Interim report
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JANUARY 1 – SEPTEMBER 30, 2025 INTERIM REPORT Q3 2025
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TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 2 TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 TELESTE CORPORATION: STRONG GROWTH IN NET SALES AND PROFIT Unless otherwise specified, the figures in parentheses refer to the year-on-year comparison period. JULY-SEPTEMBER 2025 IN BRIEF - Net sales were EUR 34.5 (29.9) million, representing an increase of 15.2%. - Adjusted EBITDA was EUR 3.5 (2.5) million, representing an increase of 38.1%. - The adjusted operating profit was EUR 2.3 (1.3) million, representing an increase of 72.9%. - The operating profit was EUR 2.2 (1.1) million, representing an increase of 91.7%. - Earnings per share were EUR 0.07 (0.04), representing an increase of 100.3%. - Cash flow from operations was EUR 4.6 (3.4) million, representing increase of 35.8%. - Orders received increased by 0.7% to EUR 31.6 (31.3) million. JANUARY-SEPTEMBER 2025 IN BRIEF - Net sales were EUR 102.5 (96.0) million, representing an increase of 6.8%. - Adjusted EBITDA was EUR 9.6 (7.2) million, representing an increase of 34.0%. - The adjusted operating profit was EUR 5.9 (3.3) million, representing increase of 77.9%. - The operating profit was EUR 5.6 (0.3) million, representing an increase of EUR 5.3 million. - Earnings per share were EUR 0.13 (-0.05), representing an increase of EUR 0.18. - Cash flow from operations was EUR 11.1 (10.6) million, representing an increase of 4.5%. - Orders received were EUR 108.1 (88.6) million, representing an increase of 22.0%. 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. I mport tariffs in the United States continue to create uncertainty and may impact profitability in the short term.
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TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 3 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 EBITDA1) 3.5 2.5 38.1% 9.6 7.2 34.0% 9.3 Adjusted EBITDA, % 1) 10.2% 8.5% 1.7 ppt 9.4% 7.5% 1.9 ppt 7.0% Adjusted Operating profit1) 2.3 1.3 72.9% 5.9 3.3 77.9% 4.2 Adjusted Operating profit, % 1) 6.6% 4.4% 2.2 ppt 5.8% 3.5% 2.3 ppt 3.2% Operating profit 2.2 1.1 91.7% 5.6 0.3 1998.5% -5.4 Operating profit, % 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 backlog 123.9 118.5 4.5% 118.3 Net gearing, % 36% 44% -7.8 ppt 46% Equity ratio, % 48% 46% 2.6 ppt 45% Personnel at period-end 635 689 -7.8% 630 1) An alternative performance measure defined in the tables section of the report.
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TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 4 COMMENTS BY ESA HARJU, PRESIDENT & CEO "In the third quarter of 2025, operational performance remained strong and both business segments progressed according to plan. Revenue grew as expected, and profitability improved significantly compared to the corresponding period l a s t y e a r . O r d e r i n t a k e w a s o n p a r w i t h t h e comparison period , following a strong order accumulation in the first half of the year. Operating cash flow continued positive. In the Broadband Networks segment, delivery volumes of 1.8 GHz intelligent network technology to North American customers remained at a high level and increased significantly year -on-year. In Europe, deliveries continued at the same level as earlier in the year and in the comparison period. Profitability improved noticeably from the previous year. Order intake was lower than in the comparison period as customers placed a greater share of their orders earlier in the year; however, the cumulative order intake for the full year to date is clearly higher than in the previous year. In July, we announced a delivery agreement with VodafoneZiggo for the construction of a DOCSIS 4.0 broadband network in the Netherlands using Teleste’s 1.8 GHz technology. In September, we announced the expansion of our production facilities to Mexico, bringing us closer to the North American market. In the Public Safety and Mobility segment, the year also progressed strongly and in line with plans. Delivery volumes and revenue were generated from multiple projects. All key indicators – order intake, revenue, and profitability – developed positively compared to the same period last year . In August, we announced an agreement with a new train manufacturer, Hitachi, for the delivery of train systems in Italy. In September, we announced another new customer agreement with Rebl Group Oyj’s subsidiary PunaMus ta Oy, for the delivery of thousands of digital displays to Helsinki Region Transport (HSL) infrastructure. The global operating environment remained uncertain. Changes in import tariffs in the United States continue to have implications for global markets and the overall business environment. We have implemented several adjustment measures, and the impact of ta riffs on third -quarter results was limited. We expect the operating environment to remain uncertain for the remainder of the year and into 2026. In conjunction with this stock exchange release, we have specified our financial guidance range for the current year . W e e x p e c t f u l l-year results to be significantly stronger than in the previous year, particularly in terms of profitability, providing a solid foundation for the execution of our long er- term strategy." “The third quarter was operationally strong in both business segments. Revenue grew as expected, and profitability improved significantly compared to the corresponding period last year” Esa Harju, President & CEO
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Group Summary TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 5 Group Summary ORDERS RECEIVED AND ORDER BOOK EUR Million 7-9 2025 Change 1-9 2025 1-9 2024 Change 1-12 2024 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 Orders received July-September: Orders received by the Group amounted to EUR 3 1.6 ( 31.3) million in the third quarter, representing a year -on-year increase of 0.7%. Orders received by the Broadband Networks segment totaled EUR 14.1 ( 16.0) million, representing a year -on-year decrease of 11.4%, reflecting customers placing more orders early in the year. Orders received by the Public Safety and Mobility segment totaled EUR 17.4 ( 15.4) million, representing a year-on-year increase of 13.3%. January-September: Orders received by the Group amounted to EUR 108.1 ( 88.6) million in the first three quarters of the year, representing a year -on- year increase of 22.0%. Orders received by the Broadband Networks segment totaled EUR 62.0 (49.1) million, representing a year-on-year increase of 26.2%. Orders received by the Public Safety and Mobility segment totaled EUR 46.1 ( 39.5) million . The 16.9% year -on-year increase in orders was primarily due to a favorable order intake from the public transport operators. Order book The order book at the end of the Group’s reporting period amounted to EUR 123.9 (118.5) million, representing a year -on-year increase of 4.5%. Approximately 21% of the deliveries in the order book are scheduled to take place during the 2025 financial period. Orders in the Broadband Networks segment accounted for approximately 19% of the order book, while orders in the Public Safety and Mobility segment represented 81%. The order book increased by 25% year -on-year in the Broadband Networks segment and remained at the same level in the Public Safety and Mobility segment. Orders received, EUR million Order book at period-end, EUR million
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Group Summary TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 6 NET SALES EUR million 7-9 2025 7-9 2024 Change 1-9 2025 1-9 2024 Change 1-12 2024 Broadband Networks 20.8 18.1 14.9 % 62.9 58.2 8.0 % 78.2 Public Safety and Mobility 13.6 11.8 15.7 % 39.6 37.8 4.9 % 54.3 Total 34.5 29.9 15.2 % 102.5 96.0 6.8 % 132.5 July-September The net sales of the Group amounted to EUR 34.5 (29.9) million, representing a n increase of 15.2% thanks to the strong performance in both segments. The net sales of the Broadband Networks segment totaled EUR 20.8 (18.1) million. The 14.9% increase i n n e t s a l e s w a s d r i v e n b y m o r e t h a n a two-fold increase in deliveries to North America. The net sales of the Public Safety and Mobility segment totaled EUR 13. 6 ( 11.8) million, representing an increase of 15.7% to the comparison period . The growth was mainly in the public transport operator business, while rail business deliveries remained stable. January-September The net sales of the Group amounted to EUR 102.5 (96.0) million, representing a 6.8% increase, with growth in both segments. The net sales of the Broadband Networks segment totaled EUR 62.9 (58.2) million, representing an increase of EUR 4.7 million (8.0%). The growth was driven by increased volumes of intelligent amplifiers to the North American market, offsetting the strong European deliveries recorded in the first quarter of the comparison period. The net sales of the Public Safety and Mobility segment totaled EUR 39.6 (37.8) million, growing moderately from the comparison period. Performance varied across business areas, with fluctuations balancing each other out. In terms of the geographical distribution of net sales, the share of "North America and other countries" increased to 28.5% (13.1%), which was particularly due to significant growth in the North American market for the Broadband Networks segment, and the Public Safety and Mobility segment's strategic project deliveries to North America and Middle East. Finland accounted for 7.9% (8.1%) of net sales, the Other Nordic countries for 8.3% (9.6%), and Other Europe for 55.2% (68.4%). Net sales, EUR million Net sales Q3 2025 by market area, percent
