, initiated in December 2024, progressed as planned during the review period. On 7 August 2025, the Board of Directors of Lassila & Tikanoja plc approved a demerger plan to separate the circular economy business operations into a new publicly listed company. Further information on the demerger plan will be provided in a separate stock exchange release.
Outlook for the year 2025
Net sales in 2025 are estimated to be at the same level as in the previous year, and adjusted operating profit is estimated to be at the same level or better compared to the previous year.
PRESIDENT AND CEO EERO HAUTANIEMI:
“Net sales for the first half of 2025 totalled EUR 371.8 million (384.2). Adjusted operating profit was EUR 17.6 million (12.7). Adjusted operating profit improved significantly in Facility Services Businesses. In the Circular Economy Business, adjusted operating profit declined slightly compared to the previous year, but due to successful efficiency measures, relative profitability remained stable despite the challenging market environment. Net cash flow from operating activities after investments improved by EUR 6 million from the comparison period to EUR 2.4 million.
In Circular Economy Business, relative profitability remained at the level of the comparison period, although the challenging economic cycle affected demand in the first half of the year. Especially in the construction industry customer segment, the demand for recycling and waste management services decreased compared to the comparison period. In the hazardous waste business line, both net sales and profitability remained at a good level. In process cleaning, net sales were expectedly lower than in the strong comparison period. However, annual maintenance breaks in the industrial sector were carried out as planned, and project resourcing was mostly successful. In the environmental construction business, the weak economic situation in the Finnish construction market was reflected in a decrease in the volumes of material flows delivered to material treatment centres. The efficiency measures implemented in 2024 helped to adjust the costs of service production to the current market situation. At the end of the review period, the pallet repair and recycling business grew following the acquisition of Stena Recycling’s pallet business. The transaction strengthens L&T’s service offering and supports the growth of the Circular Economy Business in line with strategy.
In May 2025, a two-year environmental construction project was launched for Boliden Harjavalta. As part of the construction project, L&T is expanding Boliden Harjavalta’s current landfill site, which processes copper and nickel. The extensive expansion project involves building over 16 hectares of new landfill site.
In Facility Services businesses, profitability improved in both Finland and Sweden. In Facility Services Finland, net sales declined during the first half of the year due to a mild winter and the planned optimisation of the customer portfolio. The demand for digital services, such as data-driven cleaning services and AI-assisted energy efficiency services, remained strong. Measures to streamline the cost structure and efficiency of the operations continued, leading to a clear improvement in the division's operating profit. In Facility Services Sweden, operating loss decreased as expected during the first half of the year. Measures to simplify operating models and adjust the cost level continued. The new customer contracts won in late 2024, along with ongoing efforts to enhance profitability, provide a solid foundation for achieving a turnaround in Facility Services Sweden in 2025.
L&T’s sustainability performance remained strong during the first half of the year. The company’s carbon footprint (Scope 1–2) decreased by 22% compared to the reference period, and customer satisfaction (NPS) reached an all-time high of 41. The reduction in carbon footprint was driven by the expanded use of renewable fuels and investments in low-emission fleet.
In December 2024, the company initiated the planning of the possible separation of its circular economy businesses and facility services businesses into two independent listed companies. The plan is to separate the circular economy businesses into a newly listed company through a partial demerger of Lassila & Tikanoja plc. It is expected that the separation of the circular economy and facility services businesses could increase shareholder value by enabling both businesses to pursue their own strategies and growth opportunities more effectively. The preparation of the partial demerger progressed as planned during the review period, and on 7 August 2025, the Board of Directors of Lassila & Tikanoja plc approved the demerger plan to separate the circular economy business into a new publicly listed company. Further information on the demerger plan will be provided in a separate stock exchange release. The demerger is subject to approval by an Extraordinary General Meeting of the company, which is expected to be held on 4 December 2025. The planned effective date of the demerger is 31 December 2025.”
GROUP NET SALES AND FINANCIAL PERFORMANCE
April–June
Net sales for the second quarter totalled EUR 196.3 million (199.2), representing a year-on-year decrease of 1.5%. The organic decrease in net sales was 1.9%. Adjusted operating profit was EUR 14.9 million (12.7), representing 7.6% (6.4) of net sales. Operating profit was EUR 13.0 million (11.0), representing 6.6% (5.5) of net sales. Operating profit included items affecting comparability totalling EUR 1.9 million. Operating profit was increased by a change of EUR 0.7 million in the fair value of the deferred consideration related to the acquisition of Sand & Vattenbläst i Tyringe AB (“SVB”) as well as a release of a provision totalling EUR 0.9 million related to Facility Services Sweden’s onerous contracts. Operating profit was decreased by costs affecting comparability totalling EUR 3.5 million consisting mainly of expenses arising from the preparation of the partial demerger, expenses related to business acquisitions as well as expenses related to the ongoing efficiency programme. Earnings per share were EUR 0.21 (0.18).
Net sales increased in Facility Services Sweden and decreased in Circular Economy Business and in Facility Services Finland. Adjusted operating profit improved in Facility Services Finland and Sweden and declined in Circular Economy Business. Operating profit improved in all divisions.
The result of the second quarter was positively affected by the decrease of net financial expenses to EUR -2.0 million (-2.2.). The result of the second quarter was negatively affected by the share of the profit of the joint venture Laania Oy amounting to EUR -0.5 million (0.0). The result of the joint venture Laania was negatively affected by an exceptionally warm spring, which weakened demand for energy wood.
January–June
Net sales for January-June totalled EUR 371.8 million (384.2), representing a year-on-year decrease of 3.2%. The organic decrease in net sales was 3.5%. Adjusted operating profit was EUR 17.6 million (12.7), representing 4.7% (3.3) of net sales. Operating profit was EUR 16.7 million (9.3), representing 4.5% (2.4) of net sales. Operating profit included items affecting comparability totalling EUR 0.9 million. Operating profit was increased by a change of EUR 2.3 million in the fair value of the deferred consideration related to the acquisition of Sand & Vattenbläst i Tyringe AB (“SVB”) as well as a release of a provision totalling EUR 0.9 million related to Facility Services Sweden’s onerous contracts. Operating profit was decreased by costs affecting comparability totalling EUR 4.1 million consisting mainly of expenses arising from the preparation of the partial demerger, expenses related to business acquisitions as well as expenses related to the ongoing efficiency programme. Earnings per share were EUR 0.30 (0.16).
Net sales increased in Facility Services Sweden and decreased in Circular Economy Business and in Facility Services Finland. Adjusted operating profit improved in Facility Services Finland and Sweden and declined in Circular Economy Business. Operating profit improved in all divisions.
The result for the review period was improved by the decline of net financial expenses to EUR -3.8 million (-4.0). The share of the profit of the joint venture Laania Oy amounted to EUR 1.2 million (2.1). The result of the joint venture Laania was negatively affected by an exceptionally warm spring, which weakened demand for energy wood.
Financial summary
4-6/2025 | 4-6/2024 | Change % | 1-6/2025 | 1-6/2024 | Change % | 1-12/2024 | |
Net sales, EUR million | 196.3 | 199.2 | -1.5 | 371.8 | 384.2 | -3.2 | 770.7 |
Adjusted operating profit, EUR million | 14.9 | 12.7 | 17.7 | 17.6 | 12.7 | 38.5 | 43.2 |
Adjusted operating margin, % | 7.6 | 6.4 | 4.7 | 3.3 | 5.6 | ||
Operating profit, EUR million | 13.0 | 11.0 | 18.4 | 16.7 | 9.3 | 79.7 | 9.8 |
Operating margin, % | 6.6 | 5.5 | 4.5 | 2.4 | 1.3 | ||
Adjusted EBITDA, EUR million | 29.2 | 26.8 | 9.0 | 45.4 | 40.6 | 11.8 | 99.1 |
Adjusted EBITDA, % | 14.9 | 13.4 | 12.2 | 10.6 | 12.9 | ||
EBITDA, EUR million | 27.3 | 25.1 | 8.8 | 44.5 | 37.2 | 19.7 | 89.0 |
EBITDA, % | 13.9 | 12.6 | 12.0 | 9.7 | 11.5 | ||
Earnings per share, EUR | 0.21 | 0.18 | 16.0 | 0.30 | 0.16 | 84.1 | -0.05 |
Net cash flow from operating activities after investments per share, EUR | -0.11 | 0.15 | 0.06 | -0.10 | 1.07 | ||
Return on equity (ROE), % | 11.3 | 5.6 | -0.8 | ||||
Capital employed, EUR million1 | 398.1 | 432.0 | -7.8 | 396.1 | |||
Return on capital employed (ROCE), %1 | 4.9 | 9.7 | 3.3 | ||||
Equity ratio, %1 | 34.0 | 34.5 | 35.4 | ||||
Gearing, %1 | 87.9 | 89.7 | 73.2 |
1 The figure for the second quarter of 2024 has been adjusted. The adjustment relates to the correction of an error made in the 2024 financial statements concerning the figures for 2023. More information about the error correction is presented in the 2024 consolidated financial statements.
