Terveystalo Group Half-Year Report January–June 2026: Weak market conditions continued, actions taken to support profitability and growth
Terveystalo Group Half-Year Report January–June 2026: Weak market conditions continued, actions taken to support profitability and growth
Terveystalo Plc, Half-Year Report 2026 17 July 2026 at 09:00 EEST
This release is a summary of Terveystalo's Half-Year Report January–June 2026. The full release is attached to this stock exchange release and is available on our website at: https://www.terveystalo.com/en/company/investors/reports-and-presentations/
April–June 2026 in brief
- Revenue decreased by 8.8 percent year-on-year to EUR 293.3 (321.5) million.
- In Healthcare Services, segment revenue decreased by 6.8 percent and was EUR 239.8 (257.4) million.
- In Portfolio Businesses, revenue decreased by 21.3 percent and was EUR 38.6 (49.0) million.
- In Sweden, revenue decreased by 1.8 percent and amounted to EUR 20.1 (20.5) million.
- The number of working days was unchanged year-on-year.
- Adjusted1) operating profit (EBIT) decreased by 28.8 percent and amounted to EUR 26.1 (36.7) million, representing 8.9 (11.4) percent of revenue.
- In Healthcare Services adjusted EBIT decreased due to the decline in revenue. Operating efficiency remained at a good level, and during the quarter the cost structure was adjusted to the weak demand environment.
- In Portfolio Businesses adjusted EBIT weakened due to the decline in revenue. Profitability was supported by improved operating efficiency.
- In Sweden adjusted EBIT improved. Cost savings achieved through the profit improvement programme offset the negative impact of the decline in revenue.
- Items affecting comparability1) with an adverse effect on EBIT were EUR 2.9 (3.3) million.
- Operating profit (EBIT) decreased by 30.7 percent and amounted to EUR 23.2 (33.4) million.
- The result for the period was EUR 13.8 (22.2) million.
- Earnings per share (EPS) decreased by 38.0 percent and amounted to EUR 0.11 (0.18).
- Adjusted earnings per share (EPS) were EUR 0.13 (0.20).
- Cash flow from operating activities was EUR 38.3 (40.5) million.
- The signing of an agreement to acquire Silmäasema Oy was announced, supporting Terveystalo’s strategy to strengthen the position in the eye care market and providing increased scale and a stronger platform for profitable growth. The Extraordinary General Meeting authorised the Board of Directors to issue new shares in connection with the transaction as part of the consideration.
January–June 2026 in brief
- Revenue decreased by 10.0 percent year-on-year to EUR 601.5 (668.5) million.
- In Healthcare Services, revenue decreased by 8.3 percent to EUR 493.5 (537.9) million.
- In Portfolio Businesses, revenue decreased by 21.8 percent to EUR 77.9 (99.6) million.
- In Sweden, revenue decreased by 2.3 percent to EUR 40.1 (41.0) million.
- The number of working days was unchanged year-on-year.
- Adjusted1) operating profit (EBIT) decreased by 29.3 percent year-on-year to EUR 59.8 (84.5) million, representing 9.9 (12.6) percent of revenue.
- In Healthcare Services adjusted EBIT decreased due to the decline in revenue. Operating efficiency remained at a good level, and during the quarter the cost structure was adjusted to the weak demand environment.
- In Portfolio Businesses adjusted EBIT weakened due to the decline in revenue. Profitability was supported by improved operating efficiency.
- In Sweden adjusted EBIT improved. Cost savings achieved through the profit improvement programme offset the negative impact of the decline in revenue.
- Items affecting comparability1) with a negative effect on EBIT were EUR 10.0 (4.7) million.
- Operating profit (EBIT) decreased by 37.6 percent and amounted to EUR 49.8 (79.8) million.
- The result for the period was EUR 30.9 (55.6) million.
- Earnings per share (EPS) decreased by 44.4 percent and amounted to EUR 0.24 (0.44).
- Adjusted earnings per share (EPS) were EUR 0.32 (0.48).
- Net debt/EBITDA was 2.7 (2.2).
- Net debt/adjusted EBITDA was 2.5 (2.1).
- Cash flow from operating activities was EUR 35.8 (67.8) million.
