CEO review
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