NET SALES AND OPERATING PROFIT BY DIVISION
Circular Economy Business
April–June
The net sales of the Circular Economy Business for the second quarter were EUR 109.9 million (115.2). Adjusted operating profit was EUR 13.5 million (14.0). Operating profit was EUR 14.2 million (13.9). Operating profit was increased by a change of EUR 0.7 million in the fair value of the deferred consideration related to the acquisition of Sand & Vattenbläst i Tyringe AB (“SVB”). The change in the fair value is due to the increase of SVB’s net interest-bearing liabilities as well as the decline in SVB’s EBITDA forecast for year 2025.
January–June
The net sales of the Circular Economy Business for January-June were EUR 199.4 million (208.2). Adjusted operating profit was EUR 16.0 million (16.6). Operating profit was EUR 18.4 million (16.2). Operating profit was increased by a change of EUR 2.3 million in the fair value of the deferred consideration related to the acquisition of Sand & Vattenbläst i Tyringe AB (“SVB”). The change in the fair value is due to the increase of SVB’s net interest-bearing liabilities as well as the decline in SVB’s EBITDA forecast for year 2025.
In Circular Economy Business, relative profitability remained at the level of the comparison period, although the challenging economic cycle affected demand in the first half of the year. Especially in the construction industry customer segment, the demand for recycling and waste management services decreased compared to the comparison period. In the hazardous waste business line, both net sales and profitability remained at a good level. In process cleaning, net sales were expectedly lower than in the strong comparison period. However, annual maintenance breaks in the industrial sector were carried out as planned, and project resourcing was mostly successful. In the environmental construction business, the weak economic situation in the Finnish construction market was reflected in a decrease in the volumes of material flows delivered to material treatment centres. The efficiency measures implemented in 2024 helped to adjust the costs of service production to the current market situation.
In May 2025, a two-year environmental construction project was launched for Boliden Harjavalta. As part of the construction project, L&T is expanding Boliden Harjavalta’s current landfill site, which processes copper and nickel. The extensive expansion project involves building over 16 hectares of new landfill site.
On June 2, 2025, Lassila & Tikanoja acquired the pallet business of Stena Recycling Oy. The annual net sales of the business have been approximately EUR 10 million. The acquisition strengthens L&T’s service offering and supports the growth of its circular economy business in line with strategy. As a result of the business acquisition, the pallet business will employ just over 30 people across four locations.
A major system renewal has been underway in the circular economy business, including the replacement of the enterprise resource planning (ERP) system. The deployment phase of the project continued during the first half of 2025. Additional costs related to the deployment in January–June 2025 amounted to approximately EUR 0.5 million. The total investment in system projects initiated in 2018 amounted to approximately EUR 19.1 million by the end of 2024. The amortisation of the system renewal investment commenced during the second quarter of 2025.
Facility Services Finland
April–June
The Facility Services Finland division’s net sales for the second quarter totalled EUR 57.0 million (58.5). Operating profit was EUR 4.1 million (2.0).
January–June
The Facility Services Finland division’s net sales for January-June totalled EUR 115.3 million (121.8). Operating profit was EUR 6.3 million (1.9).
In Facility Services Finland, the decrease in net sales was affected by a mild winter as well as planned optimisation of the customer portfolio. The demand for digital services, such as data-driven cleaning services and AI-assisted energy efficiency services, remained strong. Measures to streamline the cost structure and efficiency of the operations continued, leading to a clear improvement in the division's operating profit. In the cleaning business, and especially in property maintenance business, profitability improved compared to the comparison period.
Facility Services Sweden
April–June
The net sales of Facility Services Sweden increased to EUR 29.9 million (26.2) in the second quarter of 2025. Adjusted operating result was EUR -1.6 million (-2.5). Operating result was EUR -1.4 million (-2.5). Operating result before the amortisation of purchase price allocations of acquisitions was EUR -1.1 million (-2.2). Operating result was increased by a release of a provision totalling EUR 0.9 million related to onerous contracts. Operating result was weakened by costs affecting comparability totalling EUR 0.7 million consisting mainly of expenses related to the ongoing efficiency programme.
January–June
The net sales of Facility Services Sweden increased to EUR 58.2 million (55.7) in January-June. Adjusted operating result was EUR -3.1 million (-4.6). Operating result was EUR -2.8 million (-4.6) Operating result before the amortisation of purchase price allocations of acquisitions was EUR -2.2 million (-4.0). Operating result was increased by a release of a provision totalling EUR 0.9 million related to onerous contracts. Operating result was weakened by costs affecting comparability totalling EUR 0.7 million consisting mainly of expenses related to the ongoing efficiency programme.
In Facility Services Sweden, operating loss decreased as expected during the first half of the year. Measures to simplify operating models and adjust the cost level continued. The new customer contracts won in late 2024, along with ongoing efforts to enhance profitability, provide a solid foundation for achieving a turnaround in 2025.
FINANCING
In the first half of 2025, net cash flow from operating activities totalled EUR 16.9 million (19.3). Net cash flow from operating activities after investments totalled EUR 2.4 million (-3.7). Net cash flow from operating activities after investments for the review period was improved by positive development in profitability as well as decrease in operational investments year-on-year. During the review period, a total of EUR 14.2 million in working capital was tied up (8.2 tied up). Net cash flow from operating activities after investments for the review period was reduced by acquisitions, which had an impact of EUR 7.9 million (1.6).
At the end of the review period, interest-bearing liabilities amounted to EUR 195.3 million (214.5). Net interest-bearing liabilities totalled EUR 178.2 million (194.9). The average interest rate on long-term loans, excluding lease liabilities, was 3.2% (4.0%).
On 27 June 2025, Lassila & Tikanoja plc entered into unsecured financing arrangements consisting of a EUR 35 million term loan and a EUR 15 million term loan and revolving credit facilities agreement with OP Corporate Bank Plc. On 30 June 2025, the company drew a total of EUR 40 million in term loans from these facilities and simultaneously repaid a EUR 40 million bank loan. In addition, the company signed a EUR 40 million revolving credit facility agreement with Danske Bank A/S, Finland Branch. Through these financing arrangements, Lassila & Tikanoja Plc restructured its long-term debt financing that was due to mature during 2026.
The EUR 35 million term loan, the EUR 15 million term loan and revolving credit facilities, and the EUR 40 million revolving credit facility will mature in the second quarter of 2028, with a two-year extension option included in the agreements. The financing arrangements include following financial covenants: equity ratio and net debt to EBITDA ratio. Compliance with the covenant terms is monitored on a quarterly basis.
The company has planned a partial demerger in which its Circular Economy business is separated into a new publicly listed company and in connection to that the agreement with OP Corporate Bank Plc concerning the EUR 35 million term loan also includes a EUR 80 million bridge facility and an uncommitted accordion facility option. The bridge facility has been arranged to back up the outstanding EUR 75 million unsecured notes, for the redemption and/or repayment of notes to the extent that noteholders exercise their early redemption rights due to the partial demerger. Additionally, the bridge facility can be used to finance any other costs related to the planned partial demerger. In accordance with the relevant loan terms, the utilised bridge facility will automatically be converted into the EUR 35 million term loan. The terms of the financing arrangements also take into account the effects of Lassila & Tikanoja plc’s planned partial demerger.
Of the EUR 100.0 million commercial paper programme, EUR 10.0 million was in use at the end of the review period (20.0). The account limit totalling EUR 10.0 million and the committed credit limit totalling EUR 50.0 million were not in use (the account limit totalling EUR 10.0 million and the committed credit limit totalling EUR 40.0 million were not in use in the comparison period).
Net financial expenses totalled EUR -3.8 million (-4.0). The effect of the discounting of environmental provisions decreased net financial expenses by EUR 0.4 million in the comparison period. The effect of exchange rate changes on net financial expenses was 0.0 million (-0.0). Net financial expenses were 1.0% (1.0) of net sales.
The equity ratio was 34.0% (34.5) and the gearing ratio was 87.9% (89.7). The Group’s total equity amounted to EUR 202.8 million (217.4). Equity was reduced by dividends of EUR 19.1 million distributed for the financial year 2024, which were paid to shareholders on 7 April 2025, in accordance with the decision of the Annual General Meeting held on 27 March 2025.Translation differences caused by changes in the exchange rate of the Swedish krona affected equity by EUR 0.8 million. Cash and cash equivalents at the balance sheet date totalled EUR 17.1 million (19.6).
