Proventia Group Corporation's Financial Statements Release January-December 2025

October–December 2025 in brief

• The Group’s net sales increased by 17.5% from the previous year to EUR 12.7 (10.8) million
• The operating profit was EUR 1.2 (1.2) million
• The operating profit rate was 9.7% (10.7%)
• The profit for the period was EUR 1.0 (1.0) million
• Earnings per share (undiluted) were EUR 0.06 (0.06)

January–December 2025 in brief

• The Group’s net sales increased by 13.1% from the previous year to EUR 47.4 (41.9) million
• The operating profit was EUR 5.7 (5.2) million
• The operating profit rate was 12.1% (12.3%)
• The profit for the period was EUR 4.3 (3.9) million
• Earnings per share (undiluted) were EUR 0.26 (0.24)
• The Group had 187 (176) employees at the end of December

The figures in brackets refer to the same period in the previous year.

Key Figures

EUR 1,000	10–12/2025	10–12/2024	1–12/2025	1–12/2024
Net sales	12,675	10,791	47,426	41,927
Change in net sales, %	17.5%	-	13.1%	-1.5%
Operating profit	1,235	1,160	5,717	5,175
Operating profit, %	9.7%	10.7%	12.1%	12.3%
Earnings per share (EPS), undiluted, EUR	0.06	0.06	0.26	0.24
Earnings per share (EPS), diluted, EUR	0.05	0.06	0.25	0.23
Return on equity (ROE), %	9.3%	5.8%	9.3%	5.8%
Equity ratio, %	59.1%	67.1%	59.1%	67.1%
Return on capital employed (ROCE), %	11.8%	9.1%	11.8%	9.1%
Interest-bearing liabilities	7,173	3,419	7,173	3,419
Net debt	68	-6,867	68	-6,867
Investments	56	1,103	1,853	3,538

President and CEO Jari Lotvonen:

The year 2025 was a period of profitable growth and determined strategic progress for Proventia. In the first half of the year, we signed three strategically significant development and manufacturing agreements for emission control systems with some of the world’s leading operators in the off-highway machinery industry. New OEM customer relationships strengthened our market position, and the number of development projects rose to a record level. After the two‑to‑five‑year product development phase, series production will continue through the late 2030s, providing Proventia with a strong and predictable revenue base well into the future.

The final quarter of the year proceeded as expected. Net sales grew by 17.5% compared to the previous year, reaching EUR 12.7 million. Operating profit was EUR 1.2 million, representing 9.7% of revenue. Net sales growth was partly driven by the start of mass production of a new product at our Czech factory in the autumn.

Full‑year net sales increased by 13.1% compared to the previous year and totalled EUR 47.4 million. Operating profit increased to EUR 5.7 million, corresponding to 12.1% of net sales. The 2025 market situation was twofold: in the agricultural and forestry machinery segments, sales volumes remained below average throughout the year, while the strong demand in the mining industry continued until year‑end, helping to balance the downturn in agricultural and forestry machinery markets.

In 2025, our product development work was very active. Product development plays a central role in executing the company’s strategy. The company focused its product development resources on technologies that will provide long-term competitive advantages for engine and machinery customers. New agreements and the record‑high development project backlog demonstrate that Proventia’s solutions are technically competitive and align well with customer needs. The compact size and modular design of emission control systems, together with features that enhance the energy efficiency of off-highway machinery, are emerging alongside regulatory compliance as key competitive factors.

We also expanded our development focus to higher engine power classes, opening new market segments and strengthening our long-term growth potential. Market developments in 2025 clearly demonstrated that there remains strong and commercially significant demand for internal combustion engine technologies and emission control solutions.

In electric powertrains, we focused on hybrid solutions combining LTO battery systems, control systems, and power electronics with customers’ combustion engine systems. We also continued developing modular LFP battery systems for applications requiring long-lasting and continuous power. A long-term supply agreement signed in the fourth quarter with a Norwegian battery cell manufacturer strengthens the development of a fully European battery system.

We made significant strategic decisions and investments that reinforce Proventia’s focus and competitiveness. One of the major decisions was to concentrate on Proventia’s core competencies and discontinue the Test Solutions business. Following the discontinuation decision made in June 2025, we initiated measures to wind down the Test Solutions business in a controlled manner by the end of the year. A restructuring provision of EUR 952,000 related to the discontinued operations was recognized in the financial statements. Personnel from the Test Solutions business were transferred to support Proventia’s growing product groups, which strengthened the company’s product development resources.

In September 2025, we decided to expand Proventia’s operations to the United States, specifically the state of Texas. This decision enhances our ability to serve existing American customers and establishes a foundation for new customer relationships in a strategically important market.

We also invested in our international subcontracting network to strengthen cost competitiveness and manufacturing flexibility, supporting growth especially with global OEM customers.

The most significant investment during the review period was the expansion of the Oulunsalo Technology Center. Enhancing our design, simulation, and testing environments, as well as agile prototype production, accelerates product development lead times. At the same time, we renewed our organizational structure into a functional model, improving resource allocation and supporting the systematic and efficient execution of development projects critical to growth.

Long-term customer relationships and high customer satisfaction are at the core of Proventia’s business. As evidence of this, AGCO Corporation awarded Proventia the Partner Level Supplier recognition, strengthening our position in AGCO’s global supply chain and enhancing our profile as a reliable partner for other global OEM customers as well.

I thank Proventia’s personnel for their excellent work, as well as our customers, suppliers, partners, and owners for their trust and cooperation.

We enter 2026 from a strong foundation. Proventia has strengthened its position as a leading technology provider in the off‑highway machinery industry and will continue profitable growth in the years ahead.

Outlook

We expect the market environment in 2026 to be similar to that of 2025, with no significant changes anticipated. However, we estimate that delivery volumes will increase during 2026 as new products enter serial production. The year 2026 will also serve as a preparation period for the stronger growth expected in 2027.

Proventia’s products have strong technological competitiveness, and the company’s continuously growing product development pipeline supports positive long-term prospects. As new development projects progress toward serial production, Proventia is building a stable and predictable growth path, further supported by customers’ investments in combustion engine optimization, hybrid systems, and electric solutions.

Guidance for the Financial Year 2026

Net sales and the operating profit are expected to increase in 2026 from the 2025 level. In 2025, net sales were EUR 47.4 million, and the operating profit was EUR 5.7 million.