Proventia Group Corporation's Business Review January-March 2025: Net sales and operating profit grew strongly

President and CEO Jari Lotvonen:

The year 2025 started with strong and profitable growth. Net sales increased by 15.9% compared to the same period last year, reaching 12.2 (10.5) million euros. The growth in net sales is mainly attributed to the start of serial production of two new products at our Czech factory in the fall of 2024. The profitability of the first quarter was at a good level and better than in the same period last year. Operating profit was 1.8 (1.2) million euros, and the operating profit margin was 14.6% (11.8).

In the Emission Control product group, collaboration with our long-term OEM customers and new customers continued positively, and negotiations for significant new customer projects progressed positively. The expansion of the Czech factory was completed ahead of schedule, ensuring sufficient production capacity and improving our competitiveness in the OEM market.

Battery development and pilot projects in the Electric Powertrain product group have progressed as planned. Additionally, we have invested in the development of complete hybrid systems.

Uncertainty in the market increased during the first quarter due to the tightened tariff policy in the United States. Proventia does not have direct exports to the United States, so changes in tariff rates do not significantly affect our business. However, potential increases in tariffs or other challenges related to the global operating environment may influence our customers' demand and, consequently, reflect on our operations.

Key figures

EUR 1,000	1-3/2025	1-3/2024	1-12/2024
Net sales	12,155	10,484	41,927
Change in net sales, %	15.9%	-	-1.5%
Operating profit	1,779	1,236	5,175
Operating profit, %	14.6%	11.8%	12.3%
Earnings per share (EPS), undiluted, EUR	0.09	0.05	0.24
Earnings per share (EPS), diluted, EUR	0.08	0.05	0.23
Return on equity (ROE), %	11.0%	16.6%	5.8%
Equity ratio, %	67,5 %	64.2%	67.1%
Return on capital employed (ROCE), %	13.9%	20.1%	9.1%
Interest-bearing liabilities	3,645	4,599	3,419
Net debt	-2,293	-9,328	-1,800
Investments	1,060	868	3,538

Proventia has classified the Test Solutions business as an asset held for sale and reports the Test Solutions business for the years 2024 and 2025 as discontinued operations in accordance with IFRS reporting practices. Unless otherwise stated, the figures reported in this business review pertain to continuing operations, which include the product groups: Emission Control, Thermal Components and Electric Powertrain.

Guidance for 2025 (unchanged)

Net sales and the operating profit are expected to increase in 2025 from the 2024 level. In 2024, net sales were EUR 41.9 million, and the operating profit was EUR 5.2 million.