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Group Summary TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 7 PROFITABILITY Group 7–9 2025 7–9 2024 Change 1-9 2025 1-9 2024 Change 1–12 2024 Adjusted EBITDA, EUR 1,000 3,519 2,548 38.1% 9,598 7,164 34.0% 9,340 Adjusted EBITDA margin, % 10.2% 8.5% 1.7 ppt 9.4% 7.5% 1.9 ppt 7.0% Adjustment items, EUR 1,000 -129 -197 n/a -278 -2,468 n/a -2,906 EBITDA , EUR 1,000 3,390 2,351 44.2% 9,320 4,695 98.5% 6,434 EBITDA margin, % 9.8% 7.9% 2.0 ppt 9.1% 4.9% 4.2 ppt 4.9% Adjusted Operating profit, EUR 1,000 2,287 1,323 72.9% 5,897 3.315 77.9% 4,184 Adjusted Operating profit margin, % 6.6% 4.4% 2.2 ppt 5.8% 3.5% 2.3 ppt 3.2% Adjustment items, EUR 1,000 -129 -197 n/a -278 -3,048 n/a -9,559 Operating profit, EUR 1,000 2,158 1,126 91.6% 5.619 268 1,998.5% -5,375 Operating profit, % 6.3% 3.8% 2.5 ppt 5.5% 0.3% 5.2 ppt -4.1% July-September The Group's adjusted EBITDA was EUR 3. 5 (2 .5) million, representing an increase of EUR 1.0 million, or 38.1%. The Group’s adjusted EBITDA margin was 10.2% (8.5%), representing a year-on-year increase of 1.7%. The share of net sales represented by the Group's expenses for material and manufacturing services was 4 7.8% (4 9.7%). The decrease of 2.0 percentage points was due to a different product and market mix , a slightly higher share of service- and software net sales, and savings in material and production expenses. Personnel expenses increased by 25.6% , due to a cost-saving program during t he comparison period and investments to North America in the reporting period, amounting to EUR 10.9 (8.6) million. T h e G r o u p ' s E B I T D A w a s E U R 3.4 (2.4) million, representing an increase of EUR 1.0 million. The adjusted items in the comparison period were related to restructuring costs and strategic development projects. The EBITDA margin was 9.8% (7.9%). The Group’s adjusted operating profit was EUR 2.3 (1.3) million, and the adjusted operating profit margin increased to 6.6% from 4.4% in the comparison period. The adjusted operating profit margin was slightly affected by depreciations increasing to EUR 1. 2 million from EUR 1. 1 million in the comparison period. Operating profit increased to EUR 2. 2 (1.1) million, or 6.3% (3.8%) of net sales. The Group's net financial expenses were at the same level as in the comparison period EUR -0.6 (-0.6) million. The impact of currency exchange rate fluctuations stabilized compared to the previous quarter. Additionally, the decline in Euribor rates and improvements in loan covenant metrics contributed to lower interest expenses compared to earlier periods. Direct taxes for the reporting period amounted to EUR -0.3 (0.1) million of tax assets. The result for the review period was EUR 1.3 (0.6) million. Earnings per share were EUR 0.07 (0.04). Adjusted cumulative operating profit, EUR million
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Group Summary TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 8 January-September The Group's adjusted EBITDA was EUR 9.6 (7.2) million, representing an increase of EUR 2.4 million, or 34.0%. The Group’s adjusted EBITDA margin was 9.4% (7. 5%), representing a year -on-year increase of 1.9 percentage points. The share of net sales represented by the Group's expenses for material and manufacturing services was 46.1% (48.7%). The decrease of 2.5 percentage points was due to a different product and market mix, savings in material expenses, and improvements in production efficiency. Personnel expenses increased by 6.3% and amounted to EUR 33.0 (31.0) million, due to the temporary cost-saving measures in the comparison period and increased investments in North America during the reporting period. T h e G r o u p ' s E B I T D A w a s E U R 9.3 (4.7) million, representing an increase of EUR 4.6 million. The adjusted items in the comparison period were related to restructuring costs and strategic development projects. The EBITDA margin was 9.1% (4.9%). The Group’s adjusted operating profit was EUR 5.9 (3.3) million, and the adjusted operating profit margin increased to 5 .8% from 3.5% in the comparison period. Operating profit increased to EUR 5.6 (0.3) million, or 5 .5% ( 0.3%) of net sales. The increase in operating profit was partly due to the restructuring costs of EUR 2.5 million in the comparison period, which were reported as adjusted items, as well as a non-recurring R&D impairment of EUR 0.6 million in the comparison period. The Group's net financial expenses were EUR -3.4 (- 1.3) million, representing an increase of EUR 2.1 million. The increase was mainly due to unrealized foreign exchange losses of approximately EUR 0. 9 million, negative changes in foreign exchange and interest rate hedges amounting to EUR 0.5 million , the effective financial expense impact of refinancing arrangement fees and higher interest expenses totaling EUR 0.4 million and realized foreign exchange losses of EUR 0.3 million. Additionally, in accordance with the company’s hedge accounting policy, the fair value of USD currency hedges recognized in other comprehensive income increased by EUR 0. 4 million during the period, while realized hedges improved operating profit by EUR 0.2 million. Direct taxes for the reporting period amounted to EUR -0.1 (0.0) m i l l i o n o f t a x a s s e t s . Driven by strengthening profitability and an improved outlook, the Group companies have recognized previously unrecorded deferred tax assets in their financial results . The result for the review period was EUR 2.2 (-1.1) million. Earnings per share were EUR 0.13 (-0.05).
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Group Summary TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 9 CASH FLOW AND FINANCIAL POSITION Cash flow Cash flow from operations was positive EUR 11.1 (10.6) million in January –September 2025, representing a year-on-year increase of 4.5% due to stronger net sales and more favorable market mix reducing networking capital. Cash flow from investing activities was EUR -3.5 (- 3.9) million. The change of EUR 0.4 million was due to lower R&D investments, which was partly offset by acquiring the remaining part of the US-based joint venture. Cash flow from financing activities was EUR -6.4 (3.0) million. In accordance with its loan agreements, the company made loan repayments totaling EUR 2.4 million and drew EUR 2.0 million in short-term loans under its credit facility. Payments of finance lease liabilities were EUR 1.4 (1.4) million. The dividend payment amounted to EUR 0.5 million. Financial position At the end of the period under review, the Group's interest-b e a r i n g d e b t s t o o d a t E U R 30.3 (42.1) million, with short -term loans from banks representing EUR 5.4 (15.2) million of that amount. Interest-bearing liabilities associated with leases capitalized in accordance with IFRS 16 amounted to EUR 4.8 (4.6) million, of which EUR 1.7 (1.5) million were short -term liabilities. The Group's cash and cash equivalents amounted to EUR 9.8 (15.9) million. At the end of September 2025, the amount of unused binding credit facilities was EUR 16.0 (7.0) million. The Group's total assets at the end of the period under review stood at EUR 1 18.8 (131.8) million, and equity amounted to EUR 57.1 (59.9) million. T h e b a l a n c e s h e e t t o t a l w a s a ff e c t e d b y a w r i t e- down of capitalized R&D assets recorded in the fourth quarter of 2024, partially offset by improved operational performance. The Group's equity ratio was 4 8.2% (4 5.6%) and the net gearing ratio was 35.9% (4 3.7%). The company’s net debt/adjusted E B I T D A r a ti o w a s 1.79 (3.54), indicating an improvement in the company’s debt repayment capacity. In the third quarter of 2024, the company signed a syndicated refinancing arrangement that includes a repayable loan, credit limits and a non -binding guarantee limit. All financing agreements include financial covenants regarding the minimum equity ratio, the maximum net debt to adjusted EBITDA ratio and the minimum liquidity. The company met all of its financial covenants. Enterprise mortgages totaling EUR 68.9 million are used as collateral for the financing agreements. At the end of the review period, the company’s financing agreements included: • A EUR 26.0 million repayable loan maturing in August 2027, the principal of which was EUR 22.8 million on September 30, 2025. The loan is amortized four times a year in installments of EUR 0.8 million. • A EUR 15.0 million binding Revolving Credit Facility (RCF) maturing in August 2027 , of which EUR 3.0 million w a s i n u s e o n September 30, 2025. • A EUR 4.0 million binding credit limit, valid until August 2027 . On September 30, 2025, EUR 4.0 million of the credit limit was unused. • A EUR 8.0 million non -binding bank guarantee limit • The financing agreement includes two conditional one -year extension options , of which it was agreed that the first option would be used during the reporting period.