EFFICIENCY PROGRAMME
Lassila & Tikanoja renewed its operating model in 2024. Continuing the operating model work, the company launched an efficiency programme aiming for improved performance at the beginning of 2025, encompassing both the circular economy and facility services businesses. The efficiency programme aims for an annual performance improvement of at least EUR 8 million by the end of 2026 compared to the 2023 level, including the impact on the annual cost level of having two separate listed companies. During the review period, the measures of the efficiency programme progressed as planned. In January–June 2025, the Group’s comparable fixed costs decreased by approximately EUR 2 million compared to January–June 2024, due to the measures implemented under the efficiency improvement programme.
DIVIDEND DISTRIBUTION
The Annual General Meeting held on 27 March 2025 resolved that a dividend of EUR 0.50 per share, totalling EUR 19.1 million, be paid on the basis of the balance sheet that was adopted for the financial year 2024. The dividend was paid to shareholders on 7 April 2025.
CAPITAL EXPENDITURE
Gross capital expenditure for the review period totalled EUR 19.8 million (21.7). The capital expenditure consisted primarily of machine and equipment purchases, as well as investments in information systems. Acquisitions accounted for approximately EUR 7.6 million (1.8) of the gross capital expenditure.
SUSTAINABILITY
L&T’s sustainability performance remained strong during the first half of the year. The company’s carbon footprint (Scope 1–2) decreased by 22% compared to the comparison period. The reduction in carbon footprint was driven by the expanded use of renewable fuels and investments in low-emission fleet. During the review period, L&T introduced Finland’s first electric suction jetting combination vehicle. The reuse and recycling rate of conventional waste rose to 61.7% (58.9). The increase in the recycling rate was mainly driven by higher pallet volumes, partly resulting from a business acquisition. In addition, the collection of plastic packaging increased clearly compared to the comparison period. Customer satisfaction (NPS) reached a record-high level of 41.
Progress towards sustainability targets
Indicator | 1–6/2025 | 1–6/2024 | 2024 | Target | Target to be achieved by | |
ENVIRONMENTAL RESPONSIBILITY | ||||||
Carbon handprint (tCO2e) i.e. emissions prevented1 | -194,500 | -223,000 | -438,000 | growth faster than net sales | ||
Carbon footprint (tCO2e) Scope 1&21 | 11,100 | 14,300 | 27,200 | net zero | 2045 | |
Recycling rate of material flows managed by L&T, %1 | 61.7 | 58.9 | 60.7 | 70 | 2030 | |
SOCIAL RESPONSIBILITY | ||||||
Total recordable incident frequency1 | 17 | 17 | 19 | 15 | 2030 | |
Sickness-related absences (%) | 5.1 | 5.1 | 5.0 | 4 | 2030 |
1 Figures for the first half of 2024 have been adjusted.
PERSONNEL
In January-June, the average number of employees converted into full-time equivalents was 6,025 (6,390). At the end of the review period, L&T had a total of 7,303 (8,142) full-time and part-time employees. The increase in personnel in Facility Services Sweden was primarily due to the commencement of two new customer contracts.
Number of employees at the end of the review period | 1–6/2025 | 1–6/2024 | 2024 |
Group | 7,303 | 8,142 | 7,441 |
Finland | 6,026 | 6,938 | 6,313 |
Sweden | 1,277 | 1,204 | 1,128 |
Circular Economy Business | 2,180 | 2,410 | 2,168 |
Facility Services Finland | 3,836 | 4,519 | 4,140 |
Facility Services Sweden | 1,182 | 1,100 | 1,032 |
Group administration and other | 105 | 113 | 101 |
SHARES AND SHARE CAPITAL
Traded volume and price
The volume of trading in L&T’s shares during the review period was 3.0 million shares, which represents 7.8% (8.9) of the average number of outstanding shares. The value of trading was EUR 25.9 million (31.3). The highest share price was EUR 9.70 and the lowest EUR 7.70. The closing price was EUR 9.53. At the end of the review period, the market capitalisation excluding the shares held by the company was EUR 364.2 million (331.5).
Own shares
At the end of the period, the company held 587,150 of its own shares, representing 1.5% of all shares and votes.
Share capital and number of shares
The company’s registered share capital amounts to EUR 19,399,437 and the number of outstanding shares was 38,211,724 at the end of the review period. The average number of shares excluding the shares held by the company was 38,173,894.
Shareholders
At the end of the financial year, the company had 24,115 (25,030) shareholders. Nominee-registered holdings accounted for 14.7% (9.0) of the total number of shares.
Flagging notifications
Lassila & Tikanoja received a notification from Nordea Funds Ltd on 31 January 2025, according to which its voting rights in Lassila & Tikanoja increased above 5 percent on 30 January 2025. Nordea Funds Ltd’s direct holding in Lassila & Tikanoja is 1,912,244 shares, which is 4.93% of Lassila & Tikanoja’s total shares and votes increased to 1,946,154, which is 5,02% of total voting rights.
Lassila & Tikanoja received a notification from Nordea Funds Ltd on 17 March 2025, according to which its voting rights in Lassila & Tikanoja decreased below 5 percent on 14 March 2025. Nordea Funds Ltd’s direct holding in Lassila & Tikanoja is less than 5% of Lassila & Tikanoja’s total shares and votes decreased below 5% of total voting rights.
Lassila & Tikanoja received a notification from Nordea Funds Ltd on 7 April 2025, according to which its voting rights in Lassila & Tikanoja increased to 5 percent on 4 April 2025. Nordea Funds Ltd’s direct holding in Lassila & Tikanoja is 1,911,570.00 shares, which is 4.92% of Lassila & Tikanoja’s total shares and votes increased to 1,942,180.00, which is 5% of total voting rights.
Lassila & Tikanoja received a notification from Nordea Funds Ltd on 19 May 2025, according to which its voting rights in Lassila & Tikanoja decreased below 5 percent on 16 May 2025. Nordea Funds Ltd’s direct holding in Lassila & Tikanoja is less than 5% of Lassila & Tikanoja’s total shares and votes decreased below 5% of total voting rights.
Authorisations for the Board of Directors
The Annual General Meeting held on 27 March 2025 authorised Lassila & Tikanoja plc’s Board of Directors to decide on the repurchase of the company’s own shares using the company’s unrestricted equity. In addition, the Annual General Meeting authorised the Board of Directors to decide on a share issue and the issuance of special rights entitling their holders to shares.
The Board of Directors is authorised to purchase a maximum of 2,000,000 company shares (5.2% of the total number of shares). The repurchase authorisation is effective for 18 months.
The Board of Directors is authorised to decide on the issuance of new shares or shares which may be held by the company through a share issue and/or issuance of option rights or other special rights conferring entitlement to shares, referred to in Chapter 10, Section 1 of the Finnish Companies Act, so that under the authorisation, a maximum of 2,000,000 shares (5.2% of the total number of shares) may be issued and/or conveyed. The authorisation is effective for 18 months.
RESOLUTIONS BY THE ANNUAL GENERAL MEETING
The Annual General Meeting of Lassila & Tikanoja plc, which was held on 27 March 2025, adopted the financial statements and consolidated financial statements for the financial year 2024, discharged the members of the Board of Directors and the President and CEO from liability and adopted the Remuneration Report for the Company’s governing bodies. The Annual General Meeting resolved on the use of the profit shown on the balance sheet and the payment of dividend, the amendment of the Articles of Association of the Company, the composition and remuneration of the Board of Directors, the election and remuneration of the Auditor, the election of the Sustainability Reporting Assurance Provider and authorising the Board of Directors to decide on the repurchase of the Company’s own shares and on a share issue and the issuance of special rights entitling to shares.
The Annual General Meeting resolved that a dividend of EUR 0.50 per share be paid on the basis of the balance sheet adopted for the financial year 2024. It was decided that the dividend be paid on 7 April 2025.
The Annual General Meeting resolved, in accordance with the Board's proposal, to amend the Articles 4, 16 and 13 of the Company’s Articles of Association as follows:
- Article 4 is amended so that the Board of Directors may consist of no less than three (3) and no more than eight (8) members, instead of the previous no more than seven (7) members.
- Article 6 is amended so that in addition to the auditor, the Company shall have a sustainability reporting assurance provider.
- Article 13 is amended so that the assurance report on sustainability reporting shall be presented at the Annual General Meeting and the Annual General Meeting shall elect a sustainability reporting assurance provider, in addition to the issues specified in the previous Article 13 of the Articles of Association.
The Annual General Meeting confirmed the number of members of the Board of Directors as eight (8) in accordance with the proposal of the Shareholders’ Nomination Board. Teemu Kangas-Kärki, Sakari Lassila, Jukka Leinonen, Juuso Maijala, Anni Ronkainen, and Pasi Tolppanen were re-elected and Tuija Kalpala as well as Anna-Maria Tuominen-Reini were elected as new members to the Board until the end of the following Annual General Meeting. Jukka Leinonen was elected as the Chairman of the Board and Sakari Lassila was elected as the Vice Chairman.
