Pihlajalinna Half Year Financial Report 1 January-30 June 2026: Healthcare Services profitability strengthened. Changes in outsourcing agreements had the expected downward impact on profitability
Pihlajalinna Plc Half Year Financial Report 23 July at 8:00 a.m. EEST
Pihlajalinna Half Year Financial Report 1 January–30 June 2026: Healthcare Services profitability strengthened. Changes in outsourcing agreements had the expected downward impact on profitability
This release is a summary of Pihlajalinna Plc's Half Year Financial Report for January–June 2026. The full report is available as a PDF attachment to this release and can also be found on Pihlajalinna's website at pihlajalinna.fi/en/investors.
This Half Year Financial Report is unaudited. The comparison figures in brackets refer to the corresponding period in the previous year.
April–June in brief:
- Revenue was EUR 135.9 (171.3) million – a decrease of -20.7 per cent mainly due to changes in outsourcing agreements. Comparable1) revenue decreased by EUR -6.9 million, or -4.9 per cent.
- In Healthcare Services, revenue was EUR 108.7 (111.9) million. Comparable1) revenue decreased by EUR -7.6 million, or -6.5 per cent.
- In Outsourcing Services, revenue was EUR 25.2 (58.4) million. Comparable1) revenue decreased by EUR -0.3 million, or -1.3 per cent.
- Adjusted EBITA2⁾ was EUR 9.4 (14.6) million, a decrease of -35.3 per cent.
- Adjusted EBITA2) in Healthcare Services was EUR 8.3 (8.0) million, an increase of 4.8 per cent.
- Adjusted EBITA2) in Outsourcing Services was EUR 1.1 (6.1) million, a decrease of -81.3 per cent.
- Net cash flow from operating activities amounted to EUR 18.2 (25.2) million3).
- Earnings per share (EPS) was EUR 0.01 (0.36)4).
- The outsourcing of social and healthcare services in Northern Pirkanmaa commenced at the beginning of April, when Virrat and Ruovesi transferred to Pihlajalinna's service production. From the beginning of May, Parkano and Kihniö also transferred to the new agreement, area previously covered by Kolmostien Terveys.
- As a result of the change negotiations that concluded in April, Outsourcing Services is expected to see a permanent reduction of an estimated 139 positions, while 61 new positions will be created, as operations are adjusted to correspond to the new service agreement in Northern Pirkanmaa. In Healthcare Services, the negotiations that concluded in May are expected to result in a permanent reduction of an estimated 220 positions.
January–June in brief:
- Revenue was EUR 278.0 (352.7) million – a decrease of -21.2 per cent mainly due to changes in outsourcing agreements. Comparable1) revenue decreased by EUR -12.9 million, or -4.4 per cent.
- In Healthcare Services, revenue was EUR 226.4 (230.8) million. Comparable1) revenue decreased by EUR -13.3 million, or -5.6 per cent.
- In Outsourcing Services, revenue was EUR 47.4 (119.1) million. Comparable1) revenue decreased by EUR -1.0 million, or -2.0 per cent.
- Adjusted EBITA2⁾ was EUR 23.5 (32.6) million – a decrease of -28.1 per cent.
- Adjusted EBITA2) in Healthcare Services was EUR 18.5 (20.9) million, a decrease of -11.8 per cent.
- Adjusted EBITA2) in Outsourcing Services was EUR 5.2 (12.1) million, a decrease of -56.9 per cent.
- Net cash flow from operating activities amounted to EUR 36.5 (51.0) million3).
- Net debt to adjusted EBITDA was 2.9 (2.5). Pihlajalinna redeemed its EUR 20 million hybrid bond at the end of March, which weakened the ratio as expected.
- Earnings per share (EPS) was EUR 0.36 (0.83)4).
1) Changes in outsourcing agreements, divestments of residential care units and transfers between segments have been excluded from the comparison period revenue.
2) Alternative performance measure. In addition to the IFRS figures, Pihlajalinna presents additional, alternative performance indicators which the company monitors internally, and which provide the company’s management, investors, stock market analysts and other stakeholders with important additional information concerning the company’s financial performance, financial position and cash flows. These performance indicators should not be reviewed separately from the IFRS figures, and they should not be considered as replacing the IFRS figures.
3) Changes in outsourcing agreements have affected the Group's working capital structure. The Healthcare Services business and the new Northern Pirkanmaa outsourcing agreement tie up working capital in trade receivables due to longer payment terms, which weakens cash flow from operating activities compared with the comparison period.
