Lassila & Tikanoja Plc: Interim Report January-March 2026

Lassila & Tikanoja Plc
Stock exchange release
6 May 2026 at 8.00 AM EEST

Net sales increased, profitability affected by market environment in waste management

The financial information presented in this Interim Report is based on actual figures for the financial information for 2026 and the statement of financial position as at 31 December 2025, and on a carve‑out basis for the other financial information for 2025. The carve‑out financial information does not necessarily reflect what the combined results of operations and financial position of Lassila & Tikanoja would have been had Lassila & Tikanoja operated as a standalone legal group and, accordingly, prepared separate consolidated financial information for the periods presented. Nor does the carve‑out financial information necessarily indicate the results of operations, financial position or cash flows of Lassila & Tikanoja in the future.

Unless otherwise mentioned, the figures in brackets refer to the corresponding period in the previous year.

January–March 2026 highlights

• Net sales were EUR 94.8 million (89.4). Net sales grew by 6.0%.
• Adjusted EBITDA was EUR 11.5 million (12.8), representing 12.1% (14.3) of net sales.
• Adjusted EBITA was EUR 0.2 million (2.6), representing 0.3% (2.9) of net sales. Profitability was weakened by decline in waste management volumes, rising fuel prices and increased depreciation and amortisation.
• Operating profit was EUR -0.8 million (3.5), representing -0.9% (3.9) of net sales.
• Earnings per share was EUR -0.01 (0.11). Earnings per share are not comparable between periods, as the Company’s external borrowings and the related net finance costs, among other items, were not included in the carve‑out financial information for 2025.
• Net cash flow from operating activities after investments amounted to EUR -3.2 million (3.6). Cash flow was weakened by payments of items between Lassila & Tikanoja and Luotea Plc related to the partial demerger, totalling EUR 6.9 million. Taking the above factors into account, net cash flow from operating activities after investments remained at the previous year’s level.

Outlook for the year 2026

In 2026, net sales are estimated to be EUR 420–450 million and adjusted EBITA EUR 38–44 million. In 2025, the company’s net sales amounted to EUR 426.6 million and adjusted EBITA was EUR 40.6 million (on a carve-out basis).

PRESIDENT AND CEO EERO HAUTANIEMI:

” Net sales in the first quarter of 2026 amounted to EUR 94.8 million (89.4), representing a year‑on‑year increase of 6.0 per cent. Organically, net sales increased by 2.0 per cent.

In the Waste Management and Recycling service area, net sales increased by 1.2 per cent to EUR 64.5 million (63.7). Net sales grew as a result of the acquisition of the pallet business completed in June 2025. In waste management, the challenging economic environment and weak development in material volumes were reflected in net sales.

In the Hazardous Waste and Remediation service area, net sales increased by 23.3 per cent to EUR 15.4 million (12.5), driven by a strong project pipeline in remediation and stable demand for hazardous waste services.

Net sales in Industrial Services and Water Treatment increased by 14.3 per cent to EUR 16.0 million (14.0). Net sales growth was mainly organic and was additionally supported by acquisitions completed in December 2025.

Adjusted EBITA for January–March amounted to EUR 0.2 million (2.6). Profitability in January–March was burdened, in addition to the decline in waste management volumes, by an approximately EUR 0.5 million increase in costs resulting from higher fuel prices compared with the previous year, as well as an approximately EUR 0.5 million increase in amortisation related to the system renewal investment. Profitability for the review period was further weakened by higher waste treatment fees, driven by an oversupply of incinerable waste in the market. Over the longer term, the oversupply of waste incineration capacity in Finland is expected to create downward pressure on gate fees.

The Company initiated a review aimed at improving the cost structure of waste management service production and, at the end of the review period, implemented price increases in response to the sudden rise in fuel costs. The price increases will be phased in during April–May. .

Net cash flow from operating activities after investments in the first quarter amounted to EUR -3.2 million (3.6). Cash flow was weakened by one-off payments between Lassila & Tikanoja and Luotea Plc related to the partial demerger, totalling EUR 6.9 million. Taking the above factors into account, net cash flow from operating activities after investments remained at the level of the previous year.

