Slides
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No Image Interim report January - September 2025 5.11.2025 Esa Harju, CEO Mervi Kerkelä-Hiltunen, CFO
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No Image Disclaimer This presentation has been prepared by the Company. The information on which it is based has not been independently verified by any other person. This presentation is not intended to provide the basis of any investment decision and should not be considered as a recommendation by the Company or any other person to the recipients of the presentation. Each person should make his/her own independent assessment of the Company after making such investigations as he/she deems necessary. This presentation does not constitute an offer of or invitation to acquire any shares or other securities in the Company. Nothing in this presentation is, or should be relied upon as, a promise or representation as to the future.
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Teleste International technology company building a networked and safe society while minimizing environmental impacts. Value Drivers • We enable fast broadband services • We guide smooth public transport • We ensure safety in public spaces Public Safety and Mobility Broadband Networks
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No Image Our businesses and customers Public Safety and MobilityBroadband Networks Our customers serve 100 million Internet-users Other NAM customers In public transportation 1.5 billion passengers using our technology annually
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No Image No Image Key Figures Q3 2025 Strong growth in net sales and profit EUR million 7-9 2025 7-9 2024 change 1-9 2025 1-9 2024 change 1-12 2024 Net sales 34.5 29.9 15.2% 102.5 96.0 6.8% 132.5 Adjusted EBITDA 3.5 2.5 38.1% 9.6 7.2 34.0% 9.3 Adjusted EBIT 2.3 1.3 72.9% 5.9 3.3 77.9% 4.2 EBIT 2.2 1.1 91.7% 5.6 0.3 1998,5% -5.4 Cashflow from operations 4.6 3.4 35.8% 11.1 10.6 4.5% 12.4 Orders received 31.6 31.3 0.7% 108.1 88.6 22.0% 124.9 Order book 123.9 118.5 4.5% 118.3
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No Image Orders received Q3 2025 Orders stayed on the same level Orders received EUR million Broadband Networks 57% Public Safety and Mobility 43% Orders received by business units, 1-9 2025 Broadband Networks Q3 order intake decreased by 11.4% YoY. Orders in Europe increased, while orders in North America were at lower level due to the strong order intake in previous months. Public Safety and Mobility Q3 order intake increased by 13.3%, driven by a significant increase in orders from public transport operators, which nearly tripled compared to the reference period. (45%) (55%)
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No Image No Image Net Sales Q3 2025 Strong growth in Net Sales, both segments performed well 35,2 29,9 34,5 0 5 10 15 20 25 30 35 40 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Net sales EUR million Net sales, 1-9 2025
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No Image No Image Adjusted operating result Q3 2025 Adjusted EBIT and EBIT continued improving 0,5 0,9 2,3 -2,0 -1,5 -1,0 -0,5 0,0 0,5 1,0 1,5 2,0 2,5 3,0 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Adjusted EBIT EUR million 0,5 1,1 2,2 -6,0 -5,0 -4,0 -3,0 -2,0 -1,0 0,0 1,0 2,0 3,0 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 EBIT EUR million -5.5
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Market outlook for 2025 Broadband Networks: • Demand in the European market is expected to remain at the previous year's level. The first investments in DOCSIS 4.0 technology have started during 2025 in parts of the market. • The North American investments in DOCSIS 4.0 technology are expected to drive a clear market growth trend starting in 2025. However, the US tariffs are causing uncertainty in the short-term. • The North America’s relative share of net sales is expected to continue to grow. Public Safety and Mobility: • The operating environment has developed in a more favorable and predictable direction, supporting steady growth in public transportation and critical infrastructure information and security solutions. • The business typically consists of comprehensive projects that include development, delivery, and maintenance phases. • We are looking for profitable growth and increasing value creation in all product categories.
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Financial outlook for 2025 (specified) Teleste estimates revenue for 2025 to be between 135 and 150 million euros, with adjusted operating profit in the range of 4 to 7 million euros. The company anticipates that profit for the period will be toward the upper end of the guidance range. Import tariffs in the United States continue to create uncertainty and may impact profitability in the short term. Earlier Teleste estimated revenue for 2025 to be between 135 and 150 million euros, with adjusted operating profit in the range of 4 to 7 million euros. Import tariffs in the United States continue to create uncertainty and may impact profitability in the short term.