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Group Summary TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 10 INVESTMENTS, RESEARCH AND PRODUCT DEVELOPMENT Investments by the Group totaled EUR 4 .9 (5.2) million, representing 4.8% ( 5.4%) of net sales. Leases capitalized in accordance with IFRS 16 amounted to EUR 1.6 (1.2) million consisting primarily of lease renewal s. Other investments in tangible and intangible assets were minor and totaled EUR 0.2 (0.2) million. A total of EUR 3.1 (3.7) million of the R&D expenses were capitalized during the reporting period. Depreciation on capitalized R&D expenses was EUR 1.5 (1.6) million. R&D expenses amounted to EUR 11.4 (10.7) million, representing 11.1% ( 11.1%) of consolidated net sales. Product development projects in the Broadband Networks segment were focused on DOCSIS 4.0 -compliant intelligent amplifier technology as well as telemetry and remote management software solutions targeted at the North American market. In the Public Safety and Mobility segment, product development projects were focused on public transport information systems and customer-specific product platforms. PERSONNEL The Group employed 638 (663) people on average in July-September 2025 and 635 ( 689) people in January-September 2025. At the end of September, the Group employed 648 (642) people, of whom 28% (3 1%) worked abroad. At the end of the financial period 2024, the Group employed 630 people. The company has specified the reporting of employees during 2025 and, therefore, the previously reported number of employees at the end of the financial period 2024, 619, has been restated to correspond to the reporting practice applied in the current financial period. During January -September, p ersonnel expenses increased by 6.3% year-on-year to EUR 33.0 (31.0) million. Personnel expenses increased due to a cost- saving program and efficiency measures during the comparison period, while investments in the North American business increased. SUSTAINABILITY AND CORPORATE RESPONSIBILITY Sustainability and corporate responsibility are an integral part of the company's operations and the product and service offering. The company's products and services promote safety, security, environmentally friendly and efficient public transport a nd energy-efficient digital communications solutions. The company's management has assessed the materiality of different aspects of corporate responsibility with respect to the company's stakeholders and business operations. By taking all facets of corporate responsibility into consideration, the company wants to ensure that its measures enable a sustainable future for g e n e r a ti o n s t o c o m e . A t t h e s a m e ti m e , t h e company responds to the expectations of customers, investors and other stakeholders, and ensures its position as an attractive employer. In March 2025, Teleste Corporation published its first sustainability report in accordance with European Sustainability Reporting Standards (ESRS) under the Corporate Sustainability Reporting Directive (CSRD) and in compliance with the provisions of Chapte r 7 of the Finnish Accounting Act. The report includes assured information on the company’s most material sustainability matters. The Omnibus package currently under consideration by the EU includes amendments to several directives, including the Corporat e Sustainability Reporting Directive (CSRD). The company has initiated preparations for sustainability reporting for the 2025 financial year and is closely monitoring developments in the regulatory framework. The taxonomy is the EU's classification system that entered into effect at the beginning of 2022 and lists
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Group Summary TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 11 economic activities that are sustainable with respect to the climate and the environment. In 2024, 39% of Teleste’s net sales was classified as EU taxonomy-aligned, representing activities that substantially contribute to the EU’s environmental objectives. In addition to sustainability reporting, the impact of the company's sustainability efforts has been monitored by means of the international EcoVadis sustainability assessment for several years now. Teleste has achieved a Gold Medal in the assessment. In t he EcoVadis assessment, companies are benchmarked against other companies, which means that maintaining the Gold Medal rating requires continuous development and progress. In 2024, the company made a commitment to the Science Based Targets initiative (SBTi) to achieve a clear path towards the emissions targets stipulated by the Paris Agreement. The process to define SBTi targets is currently underway. In 2023, the company also made a commitment to the UN Sustainable Development Goals and the UN Global Compact, which is based on the SDGs and is the world’s largest corporate responsibility initiative. Together, EcoVadis, the UN Global Compact and the EU’s reporting obligations support the continuous development of sustainability efforts.
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Broadband Networks TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 12 Broadband Networks ORDERS RECEIVED AND ORDER BOOK EUR million 7-9 2025 7-9 2024 Change 1-9 2025 1-9 2024 Change 1-12 2024 Orders received 14.1 16.0 -11.4% 62.0 49.1 26.2% 74.8 Order book 24.1 19.3 25.1 25.0 July-September: Orders received by the Broadband Networks segment totaled EUR 14.1 (16.0) million, representing a year -on-year decrease of EUR 1.9 million, or 11.4%. Orders in Europe increased in both DOCSIS 4.0 intelligent networks and the video business. Orders in North America were at lower level due to the strong order intake in previous months. January-September: Orders received by the Broadband Networks segment totaled EUR 62.0 (49.1) million, representing a year-on-year increase of 26.2%. European o rders for the DOCSIS 4.0 intelligent network technology increased and contributed to the total value of orders received during the period. Orders in the video business increased. Orders from North America were at the same level as in the comparison period. The order book of the Broadband Networks segment totaled EUR 24.1 ( 19.3) million, representing a year -on-year increase of EUR 4.8 million (25.1%). Broadband Networks – Order book at period-end, EUR million Broadband Networks – Orders received, EUR million
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Broadband Networks TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 13 NET SALES July-September The net sales of the Broadband Networks segment totaled EUR 20.8 (18.1) million, representing a year- on-year increase of EUR 2.7 million ( 14.9%). Deliveries of 1.8 GHz DOCSIS 4.0- compliant intelligent amplifiers to North America increased significantly, offsetting the decline in net sales in certain other regions, such as the service business in the UK. January-September The net sales of the Broadband Networks segment totaled EUR 62.9 (58.2) million, representing a year- on-year increase of EUR 4.7 million ( 8.0%). Deliveries of 1.8 GHz DOCSIS 4.0- compliant intelligent amplifiers to North America increased significantly. The comparison period included significant deliveries to the European market during the first quarter. The revenue share of “North America and other countries” increased to 33.9% ( 12.6%), primarily due to the increased delivery volumes to North America. Finland accounted for 9.1% (9.8%) of net sales, Other Nordic countries for 6.7% (10.0%), and Other Europe for 50.3% (67.7%). Broadband Networks – Net sales, EUR million Broadband Networks – Net sales by market area Jan-September 2025,
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Broadband Networks TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 14 PROFITABILITY Broadband Networks 7-9 2025 7-9 2024 Change 1-9 2025 1-9 2024 Change 1–12 2024 Adjusted EBITDA, EUR 1,000 3,101 2,202 40.8% 8,551 7,147 19.7% 8,932 Adjusted EBITDA margin, % 14.9% 12.2% 2.7% 13.6% 12.3% 1.3% 11.4% Adjusted Operating profit, EUR 1,000 2,451 1,510 62.4% 6,635 5,145 29.0% 6,264 Adjusted Operating profit margin, % 11.8% 8.3% 3.4% 10.6% 8.8% 1.7% 8.0% July-September The Broadband Networks segment's adjusted EBITDA rose to EUR 3.1 (2.2) million, representing an increase of EUR 0.9 million or 40,8% on the comparison period . The increase in EBITDA was driven by higher net sales, a s w e l l a s a different product and market mix in the comparison period. The company has increased its investments in strengthening its market position in North America. In addition, in the comparison period, other expenses and personnel expenses were lower due to the cost -saving program. The adjusted EB ITDA margin was 14.9% (12.2%). The adjusted operating profit of Broadband Networks segment was EUR 2.5 (1.5) million, representing a n increase of EUR 1. 0 million. The adjusted operating profit margin was 11.8% (8.3%). January-September The Broadband Networks segment's adjusted EBITDA was EUR 8.5 (7.1) million, representing a n increase of EUR 1.4 million. The increase in EBITDA was driven by higher net sales, as well as a different product and market mix in the comparison period. The company has increased its investments in strengthening its market position in North America. In addition, in the comparison period, other expenses and personnel expenses were lower due to the cost -saving program. The adjusted EBITDA margin was 13.6% (12.3%). The adjusted operating profit of the Broadband Networks segment was EUR 6.6 ( 5.1) million, representing a n increase of EUR 1.5 million. The adjusted operating profit margin was 10.6% (8.8%). Broadband Networks – Adjusted cumulative operating profit, EUR million
