CEO review
President and CEO Ville Iho: Strong profitability in an increasingly challenging market environment
In 2025, we achieved strong results despite a challenging macroeconomic environment. The year was double-edged for Terveystalo. While overall demand for services declined, we improved our relative profitability and renewed our offerings. Operational efficiency increased across all business segments despite revenue declines, and the Group's adjusted operating profit grew significantly in both the fourth quarter and the full year. Although our revenue fell by about five per cent to EUR 1.28 billion in 2025, profitability strengthened, with an adjusted operating profit at 12.2 per cent of revenue. Earnings per share rose by 29 per cent to EUR 0.73. In the fourth quarter, adjusted operating profit was EUR 45.0 million, representing 13.6 per cent of revenue.
The sustained strong cash flow supports our investments in productivity-enhancing technology and the development of customer-oriented digital services. Besides investments, it enables value-creating acquisitions and increasing dividend payments in line with our financial targets. The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.64 per share be paid in 2026. This corresponds to an 88 per cent distribution ratio.
The megatrends influencing long-term demand for healthcare services remain highly favourable, but in the short term, the demand environment for Finnish private healthcare is subdued. We anticipate a gradual improvement in the demand environment throughout 2026; however, the first half of the year is expected to be challenging. The occupational health business has traditionally been resilient to economic cycles but is currently facing cost pressures amid high inflation: a reduced contract base, a lower employment rate, cost-driven tendering, and a diminished contract framework. In addition to the negative cycle, the lower-than-average incidence of upper respiratory tract infections has decreased service utilisation. Public health care service purchases from our network of medical centres also declined significantly due to savings measures implemented by the Wellbeing Services Counties. In 2025, consumer demand showed the strongest growth among customer segments, driven by the robust insurance business and, at year-end, further supported by the freedom-of-choice experiment for 65-year-olds. Our customer satisfaction, measured by NPS, remained strong, and our medical quality is emphasised by an improvement in the Patient Enablement Index. Despite volume declines, the Healthcare Services segment's profitability improved owing to increased operational efficiency. We are making substantial investments to foster growth. To address the changing needs of our corporate clients, we invested over EUR 20 million in service and product enhancements across two years. The development programme is advancing as planned.
As expected, the revenue of the Portfolio businesses declined due to the expiry of outsourcing agreements and lower purchases by the Wellbeing Services Counties. Despite the challenges in the public market, oral health services continued to grow, and the segment's adjusted operating profit increased significantly. This development provides a strong foundation for accelerating growth in consumer businesses in 2026. We are further strengthening our growth in oral health through the acquisition of Hohde Group, which was completed at the end of the year. If approved by the Finnish Competition and Consumer Authority, the transaction would effectively double the size of our oral health services business and significantly enhance our offerings to various customer groups.
In Swedish businesses, market conditions remained challenging, with subdued demand stemming from a weak macroeconomic environment. Although revenue declined, operational efficiency and profitability improved, driven by the profit improvement programme. We have now achieved the structural change targeted by the programme, allowing us to invest in growth. In 2026, our focus will be on strengthening market share, which may also involve acquisitions.
Healthcare operating models are changing rapidly due to the increasing accessibility of data and the efficiency gains of automation. Patient care pathways now integrate physical and digital encounters, with centralised control mechanisms guiding them more actively than before. The share of fully digital services is increasing due to their greater efficiency and accessibility. Alongside reactive care, proactive health optimisation based on detailed individual information is emerging, allowing the health journey of an individual or a group to be guided proactively and comprehensively.
We have a strong foundation for transforming the industry. Our technology architecture is modern and supports phased service development. Recent examples of our advanced digital services include Ella, an intelligent user interface for medical professionals launched earlier this year, and a digital desktop for corporate clients, scheduled for Q1 launch. Our aim is to lead the renewal of healthcare service models.
A warm thank you to our customers and Terveystalo employees for 2025. Terveystalo's strong operational foundation, digital expertise and long-term investments in quality development work create a solid foundation for growth in the coming years. We will continue to invest in the accessibility, effectiveness and customer experience of our services. With these measures, we ensure we create value for our customers, employees, and owners in the changing healthcare environment, now and in the future.
Meaningful matters,
Ville Iho
