Q3 adjusted EBITA fell to EUR 8.6 million (14.4) as contract losses and low demand hit together 2. On 21 October management lowered 2026 guidance to revenue of about EUR 540 million and adjusted EBITA of about 8% of revenue 5.
Pihlajalinna Oyj · Q3 2026 · Reported 28 Oct 2026
Key figures
July–September · EUR million unless otherwise stated
Metric | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
Revenue | 121.5 | 148.7 | −18.3% |
Adjusted EBITA | 8.6 | 14.4 | −40.7% |
Adjusted EBITA margin | 7.0% | 9.7% | −2.7 pp |
Operating profit (EBIT) | 6.9 | 14.8 | −53.4% |
Operating margin | 5.7% | 10.0% | −4.3 pp |
Net profit | 4.5 | 11.6 | −61.2% |
EPS (€) | 0.19 | 0.51 | −62.9% |
Operating cash flow | 4.5 | 7.3 | −38.1% |
Lost outsourcing contracts explain most of the revenue drop, but comparable revenue also fell
Q3 revenue was EUR 121.5 million (148.7), down 18.3% 2. Changes in outsourcing agreements and residential care divestments removed EUR 18.6 million 7. Comparable revenue fell 6.6%, which management attributes to low morbidity and reduced use of services on top of the expected contract effects 2.
Adjusted EBITA fell to EUR 8.6 million (14.4), and the margin to 7.0% (9.7%) 4. Management says the outsourcing changes alone reduced profitability by more than EUR 5 million 7. That means most of the decline in adjusted EBITA is contract-related, with the demand effect in Healthcare Services a second driver.
Healthcare Services lost margin as appointments and surgical conversion fell
Healthcare Services revenue was EUR 95.3 million (100.9), with comparable revenue down 8.7% 2. The decline was most evident among insurance company and self-paying private customers. Occupational healthcare revenue stayed close to the prior-year level while its customer base grew 10. Intensified price competition in responsible physician services also reduced public sector revenue 10.
Adjusted EBITA was EUR 6.3 million (7.5), a margin of 6.6% (7.5%) 2. Fewer appointments and weaker conversion, particularly in surgery, weighed on profitability, and management says resourcing management curbed the decline 10. EBIT of EUR 4.6 million (6.1) included EUR 0.6 million of change-negotiation costs 10.
Outsourcing margin halved as the new Northern Pirkanmaa contract ramps up at low profitability
Outsourcing Services revenue fell to EUR 24.5 million (46.3), with comparable revenue up 1.6% 12. Adjusted EBITA was EUR 2.2 million (7.6), a margin of 8.8% (16.4%) 12. The company says the new Northern Pirkanmaa agreement has low profitability early in the contract period 12. The nine-month hit from contract changes is about EUR 12 million 8.
EPS fell against a prior-year quarter flattered by one-offs
EPS was EUR 0.19 (0.51) and EBIT EUR 6.9 million (14.8) 4. The prior-year quarter was lifted by the gain on residential care divestments, changes in non-controlling interests and recognition of previously unrecognised deferred tax assets 7. Gains on business sales in the prior-year quarter were EUR 2.5 million at the EBITDA level 40. The EPS fall therefore overstates the operating decline, though adjusted EBITA still fell 40.7% 4.
Leverage rose after the hybrid redemption while operating cash flow fell against a year earlier
Q3 operating cash flow was EUR 4.5 million (7.3) against profit of EUR 4.5 million (11.6) 19. For nine months, operating cash flow was EUR 41.0 million (58.2) 8. Management says longer payment terms in Healthcare Services and the Northern Pirkanmaa contract tie up working capital in receivables 8. Over nine months, working capital absorbed EUR 14.9 million (13.6) 8.
Net debt to adjusted EBITDA was 3.2 (2.6), and 1.8 (1.2) excluding IFRS 16; the company says the EUR 20 million hybrid redemption in March weakened the ratio as expected 8. Cash was EUR 15.2 million (28.0), and all covenants were met 8.
What to watch next
Management's 2026 guidance, lowered on 21 October, is revenue of about EUR 540 million (EUR 652.3 million in 2025) and adjusted EBITA of about 8% of revenue (10.0%), with demand and the economy possibly having a larger impact than currently expected 5.
Pihlajalinna is negotiating a potential EUR 19.5 million acquisition of Keski-Uudenmaan Työterveys and Uudenmaan Työterveys. The transaction remains subject to final agreements, completion of the procurement process and regulatory approvals 9.
Whether leverage of 3.2 times net debt to adjusted EBITDA eases, and whether the working capital tied up in longer receivable terms stops growing 4.
Sources
Produced by Clarifo Research with the Clarifo financial research engine from the company's public filings. AI was used in parts of the analysis and drafting. Figures are checked automatically against the filings they come from. This is not investment advice.