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Broadband Networks TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 15 BUSINESS ENVIRONMENT We expect demand for broadband technology and the global network equipment market to grow from 2025 onward s, driven by intensified competition among network operators to provide fast and reliable broadband connections for households and businesses, using a variety of technologies. The new generation of DOCSIS 4.0 standard –based intelligent network technologies enables highly competitive broadband services, by combining fiber and cable technologies within the same network architecture. At the same time, the role of software- driven intelligence in network technologies is becoming increasingly important, enabling more reliable broadband services and lower netw ork construction and maintenance costs. Investments in DOCSIS 4.0 technology began in North America during 2024. In Europe, investments have commenced in parts of the market during 2025. The North American cable market is significantly larger than that of Europe, and investments based on the DOC SIS 4.0 standard are expected to drive a clear market growth trend starting in 2025. In May 2025, Charter Communications and Cox Communications announced a merger. If completed, the combined company would become the largest fixed broadband and TV service operator in North America. The transaction remains subject to customary regulatory approvals and is expected to be completed by mid-2026. U.S. import tariffs and related uncertainty continue to cause some disruptions in the market. However, they are not expected to have a material impact on customer investments or on the long er-term growth outlook of the North American network market. Teleste’s delivery volumes of DOCSIS 4.0 standard – based 1.8 GHz intelligent networks are expected to grow during 2025. We also expect North America’s relative share of total net sales to continue increasing in 2025 and 2026 compared to 2024. ” T he new generation of DOCSIS 4.0 standard– based intelligent network technologies enables highly competitive broadband services, by combining fiber and cable technologies within the same network architecture.” Ulf Andersson Executive Vice President
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Public Safety and Mobility TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 16 Public Safety and Mobility ORDERS RECEIVED AND ORDER BOOK EUR million 7-9 2025 7-9 2024 Change 1-9 2025 1-9 2024 Change 1-12 2024 Orders received 17.4 15.4 13.3% 46.1 39.5 16.9% 50.1 Order book 99.8 99.2 0.6% 93.3 July-September: O rders received in the Public Safety and Mobility (PSM) segment increased by 13.3% year-on-year and amounted to EUR 17.4 (15.4) million. The growth was primarily driven by a significant increase in orders from public transport operators, which nearly tripled compared to the reference period. A key contributor to this development was a major order from Puna Mu s t a O y f o r t h e d e l i v e r y o f thousands of digital passenger information displays to be installed in Helsinki Region Transport (HSL) vehicles. Orders in the Services business also increased slightly year-on-year. In contrast, orders from rolling stock manufacturers and in the Video Security Solutions business declined compared to the third quarter of the previous year. The lower order intake in these areas reflects the project -based nature of the business and the strong comparison period. January-September: Orders received in the Public Safety and Mobility segment during January– September totaled EUR 46.1 ( 39.5) million, representing a 16.9% increase compared to the reference period. The growth was primarily driven by a strong increase in orders from public transport operators, while orders from rolling stock manufacturers also grew significantly. Orders in the Services and Video Security Solutions businesses were lower than in the comparison period, mainly due to the absence of individual large-scale projects and timing differences in deliveries. The Public Safety and Mobility order book totaled EUR 99.8 (99.2) million, remaining on par with the comparison period . The order book for public transport operators increased, while the order books for the Video Security Solutions business, and maintenance services declined. In video security solutions a long-term project was completed earlier in the year. For rolling stock manufacturers, the order book remained stable due to follow -up and change orders. The decline in the Services order book is explained by the completion of an exceptionally large maintenance project in Poland, which has now been fully delivered. Despite being in the active delivery phase of sever al projects for rolling s tock manufacturers, the order book has remained stable, supported by continued inflow of follow-up and change orders. Public Safety and Mobility – Orders received, EUR million Public Safety and Mobility – Order book at period-end, EUR million
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Public Safety and Mobility TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 17 NET SALES July-September The net sales of the Public Safety and Mobility segment increased by EUR 1.8 million (15.7%) and amounted to EUR 13. 6 (11.8) million. Deliveries to public transportation operators increased notably on the third quarter from the comparison period. Deliveries to rolling stock manufacturers slightly exceeded the level of the comparison period. In contrast, sales in Video Security Solutions and Services remained below the comparison period, primarily due to the timing variations typical of project-based business and the impact of a large maintenance project that was partially delivered during the comparison period. January-September The net sales of the Public Safety and Mobility segment increased 4.9% , totaling EUR 39.6 (37.8) million. 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. Net sales in the Services business nearly reached the level of the comparison period, whereas net sales from deliveries to rolling stock manufacturers remained below the reference period, as customers postponed deliveries to a later schedule than initially anticipated. The revenue share of “North America and other countries” increased to 20.1% (15.7%) due to larger project deliveries to strategic customers, especially in video security. Finland accounted for 6.0% (6.3%) of net sales, the Other Nordic countries for 10.9% (9.1%), and Other Europe for 63.1% ( 68.9%). The decrease in Other Europe’s contribution was primarily due to lower deliveries to train manufacturers according to normal project timing fluctuations. Public Safety and Mobility – Net sales, EUR million Public Safety and Mobility – Net sales by market area, percent
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Public Safety and Mobility TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 18 PROFITABILITY Public Safety and Mobility 7-9 2025 7-9 2024 Change 1-9 2025 1-9 2024 Change 1–12 2024 Adjusted EBITDA, EUR 1,000 1,470 1,087 35.3% 4,381 2,974 47.3% 4,476 Adjusted EBITDA margin, % 10.8% 9.2% 1.6% 11.1% 7.9% 3.2% 8.2% Adjusted EBIT, EUR 1,000 888 555 60.0% 2,596 1,129 130.0% 1,989 Adjusted EBIT margin, % 6.5% 4.7% 1.8% 6.5% 3.0% 3.6% 3.7% July-September The improvement in profitability is progressing favorably, supported by the growth in net sales in the Public Safety and Mobility segment. Cost savings were achieved in materials and production services, although the impact was partly offset by a less favorable project mix compared to the reference period. The effect of increased personnel expenses was balanced by a reduction in other fixed operating costs. These changes were driven by the successful recruitment of personnel, which enabled the insourcing of tasks requiring critical expertise that were previously outsourced. The adjusted operating profit was EUR 0. 9 (0.6) million, representing an increase of 60.0%. The increase in profit was a result of the abovementioned profit levers as well as lower amortizations compared to the comparison period. The adjusted operating profit margin increased to 6.5% from 4.7% year-on- year. January-September Profitability in the Public Safety and Mobility - segment improved due to lower material and production service costs, as well as a more favorable project mix compared to the comparison period. The slight increase in personnel expenses w as offset by a decr ease in other fix ed c osts. This was driven by successful recruitment efforts, which enabled some previously outsourced tasks to be handled in-house. The adjusted operating profit was EUR 2.6 (1.1) million, representing an increase of EUR 1.5 million. The increase in profit was a result of the abovementioned profit levers as well as lower amortizations compared to the comparison period. The adjusted operating profit margin increased to 6.6% (3.0%). Public Safety and Mobility – Adjusted cumulative operating profit, EUR million