The Annual General Meeting elected PricewaterhouseCoopers Oy, Authorised Public Accountants, as the auditor of the Company until the close of the next Annual General Meeting. PricewaterhouseCoopers Oy has announced that it will name Samuli Perälä, Authorised Public Accountant, as the auditor with principal responsibility.
The Annual General Meeting elected PricewaterhouseCoopers Oy, Authorised Sustainability Audit Firm, as the sustainability reporting assurance provider of the Company until the close of the next Annual General Meeting. PricewaterhouseCoopers Oy has announced that it will name Samuli Perälä, Authorised Sustainability Auditor, as the responsible authorised sustainability auditor.
The resolutions of the Annual General Meeting were announced in more detail in a stock exchange release on 27 March 2025.
BOARD OF DIRECTORS
The members of Lassila & Tikanoja plc’s Board of Directors are Tuija Kalpala, Teemu Kangas-Kärki, Sakari Lassila, Jukka Leinonen, Juuso Maijala, Anni Ronkainen, Pasi Tolppanen and Anna-Maria Tuominen-Reini. Lassila & Tikanoja plc’s Annual General Meeting held on 27 March 2025 elected Jukka Leinonen as the Chairman of the Board and Sakari Lassila as the Vice Chairman.
In its constitutive meeting held after the Annual General Meeting, the Board of Directors elected the members of the Audit Committee and the Personnel and Sustainability Committee from amongst its members. Teemu Kangas-Kärki (Chairman), Sakari Lassila, Tuija Kalpala and Anna-Maria Tuominen-Reini were elected to the Audit Committee. Jukka Leinonen (Chairman), Juuso Maijala, Pasi Tolppanen and Anni Ronkainen were elected to the Personnel and Sustainability Committee.
PARTIAL DEMERGER
On 13 December 2024, the company announced, that the Board of Directors of Lassila & Tikanoja plc has decided to initiate the planning of the possible separation of its circular economy businesses Environmental and Industrial Services and facility services businesses into two independent listed companies. The plan is to separate the circular economy businesses into a newly listed company through a partial demerger of Lassila & Tikanoja plc.
According to the Board of Directors’ preliminary assessment, the separation of the circular economy and facility services businesses could increase shareholder value by enabling both businesses to pursue their own strategies and growth opportunities more effectively.
On 9 June 2025, the company announced, that as part of the plan announced on 13 December 2024 to separate Lassila & Tikanoja plc's Circular Economy business into a new publicly listed company through a partial demerger of Lassila & Tikanoja ("Demerger"), the Board of Directors proposes that Eero Hautaniemi be appointed as the CEO of the independent Circular Economy business, should the partial demerger be executed. Simultaneously, the Board of Directors of Lassila & Tikanoja proposes that Antti Niitynpää be appointed as the CEO of the Facility Services business remaining following the Demerger, subject to the completion of the Demerger.
Eero Hautaniemi has served as the CEO of Lassila & Tikanoja and as a member of the Lassila & Tikanoja’s Group Executive Board since 2019 and will continue in his current position as the CEO of Lassila & Tikanoja until the completion of the contemplated Demerger, in connection with which the appointments relating to the Demerger will come into effect. Antti Niitynpää has served as the Senior Vice President of Facility Services at Lassila & Tikanoja since 2021 and has over 10 years of experience in leadership positions within the company's facility services. Prior to that, he held several leadership positions at ISS companies for over 10 years.
The Board of Directors of Lassila & Tikanoja plc additionally proposes that M.Sc. (Econ.) Joni Sorsanen be appointed as the CFO of the independent Circular Economy business and M.Sc. (Econ.) Mika Stirkkinen be appointed as the CFO of the Facility Services business, should the partial demerger be executed. Joni Sorsanen has served as the CFO of the Lassila & Tikanoja Group and as a member of the Group Executive Board since 2024 and will continue in his current position until the completion of the contemplated Demerger, in connection with which the appointments regarding the Demerger will come into effect. Mika Stirkkinen has over 20 years of experience in financial management, including serving as the CFO of Finnair.
On 7 August 2025, the Board of Directors of Lassila & Tikanoja plc approved the demerger plan to separate the circular economy business into a new publicly listed company. Further information on the demerger plan will be provided in a separate stock exchange release. The demerger is subject to approval by an Extraordinary General Meeting of the company, which is expected to be held on 4 December 2025. The planned effective date of the demerger is 31 December 2025.
NEAR-TERM RISKS AND UNCERTAINTIES
General economic uncertainty may affect the level of economic activity among customers, which may reduce the demand for L&T’s services.
Changes in costs, such as the price of fuel and energy and interest rates, may have an impact on the company’s financial performance.
The Finnish Waste Act was amended in July 2021. Under the reforms to the Waste Act, municipalities take on a larger role in organising the collection of packaging materials and biowaste from housing properties. As a consequence of the reform, L&T’s direct customer agreements with housing properties on the separate collection of packaging waste and biowaste will be transferred to municipalities for competitive bidding gradually between 1 July 2022 and 1 July 2025. L&T estimates that, as a result of municipalisation, approximately EUR 30 million of the Finnish waste management market will be moved out of the scope of free competition between 2024 and 2026. L&T participates in the competitive tendering of municipal contracts and is a significant operator in municipal contracts. Nevertheless, L&T estimates that the overall impact of the change will be negative for the company.
The company has several ERP system renewal projects under way. Temporary additional costs arising from system deployments and establishing the operating model may weigh down the company’s result.
Production costs may be increased by regional challenges related to employee turnover and labour availability.
The geopolitical situation involves continued uncertainty due to Russia’s war of aggression and the U.S. customs policy. The indirect impacts on overall economic activity in Finland and Sweden may have a negative impact on net sales and profit.
Lassila & Tikanoja announced in December 2024 that the company’s Board of Directors has decided to initiate the planning for the separation of the company’s circular economy businesses, i.e., Environmental and Industrial services, and facility services businesses into two independent listed companies, with the circular economy businesses being separated into a new listed company. The planning and related measures for the partial demerger may include risks related to, for example, the retention of skilled personnel, customer relationships, costs, and the execution of potential transactions.
The Group company Lassila & Tikanoja FM AB is a claimant and a defendant in legal proceedings in Sweden concerning unpaid receivables invoiced from a former customer of L&T. In June 2022, Lassila & Tikanoja FM AB took legal action in the District Court of Solna against the former customer company of L&T, demanding payment for unpaid receivables. At the end of the review period, the amount of receivables on the company’s balance sheet was approximately EUR 0.6 million. The former L&T customer company in question has rejected Lassila & Tikanoja FM AB’s claims and the payment obligation, and brought a counterclaim demanding compensation totalling approximately SEK 144 million from Lassila & Tikanoja FM AB. The dispute is still pending. Lassila & Tikanoja considers the counterclaim to be without merit and has not recognised any provisions in relation to it.
More detailed information on Lassila & Tikanoja’s risks and risk management is provided in the 2024 Annual Review and in the Report by the Board of Directors and the consolidated financial statements.
Helsinki 7 August 2025
LASSILA & TIKANOJA PLC
Board of Directors
Eero Hautaniemi
President and CEO
For additional information, please contact:
Eero Hautaniemi, President and CEO, tel. +358 10 636 2810
Joni Sorsanen, CFO, tel. +358 50 443 3045
Lassila & Tikanoja is a service company that is putting the circular economy into practice. Together with our customers, we keep materials, manufacturing sites and properties in productive use for as long as possible and we enhance the use of raw materials and energy. This is to create more value with the circular economy for our customers, personnel and society in a broader sense. Achieving this also means growth in value for our shareholders. Our objective is to continuously grow our actions’ carbon handprint, our positive effect on the climate. We assume our social responsibility by looking after the work ability of our personnel as well as offering jobs to those who are struggling to find employment, for example. With operations in Finland and Sweden, L&T employs approximately 7,400 people. Net sales in 2024 amounted to EUR 770.7 million. L&T is listed on Nasdaq Helsinki.
Distribution:
Nasdaq Helsinki
Major media
www.lt.fi/en/
Attachment
Ämnen i artikeln
Lassila & Tikanoja plc: Half-Year Financial Report 1 January–30 June 2025
7 augusti, 07:00
Lassila & Tikanoja plc
Stock exchange release
7 August 2025 at 8:00 a.m
Lassila & Tikanoja plc: Half-Year Financial Report 1 January–30 June 2025
STABLE PERFORMANCE IN CIRCULAR ECONOMY BUSINESS, PROFITABILITY IMPROVED IN FACILITY SERVICES BUSINESSES
Unless otherwise mentioned, the figures in brackets refer to the corresponding period in the previous year.
- Net sales for the second quarter were EUR 196.3 million (199.2). Net sales decreased by 1.5%.
