Terveystalo (TTALO) Q4 2024 earnings summary

Executive summary

• Achieved strong profitable growth in 2024, with revenue up 4.2% year-over-year to EUR 1,340 million and adjusted EBITA margin reaching 12.8% (up from 9.8%).

• Net income improved to EUR 71.7 million from a loss of EUR -42.2 million in 2023; EPS rose to EUR 0.57.

• Customer satisfaction (NPS) and employee engagement reached record levels, with NPS at 88 for appointments and engagement index at 4.2.

• Profitability targets were reached ahead of schedule, supported by operational efficiency and commercial execution.

• Lower risk profile due to diversified margin distribution, reduced exposure to inflation-sensitive legacy contracts, and lower leverage.

Financial highlights

• Q4 revenue increased 3.4% year-over-year to EUR 353.9 million; adjusted EBITA up 19.1% to EUR 47.1 million (13.3% margin).

• Full-year adjusted EBITA rose 36.2% to EUR 171 million; operating profit (EBIT) at EUR 116.1 million (vs. -14.7 million in 2023).

• Group revenue grew 10% year-over-year in healthcare services, reaching EUR 1,340 million for the full year.

• Net debt/adjusted EBITDA improved to 2.1x at year-end 2024.

• Operating cash flow (LTM) was EUR 224 million, up from EUR 157.8 million.

Outlook and guidance

• 2025 revenue expected to grow, with adjusted EBIT margin guidance of 10.7–11.8% (2024: 10.5%).

• EPS targeted to grow by at least 10% annually; net debt/EBITDA to remain below 2.5x.

• Dividend proposal of EUR 0.48 per share, representing 85% of net results, to be paid in two installments.

• Portfolio Businesses segment revenue to decrease by EUR 25 million in 2025 due to contract terminations.

• Guidance assumes stable demand, employment, and morbidity rates; excludes significant M&A or divestments.