Teleste Corporation: Interim Report 1 January to 31 March, 2025
Teleste Corporation
Stock exchange release
May 7, 2025 at 8.30 a.m. EEST
TELESTE CORPORATION: STRONG GROWTH IN ORDERS. ADJUSTED OPERATING RESULT REMAINED UNCHANGED. IMPROVED EARNINGS PER SHARE.
Unless otherwise specified, the figures in parentheses refer to the year-on-year comparison period.
JANUARY–MARCH 2025 IN BRIEF
- Net sales was EUR 32.2 (36.6) million representing decrease of 12.1%
- Adjusted EBITDA was EUR 2.7 (3.1) million, representing a decrease of EUR 0.4 million, or 11.3%
- The adjusted operating result was EUR 1.5 (1.5) million
- The operating result was EUR 1.5 (-0.4) million, an increase of EUR 1.9 million
- Adjusted earnings per share were EUR 0.03 (0.08), representing a decrease of EUR 0.05
- Earnings per share were EUR 0.03 (-0.02), representing an increase of EUR 0.05
- Cash flow from operations was EUR 1.5 (7.3) million, representing a decrease of EUR 5.8 million
- Orders received increased by 21.5% to EUR 37.1 (30.5) million
OUTLOOK FOR 2025 (unchanged)
Teleste estimates revenue for 2025 to be between 135 and 150 million euros, with adjusted operating profit in the range of 4 to 7 million euros. The result is expected to be primarily realized in the second half of the year.
Import tariffs in the United States may negatively affect profitability in the short term.
| EUR million | 1–3 2025 | 1–3 2024 | Change | 1–12 2024 |
| Net sales | 32.2 | 36.6 | -12.1% | 132.5 |
| Adjusted EBITDA 1) | 2.7 | 3.1 | -11.3% | 9.2 |
| Adjusted EBITDA, % 1) | 8.4% | 8.4% | 0.1 bps | 6.9% |
| Adjusted EBIT 1) | 1.5 | 1.5 | -5.9% | 4.0 |
| Adjusted EBIT, % 1) | 4.5% | 4.2% | 0.3 bps | 3.0 % |
| EBIT | 1.5 | -0.4 | n/a | -5.5 |
| Operating result, % | 4.5% | -1.0 % | 5.5 bps | -4.2% |
| Net result for the period | 0.6 | -0.5 | n/a | -6.1 |
| Adjusted earnings per share, EUR 1) | 0.03 | 0.08 | -56.7% | 0.20 |
| Earnings per share, EUR | 0.03 | -0.02 | n/a | -0.32 |
| Cash flow from operations | 1.5 | 7.3 | -79.3% | 12.4 |
| Orders received | 37.1 | 30.5 | 21.5% | 124.9 |
| Order book | 123.2 | 124.3 | -0.9% | 118.3 |
| Net gearing, % | 46% | 43% | 0.3 bps | 46% |
| Equity ratio, % | 47% | 47% | 0.0 bps | 45% |
| Personnel on average | 633 | 709 | -10.7 % | 673 |
1) An alternative performance measure defined in the tables section of the report.
COMMENTS BY ESA HARJU, PRESIDENT & CEO
“The year 2025 started on a positive note and in line with our expectations. Orders received during the first quarter increased, particularly in the Broadband Networks business, where we secured new orders in both North America and Europe. Although revenue fell short compared to the strong comparison period, our adjusted operating result was on par with the previous year, and operating profit improved significantly, driven by cost adjustments implemented in the previous year. Cash flow from operations was positive.
The Broadband Networks business continued its geographical expansion from Europe to North America. Orders received grew significantly, raising the order backlog. In anticipation of import tariffs by the new U.S. administration, we delivered a higher-than-usual stock of products to the U.S. during the early part of the year. We have also established full operational capability to conduct final assembly of our products in the U.S., adjacent to our logistics center. The first locally assembled products have already been delivered to our customers.
In the Public Safety and Mobility business, the year started as planned. Orders received and revenue were below the comparison period, but profitability improved clearly. Through long-term efforts, we have succeeded in enhancing the profitability of the business. Deliveries to train manufacturers were lower than in the comparison period due to large project deliveries at the end of 2024. The volume of video surveillance projects in North America and the Middle East was at a good level, as was the volume of our service and maintenance business.
The import tariffs introduced by the new U.S. administration and their indirect effects are also impacting us. However, we have taken several measures to prepare for the situation and remain agile in adapting our operations in the evolving market environment. We maintain our full-year financial outlook, although the aforementioned import tariffs may affect short-term profitability.
On April 22, 2025, we published our long-term strategic growth targets. We see several growth opportunities in our target markets where we intend to leverage our world-class professional capabilities. In the Broadband Networks business, North America is the main driver of growth. In the Public Safety and Mobility business, we are aiming to increase our market share. Protecting and improving profitability is also a key strategic objective”
For further information, please contact:
Esa Harju
President and CEO
Mervi Kerkelä-Hiltunen
CFO
tel. +358 2 2605 611
investor.relations@teleste.com
About Teleste
Teleste offers an integrated product and service portfolio that makes it possible to build and run a better networked society. Our solutions bring television and broadband services to you, secure your safety in public places and guide your use of public transport. With solid industry experience and drive for innovations, we are a leading international company in broadband, security and information technologies and related services. We connect with our customers through a global network of offices and partners. In 2024, Teleste's net sales reached EUR 132.5 million and it had approximately 670 employees. Teleste is listed on Nasdaq Helsinki. For more information, visit www.teleste.com.