- NPS (Net Promoter Score) for appointments was 87.9 (86.8). NPS for hospitals was 96.4 (95.4).
The figures in parentheses refer to the corresponding period one year ago.
1) Adjustments are material items outside the ordinary course of business, associated with acquisition-related expenses, restructuring-related expenses, gains and losses on the sale of assets, impairment losses, strategic projects, and other items affecting comparability. Adjustments for the reporting period are described in more detail in the section “Profit improvement and development programmes and items affecting comparability.”
President and CEO Ville Iho: Weak market conditions continued, actions taken to support profitability and growth
Demand for healthcare services remained weak during the second quarter of 2026, and the first half of the year was soft in terms of profitability. Revenue declined by 8.8 per cent to EUR 293.3 million, and adjusted EBIT amounted to EUR 26.1 million. Negative volume development weighed on the result, but swift adjustment measures helped maintain profitability at a reasonable level given the operating environment.
The market environment was challenging, particularly in the occupational health business, although early signs of stabilisation were seen during the second quarter. Rare oversupply of resources in the industry has intensified price competition, which in turn has slowed new customer acquisition in occupational health and lowered the pricing level of new contracts. In the consumer business, development was more stable. In a slightly negative market environment our own visit volumes increased in both consumer (out-of-pocket) healthcare services and dental care services.
During the reporting period, we announced our updated ARC strategy (AI and data-powered, Reach through growth and access, Customer-centricity), through which we aim to deliver strong, customer-centric growth enabled by fundamentally renewed service models. At the same time, we updated our financial targets to support stronger growth and announced the first major step in executing the strategy, the Silmäasema transaction.
In the current market environment and rapidly evolving industry, we must be able to apply both acceleration and brakes simultaneously. We are systematically adjusting our cost structure in areas where demand is weak, while boldly investing in technology, new service models and business areas with high growth potential.
Outlook and guidance
We have lowered our guidance for 2026 by changing the range and now expect the full-year 2026 adjusted operating profit (EBIT) to be EUR 120–140 million (2025: EUR 156.3 million). The lowered guidance reflects the challenging demand environment in the first half of the year and profitability remaining below the level of the comparison period.
We continue to actively adapt our cost structure while allocating investments in line with our ARC-strategy to drive growth. This is supported by the very strong long-term demand drivers in healthcare.
Market and demand environment
Demand for healthcare services in Finland remained below the comparison period in the second quarter. Demand was weighed down by low morbidity, cost-saving measures by corporate customers and very low purchasing activity from the public sector. Rare oversupply of resources in the industry has intensified price competition, which in turn has slowed new customer acquisition in occupational health and lowered the pricing level of new contracts. Compared to the beginning of the year, however, early signs of stabilisation were seen in the market, particularly in consumer-driven services.
In Sweden, the corporate health market has remained subdued throughout the first half of the year. Towards the end of the second quarter, however, early signs of recovery began to emerge, and customer purchase frequency increased for the first time in three years.
Financial development and profitability
Weak volume development resulted in an 8.8 per cent decline in revenue in the second quarter to EUR 293.3 million. The Group’s adjusted EBIT was EUR 26.1 million, corresponding to an adjusted EBIT margin of 8.9 percent.
We responded quickly to the decline in volumes and implemented adjustment measures during the spring, particularly in operational areas. As a result, profitability remained at a reasonable level in a challenging environment. In the second quarter, we launched an efficiency programme, through which we are renewing our support functions area by area using AI-driven sprints. We expect the impact of these adjustment and efficiency measures to strengthen gradually and support profitability during the second half of the year.
Despite these adjustment measures, our customer experience remained at a record-high level, with NPS at 88, and our treatment effectiveness metric, PEI, reached an all-time high of 75 percent.
Business area performance
In Healthcare Services, demand for occupational health services remained weak, although the decline in the number of connected employees stabilised during the reporting period. Our sales pipeline remains at a good level, but its conversion into new contracts has been slower than expected, particularly due to intensified price competition. The occupational health development programme progressed in a determined way. Key milestones included the advancement of the next-generation digital occupational health platform, Terveystalo Leo, towards implementation, as well as the renewal of services targeted at SMEs.