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Public Safety and Mobility TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 19 BUSINESS ENVIRONMENT The expansion of urban areas, the increasing adoption of environmentally friendly public transportation solutions, and the integration of intelligent digital systems into everyday life are creating a continuously evolving growth platform for public transportation information and security systems. At the same time, ensuring the security of critical infrastructure through intelligent digital technology is generating new market opportunities. Following several years of market volatility, the operating environment has developed in a more favorable and predictable direction, supporting steady growth. The business typically consists of comprehensive projects that include development, delivery, and maintenance phases. Due to the nature of publicly funded project business, cost awareness is high, placing strong demands on suppliers in terms of efficiency and competitiveness. The importance of real-time software solutions has become increasingly significant. Public transportation information systems are becoming increasingly intelligent, and software development capability has emerged as a key competitive differentiator. Services and solutions aimed at enhancing the passenger experience are playing an increasingly important role in end customers’ decision-making. At the same time, lifecycle management, maintenance and service operations, as well as the establishment of long -term partnerships, are becoming significant areas of business focus. There is growing demand in the market for intelligent, integrated solutions that enhance the security of public and critical infrastructure. In addition to traditional video surveillance systems, real-time mobile airborne and ground- based video monitoring systems, as well as comprehensive situational awareness platforms, have become more prevalent. These systems enable the combined management and analysis of video streams and other data sources. The markets for public transportation and critical infrastructure information and security solutions offer promising opportunities. Teleste’s strong position in these markets supports the sustainable growth and development of the business. "The markets for public transportation and critical infrastructure information and security solutions offer promising opportunities. Teleste’s strong position in these markets supports the sustainable growth and development of the business." Valerian Sand, Senior Vice President
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Shares and Governance TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 20 GROUP STRUCTURE The parent company has a branch office in the Netherlands and subsidiaries in 12 countries outside Finland. SHARES AND SHARE CAPITAL On March 31, 2025, Teleste Corporation conveyed a total of 14,264 treasury shares without consideration to the key employees participating in Teleste’s long-term share-based incentive program launched in 2022. The start of the performance periods and their key conditions were disclosed in stock exchange releases published on February 10, 2022. The conveyance of the shares by means of a directed share issue without consideration is based on the terms and conditions of the program and the authorization granted to the Board of Directors by the Annual General Meeting held on April 11, 2024. On June 26, 2025, Teleste Corporation transferred a total of 38,532 own shares held by the company without consideration to key personnel under the share-based incentive program launched in 2022. The launch of the program and its key terms were disclosed in stock exchange releases published on February 10, 2022 and February 9, 2024. The transfer of shares through a directed share issue without consideration is based on the terms of the program and the authorization granted to the Board of Directors by the Annual General Meeting held on April 23, 2025. On September 30, 2025, Tianta Oy was the largest single shareholder of Teleste with a holding of 25.2% (25.2%). According to Euroclear Finland Ltd, the number of Teleste shareholders at the end of the period under review was 4,988 (5,169). Foreign shareholders accounted for 0.8% (0.9%) of the shares, while nominee- registered holdings accounted for 2.4% (2.5%). On September 30, 2025, the company's registered share capital stood at EUR 6,966,932.80, divided into 18,985,588 shares. The Group's parent company Teleste Corporation held 685,602 (738,398) treasury shares, representing 3.6% (3.9%) of all Teleste shares, on September 30, 2025. In January–September 2025, the share turnover of Teleste on Nasdaq Helsinki was 1.0 (0. 9) million shares and EUR 3.4 (2.3) million. The volume - weighted average price of the share was EUR 3.23 (2.70), the lowest share price in the review period was EUR 2. 47 (2.10) and the highest EUR 4.20 (3.45). The closing price of the Teleste share on September 30, 2025, was EUR 4.04 (2.17) and market capitalization was EUR 76.7 (41.2) million. GOVERNANCE Company leadership On September 30, 2025, Teleste's Leadership Team included Esa Harju, President and CEO; Mervi Kerkelä-Hiltunen, CFO; Pasi Järvenpää, Senior Vice President, Research and Development; Linda Kallas, Senior Vice President, Strategy, Communications & Sustainability; Esa Korolainen, Senior Vic e President, Operations, Logistics & Sourcing; Ulf Andersson, Executive Vice President, Broadband Networks; Valerian Sand, Senior Vice President, Public Safety and Mobility; and Tuomas Vanne, Senior Vice President, People and Culture. Annual General Meeting The Annual General Meeting (AGM) of Teleste Corporation, held on April 23, 2025, adopted the financial statements and consolidated financial statements for 2024 and the remuneration report of the company's governing bodies for the financial period 2024, an d discharged the members of the Board of Directors and the CEO from liability for the financial period 2024. In accordance with the proposal of the Board of Directors, the AGM resolved that, based on the adopted balance sheet, a dividend of EUR 0.03 per sh are be paid for the financial period that ended on December 31, 2024, for shares other than those held by the company. The dividend will be paid to shareholders registered o n t h e r e c o r d d a t e o f J u n e 3 0 , 2 0 2 5 , a s a
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Shares and Governance TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 21 shareholder in the company’s shareholders’ register maintained by Euroclear Finland Ltd. The dividend payment date was July 7, 2025. The AGM decided that the Board of Directors shall consist of six members. Timo Luukkainen, Jussi Himanen, Vesa Korpimies, Mirel Leino -Haltia, Anni Ronkainen and Kai Telanne were elected as members of Teleste Corporation's Board of Directors. Teleste's AGM 2024 decided on the annual remunerations to be paid to the members of the Board of Directors as follows: EUR 66,000 per year to the Chairman and EUR 33,000 per year to each member. The annual remuneration of the Board member who acts as the Chairman of the Audit Committee shall be EUR 49,000 per year. Of the annual remuneration to be paid to the Board members, 40 % of the total gross remuneration amount will be used to purchase Teleste Corporation's shares for the Board members through trading on the regulated market organized by Nasdaq Helsinki Ltd, and the rest will be paid in cash. However, a separate meeting fee shall not be paid to the members of the Board of Directors nor the Chairman of the Audit Committee. A meeting f e e o f E U R 4 0 0 p e r me e ti n g i s t o b e p a i d t o t h e members of the Board of Directors' committees for those committee meetings that they attend. PricewaterhouseCoopers Oy, a firm of Authorized Public Accountants, was elected as the company's auditor. The audit firm has appointed Markku Launis, APA, as the auditor with principal responsibility. It was decided that the auditor's fees will be paid acc ording to the invoice approved by the company. BDO Oy, an Authorized Sustainability Audit Firm, was elected as the company's sustainability reporting assurance provider, and BDO Oy has appointed Mr. Vesa Vuorinen, APA, Authorized Sustainability Auditor, as the principally responsible sustainability auditor. It was decided to pay the sustainability reporting assurance provider's compensation against an invoice approved by the company. The AGM decided to authorize the Board of Directors to decide on the purchase of the company's own shares in accordance with the proposal of the Board. According to the authorization, the Board of Directors may acquire 1,200,000 of the company's own shares otherwise than in proportion to the holdings of the shareholders with unrestricted equity through trading on the regulated market organized by Nasdaq Helsinki Ltd at the market price at the time of the purchase. The share purchase authorization is valid for eighteen (18) months from the date of the resolution of the Annual General Meeting. The authorization overrides any previous authorizations to purchase the company's own shares. The Annual General Meeting decided to authorize the Board of Directors to decide on issuing new shares and/or transferring the company's own shares held by the company and/or granting special r i g h t s r e f e r r e d t o i n C h a p t e r 1 0 , S e c ti o n 1 o f t h e Limited Liability Companies Act, in accordance with the Board's proposal. The new shares may be issued and the company's own shares held by the company may be conveyed either against payment or for free. New shares may be issued and the company's own shares held by the company may be conveyed to the company's shareholders in pro portion to their current shareholdings in the company, or by waiving the shareholder's pre-emption right, through a directed share issue if the company has a weighty financial reason to do so. The new shares may also be issued in a free share issue to the company itself. Under the authorization, the Board of Directors has t h e r i g h t t o d e c i d e o n i s s u a n c e s o f n e w s h a r e s and/or transferring the company's own shares held by the company, so that the maximum total number of shares issued and/or transferred is 2,000,000. The total number of new shares to be subscribed for under the special rights granted by the company and the company's own shares held by the company to be transferred may not exceed 1,000,000 shares, which number is included in the above maximum number concerning new shares and the Group's own shares held by the company. T h e a u t h o r i z a ti o n s a r e v a l i d f o r e i g h t e e n ( 1 8 ) months from the resolution of the Annual General Meeting. The authorizations override any previous authorizations to decide on issuances of new shares and on granting stock option rights or other special rights entitling to shares. Authorizations Valid authorizations at the end of the review period on September 30, 2025: • The Board of Directors may acquire 1,200,000 of the company's own shares otherwise than in proportion to the holdings of the shareholders with unrestricted equity through trading on the regulated market organized by Nasdaq Helsinki at the market price of the time of the purchase. • The Board of Directors may decide on issuing new shares and/or transferring the