L&T’s steady sustainability performance continued during the review period. The target to halve direct emissions from operations was achieved almost five years ahead of schedule, and the focus of climate work has shifted to eliminating emissions across the entire value chain by 2045. Positive safety development continued, and the total recordable incident frequency (TRIF) decreased to 16 (28). Together with seven other forerunner companies, L&T established the Nature Business Network. The objective of the network is to accelerate the transition towards a nature‑positive economy, in which circular economy solutions play a key role.”

Key figures

¹ Q1 2025 is calculated based on the number of shares at the date of the demerger 31 December 2025.

Differences between the actual figures and the carve‑out principles affect the presentation of certain key performance indicators. Key figures based on equity, interest‑bearing liabilities and net interest‑bearing liabilities are presented only as at 31 December 2025 and 31 March 2026, as the information for earlier periods prepared on a carve‑out basis does not reflect the capital and financing structure of Lassila & Tikanoja.

GROUP NET SALES AND FINANCIAL PERFORMANCE

January–March
Net sales in the first quarter amounted to EUR 94.8 million (89.4), representing an increase of 6.0% compared with the comparison period. Organic growth in net sales was 2.0%. Net sales in the Waste Management and Recycling service area increased to EUR 64.5 million (63.7), supported by the pallet business acquired in June 2025. Organically, net sales in the service area declined due to the challenging market conditions in waste management. Net sales in the Hazardous Waste and Remediation service area increased to EUR 15.4 million (12.5), driven by remediation projects. Net sales in Industrial Services and Water Treatment increased to EUR 16.0 million (14.0).

Adjusted EBITA amounted to EUR 0.2 million (2.6), representing 0.3% (2.9) of net sales. Operating profit was EUR -0.8 million (3.5), representing -0.9% (3.9) of net sales. In the first quarter, profitability was burdened, in addition to the decline in waste management volumes, by higher fuel prices resulting from the Middle East crisis, which increased costs by approximately EUR 0.5 million compared with the previous year. Amortisation related to the system renewal project implemented in June 2025 increased amortisation for January–March by approximately EUR 0.5 million compared with the previous year. Profitability for the review period was further weakened by higher waste treatment fees, driven by an oversupply of incinerable waste in the market. Operating profit included a total of EUR 0.6 million in items affecting comparability, primarily related to the partial demerger.

Net financial expenses in the first quarter amounted to EUR -1.8 million (-1.0). The share of the profit of the joint venture Laania Oy was EUR 1.7 million (1.7). Net financial expenses for January–March 2026 and 2025 are not comparable, as the Company’s external loans and the related net financial expenses have not been included in the carve‑out financial information.

Net sales by service area

FINANCING

Net cash flow from operating activities in the first quarter of 2026 amounted to EUR 2.7 million (8.9). A total of EUR 6.3 million in working capital was tied up during the review period (EUR 2.2 million tied up). Net cash flow from operating activities after investments was EUR -3.2 million (3.6). Cash flow was weakened by payments of items related to the partial demerger between Lassila & Tikanoja and Luotea, totalling EUR 6.9 million.

At the end of the review period, interest‑bearing liabilities amounted to EUR 191.1 million, including lease liabilities. Net interest‑bearing liabilities totalled EUR 161.5 million. The average interest rate on long‑term loans, excluding lease liabilities, was 3.2 per cent.

External loans of the company have not been included in the carve‑out financial information for the comparative period. As part of the financing arrangements, the EUR 75 million bond, the EUR 35 million and EUR 15 million term loans, and the EUR 40 million revolving credit facility were transferred to Lassila & Tikanoja in the demerger on 31 December 2025.

At the end of the review period, the Company’s EUR 100.0 million commercial paper programme, EUR 10.0 million overdraft facility and EUR 40.0 million committed credit facility were undrawn.

Net financial expenses totalled EUR -1.8 million (-1.0). Net financial expenses were 1.9% (1.1) of net sales. The net finance expenses for January–March 2026 and 2025 are not comparable, as the Company’s external borrowings and the related net finance expenses were not included in the carve‑out financial information.