- Adjusted operating profit for the second quarter was EUR 14.9 million (12.7), representing 7.6% (6.4) of net sales. Operating profit was EUR 13.0 million (11.0), representing 6.6% (5.5) of net sales. Earnings per share were EUR 0.21 (0.18)
- Net sales for January–June were EUR 371.8 million (384.2). Net sales decreased by 3.2%.
- Adjusted operating profit for January–June was EUR 17.6 million (12.7) and operating profit was EUR 16.7 million (9.3).
- Net cash flow from operating activities after investments totalled EUR 2.4 million (-3.7) in the first half of the year.
- Earnings per share for January–June were EUR 0.30 (0.16) and net cash flow from operating activities after investments per share was EUR 0.06 (-0.10).
- The pallet repair and recycling business grew following the acquisition of Stena Recycling’s pallet business as of 2 June 2025.
- The preparation for the partial demerger, initiated in December 2024, progressed as planned during the review period. On 7 August 2025, the Board of Directors of Lassila & Tikanoja plc approved a demerger plan to separate the circular economy business operations into a new publicly listed company. Further information on the demerger plan will be provided in a separate stock exchange release.
Outlook for the year 2025
Net sales in 2025 are estimated to be at the same level as in the previous year, and adjusted operating profit is estimated to be at the same level or better compared to the previous year.
PRESIDENT AND CEO EERO HAUTANIEMI:
“Net sales for the first half of 2025 totalled EUR 371.8 million (384.2). Adjusted operating profit was EUR 17.6 million (12.7). Adjusted operating profit improved significantly in Facility Services Businesses. In the Circular Economy Business, adjusted operating profit declined slightly compared to the previous year, but due to successful efficiency measures, relative profitability remained stable despite the challenging market environment. Net cash flow from operating activities after investments improved by EUR 6 million from the comparison period to EUR 2.4 million.
In Circular Economy Business, relative profitability remained at the level of the comparison period, although the challenging economic cycle affected demand in the first half of the year. Especially in the construction industry customer segment, the demand for recycling and waste management services decreased compared to the comparison period. In the hazardous waste business line, both net sales and profitability remained at a good level. In process cleaning, net sales were expectedly lower than in the strong comparison period. However, annual maintenance breaks in the industrial sector were carried out as planned, and project resourcing was mostly successful. In the environmental construction business, the weak economic situation in the Finnish construction market was reflected in a decrease in the volumes of material flows delivered to material treatment centres. The efficiency measures implemented in 2024 helped to adjust the costs of service production to the current market situation. At the end of the review period, the pallet repair and recycling business grew following the acquisition of Stena Recycling’s pallet business. The transaction strengthens L&T’s service offering and supports the growth of the Circular Economy Business in line with strategy.
In May 2025, a two-year environmental construction project was launched for Boliden Harjavalta. As part of the construction project, L&T is expanding Boliden Harjavalta’s current landfill site, which processes copper and nickel. The extensive expansion project involves building over 16 hectares of new landfill site.
In Facility Services businesses, profitability improved in both Finland and Sweden. In Facility Services Finland, net sales declined during the first half of the year due to a mild winter and the planned optimisation of the customer portfolio. The demand for digital services, such as data-driven cleaning services and AI-assisted energy efficiency services, remained strong. Measures to streamline the cost structure and efficiency of the operations continued, leading to a clear improvement in the division's operating profit. In Facility Services Sweden, operating loss decreased as expected during the first half of the year. Measures to simplify operating models and adjust the cost level continued. The new customer contracts won in late 2024, along with ongoing efforts to enhance profitability, provide a solid foundation for achieving a turnaround in Facility Services Sweden in 2025.
L&T’s sustainability performance remained strong during the first half of the year. The company’s carbon footprint (Scope 1–2) decreased by 22% compared to the reference period, and customer satisfaction (NPS) reached an all-time high of 41. The reduction in carbon footprint was driven by the expanded use of renewable fuels and investments in low-emission fleet.
In December 2024, the company initiated the planning of the possible separation of its circular economy businesses and facility services businesses into two independent listed companies. The plan is to separate the circular economy businesses into a newly listed company through a partial demerger of Lassila & Tikanoja plc. It is expected that the separation of the circular economy and facility services businesses could increase shareholder value by enabling both businesses to pursue their own strategies and growth opportunities more effectively. The preparation of the partial demerger progressed as planned during the review period, and on 7 August 2025, the Board of Directors of Lassila & Tikanoja plc approved the demerger plan to separate the circular economy business into a new publicly listed company. Further information on the demerger plan will be provided in a separate stock exchange release. The demerger is subject to approval by an Extraordinary General Meeting of the company, which is expected to be held on 4 December 2025. The planned effective date of the demerger is 31 December 2025.”
GROUP NET SALES AND FINANCIAL PERFORMANCE
April–June
Net sales for the second quarter totalled EUR 196.3 million (199.2), representing a year-on-year decrease of 1.5%. The organic decrease in net sales was 1.9%. Adjusted operating profit was EUR 14.9 million (12.7), representing 7.6% (6.4) of net sales. Operating profit was EUR 13.0 million (11.0), representing 6.6% (5.5) of net sales. Operating profit included items affecting comparability totalling EUR 1.9 million. Operating profit was increased by a change of EUR 0.7 million in the fair value of the deferred consideration related to the acquisition of Sand & Vattenbläst i Tyringe AB (“SVB”) as well as a release of a provision totalling EUR 0.9 million related to Facility Services Sweden’s onerous contracts. Operating profit was decreased by costs affecting comparability totalling EUR 3.5 million consisting mainly of expenses arising from the preparation of the partial demerger, expenses related to business acquisitions as well as expenses related to the ongoing efficiency programme. Earnings per share were EUR 0.21 (0.18).
Net sales increased in Facility Services Sweden and decreased in Circular Economy Business and in Facility Services Finland. Adjusted operating profit improved in Facility Services Finland and Sweden and declined in Circular Economy Business. Operating profit improved in all divisions.
The result of the second quarter was positively affected by the decrease of net financial expenses to EUR -2.0 million (-2.2.). The result of the second quarter was negatively affected by the share of the profit of the joint venture Laania Oy amounting to EUR -0.5 million (0.0). The result of the joint venture Laania was negatively affected by an exceptionally warm spring, which weakened demand for energy wood.
January–June
Net sales for January-June totalled EUR 371.8 million (384.2), representing a year-on-year decrease of 3.2%. The organic decrease in net sales was 3.5%. Adjusted operating profit was EUR 17.6 million (12.7), representing 4.7% (3.3) of net sales. Operating profit was EUR 16.7 million (9.3), representing 4.5% (2.4) of net sales. Operating profit included items affecting comparability totalling EUR 0.9 million. Operating profit was increased by a change of EUR 2.3 million in the fair value of the deferred consideration related to the acquisition of Sand & Vattenbläst i Tyringe AB (“SVB”) as well as a release of a provision totalling EUR 0.9 million related to Facility Services Sweden’s onerous contracts. Operating profit was decreased by costs affecting comparability totalling EUR 4.1 million consisting mainly of expenses arising from the preparation of the partial demerger, expenses related to business acquisitions as well as expenses related to the ongoing efficiency programme. Earnings per share were EUR 0.30 (0.16).
Net sales increased in Facility Services Sweden and decreased in Circular Economy Business and in Facility Services Finland. Adjusted operating profit improved in Facility Services Finland and Sweden and declined in Circular Economy Business. Operating profit improved in all divisions.
The result for the review period was improved by the decline of net financial expenses to EUR -3.8 million (-4.0). The share of the profit of the joint venture Laania Oy amounted to EUR 1.2 million (2.1). The result of the joint venture Laania was negatively affected by an exceptionally warm spring, which weakened demand for energy wood.
Financial summary
4-6/2025 | 4-6/2024 | Change % | 1-6/2025 | 1-6/2024 | Change % | 1-12/2024 | |
Net sales, EUR million | 196.3 | 199.2 | -1.5 | 371.8 | 384.2 | -3.2 | 770.7 |
Adjusted operating profit, EUR million | 14.9 | 12.7 | 17.7 | 17.6 | 12.7 | 38.5 | 43.2 |
Adjusted operating margin, % | 7.6 | 6.4 | 4.7 | 3.3 | 5.6 | ||
Operating profit, EUR million | 13.0 | 11.0 | 18.4 | 16.7 | 9.3 | 79.7 | 9.8 |
Operating margin, % | 6.6 | 5.5 | 4.5 | 2.4 | 1.3 | ||
Adjusted EBITDA, EUR million | 29.2 | 26.8 | 9.0 | 45.4 | 40.6 | 11.8 | 99.1 |
Adjusted EBITDA, % | 14.9 | 13.4 | 12.2 | 10.6 | 12.9 | ||
EBITDA, EUR million | 27.3 | 25.1 | 8.8 | 44.5 | 37.2 | 19.7 | 89.0 |
EBITDA, % | 13.9 | 12.6 | 12.0 | 9.7 | 11.5 | ||
Earnings per share, EUR | 0.21 | 0.18 | 16.0 | 0.30 | 0.16 | 84.1 | -0.05 |
Net cash flow from operating activities after investments per share, EUR | -0.11 | 0.15 | 0.06 | -0.10 | 1.07 | ||
Return on equity (ROE), % | 11.3 | 5.6 | -0.8 | ||||
Capital employed, EUR million1 | 398.1 | 432.0 | -7.8 | 396.1 | |||
Return on capital employed (ROCE), %1 | 4.9 | 9.7 | 3.3 | ||||
Equity ratio, %1 | 34.0 | 34.5 | 35.4 | ||||
Gearing, %1 | 87.9 | 89.7 | 73.2 |
1 The figure for the second quarter of 2024 has been adjusted. The adjustment relates to the correction of an error made in the 2024 financial statements concerning the figures for 2023. More information about the error correction is presented in the 2024 consolidated financial statements.