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11 Content 1. Q3 2025 highlights 2. Q3 2025 financial review
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No Image No Image Teleste Group, Q3 2025 Strong growth in net sales and profit EUR million 7-9 2025 7-9 2024 Change 1-9 2025 1-9 2024 Change 2024 Net sales 34.5 29.9 15.2% 102.5 96.0 6.8% 132.5 Adjusted EBITDA 3.5 2.5 38.1% 9.6 7.2 34.0% 9.3 Adjusted EBITDA, % 10.2% 8.5% 1.7 ppt 9.4% 7.5 % 1.9 ppt 7.0% Adjusted EBIT 1) 2.3 1.3 72.9% 5.9 3.3 77.9% 4.2 Adjusted EBIT, % 6.6% 4.4% 2.2 ppt 5.8% 3.5 % 2.3 ppt 3.2% EBIT 2.2 1.1 91.7% 5.6 0.3 1998.5% -5.4 Operating result, % 6.3% 3.8% 2.5 ppt 5.5% 0.3 % 5.2 ppt -4.1% Net result for the period 1.3 0.6 125.6% 2.2 -1.1 n/a -6.1 Earnings per share, EUR 0.07 0.04 100.3% 0.13 -0.05 n/a -0.32 Cash flow from operations 4.6 3.4 35.8% 11.1 10.6 4.5% 12.4 Orders received 31.6 31.3 0.7% 108.1 88.6 22.0% 124.9 Order book 123.9 118.5 4.5 % 118.3 Personnel (average) 635 689 -7.8 % 630
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No Image Group Financials, Q3’2025 • Order intake was on the last year’s level. Broadband Networks orders grew in Europe, while North America’s order intake was strong in previous months. Public Safety and Mobility orders grew primarily by public transport operators. • Strong Net Sales growth was driven by both segments. Broadband Networks grew primarily in North America. Public Safety and Mobility’s growth was from public transport operator business, while rail business deliveries remained stable. • Cumulative Adjusted EBIT almost doubled compared to previous years, due to improved Net Sales and gross margin. Personnel costs increased due to cost savings in 2024 and new investments to North America growth. Orders received Q3’25 Net Sales Q3’25 Net Sales by geography Jan-Sept’25 Cumulative Adjusted EBIT Q3’25
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No Image No Image Operating segments Q3 2025 Both segments demonstrated significant profitability improvements Broadband Networks 7-9 2025 7-9 2024 Change 1-9 2025 1-9 2024 Change 2024 Net sales, MEUR 20.8 18.1 14.9% 62.9 58.2 8.0% 78.2 Adjusted EBITDA, MEUR 3.1 2.2 40.8% 8.6 7.1 19.7% 8.9 Adjusted EBITDA, % 14.9% 12.2% 2.7 ppt 13.6% 12.3% 1.3 ppt 11.4% Adjusted EBIT, MEUR 2.5 1.5 62.4% 6.6 5.1 29.0% 6.3 Adjusted EBIT, % 11.8% 8.3% 3.4 ppt 10.6% 8.8% 1.7 ppt 8.0% Orders received, MEUR 14.1 16.0 -11.4% 62.0 49.1 26.2% 74.8 Order book, MEUR 24.1 19.3 25.1% 25.0 Public Safety and Mobility 7-9 2025 7-9 2024 Change 1-9 2025 1-9 2024 Change 2024 Net sales, MEUR 13.6 11.8 15.7% 39.6 37.8 4.9% 54.3 Adjusted EBITDA, MEUR 1.5 1.1 35.3% 4.4 3.0 47.3% 4.5 Adjusted EBITDA, % 10.8% 9.2% 1.6 ppt 11.1% 7.9% 3.2 ppt 8.2% Adjusted EBIT, MEUR 0.9 0.6 60.0% 2.6 1.1 130.0% 2.0 Adjusted EBIT, % 6.5% 4.7% 1.8 ppt 6.5% 3.0% 3.6 ppt 3.7% Orders received, MEUR 17.4 15.4 13.3% 46.1 39.5 16.9% 50.1 Order book, MEUR 99.8 99.2 0.6% 93.3
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No Image Broadband Networks, Q3’2025 • Q3’25 orders in Europe increased in both DOCSIS 4.0 intelligent networks and the video business, while in North America orders were at lower level due to the strong order intake in previous months. Year-to-date order intake represent 26% growth from last year. • Net Sales increased primarily in North America, offsetting the decline in certain regions, e.g. service business in the UK. • The revenue share of North America and other countries increased to 34% (13%), where Europe other than Finland or Nordic decline to 50% (68%). • Adjusted EBIT continued improving, taking Jan-Sept’25 EBIT to EUR 6.6M€, driven by net sales growth, different product and market mix, partly offset by investments to North America. Orders received Q3’25 Net Sales Q3’25 Net Sales by geography Jan-Sept’25 Cumulative Adjusted EBIT Q3’25