4) Earnings per share (EPS) for the second quarter was burdened by non-recurring costs related to the company’s transformation programme, change negotiations and the centralisation of surgical operations.
| Key figures | |||||||
| EUR million | 4–6 /2026 |
4–6 /2025 |
change % | 1–6 /2026 |
1–6 /2025 |
change % | 2025 |
| INCOME STATEMENT | |||||||
| Revenue | 135.9 | 171.3 | -20.7 | 278.0 | 352.7 | -21.2 | 652.3 |
| Adjusted EBITA ¹⁾ | 9.4 | 14.6 | -35.3 | 23.5 | 32.6 | -28.1 | 65.3 |
| Adjusted EBITA, % ¹⁾ | 6.9 | 8.5 | 8.4 | 9.2 | 10.0 | ||
| Operating profit (EBIT) | 2.3 | 13.0 | -82.1 | 14.5 | 29.4 | -50.6 | 52.7 |
| Operating profit (EBIT), % | 1.7 | 7.6 | 5.2 | 8.3 | 8.1 | ||
| Adjusted operating profit (EBIT) ¹⁾ | 7.7 | 13.0 | -40.8 | 19.9 | 29.3 | -32.1 | 58.6 |
| Adjusted operating profit (EBIT), % ¹⁾ | 5.6 | 7.6 | 7.2 | 8.3 | 9.0 | ||
| Profit before tax (EBT) | 0.5 | 11.2 | -95.8 | 11.0 | 25.9 | -57.6 | 45.8 |
| SHARE-RELATED INFORMATION | |||||||
| Earnings per share (EPS), EUR | 0.01 | 0.36 | -98.5 | 0.36 | 0.83 | -56.8 | 1.58 |
| Equity per share, EUR | 7.36 | 7.90 | -6.8 | 8.48 | |||
| OTHER KEY FIGURES | |||||||
| Return on capital employed (ROACE), % | 8.0 | 11.5 | -30.2 | 10.9 | |||
| Return on equity (ROE), % | 14.8 | 21.8 | -32.2 | 21.3 | |||
| Equity ratio, % | 29.3 | 28.5 | 3.1 | 32.2 | |||
| Gearing, % | 172.6 | 152.5 | 13.2 | 141.1 | |||
| Interest-bearing net debt | 289.3 | 270.8 | 6.8 | 271.7 | |||
| Net debt/adjusted EBITDA, 12 months ¹⁾ | 2.9 | 2.5 | 15.2 | 2.5 | |||
| Interest-bearing net debt excluding IFRS 16 | 108.0 | 81.4 | 32.6 | 81.4 | |||
| Net debt/adjusted EBITDA, excluding IFRS 16, 12 months ¹⁾ | 1.6 | 1.1 | 44.5 | 1.0 | |||
| Cash flow from operating activities | 18.2 | 25.2 | -27.8 | 36.5 | 51.0 | -28.4 | 75.6 |
| Average number of personnel (FTE) | 3,005 | 4,283 | -29.8 | 3,928 | |||
| Personnel at the end of the period (NOE) | 4,415 | 6,284 | -29.7 | 4,540 | |||
| Number of practitioners | 2,244 | 2,205 | 1.8 | 2,251 | |||
| NPS, Healthcare Services | 82.0 | 84.0 | 83.0 | 85.0 | -2.4 | 86.0 | |
| NPS, Outsourcing Services | 79.0 | 78.0 | 80.0 | 80.0 | 0.0 | 80.0 |
1) Items affecting comparability are non-recurring and material events that are not part of normal day-to-day operations. Items affecting comparability include, among other items, costs related to business acquisitions, costs related to restructuring measures, impairment of assets, and gains and losses arising from the sale or discontinuation of business operations. Items affecting comparability only include events with an impact on profit or loss of more than EUR 0.1 million.
EBITDA adjustments during the review period amounted to EUR 4.0 (-3.4) million and EUR 3.9 (-3.4) million in the quarter. Adjustments to operating profit during the review period amounted to EUR 5.4 (0.0) million and EUR 5.3 (0.0) million in the quarter.
Pihlajalinna’s outlook for 2026, published 22 July 2026
Pihlajalinna’s revenue is expected to decline by approximately EUR 85 million in 2026 due to the expiry of outsourcing agreements and the divestment of residential care units. Pihlajalinna will focus on organic growth and further improvement in profitability. The new operating model which entered into effect at the beginning of the year will ensure that development and growth align with our strategy and respond to the transformation of our business.