The consumer market was more stable than the occupational health market. Despite a slight decline in the overall market, we saw positive development particularly in out-of-pocket services, where visit volumes increased. The expansion of the freedom of choice pilot for people aged 65 and over supports demand in the latter part of the year.
In insurance customers, revenue declined slightly year-on-year as visit volumes per customer decreased across the market. However, our relative position strengthened. We are systematically building solutions for insurance companies that improve the cost efficiency and predictability of care, while enabling better monitoring of treatment pathway effectiveness. The objective is to create the conditions for profitable volume growth in the combined insurance and healthcare services market.
In Portfolio Businesses, revenue was negatively impacted by the expiry of outsourcing contracts, divestment of child welfare business and weak demand from the public sector. In dental care, however, development was positive. We increased visit volumes and gained market share. The Hohde acquisition is pending regulatory approval, and we expect the transaction to be completed during the third quarter. If completed, the acquisition will double our dental care business and create a strong foundation for its growth in the years to come.
In Sweden, the market environment remained weak, but operational efficiency improved and profitability strengthened. A solid sales pipeline supports the outlook for gradual recovery as demand normalises. In the second half of the year, we will focus particularly on strengthening revenue, supported also by potential acquisitions.
Strategy execution and digital development
In June, we announced our updated ARC strategy and new, more growth-oriented medium-term financial targets. At the core of our strategy is building profitable growth by boldly renewing healthcare service models towards clearer productisation and pricing, more proactive care models, and more active and stronger customer relationships.
The Silmäasema transaction represents the first major concrete step in executing the ARC strategy. If completed, it will strengthen our position in the growing eye care market, expand our customer base, and support our ambition to expand into retail-like healthcare service models characterised by recurring customer interactions, ease of access, and strong customer engagement.
The acquisition of Hohde Group also supports our growth and strengthens our position in dental care. Together, these transactions shift our revenue mix from an overweight in occupational health towards growing, out-of-pocket services.
Digital service models are a key part of the ARC strategy. During the reporting period, Terveystalo Leo, designed for corporate customers, progressed to the implementation phase. We introduced a new service steering model for private customers, and launched a highly efficient asynchronous “Doctor’s solution in 15 minutes” service.
In service production, the scaling and development of the Ella platform for physicians progressed rapidly. The system has already been used by over one thousand users. As the scale-up continues, we expect the platform to deliver significant benefits from 2027 onwards.
As part of our commercial renewal, we increased the availability of fixed-price service packages. Demand for the first services has been encouraging. Our experience shows that customers value transparent and predictable pricing in services such as joint replacement surgery, gynaecology, blepharoplasty and health checks. With the right productisation, we can lower the threshold for accessing necessary healthcare services, thereby improving accessibility and increasing volumes. Alongside episodic care pathways, we will launch our first continuous service-based product during the second half of 2026, aiming to strengthen customer relationships and transition from individual encounters to long-term, proactive health management.
The transformation of healthcare is progressing rapidly, and we are responding to it with our ARC strategy. By combining data, technology and the expertise of our professionals, we can build more effective, accessible and easily purchasable service offerings. We are developing our services towards a model where interactions are fluent regardless of channel, service selection is easy, and customers understand in advance what they receive and what it costs. At the same time, we complement need-based care pathways with continuous and preventive services.
We will host a Capital Markets Day in early December 2026, where we will provide further details on the execution of the ARC strategy, growth drivers and key metrics for tracking our progress.
Ville Iho
Guidance for 2026
Terveystalo expects its full-year 2026 adjusted operating profit (EBIT) to be EUR 120–140 million (2025: EUR 156.3 million).
Profitability in the first half of the year was clearly below the level of the corresponding period in 2025, and the demand environment was challenging. While the demand environment is still expected to gradually improve and the prevalence of upper respiratory infections is anticipated to return to long-term average levels during the second half of the year, the recovery in revenue and profitability is expected to lag the improvement in demand and therefore not fully materialise within the current year.
Revenue from outsourcing operations in the Portfolio Businesses segment is expected to decrease by approximately EUR 20 million due to expiring contracts.
These estimates do not include the Hohde transaction, the acquisition of Silmäasema or any other significant acquisitions or divestments.
