Proventia Group Corporation's Half-year Financial Report January–June 2025: A strong start to the year, significant new customer agreements support long-term growth

President and CEO Jari Lotvonen:

In the second quarter of 2025, net sales increased by 6.3% compared to the corresponding period of the previous year, reaching 12.4 (11.7) million euros. Operating profit was 1.6 (1.7) million euros, with an operating profit margin of 13.2% (14.2), slightly below the level of the corresponding period last year. This was mainly due to changes in the sales mix between different product groups.

In Proventia's key customer segment, the global market for off-highway machinery, engine and machine sales volumes remain below average, and we have not yet seen signs of improvement. Despite the market situation, we managed to grow, supported in part by the start of mass production of two new products at our Czech factory in the fall of 2024. In the Emission Control product group, we entered into three strategically highly significant product development and manufacturing contracts during the review period with some of the world’s leading operators in the off-highway machine industry. The development phase of the new products will take 2–5 years, after which serial production will continue well into the late 2030s, significantly strengthening our long-term growth prospects.

The expansion of the Oulunsalo Technology Center is progressing according to plan and is scheduled for completion in the final quarter of this year. This expansion will significantly enhance our product development capacity. At the same time, we have invested in boosting efficiency and strengthening cost competitiveness across both engineering and production.

Key figures

EUR 1,000	4-6/2025	4-6/2024	1-6/2025	1-6/2024	1-12/2024
Net sales	12,402	11,672	24,557	22,156	41,927
Change in net sales, %	6.3%	-	10.8%	-	-1.5%
Operating profit	1,632	1,653	3,411	2,889	5,175
Operating profit, %	13.2%	14.2%	13.9%	13.0%	12.3%
Earnings per share (EPS), undiluted, EUR	0.06	0.08	0.15	0.13	0.24
Earnings per share (EPS), diluted, EUR	0.06	0.08	0.14	0.12	0.23
Return on equity (ROE), %	6.6%	15.6%	6.6%	15.6%	5.8%
Equity ratio, %	66.2%	64.2%	66.2%	64.2%	67.1%
Return on capital employed (ROCE), %	10.6%	18.9%	10.6%	18.9%	9.1%
Interest-bearing liabilities	3,246	4,128	3,246	4,128	3,419
Net debt	-1,035	-7,912	-1,035	-7,912	-1,800
Investments	239	596	1,299	1,465	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. During the second quarter, we decided to discontinue the Test Solutions business by the end of this year. As a result of this decision, we made impairment write-downs amounting EUR 819 thousand euros on the assets of the Test Solutions business. These write-downs have no cash flow impact and do not affect the results or balance sheet position of the continuing operations.

Guidance for 2025 (continuing operations, 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.