CEO review
President and CEO Ville Iho: Weak demand weighed on earnings, Hohde acquisition strengthened the oral health business
The operating environment remained highly challenging during the third quarter of 2026. Demand for healthcare services was weaker than expected across all customer segments, and lower volumes weighed on profitability despite cost adjustment measures.
We believe that the structural demand drivers of the healthcare sector remain positive, and we expect demand to strengthen in the longer term. At the same time, the technology transformation is changing the structure of demand. This development is also at the core of our ARC strategy. Rather than wait for the market to recover, we continue to invest systematically in technology, new service models and businesses with high growth potential in line with our strategy. As a concrete step, we completed the acquisition of Hohde Group in September. The transaction doubled the size of our oral health business.
Outlook and guidance
We have lowered our guidance for 2026 and now expect the full-year 2026 adjusted operating profit (EBIT) to be EUR 110–120 million (2025: EUR 156.3 million). The lowered guidance reflects weaker-than-expected demand development in July–September and profitability remaining clearly below the level of the comparison period. The demand environment is expected to remain challenging in the fourth quarter.
Market and demand environment
Demand for healthcare services in Finland remained below the comparison period during the third quarter. Demand continued to be affected by low morbidity and cost-saving measures implemented by corporate customers. The first positive signs seen in the second quarter did not yet translate into a broad-based recovery in demand.
Demand for consumer services remained more stable than demand for occupational healthcare. Positive development was seen particularly among insurance customers, services supported by the freedom of choice pilot for people aged 65 and over, and oral health services. The market environment for publicly funded healthcare services remained very subdued.
In Sweden, demand for corporate health services continued to be affected by customer caution and a weak labour market despite gradual improvement in the economy and labour market.
In the healthcare professional market in Finland, the availability of healthcare professionals remained at a good level, and Terveystalo’s service capacity was strong. In research company Universum’s 2026 employer branding survey, Terveystalo was selected as the most ideal employer in the healthcare services sector among healthcare professionals. In addition, Terveystalo was again ranked as Finland's most respected private medical centre in Taloustutkimus' Brand Appreciation study.
Financial development and profitability
Weak demand and lower volumes reduced third-quarter revenue by approximately 6 per cent to EUR 263 million. The Group’s adjusted operating profit (EBIT) was approximately EUR 18 million, representing an adjusted EBIT margin of approximately 7 per cent.Cost adjustment and efficiency measures implemented during the year supported profitability but were not sufficient to offset the significant weakening of the demand environment.
Business area performance
In Healthcare Services, demand for occupational healthcare services remained weak. Performance was affected by a decline in the number of connected employees, lower-than-usual morbidity and a reduction in the scope of agreements with client companies. We expect the number of occupational healthcare end users to gradually return to growth during the first quarter of 2027.
Revenue in the consumer business was slightly below the comparison period, despite growth in revenue from insurance customers. The freedom of choice pilot for people aged 65 and over increased the use of services during the reporting period. Since the launch of the pilot, approximately 103,000 visits have been carried out at Terveystalo.
In Portfolio Businesses, revenue was affected by expired outsourcing contracts, pricing pressure in staffing services and the divestment of the child welfare business. Improved operating efficiency mitigated the negative earnings impact of lower revenue.
Revenue from oral health services increased both organically and through the acquisition of Hohde Group completed in September. The transaction doubled the size of our oral health business and strengthened our nationwide network of clinics and laboratory services. This provides a strong platform for further business development and service offering expansion.
In Sweden, the market environment remained challenging. Subdued demand for corporate health and preventive services weighed on revenue. Cost savings achieved through the profit improvement programme partly offset the negative earnings impact of lower revenue.
Strategy execution and digital development
During the third quarter, we continued the execution of our strategy, which was updated in June. The ARC strategy is centered on customer centricity, broad utilisation of technology and growth. We also aim to diversify our service offering and revenue base. A concrete example of this is the Silmäasema transaction announced in June.
The Silmäasema transaction represents a significant step in the execution of our ARC strategy. When completed, it will strengthen our position in the growing eye health market, broaden our customer base and support our objective of making healthcare services even easier for the customer to find, purchase and use.
In September, we completed the acquisition of Hohde Group. The transaction significantly strengthens our position in oral health and supports our specialty-specific growth ambitions while improving the overall health of our customers.
During the third quarter, we launched the Wellby weight management programme as a pilot. Wellby represents a new digital service model at Terveystalo based on continuous service and monthly pricing. The model is well suited for care situations that require long-term support and close customer engagement.
Key steps in digital development during the quarter included expanding the use of the Terveystalo Leo digital occupational healthcare platform to corporate customers, extending the use of the Ella patient information system to occupational health nurses, and further developing digital workflows in occupational healthcare. At the same time, we continued to enhance digital customer journeys: the use of asynchronous appointments increased among occupational health customers, and we are expanding these services to private customers as well. Artificial intelligence was integrated into clinical documentation workflows used by general practitioners and occupational health physicians.
We have decided to postpone our previously planned Capital Markets Day from December 2026 to spring 2027. By then, we expect to have completed the strategically important Silmäasema transaction. The postponement will enable us to provide investors with a clearer view of strategy execution, the development of our growth platforms and the long-term value creation potential of the combined business. We will announce the exact date of the Capital Markets Day at a later stage.
Ville Iho