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Shares and Governance TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 22 company's own shares held by the company, so that the maximum total number of shares issued and/or transferred is 2,000,000. The total number of new shares to be subscribed for under the special rights granted by the company and the company's own shares held by the company to be transferred may not exceed 1,000,000 shares, which number is included in the above maximum number concerning new shares and the Group's own shares held by the company. Organizational meeting of the Board of Directors The Board of Directors, which convened after the Annual General Meeting, elected Mr. Timo Luukkainen as its Chair. Mirel Leino-Haltia was elected as Chair of the Audit Committee of the Board of Directors, with Jussi Himanen and Vesa Korpimies as members. Kai Telanne was elected as Chair of the Personnel and Remuneration Committee of the Board of Directors, with Timo Luukkainen and Anni Ronkainen as members. Business risks and uncertainties This interim report mainly describes the most relevant changes to the risks and uncertainties as presented in the Report of the Board of Directors and financial statements for 2024. Risk management constitutes an integral part of the strategic and operational activities of the business. Risks are reported to the Audit Committee and the Board of Directors on a regular basis and whenever necessary. The import tariffs imposed by the U.S. administration starting in April 2025, along with the associated broad trade policy uncertainties — such as periodically changing customs regulations, potential counter -tariffs, export restrictions, and other trade barriers — may affect the company’s business operations and profitability. In addition, possible export restrictions and tariffs in the supplier countries within the company’s subcontracting network could disrupt supply chain efficiency and impact the availa bility and cost of materials. The company seeks to proactively mitigate these effects through various measures; however, it may not be possible to fully compensate for or neutralize them or pass such tariff-related costs and other trade barrier impacts to customer pricing. Once the operating environment becomes more predictable again, the company will be able to establish longer-term and more stable operati ng plans. In May 2025, Charter Communications and Cox Communications announced their plans for a merger. If completed in 2026, the combined company would become the largest fixed broadband and TV service operator in North America. In connection with the transaction , the parties may , before the transaction is finalized, optimize or postpone their investments, which may temporarily weaken the market demand. Legal proceedings and judicial procedures In 2023, Teleste's subsidiary in Germany has filed a c l a i m f o r d a m a g e s r e l a t e d t o a p r o j e c t w h i c h t h e customer terminated without a valid reason in Teleste's opinion. The deliveries of the terminated project included passenger information systems to a group of local public transport operators. The claim proceedings are still ongoing. Teleste estimates that the legal proceedings will not have any significant financial impact on the Group's operations. At the end of the period under review, there were no other legal proceedings or judicial procedures pending that would have had any essential significance to the Group's operations. Events after the end of the review period On October 9, 2025, Teleste Corporation announced the schedule for its financial reporting in 2026 as well as the planned date for the Annual General Meeting. The company’s Board of Directors will convene the Annual General Meeting separately at a later date.
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Shares and Governance TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 23 FINANCIAL INFORMATION IN 2025 Teleste Corporation’s schedule for publishing financial information in 2025 is as follows: May 7, 2025 Interim report January–March 2025 August 14, 2025 Half year financial report January–June 2025 November 5, 2025 Interim report January–September 2025 The annual report for 2024 was published on March 28, 2025, at www.teleste.com. Teleste Corporation's Annual General Meeting was held on Wednesday, April 23, 2025, in Helsinki, Finland. Results presentation call Teleste will organize a results presentation call on November 5, 2025, at 9.30 a.m. Finnish time (EET). The event will feature presentations by CEO Esa Harju and CFO Mervi Kerkelä-Hiltunen. Registration for the results event is according to separately provided customary instructions. Turku, November 5, 2025 Teleste Corporation Board of Directors For further information, please contact: Esa Harju, President and CEO Mervi Kerkelä-Hiltunen, CFO tel. +358 2 2605 611 investor.relations@teleste.com Teleste in Brief Teleste's technologies and products are used to build a networked society. Our solutions bring high- speed broadband and television services to homes, secure your safety in public places and guide you in the use of public transport. With solid industry experience and a drive to innovate, we are a leading international company in broadband, security and information technologies and related services. We work in close cooperation with our customers, both virtually and through our worldwide sales network. In 202 4, Teleste's net sales amounted to EUR 132.5 million and, on average, it had approximately 673 employees. Teleste is listed on Nasdaq Helsinki. For more information, please visit our website www.teleste.com .
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Income Statement and Balance Sheet TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 24 The company has decided to change its reporting principles for the interim reports so that, in the future, with the exception of hedge accounting, all items arising from realized and unrealized exchange rate differences will be reported as financial items in the income statement. Comparative period items have been adjusted to correspond to the current reporting principle. The adjus tment did not have a material effect on the figures for the comparative period. Except for the above, th is interim report has been compiled in compliance with IAS 34, as it is accepted within EU, using the recognition and valuation principles with those used in the Annual Report. Teleste has prepared this interim report applying the same accounting principle s as those described in detail in its consolidated financial statements except for the adoption of new standards and amendments effective as of January 1, 2025. Audit principles can be found from the latest annual report. The data stated in this report is unaudited. STATEMENT OF COMPREHENSIVE INCOME (tEUR) 7-9/2025 7-9/2024 Change % 1-12/2024 Net Sales 34,464 29,906 15.2 % 132,524 Other operating income 97 146 -33.9 % 607 Materials and services -16,460 -14,869 10.7 % -66,094 Personnel expenses -10,864 -8,647 25.6 % -40,981 Depreciation -1,232 -1,225 0.6 % -5,157 Impairment 0 0 n/a -6,653 Other operating expenses -3,847 -4,186 -8.1 % -19,622 Operating profit 2,158 1,126 91.7 % -5,375 Financial income 468 -71 -756.0 % 991 Financial expenses -1,044 -551 89.4 % -2,682 Profit after financial items 1,582 503 214.1 % -7,066 Profit before taxes 1,582 503 214.1 % -7,066 Taxes -293 68 -530.7 % 1,013 Net profit 1,289 571 125.6 % -6,053 Attributable to: Equity holders of the parent 1,289 643 100.5 % -5,853 Non-controlling interests* 0 -71 n/a -200 1,289 571 125.6 % -6,053 Earnings per share for result of the year attributable to the equity holders of the parent (expressed in euro per share) Basic 0.07 0.04 100.3 % -0.32 Diluted 0.07 0.04 99.8 % -0.32 Total comprehensive income for the period (tEUR) Net profit 1,289 571 125.6 % -6,053 Possible items with future net profit effect Translation differences -81 130 -162.2 % -65 Cash flow hedges -152 -433 -65.0 % -306 Total comprehensive income for the period 1,056 268 294.1 % -6,424 Attributable to: Equity holders of the parent 1,058 316 234.7 % -6,189 Non-controlling interests -2 -48 n/a -235 1,056 268 294.1 % -6,424 *The company acquired the remaining 20% stake in the joint venture on 2 July 2025 and does not have any other joint ventures.
