Martela Corporation’s Half Year Report 1 January – 30 June

Martela Corporation, Half year report, 13.8.2025, at 08:00 a.m.

The revenue and operating result for January-June 2025 improved compared to the same period of the previous year. Operating result turned profitable in April-June 2025.

April–June 2025

• Revenue was EUR 24.6 million (21.0), representing a change of 17.0%
• Operating result was EUR 0.1 million (-1.6)
• Operating profit per revenue was 0.5% (-7.7%)
• The result for the period was EUR -0.4 million (-2.1)
• Earnings per share amounted to EUR -0.09 (-0.45)
  
  

January–June 2025

• Revenue was EUR 50.2 million (41.2), representing a change of 21.8 %
• Operating result was EUR -1.4 million (-3.8)
• Operating profit per revenue was -2.9% (-9.3%)
• The result for the period was EUR -2.5 million (-4.8)
• Earnings per share amounted to EUR -0.54 (-1.04)
  
  

Outlook

Outlook for 2025

Martela anticipates its revenue to increase in full-year 2025 compared to previous year and comparable operating profit close to zero result.

Key figures, EUR million

	2025	2024	Change	2025	2024	Change	2024
	4-6	4-6	%	1-6	1-6	%	1-12
Revenue	24.6	21.0	17.0%	50.2	41.2	21.8%	86.7
Operating result	0.1	-1.6		-1.4	-3.8		-6.5
Operating result %	0.5%	-7.7%		-2.9%	-9.3%		-7.5%
Result before taxes	-0.4	-1.9		-2.4	-4.5		-8.2
Result for the period	-0.4	-2.1		-2.5	-4.8		-8.7
Earnings/share, EUR	-0.09	-0.45		-0.54	-1.04		-1.87
Return on investment %	3.0	-24.2		-6.2	-57.9		-25.4
Return on equity % *)	n/a	-34.5		n/a	-79.9		-362.6
Equity ratio %				-2.4	11.4	-121.5%	2.5
Gearing % **)				neg.	331.6		1 455.2

*) Return on equity has not been informed for the review period, because the average equity of the year has been negative.
**) Gearing was negative because equity was negative.

Ville Taipale, CEO:

“I am very pleased, as in the long-lasting and exceptionally challenging market environment, we have managed to turn our operating results profitable on second quarter through hard work. This has been made possible by the Martela team's strong commitment to the company's turnaround and the trust demonstrated by our stakeholders even in difficult times.

During the first half of the year, customer demand strengthened compared to the same period last year. The cautious positive trend that began in late 2024 continued in the second quarter of this year. The group's total new orders increased by approximately 8% in the first half of the year compared to the same period last year, and by about 4% in the second quarter compared to the same period last year. Orders rose in all market areas, except in Norway, during the first half of the year. The order backlog at the end of the review period was at a healthy level and was approximately 20% higher than at the same time last year.

Our revenue increased to EUR 50.2 (41.2) million in the first half of the year, which is a 21.8% higher compared to the same period last year. Revenue increased on all market areas. In the second quarter, revenue increased to EUR 24.6 (21.0) million, representing a 17.0% increase compared to the same period last year.

Our operating result improved clearly in the first half of the year compared to the same period last year, but remained at a loss of EUR 1.4 (-3.8) million. The review period operating result was improved by higher revenue and a decrease in administrative and other fixed costs compared to the same period last year, as a result of implemented efficiency measures. The operating result for the review period, however, was in loss due to a higher relative share of delivered projects and products with lower margins, especially during the first quarter and to some extent during the second quarter. The results were also burdened by the costs related to restructuring negotiations conducted in different units of the group during the first quarter.

Our operating result improved significantly in the second quarter compared to the same period last year and ended on profit at EUR 0.1 (-1.6) million. The improvement in the second quarter was mainly due to higher sales volumes and savings from implemented efficiency measures. For the second half of the year, we continue to expect an improvement in the average profit margins of the coming to be delivered projects and products.

In 2025, we will focus strongly on improving profitability and cash flow. We have announced progress on new measures aimed at enhancing efficiency and profitability on January 3, 2025, February 17, 2025, and April 30, 2025. Concrete commendable results have already been achieved in the first half of the year, and full benefits are expected to be realized in the latter part of the year. The main focus is on immediate measures to improve efficiency and profitability.

We will continue to invest in active customer work and work closely with our value chain partners. We will continue to develop our service channels and maintain our circular economy service model and the offering of the sustainably designed products.

The years 2023 and 2024 have been significantly more challenging than expected, but our investments in business development, the positive feedback received from customers, and the nascent recovery of the markets give us confidence in the upcoming quarters of 2025 and the longer-term future. There is more remote work happening in Finland than in other European countries. Martela aims to make presence-based work environments more attractive through its products and services, which in turn helps to improve productivity. The work for the best working environments continues.”

Market situation

During the latter part of 2024 and at the early part of 2025, demand in Martela’s main markets has gradually strengthened. The competitive situation remains intense to some extent, which continues to put pressure on profit margins, but on average less so compared to the second half of 2024. For the second half of 2025, we still expect demand to increase slightly due to accumulated needs and overall positive economic development. The need for changes in office spaces arises as work methods evolve. The materialization of this need will increase demand for Martela's services and furniture in the future.

However, there are still significant uncertainties related to the strengthening of the overall economic situation, mainly due to geopolitical and trade policy related situation. Uncertainty also exists regarding the prospects for interest rates and inflation developments.

BRIEFING

A briefing will not be held, but additional information can be asked by telephone from CEO Ville Taipale and CFO Henri Berg on Wednesday August 13, 2025 from 12 a.m. to 2 p.m. EET.

Martela Corporation
Board of Directors

Ville Taipale
CEO

Further information
Ville Taipale, CEO, +358 50 557 2611
Henri Berg, CFO, +358 40 836 5464

Distribution
Nasdaq OMX Helsinki
Key news media

www.martela.com

Martela is a Nordic leader specialising in user-centric working and learning environments. We create the best places to work and offer our customers the Martela Lifecycle solutions which combine furniture and related services into a seamless whole.

Attachment

• 2025_0813 Half Year Report