The equity ratio was 35.1% and gearing ratio was 94.5%. Net interest-bearing debt to adjusted EBITDA was 1.9x. The Group’s total equity amounted to EUR 171.0 million. Cash and cash equivalents at the balance sheet date totalled EUR 29.5 million.

CAPITAL EXPENDITURE

Gross capital expenditure for the review period totalled EUR 4.3 million (3.4). The capital expenditure consisted primarily of machine and equipment purchases, as well as investments in information systems.

SUSTAINABILITY

L&T’s steady sustainability performance continued during the review period. The target to halve direct emissions from operations was achieved almost five years ahead of schedule, and the focus of climate efforts has therefore shifted to eliminating emissions across the entire value chain by 2045. The single largest reason for the decrease in the carbon handprint is the decline in the volume of recovered paper to less than one third of its 2020 level. Safety performance was excellent, and the total recordable incident frequency (TRIF) decreased to 16 (28). Together with seven other forerunner companies, L&T founded the Nature Business Network. The aim of the network is to accelerate the transition towards a nature‑positive economy, in which circular economy solutions play a key role. L&T provides employment opportunities for young people and is recruiting 250 summer employees.

Progress towards sustainability targets

PERSONNEL

In the first quarter of 2026, the average number of employees converted into full-time equivalents was 1,881 (1,839). At the end of the review period, L&T had a total of 2,249 (2,219) full-time and part-time employees.

SHARES AND SHARE CAPITAL

Traded volume and price

The demerger of Lassila & Tikanoja was completed on 31 December 2025, and trading in the shares of Lassila & Tikanoja Plc commenced on Nasdaq Helsinki on 2 January 2026. During the review period, a total of 3.3 million shares in the Company were traded, representing 8.8% of the average number of shares outstanding. The value of trading amounted to EUR 25.5 million. The Company’s own share acquisitions are not included in the trading figures. The highest share price was EUR 8.35 and the lowest EUR 7.25. The closing price was EUR 7.38. At the end of the review period, the market capitalisation of the Company’s share capital, excluding treasury shares held by the Company, amounted to EUR 281.0 million.

Own shares

During the review period, the Company acquired a total of 150,000 of its own shares. During the review period, the Company transferred a total of 14,288 treasury shares in its possession to 19 key employees covered by the Group’s share‑based incentive scheme. The transferred shares represent the share‑based portion of the rewards payable under the share‑based incentive scheme for the years 2023–2025. At the end of the review period, the Company held a total of 135,712 treasury shares.

On 23 March 2026, the Company announced that it had completed the repurchase of its own shares, which was originally announced by a stock exchange release on 27 February 2026. The share repurchase programme commenced on 3 March 2026 and ended on 20 March 2026. A total of 150,000 shares were acquired, corresponding to approximately 0.4% of all shares in Lassila & Tikanoja Plc. The average purchase price was EUR 7.6893 per share.

Share capital and number of shares


The company’s registered share capital amounts to EUR 80,000 and the number of outstanding shares was 38,076,012 at the end of the review period.

Share-based incentive plans


The purpose of the Lassila & Tikanoja’s long-term incentive plans is to commit their participants to the
long-term interests and to enhance the shareholder value, as well as to offer a competitive, ownership-based reward scheme.

The company has the following share-based incentive plan under which share rewards remain to be paid on the balance sheet date:

A performance‑based share‑based incentive scheme for 2023–2027, with ongoing three‑year performance periods for 2024–2026 and 2025–2027. The vesting of rewards for the 2024–2026 performance period is based on the following performance criteria: return on capital employed (ROCE) and relative total shareholder return (rTSR). The vesting of rewards for the 2025–2027 performance period is based on the following performance criteria: return on capital employed (ROCE), revenue growth in 2025–2027 and relative total shareholder return (rTSR). The rewards payable based on the 2024–2026 and 2025–2027 performance periods have been converted into shares of the new Lassila & Tikanoja on the basis of the price formation of the new Lassila & Tikanoja share following the listing. The rewards payable based on the performance periods will be paid no later than five months after the end of the performance period as a combination of shares and cash.