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Income Statement and Balance Sheet TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 25 STATEMENT OF COMPREHENSIVE INCOME (tEUR) 1-9/2025 1-9/2024 Change % 1-12/2024 Net Sales 102,507 96,020 6.8 % 132,524 Other operating income 558 490 13.9 % 607 Materials and services -47,293 -46,736 1.2 % -66,094 Personnel expenses -33,002 -31,036 6.3 % -40,981 Depreciation and amortization -3,701 -3,848 -3.8 % -5,157 Impairment 0 -579 -100.0 % -6,653 Other operating expenses -13,450 -14,042 -4.2 % -19,622 Operating profit 5,619 268 1998.5 % -5,375 Financial income 524 384 36.4 % 991 Financial expenses -3,892 -1,724 125.8 % -2,682 Profit after financial items 2,252 -1,072 n/a -7,066 Profit before taxes 2,252 -1,072 n/a -7,066 Taxes -90 7 -1410.4 % 1,013 Net profit 2,162 -1,065 n/a -6,053 Attributable to: Equity holders of the parent 2,338 -850 n/a -5,853 Non-controlling interests -176 -215 n/a -200 2,162 -1,065 n/a -6,053 Earnings per share for result of the year attributable to the equity holders of the parent (expressed in euro per share) Basic 0.13 -0.05 n/a -0.32 Diluted 0.13 -0.05 n/a -0.32 Total comprehensive income for the period (tEUR) Net profit 2,162 -1,065 n/a -6,053 Possible items with future net profit effect Translation differences 253 143 76.0 % -65 Cash flow hedges 134 -295 -145.3 % -306 Total comprehensive income for the period 2,548 -1,217 n/a -6,424 Attributable to: Equity holders of the parent 2,688 -1,010 n/a -6,189 Non-controlling interests -140 -207 n/a -235 2,548 -1,217 n/a -6,424
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Income Statement and Balance Sheet TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 26 STATEMENT OF FINANCIAL POSITION (tEUR) 30.9.2025 30.9.2024 Change % 31.12.2024 Non-current assets Intangible assets 10,383 14,785 -29.8 % 8,839 Goodwill 30,045 30,095 -0.2 % 30,082 Property, plant, equipment 11,071 11,884 -6.8 % 11,516 Other non-current financial assets 32 364 -91.3 % 27 Other non-current reiceivables 10 116 -91.8 % 116 Deferred tax asset 3,264 2,273 43.6 % 3,163 54,804 59,518 -7.9 % 53,742 Current assets Inventories 26,170 26,751 -2.2 % 24,896 Trade and other receivables 26,898 26,690 0.8 % 32,703 Tax Receivable, income tax 1,093 278 293.0 % 1,019 Cash and cash equivalents 9,808 15,881 -38.2 % 8,808 63,969 69,599 -8.1 % 67,426 Total assets 118,773 129,117 -8.0 % 121,168 Shareholder equity and liabilities Share capital 6,967 6,967 0.0 % 6,967 Other equity 50,166 53,576 -6.4 % 48,509 Owners of the parent company 57,133 60,543 -5.6 % 55,476 Non-controlling interests* 0 -640 -100.0 % -669 EQUITY 57,133 59,903 -4.6 % 54,808 Non-current liabilities Deferred tax liability 41 35 17.9 % 50 Non-current liabilities, interest-bearing 24,280 25,385 -4.4 % 24,653 Non-current interest-free liabilities 35 35 0.0 % 35 Non-current provisions 631 289 118.2 % 560 24,987 25,743 -2.9 % 25,297 Current liabilities Current interest-bearing liabilities 6,050 16,665 -63.7 % 9,558 Trade Payables and Other Liabilities 28,882 24,867 16.1 % 29,569 Advances received 280 420 -33.2 % 365 Tax liability, income tax 91 451 -79.9 % 139 Current provisions 1,349 1,068 26.3 % 1,433 36,653 43,471 -15.7 % 41,063 Total shareholder equity and liabilities 118,773 129,117 -8.0 % 121,168 *The company acquired the remaining 20% stake in the joint venture on 2 July 2025 and does not have any other joint ventures.
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Income Statement and Balance Sheet TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 27 CONSOLIDATED CASH FLOW STATEMENT (tEUR) 1-9/2025 1-9/2024 Change % 1-12/2024 Cash flows from operating activities Profit for the period 2,162 -1,065 n/a -6,053 Adjustments to cash flow from operating activities 7,786 5,925 31.4 % 12,590 Change in net working capital 3,760 7,279 -48.3 % 8,807 Other finance items -749 -233 221.2 % -201 Paid interest and other finance expenses -1,387 -1,328 4.4 % -2,130 Received interests and dividend payments 164 144 13.5 % 204 Paid Taxes -677 -141 380.9 % -788 Cash flow from operating activities 11,059 10,582 4.5 % 12,431 Cash flow from investing activities Purchase of tangible and intangible assets -3,281 -3,954 -17.0 % -4,642 Proceeds from sales of PPE 34 89 -62.1 % 91 Acquisition of non-controlling interest -270 0 n/a 0 Net cash used in investing activities -3,517 -3,865 n/a -4,551 Cash flow from financing activities Proceeds from borrowings 0 37,387 -100.0 % 37,387 Payments of borrowings -4,400 -33,023 -86.7 % -40,823 Payment of leasing liabilities -1,441 -1,393 3.4 % -1,933 Dividends paid -549 0 n/a 0 Net cash used in financing activities -6,390 2,970 -315.1 % -5,369 Change in cash Cash in the beginning 8,808 6,228 41.4 % 6,228 Effect of currency changes -151 -34 339.1 % 71 Change 1,151 9,687 -88.1 % 2,510 Cash at the end 9,808 15,881 -38.2 % 8,808
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Income Statement and Balance Sheet TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 28 OPERATING SEGMENTS (tEUR) 1-9/2025 1-9/2024 Change % 1-12/2024 Broadband Networks Orders received 61,963 49,108 26.2 % 74,807 Net sales 62,865 58,213 8.0 % 78,191 Adjusted EBITDA 8,551 7,147 19.7 % 8,932 Adjusted EBITDA % 13.6 % 12.3 % 10.8 % 11.4 % Adjusted operating profit 6,635 5,145 29.0 % 6,264 Adjusted operating profit % 10.6 % 8.8 % 19.4 % 8.0 % Public Security & Mobility Orders received 46,144 39,475 16.9 % 50,054 Net sales 39,642 37,807 4.9 % 54,333 Adjusted EBITDA 4,381 2,974 47.3 % 4,476 Adjusted EBITDA % 11.1 % 7.9 % 40.5 % 8.2 % Adjusted operating profit 2,596 1,129 130.0 % 1,989 Adjusted operating profit % 6.5 % 3.0 % 119.3 % 3.7 % Group reconciliation Adjusted operating profit from segments 9,231 6,274 47.1 % 8,253 Non-allocated items -3,334 -2,959 n/a -4,069 Adjusted operating profit 5,897 3,315 77.9 % 4,184 Adjustment items -278 -3,048 n/a -9,559 Operating profit 5,619 268 1998.5 % -5,375 Finance items -3,367 -1,339 151.4 % -1,691 Profit before taxes 2,252 -1,072 n/a -7,066 Information per quarter (tEUR) 7-9/25 4-6/25 1-3/25 10-12/24 7-9/24 1/2024- 12/2024 Orders received Broadband Networks 14,132 23,624 24,207 25,699 15,952 74,807 Public Security & Mobility 17,435 15,828 12,881 10,579 15,386 50,054 Total 31,567 39,452 37,088 36,278 31,338 124,861 Net sales Broadband Networks 20,816 22,640 19,410 19,978 18,115 78,191 Public Security & Mobility 13,648 13,247 12,747 16,526 11,791 54,333 Total 34,464 35,887 32,156 36,504 29,906 132,524 Adjusted operating profit Broadband Networks 2,451 2,827 1,357 1,119 1,509 6,264 Public Security & Mobility 888 525 1,183 860 555 1,989 Non-allocated items -1,052 -1,199 -1,083 -1,110 -741 -4,069 Total 2,287 2,153 1,457 868 1,323 4,184 Operating profit Adjusted operating profit 2,287 2,153 1,457 868 1,323 4,184 Adjustment items -129 -150 0 -6,511 -197 -9,559 Total 2,158 2,004 1,457 -5,643 1,126 -5,375