Guidance for 2026 provided in the Financial Statements Release on 13 February 2026
Terveystalo expects its full-year 2026 adjusted EBIT to be EUR 135-165 million (2025: EUR 156.3 million).
The estimates are based on a gradually improving demand environment. The prevalence of upper respiratory infections is expected to remain low during the first half of the year and return to the long-term average in the second half. Profitability in the first half of 2026 is expected to be below that in the first half of 2025.
Revenue from the Portfolio Businesses segment's outsourcing operations is projected to decrease by approximately EUR 20 million due to expiring contracts. These estimates do not include the Hohde transaction or any other significant acquisitions or divestments.
Medium-term financial targets
Terveystalo updated its financial targets and dividend policy on 8 June 2026. The updated medium term financial targets and dividend policy are as follows:
Profitable growth:
- Terveystalo targets Adjusted EPS growth of 10% p.a. on average
Moderate leverage ratio:
- Terveystalo Group's leverage target (Net Debt/Adj. EBITDA) is set at no more than 3x.
- Indebtedness may temporarily surpass the target level, particularly in conjunction with large acquisitions.
Distribution of funds:
- Terveystalo aims annually to distribute at least 50% of net result, either as dividends or through share buy-backs, and to deliver growing, attractive shareholder returns in line with growing EPS.
- The dividend proposal must consider the company's long-term potential and financial status.
Previous financial targets set in 2024 were:
- EPS to grow on average by 10% p.a.
- Net debt to EBITDA not to exceed 2.5x. Indebtedness may temporarily surpass the target level, particularly in conjunction with acquisitions.
- At least 80% of net result to be distributed as dividends. The dividend proposal must consider the company's long-term potential and financial status.
Key figures
| MEUR unless stated otherwise | 4-6/2026 | 4-6/2025 | Change, % | 1-6/2026 | 1-6/2025 | Change, % | 2025 |
| Revenue | 293.3 | 321.5 | -8.8 | 601.5 | 668.5 | -10.0 | 1,278.9 |
| Adjusted EBITA * 1) | 32.0 | 42.5 | -24.7 | 71.3 | 96.2 | -25.9 | 179.3 |
| Adjusted EBITA, % * 1) | 10.9 | 13.2 | - | 11.9 | 14.4 | - | 14.0 |
| EBITA 1) | 29.0 | 39.2 | -26.0 | 62.5 | 91.5 | -31.7 | 164.6 |
| EBITA, % 1) | 9.9 | 12.2 | - | 10.4 | 13.7 | - | 12.9 |
| Adjusted operating profit (EBIT) * 1) | 26.1 | 36.7 | -28.8 | 59.8 | 84.5 | -29.3 | 156.3 |
| Adjusted operating profit (EBIT), % * 1) | 8.9 | 11.4 | - | 9.9 | 12.6 | - | 12.2 |
| Operating profit (EBIT) 1) | 23.2 | 33.4 | -30.7 | 49.8 | 79.8 | -37.6 | 137.5 |
| Operating profit (EBIT), % 1) | 7.9 | 10.4 | - | 8.3 | 11.9 | - | 10.8 |
| Return on equity (ROE) (LTM), % 1) | - | - | - | 12.2 | 16.3 | - | 16.4 |
| Equity ratio, % 1) | - | - | - | 37.0 | 39.0 | - | 40.7 |
| Adjusted earnings per share, EUR * 1) | 0.13 | 0.20 | -34.4 | 0.32 | 0.48 | -32.2 | 0.88 |
| Earnings per share, EUR | 0.11 | 0.18 | -38.0 | 0.24 | 0.44 | -44.4 | 0.73 |
| Weighted average number of shares outstanding, in thousands | 126,809 | 126,655 | - | 126,758 | 126,638 | - | 126,647 |
| Net debt 1) | - | - | - | 559.9 | 519.4 | 7.8 | 505.5 |
| Gearing, % 1) | - | - | - | 105.3 | 95.3 | - | 86.5 |
| Net debt/EBITDA (LTM) 1) | - | - | - | 2.7 | 2.2 | - | 2.1 |
| Net debt/Adjusted EBITDA (LTM) * 1) | - | - | - | 2.5 | 2.1 | - | 2.0 |
| Average personnel, FTE2) | - | - | - | 5,013 | 5,619 | -10.8 | 5,526 |
| Non-employees (end of period)3) | - | - | - | 5,991 | 6,016 | -0.4 | 6,017 |
| Sustainability | |||||||
| PEI-index, %4) | 74.9 | 70.4 | 6.4 | 70.7 | |||
| Net Promoter Score (NPS), appointments | 87.9 | 86.8 | 1.3 | 87.6 | |||
| Net Promoter Score (NPS), hospitals | 96.4 | 95.4 | 1.0 | 95.4 | |||
| Engagement index5) | 4.1 | 4.2 | -2.4 | 4.1 | |||