A performance‑based share‑based incentive scheme for 2026–2030, comprising three (3) performance periods of three (3) years each, covering the calendar years 2026–2028, 2027–2029 and 2028–2030. The Board of Directors decides on the performance criteria of the scheme and the targets set for each performance criterion at the beginning of each performance period. Any rewards payable under the scheme will be paid after the completion of each performance period. For the 2026–2028 performance period, the vesting of rewards is based on the following performance criteria: adjusted return on capital employed (ROCE) (30%) in 2026–2028, revenue growth (30%) in 2026–2028, relative total shareholder return (rTSR) (30%) in 2026–2028, and reduction of carbon footprint (ESG) (10%) in 2026–2028. The rewards payable for the 2026–2028 performance period correspond to a maximum value of approximately 218,677 shares of Lassila & Tikanoja Plc, including the portion payable in cash. The target group of the share‑based incentive scheme for the 2026–2028 performance period comprises approximately 25 key employees, including the Group’s President and CEO and the members of the Group Management Team.

Shareholders

At the end of the review period, the company had 24,676 shareholders. Nominee-registered
holdings accounted for 12.2% of the total number of shares.

Flagging notifications

On 30 January 2026, Lassila & Tikanoja Plc received a notification pursuant to Chapter 9, Section 5 of the Securities Markets Act, according to which the shareholding of Protector Forsikring ASA in Lassila & Tikanoja decreased below the 5 per cent threshold on 29 January 2026.

Authorisations for the Board of Directors

The Annual General Meeting of Lassila & Tikanoja Plc, which was held after the review period, on 28 April 2026, resolved on authorising the Board of Directors of the Company to the repurchase of the Company’s own shares using the company’s unrestricted equity. In addition, the Annual General Meeting authorised the Board of Directors to decide on a share issue and the issuance of special rights entitling to shares.

By virtue of the authorisation, the Board of Directors is authorised to decide on the repurchase and/or acceptance as pledge of a maximum of 2,000,000 Company’s own shares using the Company’s non-restricted equity. This number of shares corresponds to approximately 5.2% of the Company’s total number of shares on the date of the notice to the Meeting. The authorisation is valid for 18 months.

By virtue of the authorisation, the Board of Directors is authorised to decide, in one or more instalments, on the issuance of new shares or shares possibly held by the Company through a share issue and/or the issuance of option rights or other special rights entitling to shares, as referred to in Chapter 10, Section 1 of the Finnish Companies Act, so that by virtue of the authorisation altogether 2,000,000 shares may be issued and/or conveyed at a maximum. This number of shares corresponds to approximately 5.2% of the Company’s total number of shares on the publication date of the notice to the meeting. The authorisation is valid for 18 months.

RESOLUTIONS BY THE ANNUAL GENERAL MEETING

The Annual General Meeting of Lassila & Tikanoja Plc, which was held after the review period, on 28 April 2026, adopted the financial statements and consolidated financial statements for the financial year 2025, discharged the members of the Board of Directors and the President and CEO from liability, and adopted the Remuneration Report for the Company’s governing bodies as well as the Remuneration Policy for the governing bodies. The Annual General Meeting resolved on the use of the profit shown on the balance sheet and the payment of dividend, the composition and remuneration of the Board of Directors, the election and remuneration of the Auditor, the election and remuneration of the Sustainability Reporting Assurance Provider and authorising the Board of Directors to decide on the repurchase of the Company’s own shares and on a share issue and the issuance of special rights entitling to shares.

The Annual General Meeting resolved that a dividend of EUR 0.42 per share be paid on the basis of the balance sheet to be adopted for the financial year 2025. The dividend will be paid in two instalments.
The first dividend instalment of EUR 0.21 per share will be paid to shareholders who on the record date of the first dividend instalment, 30 April 2026, are registered in the Company’s shareholders’ register held by Euroclear Finland Oy. The payment date of the first dividend instalment will be 8 May 2026.
The second dividend instalment of EUR 0.21 per share will be paid to shareholders who on the record date of the second dividend instalment are registered in the Company’s shareholders’ register held by Euroclear Finland Oy. The record date and payment date of the second dividend instalment shall be resolved by the Board of Directors in its meeting preliminarily scheduled for 18 September 2026. The record date of the second dividend instalment would then be on or about 22 September 2026, and the payment date of the second dividend instalment on or about 1 October 2026.