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Income Statement and Balance Sheet TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 29 Net sales by category (tEUR) 1-9/2025 1-9/2024 Change % 1-12/2024 Goods 91,472 86,003 6.4 % 118,147 Service 11,035 10,017 10.2 % 14,377 Total 102,507 96,020 6.8 % 132,524 Impairment by category (tEUR) 1-9/2025 1-9/2024 Change % 1-12/2024 Impairment of development costs 0.0 -579 -100.0 % -6,653 Impairments total 0.0 -579 -100.0 % -6,653 Inventories (tEUR) 30.9.2025 30.9.2024 Change % 31.12.2024 Inventory at purchase value 34,623 35,831 -3.4 % 33,954 Provision for net realization value -8,453 -9,080 -6.9 % -9,058 Inventory total 26,170 26,751 -2.2 % 24,896 KEY FIGURES 1-9/2025 1-9/2024 Change % 1-12/2024 Operating profit, tEUR 5,619 268 1998.5 % -5,375 Earnings per share, EUR 0.13 -0.05 n/a -0.32 Earnings per share fully diluted, EUR 0.13 -0.05 n/a -0.32 Shareholder equity per share, EUR 3.13 3.28 -4.8 % 3.00 Return on equity 5.1 % -2.4 % n/a -10.5 % Return on investment 7.1 % 0.6 % 1174.7 % -5.0 % Equity ratio 48.2 % 45.6 % 5.7 % 45.4 % Net gearing 35.9 % 43.7 % -17.8 % 46.3 % Investments, tEUR 4,912 5,213 -5.8 % 6,311 Investments % of net sales 4.8 % 5.4 % -10.5 % 4.8 % Order backlog, tEUR 123,864 118,480 4.5 % 118,263 Personnel, average 635 689 -7.8 % 630 Number of shares (thousands) 18,986 18,986 0.0 % 18,986 including own shares Highest share price, EUR 4.20 3.45 21.7 % 3.45 Lowest share price, EUR 2.47 2.10 17.6 % 2.07 Average share price, EUR 3.23 2.70 19.8 % 2.61 Turnover, in million shares 1.0 0.9 21.4 % 1.3 Turnover, in MEUR 3.4 2.3 45.7 % 3.4 Treasury shares Number % of % of of shares shares votes Ownership of company's own shares 30.9.2025 685,602 3.61 % 3.61 % Contingent liabilities and pledged assets (tEUR) 30.9.2025 30.9.2024 Change % 31.12.2024 Leasing and rent liabilities 882 522 69.0 % 585 Derivative instruments (tEUR) Value of underlying forward contracts 16,407 10,638 54.2 % 10,683 Market value of forward contracts 52 -75 -169.9 % -26 Interest rate swap 21,250 28,750 -26.1 % 8,750 Market value of interest swap 114 113 1.2 % 257
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Income Statement and Balance Sheet TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 30 ALTERNATIVE PERFORMANCE MEASURES Teleste Corporation uses and publishes alternative performance measures to describe the operational development of the business and to improve comparability between reporting periods. Alternative performance measures are reported in addition to IFRS-based key figures. In the calculation of alternative performance measures, items affecting the comparability of the operational performance of the reporting periods are not taken into account, such as profits or losses resulting from the sale or termination of business activities, profits or losses resulting from restructuring operations, impairment losses, costs related to significant strategic changes, or other exceptional revenues or costs not part of the operational business. The alternative performance measures reported by Teleste Corporation are adjusted operating profit and adjusted EBITDA. The adjusted items are recognized in the income statement within the corresponding income or expense group. ALTERNATIVE PERFORMANCE MEASURES (tEUR) 7-9/2025 7-9/2024 Change % 1-9/2025 1-9/2024 Change % 1- 12/2024 Adjusted operating profit 2,287 1,323 72.9 % 5,897 3,315 77.9 % 4,184 Adjusted EBITDA, EUR 3,519 2,547 38.1 % 9,598 6,584 45.8 % 9,340 BRIDGE OF CALCULATION Operating profit 2,158 1,126 91.7 % 5,619 268 1998.5 % -5,375 Business reorganization 129 191 -32.8 % 278 2,372 -88.3 % 2,742 Strategic development projects 0 5 -100.0 % 0 96 -100.0 % 164 Impairment of development costs 0 0 n/a 0 579 -100.0 % 6,653 Adjusted operating profit 2,287 1,323 72.9 % 5,897 3,315 77.9 % 4,184 EBITDA 3,390 2,351 44.2% 9,320 4,116 126.4% 6,434 Business reorganization 129 191 -32,8% 278 2,372 -88.3% 2,742 Strategic development projects 0 5 -100.0% 0 96 -100.0% 164 Adjusted EBITDA 3,519 2,547 38.1% 9,598 6,584 45.8% 9,340
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Income Statement and Balance Sheet TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 31 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (tEUR) Attributable to equity holders of the parent A Share capital B Share premium C Translation differences D Retained earnings E Invested free capital F Other funds G Owners of the parent company H Non-controlling interests I Total equity A B C D E F G H I Shareholder equity 1.1.2025 6,967 1,504 -2,329 46,234 3,140 -40 55,476 -669 54,808 Net result 2,338 2,338 -176 2,162 Other comprehensive items for the period 82 134 134 350 36 386 Dividend -549 -549 -549 Equity-settled share-based payments 594 594 594 Aquisition of Non- Controlling interests -1,076 -1,076 809 -268 Shareholder equity 30.9.2025 6,967 1,504 -2,247 47,675 3,140 93 57,133 0 57,133 A B C D E F G H I Shareholder equity 1.1.2024 6,967 1,504 -2,154 51,591 3,140 266 61,315 -433 60,882 Net result -850 -850 -215 -1,065 Other comprehensive items for the period -138 274 -295 -159 8 -152 Dividend 0 0 Equity-settled share-based payments 238 238 238 Shareholder equity 30.9.2024 6,967 1,504 -2,292 51,253 3,140 -29 60,543 -640 59,903
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Income Statement and Balance Sheet TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 32 CALCULATION OF KEY FIGURES Return on equity: Profit/loss for the financial period ------------------------------ * 100 Shareholder equity (average) Return on capital employed: Profit/loss for the period after financial items + financing charges ------------------------------ * 100 Total assets - non-interest-bearing liabilities (average) Equity ratio: Shareholder equity ----------------------------- * 100 Total assets - advances received Gearing: Interest bearing liabilities - cash in hand and in bank - interest bearing assets ----------------------------- * 100 Shareholder equity Earnings per share: Profit for the period attributable to equity holder of the parent ---------------------------------------------- Weighted average number of ordinary shares outstanding during the period Earnings per share, diluted: Profit for the period attributable to equity holder of the parent (diluted) ----------------------------------------------- Average number of shares - own shares + number of options at the period- end Major shareholders, as sorted by number of shares - September 30, 2025 Number of shares % of shares Tianta Oy 4,788,298 25.2 Mandatum Life Insurance Company Limited 1,679,200 8.8 Ilmarinen Mutual Pension Insurance Company 899,475 4.7 Kaleva Mutual Insurance Company 824,641 4.3 Wipunen Varainhallinta Oy 800,000 4.2 Mariatorp Oy 800,000 4.2 Teleste Corporation 685,602 3.6 Varma Mutual Pension Insurance Company 521,150 2.7 The State Pension Fund 500,000 2.6 Ingman Finance Oy Ab 235,000 1.2
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Income Statement and Balance Sheet TELESTE CORPORATION INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2025 33 Shareholders by sector September 30, 2025 No. of shareholders % of Owners Shares % of shares Households 4,723 94.7 5,201,546 27.4 Public sector institutions 3 0.1 1,920,625 10.1 Financial and insurance institutions 16 0.3 3,179,002 16.7 Corporations 203 4.1 8,502,102 44.8 Non-profit institutions 18 0.4 33,468 0.2 Foreign 25 0.5 148,845 0.8 Total 4,988 100.0 18,985,588 100.0 Of which nominee registered 8 0.2 452,746 2.4 Major shareholders by distribution of shares September 30, 2025 Number of shares No. of shareholders % of shareholders Nbr. of shares % of shares 1-100 1,552 31.1 77,434 0.4 101-500 1,903 38.2 501,428 2.6 501-1,000 643 12.9 519,135 2.7 1,001-5,000 676 13.6 1,475,577 7.8 5,001-10,000 101 2.0 717,513 3.8 10,001-50,000 85 1.7 1,891,293 10.0 50,001-100,000 9 0.2 607,523 3.2 100,001-500,000 11 0.2 2,197,319 11.6 500,001-& above 8 0.2 10,998,366 57.9 Total 4,988 100.0 18,985,588 100.0 of which nominee registered 8 0.2 452,746 2.4
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TELESTE CORPORATION P .O.BOX 323, FI-20101 Turku, Finland Telestenkatu 1, FI-20660 Littoinen, Finland Phone: +358 2 2605 611 investor.relations@teleste.com Business ID: 1102267-8 www.teleste.com www.facebook.com/telestecorporation www.linkedin.com/company/teleste www.youtube.com/telestecorporation Copyright © 2025 Teleste Corporation. All rights reserved. Teleste is a registered trademark of Teleste Corporation.