NET SALES AND OPERATING PROFIT BY DIVISION
Circular Economy Business
April–June
The net sales of the Circular Economy Business for the second quarter were EUR 109.9 million (115.2). Adjusted operating profit was EUR 13.5 million (14.0). Operating profit was EUR 14.2 million (13.9). Operating profit was increased by a change of EUR 0.7 million in the fair value of the deferred consideration related to the acquisition of Sand & Vattenbläst i Tyringe AB (“SVB”). The change in the fair value is due to the increase of SVB’s net interest-bearing liabilities as well as the decline in SVB’s EBITDA forecast for year 2025.
January–June
The net sales of the Circular Economy Business for January-June were EUR 199.4 million (208.2). Adjusted operating profit was EUR 16.0 million (16.6). Operating profit was EUR 18.4 million (16.2). Operating profit was increased by a change of EUR 2.3 million in the fair value of the deferred consideration related to the acquisition of Sand & Vattenbläst i Tyringe AB (“SVB”). The change in the fair value is due to the increase of SVB’s net interest-bearing liabilities as well as the decline in SVB’s EBITDA forecast for year 2025.
In Circular Economy Business, relative profitability remained at the level of the comparison period, although the challenging economic cycle affected demand in the first half of the year. Especially in the construction industry customer segment, the demand for recycling and waste management services decreased compared to the comparison period. In the hazardous waste business line, both net sales and profitability remained at a good level. In process cleaning, net sales were expectedly lower than in the strong comparison period. However, annual maintenance breaks in the industrial sector were carried out as planned, and project resourcing was mostly successful. In the environmental construction business, the weak economic situation in the Finnish construction market was reflected in a decrease in the volumes of material flows delivered to material treatment centres. The efficiency measures implemented in 2024 helped to adjust the costs of service production to the current market situation.
In May 2025, a two-year environmental construction project was launched for Boliden Harjavalta. As part of the construction project, L&T is expanding Boliden Harjavalta’s current landfill site, which processes copper and nickel. The extensive expansion project involves building over 16 hectares of new landfill site.
On June 2, 2025, Lassila & Tikanoja acquired the pallet business of Stena Recycling Oy. The annual net sales of the business have been approximately EUR 10 million. The acquisition strengthens L&T’s service offering and supports the growth of its circular economy business in line with strategy. As a result of the business acquisition, the pallet business will employ just over 30 people across four locations.
A major system renewal has been underway in the circular economy business, including the replacement of the enterprise resource planning (ERP) system. The deployment phase of the project continued during the first half of 2025. Additional costs related to the deployment in January–June 2025 amounted to approximately EUR 0.5 million. The total investment in system projects initiated in 2018 amounted to approximately EUR 19.1 million by the end of 2024. The amortisation of the system renewal investment commenced during the second quarter of 2025.
Facility Services Finland
April–June
The Facility Services Finland division’s net sales for the second quarter totalled EUR 57.0 million (58.5). Operating profit was EUR 4.1 million (2.0).
January–June
The Facility Services Finland division’s net sales for January-June totalled EUR 115.3 million (121.8). Operating profit was EUR 6.3 million (1.9).
In Facility Services Finland, the decrease in net sales was affected by a mild winter as well as planned optimisation of the customer portfolio. The demand for digital services, such as data-driven cleaning services and AI-assisted energy efficiency services, remained strong. Measures to streamline the cost structure and efficiency of the operations continued, leading to a clear improvement in the division's operating profit. In the cleaning business, and especially in property maintenance business, profitability improved compared to the comparison period.
Facility Services Sweden
April–June
The net sales of Facility Services Sweden increased to EUR 29.9 million (26.2) in the second quarter of 2025. Adjusted operating result was EUR -1.6 million (-2.5). Operating result was EUR -1.4 million (-2.5). Operating result before the amortisation of purchase price allocations of acquisitions was EUR -1.1 million (-2.2). Operating result was increased by a release of a provision totalling EUR 0.9 million related to onerous contracts. Operating result was weakened by costs affecting comparability totalling EUR 0.7 million consisting mainly of expenses related to the ongoing efficiency programme.
January–June
The net sales of Facility Services Sweden increased to EUR 58.2 million (55.7) in January-June. Adjusted operating result was EUR -3.1 million (-4.6). Operating result was EUR -2.8 million (-4.6) Operating result before the amortisation of purchase price allocations of acquisitions was EUR -2.2 million (-4.0). Operating result was increased by a release of a provision totalling EUR 0.9 million related to onerous contracts. Operating result was weakened by costs affecting comparability totalling EUR 0.7 million consisting mainly of expenses related to the ongoing efficiency programme.
In Facility Services Sweden, operating loss decreased as expected during the first half of the year. Measures to simplify operating models and adjust the cost level continued. The new customer contracts won in late 2024, along with ongoing efforts to enhance profitability, provide a solid foundation for achieving a turnaround in 2025.
FINANCING
In the first half of 2025, net cash flow from operating activities totalled EUR 16.9 million (19.3). Net cash flow from operating activities after investments totalled EUR 2.4 million (-3.7). Net cash flow from operating activities after investments for the review period was improved by positive development in profitability as well as decrease in operational investments year-on-year. During the review period, a total of EUR 14.2 million in working capital was tied up (8.2 tied up). Net cash flow from operating activities after investments for the review period was reduced by acquisitions, which had an impact of EUR 7.9 million (1.6).
At the end of the review period, interest-bearing liabilities amounted to EUR 195.3 million (214.5). Net interest-bearing liabilities totalled EUR 178.2 million (194.9). The average interest rate on long-term loans, excluding lease liabilities, was 3.2% (4.0%).
On 27 June 2025, Lassila & Tikanoja plc entered into unsecured financing arrangements consisting of a EUR 35 million term loan and a EUR 15 million term loan and revolving credit facilities agreement with OP Corporate Bank Plc. On 30 June 2025, the company drew a total of EUR 40 million in term loans from these facilities and simultaneously repaid a EUR 40 million bank loan. In addition, the company signed a EUR 40 million revolving credit facility agreement with Danske Bank A/S, Finland Branch. Through these financing arrangements, Lassila & Tikanoja Plc restructured its long-term debt financing that was due to mature during 2026.
The EUR 35 million term loan, the EUR 15 million term loan and revolving credit facilities, and the EUR 40 million revolving credit facility will mature in the second quarter of 2028, with a two-year extension option included in the agreements. The financing arrangements include following financial covenants: equity ratio and net debt to EBITDA ratio. Compliance with the covenant terms is monitored on a quarterly basis.
The company has planned a partial demerger in which its Circular Economy business is separated into a new publicly listed company and in connection to that the agreement with OP Corporate Bank Plc concerning the EUR 35 million term loan also includes a EUR 80 million bridge facility and an uncommitted accordion facility option. The bridge facility has been arranged to back up the outstanding EUR 75 million unsecured notes, for the redemption and/or repayment of notes to the extent that noteholders exercise their early redemption rights due to the partial demerger. Additionally, the bridge facility can be used to finance any other costs related to the planned partial demerger. In accordance with the relevant loan terms, the utilised bridge facility will automatically be converted into the EUR 35 million term loan. The terms of the financing arrangements also take into account the effects of Lassila & Tikanoja plc’s planned partial demerger.
Of the EUR 100.0 million commercial paper programme, EUR 10.0 million was in use at the end of the review period (20.0). The account limit totalling EUR 10.0 million and the committed credit limit totalling EUR 50.0 million were not in use (the account limit totalling EUR 10.0 million and the committed credit limit totalling EUR 40.0 million were not in use in the comparison period).
Net financial expenses totalled EUR -3.8 million (-4.0). The effect of the discounting of environmental provisions decreased net financial expenses by EUR 0.4 million in the comparison period. The effect of exchange rate changes on net financial expenses was 0.0 million (-0.0). Net financial expenses were 1.0% (1.0) of net sales.
