CEO’s review
At Teleste, the year 2025 marked a period of steady progress and strategic focus.
Despite continued volatility in the global geopolitical and macroeconomic environment, we successfully delivered value to our customers while improving our financial performance in both of our business segments. Our geographical expansion to North America continued and our customer base continued to expand globally.
BROADBAND NETWORKS: GROWTH MOMENTUM
In North America, investments in DOCSIS 4.0 hybrid fiber-coax (HFC) technology started to accelerate and operators deployed our 1.8 GHz ICON intelligent amplifiers in high volumes. Our growing customer footprint strengthened our position as a trusted technology partner in the growing large-scale infrastructure upgrade market. We also started to expand our production capabilities into Mexico, to be close to our key customers. At the same time, ongoing consolidation among the largest operators
is reshaping market expectations and increasing the need for closer collaboration between technology suppliers and service providers. Teleste is actively engaging in these areas to support seamless integration and to deliver long-term value for customers.
In Europe, market demand showed signs of recovery as select customers initiated DOCSIS 4.0 network upgrades, while we continued to gain market share from competitors. Supported by long-standing customer relationships, we remain the preferred technology partner for our customers. Throughout the year, we maintained disciplined execution and prioritised resources to safeguard operational efficiency.
PUBLIC SAFETY AND MOBILITY:
SOLID PERFORMANCE AND EXPANDING BUSINESS
Our Public Safety and Mobility business delivered steady performance. Investments in new trains and intelligent urban transport systems continued to support market growth for digital passenger information systems. During the year, our broad product portfolio and expanding service business strengthened recurring revenue streams and deepened customer relationships. Train manufacturers remained our largest customer segment, but we successfully expanded our customer base in stationary display systems with several leading European public transport operators and system integrators.
At the same time, the need to secure critical infrastructure through intelligent digital technologies is creating new market opportunities. Supported by our long-standing customer base, particularly in video security solutions, this market continues to offer attractive growth potential for us.
We are increasingly positioning ourselves as an end-to-end information and security systems provider for public transport and critical public infrastructure. During the year, we successfully delivered multiple projects to our key customers, whilst improving our profitability.
FINANCIAL PERFORMANCE
Our full-year 2025 orders and net sales increased from the prior year, and profitability improved considerably, with full-year operating profit landing at the top end of the guidance range. Both business segments performed well in the continuously evolving operating landscape. The company’s operating cash flow was positive, and our balance sheet strengthened: the equity ratio improved and net gearing ratio decreased. Our financial guidance for financial year 2026 is indicating continuing growth in revenue and profitability.
We continued to enhance operational excellence by implementing AI-driven solutions and process automation, streamlining workflows, improving throughput and consistency,
and allowing our teams to focus on higher-value activities.
With a strategically re-focused organization and renewed Leadership Team, we focused on delivering high levels of customer satisfaction while ensuring operational efficiency and robust risk management, particularly in relation to geopolitical uncertainties.
COMMITMENT TO SUSTAINABILITY
We remain strongly committed to sustainability and are continuously strengthening our environmental management practices. Our products and solutions play a key role in enabling a more environmentally sustainable future. At the same time, our social sustainability principles reflect our responsibility toward customers, employees, and partners. We have been awarded EcoVadis Gold Medal for two consecutive years in a row, placing us amongst the top 5% of all evaluated companies globally.
LOOKING AHEAD
In April 2025, we announced our long-term strategic growth targets until 2030.
We aim for:
- Profitable growth in both of Teleste’s business segments (Broadband Networks and Public Safety and Mobility).
- Average annual revenue growth of 10% until 2030. There may be variations between individual years.
- Adjusted operating profit margin of 7% to 12% by 2030.
We see multiple growth opportunities across our target markets, where we plan to leverage our world-class professional capabilities. In the Broadband Networks business, North America remains the primary growth driver, whilst Europe remains very important. In the Public Safety and Mobility business, our focus is on expanding our market share across the whole product portfolio in Europe and beyond. We are increasingly integrating innovation, digitalization, and AI across our operations, while further strengthening collaboration with our industry ecosystem.
I am proud of the strong momentum our teams continue to build with customers and partners. I want to express my sincere thanks to our employees for their dedication and adaptability, and to our customers and partners for their continued trust. With a strong technological foundation and a clear strategic direction, Teleste is well positioned to deliver sustainable long‑term value and capture new opportunities in the years ahead.
Esa Harju
CEO of Teleste
Source: Teleste’s Annual Report 2025