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No Image Public Safety and Mobility, Q3’2025 • Order intake increased during Jan-Sept by 17%. The growth during this year has been primarily driven by a strong increase in orders from public transport operators and rolling stock manufactures. • Net Sales increased during Q3 by 16% and during Jan-Sept by 5%. Performance varied among the different business areas within the segment. The Video security business developed favorably, particularly in North America and Middle East. Deliveries to public transport operators have been particularly strong compared to the reference period • Cumulative Adjusted EBIT grew to 2.6 (1.1) million EUR as a result of favorable project mix and lower material and production service costs. Orders received Q3’25 Net Sales Q3’25 Net Sales by geography Jan-Sept’25 Cumulative Adjusted EBIT Q3’25
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No Image No Image Balance sheet 30 September 2025, EUR million Net working capital improved year-on-year, interest bearing net debt decreased 17 Assets Equity and liabilities Intangibles decreased 4.9 million due to impairment on R&D capitalizations in Q4 2024. Net Working Capital improved by ~8Meur compared to Q3 2024. Equity decreased due to R&D impairment in Q4 2024, partly offset by profitable quarters. Interest bearing net debt was EUR 25.5 million and decreased by EUR 11.9 million due to efficient use of RCF facilities. Cash and unused credit facilities amounted to EUR 25.8 million.9,8 15,9 15,0 10,0 16,1 19,3 26,2 26,8 11,1 11,9 40,5 45,4 118,7 129,1 30.09.2025 30.09.2024 Intangibles Tangibles Inventories Trade receivables Other receivables Cash 16,9 16,7 4,8 4,6 14,5 10,5 25,5 37,4 57,0 59,9 118,7 129,1 30.09.2025 30.09.2024 Equity Debt Trade payables IFRS-16 liabilities Other liabilities
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No Image No Image Cash flow from operations Operative cash flow in Q3 2025 was positive due to higher net sales and efficient working capital management Cash flow from operations EUR million Q3 2025 operative cash flow was EUR 4.6M due to positive effects from net working capital and operating result -7,8 M€ 0,9 3,5 4,6 -10 -5 0 5 10 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025
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No Image Cash flow Q3 2025: Working capital released due to improved profitability and networking capital management Operating activities Financing activities 0,2 Changes in exchange rates Cash 31.12.2024 2,2 Profit for the period 5,1 Cash flow adjustments Cash 30.9.2025 3,8 Change in net working capital 3,3 R&D 8,8 0,0 CAPEX 1,4 Acq. of companies 0,3 4,4 Leasing Dividends 0,5 Bank loans 9,8 Investing activities
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No Image No Image 48,2 % 45,6 % 48,2 % 0% 10% 20% 30% 40% 50% 60% 30.9.2023 30.9.2024 30.9.2025 2046.7 Return on Capital Employed (ROCE) was 7.1%. The equity ratio has increased due to decrease in debts and improved results. Return on capital employed Equity ratio At the end of the period 0,2 % 0,6 % 7,1 % -6% -4% -2% 0% 2% 4% 6% 8% 30.9.2023 30.9.2024 30.9.2025
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No Image No Image 21 Net gearing At the end of the reporting period Interest-bearing Net debt / adj. EBITDA Last twelve months Year on year Net Gearing decreased due to decrease in interest bearing net debt and lower equity. Interest-bearing net debt to adjusted EBITDA ratio improved year on year along the profitability improvement. 42,8 % 43,7 % 35,9 % 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 30.9.2023 30.9.2024 30.9.2025 3,6x 4,0x 1,9x 0,0x 0,5x 1,0x 1,5x 2,0x 2,5x 3,0x 3,5x 4,0x 4,5x 5,0x 5,5x 30.9.2023 30.9.2024 30.9.2025