The equity ratio was 34.0% (34.5) and the gearing ratio was 87.9% (89.7). The Group’s total equity amounted to EUR 202.8 million (217.4). Equity was reduced by dividends of EUR 19.1 million distributed for the financial year 2024, which were paid to shareholders on 7 April 2025, in accordance with the decision of the Annual General Meeting held on 27 March 2025.Translation differences caused by changes in the exchange rate of the Swedish krona affected equity by EUR 0.8 million. Cash and cash equivalents at the balance sheet date totalled EUR 17.1 million (19.6).
EFFICIENCY PROGRAMME
Lassila & Tikanoja renewed its operating model in 2024. Continuing the operating model work, the company launched an efficiency programme aiming for improved performance at the beginning of 2025, encompassing both the circular economy and facility services businesses. The efficiency programme aims for an annual performance improvement of at least EUR 8 million by the end of 2026 compared to the 2023 level, including the impact on the annual cost level of having two separate listed companies. During the review period, the measures of the efficiency programme progressed as planned. In January–June 2025, the Group’s comparable fixed costs decreased by approximately EUR 2 million compared to January–June 2024, due to the measures implemented under the efficiency improvement programme.
DIVIDEND DISTRIBUTION
The Annual General Meeting held on 27 March 2025 resolved that a dividend of EUR 0.50 per share, totalling EUR 19.1 million, be paid on the basis of the balance sheet that was adopted for the financial year 2024. The dividend was paid to shareholders on 7 April 2025.
CAPITAL EXPENDITURE
Gross capital expenditure for the review period totalled EUR 19.8 million (21.7). The capital expenditure consisted primarily of machine and equipment purchases, as well as investments in information systems. Acquisitions accounted for approximately EUR 7.6 million (1.8) of the gross capital expenditure.
SUSTAINABILITY
L&T’s sustainability performance remained strong during the first half of the year. The company’s carbon footprint (Scope 1–2) decreased by 22% compared to the comparison period. The reduction in carbon footprint was driven by the expanded use of renewable fuels and investments in low-emission fleet. During the review period, L&T introduced Finland’s first electric suction jetting combination vehicle. The reuse and recycling rate of conventional waste rose to 61.7% (58.9). The increase in the recycling rate was mainly driven by higher pallet volumes, partly resulting from a business acquisition. In addition, the collection of plastic packaging increased clearly compared to the comparison period. Customer satisfaction (NPS) reached a record-high level of 41.
Progress towards sustainability targets
Indicator | 1–6/2025 | 1–6/2024 | 2024 | Target | Target to be achieved by | |
ENVIRONMENTAL RESPONSIBILITY | ||||||
Carbon handprint (tCO2e) i.e. emissions prevented1 | -194,500 | -223,000 | -438,000 | growth faster than net sales | ||
Carbon footprint (tCO2e) Scope 1&21 | 11,100 | 14,300 | 27,200 | net zero | 2045 | |
Recycling rate of material flows managed by L&T, %1 | 61.7 | 58.9 | 60.7 | 70 | 2030 | |
SOCIAL RESPONSIBILITY | ||||||
Total recordable incident frequency1 | 17 | 17 | 19 | 15 | 2030 | |
Sickness-related absences (%) | 5.1 | 5.1 | 5.0 | 4 | 2030 |
1 Figures for the first half of 2024 have been adjusted.
PERSONNEL
In January-June, the average number of employees converted into full-time equivalents was 6,025 (6,390). At the end of the review period, L&T had a total of 7,303 (8,142) full-time and part-time employees. The increase in personnel in Facility Services Sweden was primarily due to the commencement of two new customer contracts.
Number of employees at the end of the review period | 1–6/2025 | 1–6/2024 | 2024 |
Group | 7,303 | 8,142 | 7,441 |
Finland | 6,026 | 6,938 | 6,313 |
Sweden | 1,277 | 1,204 | 1,128 |
Circular Economy Business | 2,180 | 2,410 | 2,168 |
Facility Services Finland | 3,836 | 4,519 | 4,140 |
Facility Services Sweden | 1,182 | 1,100 | 1,032 |
Group administration and other | 105 | 113 | 101 |
SHARES AND SHARE CAPITAL
Traded volume and price
The volume of trading in L&T’s shares during the review period was 3.0 million shares, which represents 7.8% (8.9) of the average number of outstanding shares. The value of trading was EUR 25.9 million (31.3). The highest share price was EUR 9.70 and the lowest EUR 7.70. The closing price was EUR 9.53. At the end of the review period, the market capitalisation excluding the shares held by the company was EUR 364.2 million (331.5).
Own shares
At the end of the period, the company held 587,150 of its own shares, representing 1.5% of all shares and votes.
Share capital and number of shares
The company’s registered share capital amounts to EUR 19,399,437 and the number of outstanding shares was 38,211,724 at the end of the review period. The average number of shares excluding the shares held by the company was 38,173,894.
Shareholders
At the end of the financial year, the company had 24,115 (25,030) shareholders. Nominee-registered holdings accounted for 14.7% (9.0) of the total number of shares.
Flagging notifications
Lassila & Tikanoja received a notification from Nordea Funds Ltd on 31 January 2025, according to which its voting rights in Lassila & Tikanoja increased above 5 percent on 30 January 2025. Nordea Funds Ltd’s direct holding in Lassila & Tikanoja is 1,912,244 shares, which is 4.93% of Lassila & Tikanoja’s total shares and votes increased to 1,946,154, which is 5,02% of total voting rights.
Lassila & Tikanoja received a notification from Nordea Funds Ltd on 17 March 2025, according to which its voting rights in Lassila & Tikanoja decreased below 5 percent on 14 March 2025. Nordea Funds Ltd’s direct holding in Lassila & Tikanoja is less than 5% of Lassila & Tikanoja’s total shares and votes decreased below 5% of total voting rights.
Lassila & Tikanoja received a notification from Nordea Funds Ltd on 7 April 2025, according to which its voting rights in Lassila & Tikanoja increased to 5 percent on 4 April 2025. Nordea Funds Ltd’s direct holding in Lassila & Tikanoja is 1,911,570.00 shares, which is 4.92% of Lassila & Tikanoja’s total shares and votes increased to 1,942,180.00, which is 5% of total voting rights.
Lassila & Tikanoja received a notification from Nordea Funds Ltd on 19 May 2025, according to which its voting rights in Lassila & Tikanoja decreased below 5 percent on 16 May 2025. Nordea Funds Ltd’s direct holding in Lassila & Tikanoja is less than 5% of Lassila & Tikanoja’s total shares and votes decreased below 5% of total voting rights.
Authorisations for the Board of Directors
The Annual General Meeting held on 27 March 2025 authorised Lassila & Tikanoja plc’s Board of Directors to decide on the repurchase of the company’s own shares using the company’s unrestricted equity. In addition, the Annual General Meeting authorised the Board of Directors to decide on a share issue and the issuance of special rights entitling their holders to shares.
The Board of Directors is authorised to purchase a maximum of 2,000,000 company shares (5.2% of the total number of shares). The repurchase authorisation is effective for 18 months.
The Board of Directors is authorised to decide on the issuance of new shares or shares which may be held by the company through a share issue and/or issuance of option rights or other special rights conferring entitlement to shares, referred to in Chapter 10, Section 1 of the Finnish Companies Act, so that under the authorisation, a maximum of 2,000,000 shares (5.2% of the total number of shares) may be issued and/or conveyed. The authorisation is effective for 18 months.
RESOLUTIONS BY THE ANNUAL GENERAL MEETING
The Annual General Meeting of Lassila & Tikanoja plc, which was held on 27 March 2025, adopted the financial statements and consolidated financial statements for the financial year 2024, discharged the members of the Board of Directors and the President and CEO from liability and adopted the Remuneration Report for the Company’s governing bodies. The Annual General Meeting resolved on the use of the profit shown on the balance sheet and the payment of dividend, the amendment of the Articles of Association of the Company, the composition and remuneration of the Board of Directors, the election and remuneration of the Auditor, the election of the Sustainability Reporting Assurance Provider and authorising the Board of Directors to decide on the repurchase of the Company’s own shares and on a share issue and the issuance of special rights entitling to shares.
The Annual General Meeting resolved that a dividend of EUR 0.50 per share be paid on the basis of the balance sheet adopted for the financial year 2024. It was decided that the dividend be paid on 7 April 2025.
The Annual General Meeting resolved, in accordance with the Board's proposal, to amend the Articles 4, 16 and 13 of the Company’s Articles of Association as follows:
- Article 4 is amended so that the Board of Directors may consist of no less than three (3) and no more than eight (8) members, instead of the previous no more than seven (7) members.
- Article 6 is amended so that in addition to the auditor, the Company shall have a sustainability reporting assurance provider.
