Proventia Group Corporation's Business Review January–September 2025: Net sales growth continued in the third quarter

President and CEO Jari Lotvonen:

Proventia’s net sales continued to grow in the third quarter, even though sales volumes of engines and machines in the company’s key customer segment, the global off-highway machinery market, remained below average. The increase in net sales was mainly due to the establishment of serial production of two new products at the Czech plant, which increased delivery volumes. In addition, demand for emission control systems for mining machinery developed positively during the review period.

We are currently developing several new customer-specific emission control solutions, with serial production scheduled to begin in the coming years. The Czech factory is preparing for increasing production volumes and has continued to develop its production processes. We have invested in future growth by reallocating personnel resources from discontinued operations to continuing operations. Considering these investments, operating profit in the third quarter remained at a good level, at 10.5 percent of net sales.

In September, the company’s board of directors decided to establish a sales company in the US state of Texas. The organizational change implemented during the review period has progressed as planned. The new functional organizational structure is expected to support more efficient resource allocation in the future. In November–December, we will begin a gradual transition to the expanded facilities of our Technology Centre, which will further enhance our product development operations.

Key figures

EUR 1,000	7–9/2025	7–9/2024	1–9/2025	1–9/2024	1–12/2024
Net sales	10,195	8,980	34,751	31,136	41,927
Change in net sales, %	13.5%	-	11.6%	-	-1.5%
Operating profit	1,071	1,126	4,482	4,015	5,175
Operating profit, %	10.5%	12.5%	12.9%	12.9%	12.3%
Earnings per share (EPS), undiluted, EUR	0.06	0.05	0.20	0.18	0.24
Earnings per share (EPS), diluted, EUR	0.05	0.04	0.19	0.17	0.23
Return on equity (ROE), %	14.3%	11.2%	14.3%	11.2%	5.8%
Equity ratio, %	68.1%	62.4%	68.1%	62.4%	67.1%
Return on capital employed (ROCE), %	18.3%	14.4%	18.3%	14.4%	9.1%
Interest-bearing liabilities	2,989	3,706	2,989	3,706	3,419
Net debt	-1,514	-6,058	-1,514	-6,058	-1,800
Investments	498	970	1,797	2,435	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, the company decided to discontinue the Test Solutions business by the end of this year.

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.