President and CEO Eero Hautaniemi in Financial Statements Release January - December 2025, 27 February 2026
”Lassila & Tikanoja plc was demerged on 31 December 2025 into two separate listed companies: the New Lassila & Tikanoja Plc and Luotea Plc. The listing of Lassila & Tikanoja’s circular economy business as an independent publicly listed company marks a significant milestone. Throughout its history, the company has demonstrated an ability to renew itself, respond to changes in society and the market, and seize new opportunities with confidence. As an independent company, Lassila & Tikanoja will focus fully on developing and growing its circular economy services, as well as meeting the increasing demand from customers and society for resource‑efficient circular solutions. The company has a strong foundation, skilled personnel, and a clear strategy for creating sustainable long‑term value for its shareholders.
Net sales for 2025 were EUR 426.6 million (423.9), an increase of 0.7 per cent compared to the previous year. In the Waste Management and Recycling service area, the challenging economic environment and the decline in waste material volumes affected net sales throughout the financial year. Net sales in the service area decreased by 1.8 per cent to EUR 278.1 million, although the business acquisition completed in June supported the growth of the pallet business throughout the second half of the year. In the Hazardous Waste and Remediation service area, net sales increased by 12.0 per cent to EUR 73.0 million, driven by a strong project pipeline in remediation and stable demand in hazardous waste. Net sales in Industrial Services and Water Treatment were in line with the previous year at EUR 81.3 million.
Carve‑out–based adjusted EBITA was EUR 40.6 million (44.4). Relative profitability remained at a good level, although the recession in the Finnish economy affected profitability development throughout the year. Efficiency measures implemented during the period helped adjust service production costs to lower volumes. Profitability for the year was burdened by approximately EUR 1 million in additional costs related to the implementation of the new ERP system, as well as the start of amortisation related to the system renewal investment, which had a negative impact of approximately EUR 1.1 million.
Cash flow improved compared to the previous year. Cash flow developed positively particularly in the final quarter of the year. Cash flow from operating activities after investments in January–December was EUR 41.4 million (34.3). The impact of acquisitions on cash flow from operating activities after investments was EUR -11.1 million (-1.5).
In 2025, L&T continued the determined execution of its growth strategy. In June, L&T acquired the pallet business of Stena Recycling Oy. The acquisition strengthens L&T’s service offering and supports the growth of its circular economy business in line with the company’s strategy. In December, L&T acquired the entire share capital of Viemärihuolto Reinikka Oy in Finland, and in Sweden the company expanded its process cleaning business by acquiring RecondConcept i Ånge AB. Viemärihuolto Reinikka Oy provides sewer maintenance services in the Central Ostrobothnia region. The acquisition of RecondConcept strengthens L&T’s chemical cleaning, process industry, and energy sector services. The combined annual net sales of the acquisitions completed during the financial year amount to approximately EUR 13 million.
In December, Lassila & Tikanoja announced that it will invest in plastics recycling in Merikarvia. With the new independent plastics recycling plant, L&T’s plastics recycling capacity in Merikarvia will increase by approximately 1.5 times.
L&T’s sustainability performance remained strong during the review period. The company continued its determined efforts to minimise its own climate impact. The company’s carbon footprint (Scope 1–2) decreased by 18% compared to the reference period. Emissions from its own operations have halved five years ahead of schedule. The reduction in the carbon footprint was driven by expanding the use of renewable fuels and investing in low‑emission equipment. The recycling rate of non‑hazardous waste rose to 61.8% (60.7), supported by higher pallet and plastic volumes, even though material volumes in construction and municipal sectors were weighed down by the challenging economic environment. Safety performance also continued to improve. The accident frequency rate decreased, and the number of proactive safety actions reached a record‑high level.”