- The Group estimates revenue to be approximately EUR 550-570 million (EUR 652.3 million in 2025).
- The Group estimates the adjusted operating profit before the amortisation and impairment of intangible assets (EBITA) to be 9-10 per cent of revenue (10.0 per cent of revenue in 2025).
Development in demand and general economic environment may have a more significant impact on Pihlajalinna’s financial result than currently expected.
Tuomas Hyyryläinen, President and CEO:
Overall demand in the healthcare market remained weak in the second quarter. Changes in outsourcing agreements reduced Pihlajalinna's revenue and profitability as expected. Our development and adaptation measures supported profitability in Healthcare Services, where adjusted EBITA strengthened despite lower revenue than in the comparison period. Long-term development during the transformation of our business has ensured our ability to operate in different demand environments.
In Healthcare Services, revenue for the second quarter amounted to EUR 108.7 (111.9) million. The general decline in demand had only a minor effect on revenue from insurance company customers. The number of occupational healthcare individual customers has increased since the beginning of the year. The shift towards remote services continued, and we expanded our use of AI-based solutions together with our partners. Despite the decline in demand, Healthcare Services' profitability strengthened, supported by active development and the management of personnel costs. The segment's adjusted EBITA increased to EUR 8.3 (8.0) million, and the margin improved.
In Outsourcing Services, revenue declined as expected to EUR 25.2 (58.4) million, due to changes in outsourcing agreements and the divestment of residential care units. The segment's adjusted EBITA decreased as expected to EUR 1.1 (6.1) million. The Northern Pirkanmaa outsourcing commenced at the beginning of April, and we began integrating the operations into our unified processes and the service agreement's requirements. This also led to the reorganisation of operations and to change negotiations, which concluded in April. Also, we immediately began development in line with our service commitment, together with the Wellbeing Services County of Pirkanmaa.
Overall cost-effectiveness is a key driver of market development. The use of data and AI supports a strong customer experience and operational efficiency. We are actively developing our ability to identify customer needs and guide people to the right care. This enables the effective use of resources across both the healthcare system and our partners. We are strengthening our data-driven, targeted preventive services. Pihlajalinna's Sydänkaista and Kevyt askel are strong examples of this work, and both have already delivered excellent results. We are responding to the growing demand for remote services with new types of services, including in accident care and mental wellbeing support. In occupational healthcare, we have introduced a new digital service platform that further increases the transparency of actions and results. We are actively making use of the potential of AI technologies, such as care needs assessment, imaging, and solutions that ease the daily work of physicians and nurses.
We are continuing our determined efforts to develop Pihlajalinna. The challenging market environment drives us forward and creates opportunities for inorganic growth. I am pleased with our ability to adapt and actively renew our operations to meet our partners' needs. This strengthens both our competitiveness and profitable growth in line with our strategy. Warm thanks to our professionals and partners for their continued dedication and commitment for the benefit of our customers.
Webcast for analysts, investors and media
Pihlajalinna will organise a live webcast meeting for analysts, investors and media on Thursday, 23 July 2026 at 10:00 a.m. at https://pihlajalinna.events.inderes.com/q2-2026. The event will be conducted in Finnish. The recording of the event will be available later on the same webpage as the live webcast.
Pihlajalinna Plc
Further information:
Tuula Lehto
Executive Vice President, Communications, Marketing and Sustainability
tel. +358 40 588 5343, tuula.lehto@pihlajalinna.fi
Distribution:
Nasdaq Helsinki Ltd.
Key media
pihlajalinna.fi/en/investors
Pihlajalinna in brief
Pihlajalinna is a healthcare reformer, building effective care pathways and the most attractive corporate culture in the industry. Pihlajalinna is the most committed partner for insurance partners', corporations' and the public sector's success. The Group provides comprehensive, high-quality services through private clinics, hospitals, remote channels, work ability-supporting occupational healthcare as well as social and healthcare solutions for the public sector that deliver overall cost effectiveness. Approximately 4,500 employees and 2,300 practitioners work at Pihlajalinna. In 2025, Pihlajalinna's revenue was 652 million euros. Pihlajalinna's shares are listed on Nasdaq Helsinki Oy. Read more www.pihlajalinna.fi.