| * Adjustments are material items outside the ordinary course of business and these relate to acquisition-related expenses, restructuring-related expenses, gains and losses on sale of assets (net), impairment losses, strategic projects and other items affecting comparability. Adjustments for the reporting period are described in more detail in the section “Profit improvement and development programmes and items affecting comparability.” | |||||||
| 1) Alternative performance measure. Terveystalo presents alternative performance measures as additional information to financial measures defined in IFRS. Those are performance measures that the company monitors internally, and they provide management, investors, securities analysts and other parties with significant additional information regarding the company's results of operations, financial position and cash flows. These should not be considered in isolation or as a substitute to the measures under IFRS. | |||||||
| 2) Financial years 2026 and 2025 do not include Medimar Scandinavia Ab, Cityläkarna Mariehamn Ab (merged to Medimar Scandinavia Ab 31.3.2026),Turun Silmälaser Oy and Silmäsairaala Pilke Oy. Recuror Oy and Veikkolan hammaslääkäriasema Oy are included since the merger to Suomen Terveystalo Oy in financial year 2025. | |||||||
| 3) Financial year 2025 does not include Turun Silmälaser Oy and Silmäsairaala Pilke Oy which were acquired 31.12.2025. | |||||||
| 4) PEI index (Patient Enablement Instrument) is used to measure whether the patient feels that he is coping with his symptoms or illness much better, better, as before, or worse after the reception. The scale is 1-4. The PEI index is calculated by taking the percentage of patients who felt they are able to cope with their health condition better or much better and comparing it to the total number of respondents. | |||||||
| 5) The engagement index for Terveystalo professionals is based on four questions from Terveystalo’s annual professional survey. The results are used to calculate the index value, i.e. the average of the results. The questions concern supervisory work, the preconditions for success at work, work communities and commitment. The index is expressed on a scale of 1–5. | |||||||
Result briefing
Terveystalo will arrange a result webcast and conference call in English on 17 July 2026, starting at 10:30 EEST. You can watch the webcast online at: https://terveystalo.events.inderes.com/q2-2026
Conference call: You can access the teleconference by registering on the link below. After the registration you will be provided phone numbers and a conference ID to access the conference.
https://events.inderes.com/terveystalo/q2-2026/dial-in
Helsinki, 16 July 2026
Terveystalo Plc
Board of Directors
For further information, please contact:
CFO Juuso Pajunen
Tel. +358 40 584 9722
Distribution:
Nasdaq Helsinki Oy
Main media
www.terveystalo.com
Terveystalo in brief
Terveystalo is the largest private healthcare service provider in Finland in terms of revenue and one of the leading occupational health providers in both Finland and Sweden.
We aim to create seamless, compassionate, and effective healthcare of the future. We offer comprehensive primary care, specialised care, and well-being services for corporate clients, insurance companies, consumers and public-sector customers. Terveystalo's digital appointments are available anytime, anywhere, 24/7. The Terveystalo app has around 2.7 million registered users. We provide services through our extensive network of clinics and hospitals across Finland. In Sweden, we offer preventive occupational health services through our subsidiary, Feelgood.
In 2025, Terveystalo served approximately 1.2 million individual customers, and there were around 7.2 million customer visits in Finland. Terveystalo employs around 14,400 professionals in healthcare and other fields.
Terveystalo is listed on Nasdaq Helsinki and has a strong Finnish ownership base. www.terveystalo.com