Luotea Reports Continued Growth and Efficiency Improvements

Luotea Plc, a pioneer in facility services, announced its interim report for the period from January 1 to September 30, 2026, at a stock exchange release on October 28, 2026, at 8:00 a.m. The report highlighted significant improvements in several key financial metrics, reflecting the company's ongoing growth and operational efficiency.

Adjusted EBITA for the July to September quarter increased by EUR 0.8 million to EUR 5.7 million, marking a 6.8% increase in adjusted EBITA relative to net sales, which stood at EUR 84.2 million, a slight rise of 0.4% from the previous quarter. This growth in adjusted EBITA was primarily attributed to cost savings in ICT and personnel expenses, as well as improved performance in the Swedish operations.

In the same quarter, net sales for July to September amounted to EUR 84.2 million, a 0.4% increase from the previous quarter. The company reported a stable net sales figure for the full year, with January to September net sales totaling EUR 258.4 million, a 0.4% increase from the same period in 2025.

Adjusted operating profit for the July to September period was EUR 5.4 million, representing 6.4% of net sales, while operating profit for the same period was EUR 4.5 million, or 5.4% of net sales. For the full year, adjusted operating profit was EUR 7.5 million, or 2.9% of net sales, and operating profit was EUR 5.0 million, or 1.9% of net sales.

The earnings per share for the July to September period were EUR 0.09, while for the full year, they remained at EUR 0.08. Notably, the net cash flow from operating activities after investments for the January to September period was EUR -0.1 million, indicating a slight negative cash flow despite the positive financial performance.

Luotea Plc's outlook for the year 2026, as of September 11, 2026, projects an increase in adjusted EBITA compared to the previous year, with an expected adjusted EBITA of EUR 7.0 million. This aligns with the company's previous outlook, which also anticipated a significant increase in adjusted EBITA for 2026.

Niitynpää also highlighted the challenges faced in the Finnish cleaning market, noting intense competition and price pressure, particularly for large contracts. Despite these challenges, the company has maintained its focus on operational efficiency and profitability, particularly in its Facility Services Sweden business, which has seen seven consecutive quarters of improved profitability.

In Sweden, the company reported a 6% increase in net sales, driven by strong add-on sales growth. The improvement in profitability in Sweden continued, supported by efficiency measures and an improved contract portfolio, although at a slower pace than initially anticipated. Niitynpää expressed satisfaction with the company's performance in Sweden and noted the company's commitment to improving profitability in Finland, where targeted profitability improvement measures will continue in centralised functions and cleaning and support services.

Luotea is also investing in its data-driven services, including the development of new cleaning and support services, as well as the expansion of its energy management service, Luotea Smartti. The company is working to integrate data, technology, and its people to enhance customer experience, operational efficiency, and value creation.

The company's strategy includes the launch of an ERP system upgrade project aimed at supporting operational efficiency and the development of data-driven services. Additionally, Luotea is creating a new data-driven operating model, combining data, technology, and expertise to improve customer experience and value creation.

Luotea, a publicly listed company on the Nasdaq Helsinki, operates in Finland and Sweden, with net sales of approximately EUR 346 million in 2025 and a workforce of approximately 5,000. The company is committed to sustainable and profitable growth, mindful of its impact on buildings, the environment, and society.