- Article 13 is amended so that the assurance report on sustainability reporting shall be presented at the Annual General Meeting and the Annual General Meeting shall elect a sustainability reporting assurance provider, in addition to the issues specified in the previous Article 13 of the Articles of Association.
The Annual General Meeting confirmed the number of members of the Board of Directors as eight (8) in accordance with the proposal of the Shareholders’ Nomination Board. Teemu Kangas-Kärki, Sakari Lassila, Jukka Leinonen, Juuso Maijala, Anni Ronkainen, and Pasi Tolppanen were re-elected and Tuija Kalpala as well as Anna-Maria Tuominen-Reini were elected as new members to the Board until the end of the following Annual General Meeting. Jukka Leinonen was elected as the Chairman of the Board and Sakari Lassila was elected as the Vice Chairman.
The Annual General Meeting elected PricewaterhouseCoopers Oy, Authorised Public Accountants, as the auditor of the Company until the close of the next Annual General Meeting. PricewaterhouseCoopers Oy has announced that it will name Samuli Perälä, Authorised Public Accountant, as the auditor with principal responsibility.
The Annual General Meeting elected PricewaterhouseCoopers Oy, Authorised Sustainability Audit Firm, as the sustainability reporting assurance provider of the Company until the close of the next Annual General Meeting. PricewaterhouseCoopers Oy has announced that it will name Samuli Perälä, Authorised Sustainability Auditor, as the responsible authorised sustainability auditor.
The resolutions of the Annual General Meeting were announced in more detail in a stock exchange release on 27 March 2025.
BOARD OF DIRECTORS
The members of Lassila & Tikanoja plc’s Board of Directors are Tuija Kalpala, Teemu Kangas-Kärki, Sakari Lassila, Jukka Leinonen, Juuso Maijala, Anni Ronkainen, Pasi Tolppanen and Anna-Maria Tuominen-Reini. Lassila & Tikanoja plc’s Annual General Meeting held on 27 March 2025 elected Jukka Leinonen as the Chairman of the Board and Sakari Lassila as the Vice Chairman.
In its constitutive meeting held after the Annual General Meeting, the Board of Directors elected the members of the Audit Committee and the Personnel and Sustainability Committee from amongst its members. Teemu Kangas-Kärki (Chairman), Sakari Lassila, Tuija Kalpala and Anna-Maria Tuominen-Reini were elected to the Audit Committee. Jukka Leinonen (Chairman), Juuso Maijala, Pasi Tolppanen and Anni Ronkainen were elected to the Personnel and Sustainability Committee.
PARTIAL DEMERGER
On 13 December 2024, the company announced, that the Board of Directors of Lassila & Tikanoja plc has decided to initiate the planning of the possible separation of its circular economy businesses Environmental and Industrial Services and facility services businesses into two independent listed companies. The plan is to separate the circular economy businesses into a newly listed company through a partial demerger of Lassila & Tikanoja plc.
According to the Board of Directors’ preliminary assessment, the separation of the circular economy and facility services businesses could increase shareholder value by enabling both businesses to pursue their own strategies and growth opportunities more effectively.
On 9 June 2025, the company announced, that as part of the plan announced on 13 December 2024 to separate Lassila & Tikanoja plc's Circular Economy business into a new publicly listed company through a partial demerger of Lassila & Tikanoja ("Demerger"), the Board of Directors proposes that Eero Hautaniemi be appointed as the CEO of the independent Circular Economy business, should the partial demerger be executed. Simultaneously, the Board of Directors of Lassila & Tikanoja proposes that Antti Niitynpää be appointed as the CEO of the Facility Services business remaining following the Demerger, subject to the completion of the Demerger.
Eero Hautaniemi has served as the CEO of Lassila & Tikanoja and as a member of the Lassila & Tikanoja’s Group Executive Board since 2019 and will continue in his current position as the CEO of Lassila & Tikanoja until the completion of the contemplated Demerger, in connection with which the appointments relating to the Demerger will come into effect. Antti Niitynpää has served as the Senior Vice President of Facility Services at Lassila & Tikanoja since 2021 and has over 10 years of experience in leadership positions within the company's facility services. Prior to that, he held several leadership positions at ISS companies for over 10 years.
The Board of Directors of Lassila & Tikanoja plc additionally proposes that M.Sc. (Econ.) Joni Sorsanen be appointed as the CFO of the independent Circular Economy business and M.Sc. (Econ.) Mika Stirkkinen be appointed as the CFO of the Facility Services business, should the partial demerger be executed. Joni Sorsanen has served as the CFO of the Lassila & Tikanoja Group and as a member of the Group Executive Board since 2024 and will continue in his current position until the completion of the contemplated Demerger, in connection with which the appointments regarding the Demerger will come into effect. Mika Stirkkinen has over 20 years of experience in financial management, including serving as the CFO of Finnair.
On 7 August 2025, the Board of Directors of Lassila & Tikanoja plc approved the demerger plan to separate the circular economy business into a new publicly listed company. Further information on the demerger plan will be provided in a separate stock exchange release. The demerger is subject to approval by an Extraordinary General Meeting of the company, which is expected to be held on 4 December 2025. The planned effective date of the demerger is 31 December 2025.
NEAR-TERM RISKS AND UNCERTAINTIES
General economic uncertainty may affect the level of economic activity among customers, which may reduce the demand for L&T’s services.
Changes in costs, such as the price of fuel and energy and interest rates, may have an impact on the company’s financial performance.
The Finnish Waste Act was amended in July 2021. Under the reforms to the Waste Act, municipalities take on a larger role in organising the collection of packaging materials and biowaste from housing properties. As a consequence of the reform, L&T’s direct customer agreements with housing properties on the separate collection of packaging waste and biowaste will be transferred to municipalities for competitive bidding gradually between 1 July 2022 and 1 July 2025. L&T estimates that, as a result of municipalisation, approximately EUR 30 million of the Finnish waste management market will be moved out of the scope of free competition between 2024 and 2026. L&T participates in the competitive tendering of municipal contracts and is a significant operator in municipal contracts. Nevertheless, L&T estimates that the overall impact of the change will be negative for the company.
The company has several ERP system renewal projects under way. Temporary additional costs arising from system deployments and establishing the operating model may weigh down the company’s result.
Production costs may be increased by regional challenges related to employee turnover and labour availability.
The geopolitical situation involves continued uncertainty due to Russia’s war of aggression and the U.S. customs policy. The indirect impacts on overall economic activity in Finland and Sweden may have a negative impact on net sales and profit.
Lassila & Tikanoja announced in December 2024 that the company’s Board of Directors has decided to initiate the planning for the separation of the company’s circular economy businesses, i.e., Environmental and Industrial services, and facility services businesses into two independent listed companies, with the circular economy businesses being separated into a new listed company. The planning and related measures for the partial demerger may include risks related to, for example, the retention of skilled personnel, customer relationships, costs, and the execution of potential transactions.
The Group company Lassila & Tikanoja FM AB is a claimant and a defendant in legal proceedings in Sweden concerning unpaid receivables invoiced from a former customer of L&T. In June 2022, Lassila & Tikanoja FM AB took legal action in the District Court of Solna against the former customer company of L&T, demanding payment for unpaid receivables. At the end of the review period, the amount of receivables on the company’s balance sheet was approximately EUR 0.6 million. The former L&T customer company in question has rejected Lassila & Tikanoja FM AB’s claims and the payment obligation, and brought a counterclaim demanding compensation totalling approximately SEK 144 million from Lassila & Tikanoja FM AB. The dispute is still pending. Lassila & Tikanoja considers the counterclaim to be without merit and has not recognised any provisions in relation to it.
More detailed information on Lassila & Tikanoja’s risks and risk management is provided in the 2024 Annual Review and in the Report by the Board of Directors and the consolidated financial statements.
Helsinki 7 August 2025
LASSILA & TIKANOJA PLC
Board of Directors
Eero Hautaniemi
President and CEO
For additional information, please contact:
Eero Hautaniemi, President and CEO, tel. +358 10 636 2810
Joni Sorsanen, CFO, tel. +358 50 443 3045
Lassila & Tikanoja is a service company that is putting the circular economy into practice. Together with our customers, we keep materials, manufacturing sites and properties in productive use for as long as possible and we enhance the use of raw materials and energy. This is to create more value with the circular economy for our customers, personnel and society in a broader sense. Achieving this also means growth in value for our shareholders. Our objective is to continuously grow our actions’ carbon handprint, our positive effect on the climate. We assume our social responsibility by looking after the work ability of our personnel as well as offering jobs to those who are struggling to find employment, for example. With operations in Finland and Sweden, L&T employs approximately 7,400 people. Net sales in 2024 amounted to EUR 770.7 million. L&T is listed on Nasdaq Helsinki.
Distribution:
Nasdaq Helsinki
Major media
www.lt.fi/en/
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