The Annual General Meeting confirmed the number of members of the Board of Directors as five (5) in accordance with the proposal of the Shareholders’ Nomination Board. All of the current members of the Board of Directors, Tuija Kalpala, Teemu Kangas-Kärki, Sakari Lassila, Jukka Leinonen and Anna-Maria Tuominen-Reini were re-elected to the Board until the end of the next Annual General Meeting. Jukka Leinonen was re-elected as the Chair of the Board and Sakari Lassila was re-elected as the Vice Chair.

The Annual General Meeting elected PricewaterhouseCoopers Oy, Authorised Public Accountants, as the auditor of the Company. PricewaterhouseCoopers Oy has announced that it will name Samuli Perälä, Authorised Public Accountant, as the auditor with principal responsibility.

The Annual General Meeting elected PricewaterhouseCoopers Oy, Authorised Sustainability Audit Firm, as the sustainability reporting assurance provider of the Company. PricewaterhouseCoopers Oy has announced that it will name Samuli Perälä, Authorised Sustainability Auditor, as the responsible authorised sustainability auditor.

The resolutions of the Annual General Meeting are described in more detail in the stock exchange release published on 28 April 2026.

BOARD OF DIRECTORS

The members of Lassila & Tikanoja Plc’s Board of Directors are Tuija Kalpala, Teemu Kangas-Kärki, Sakari Lassila, Jukka Leinonen and Anna-Maria Tuominen-Reini. Lassila & Tikanoja Plc’s Annual General Meeting, held after the review period on 28 April 2026, elected Jukka Leinonen as the Chairman of the Board and Sakari Lassila as the Vice Chairman.

In its constitutive meeting, held after the review period on 28 April 2026, the Board of Directors elected the members of the Audit Committee and the Personnel and Sustainability Committee from amongst its members. Teemu Kangas-Kärki (Chairman), Sakari Lassila and Anna-Maria Tuominen-Reini were elected to the Audit Committee. Jukka Leinonen (Chairman), Sakari Lassila and Tuija Kalpala were elected to the Personnel and Sustainability Committee.

CHANGES IN THE GROUP EXECUTIVE BOARD

Lassila & Tikanoja Plc announced on 16 February 2026, that a member of Lassila & Tikanoja Plc’s Group Executive Board, Hilppa Rautpalo (Senior Vice President, Legal, HR and EHSQ), has announced her decision to leave the company to take up a new position outside the organization by August 2026 at the latest.

Lassila & Tikanoja Plc announced on 19 March 2026, that Eero Hautaniemi, who has served as President and CEO of Lassila & Tikanoja Plc since 2019, has informed the company of his wish to step down from his position no later than 30 June 2027. The Board of Directors of the company has initiated the recruitment process for a new President and CEO.

EVENTS AFTER THE REVIEW PERIOD

Lassila & Tikanoja Plc announced on 7 April 2026 that the Company’s Annual Report 2025 has been published and is available at www.lt.fi/en/investors/reports-and-presentations. The Annual Report includes the Report of the Board of Directors and the Financial Statements for 2025, the Auditor’s Report, the Assurance Report on the Sustainability Report, as well as the Corporate Governance Statement and the Remuneration Report.

After the review period, on 1 April 2026, Lassila & Tikanoja acquired the entire share capital of Sand & Vattenbläst i Tyringe AB (SVB) in Sweden. Lassila & Tikanoja expanded into the Swedish process cleaning services market in 2022 by acquiring a 70 per cent stake in Sand & Vattenbläst i Tyringe AB (SVB). On 1 April 2026, Lassila & Tikanoja exercised the purchase option included in the original share purchase agreement and acquired the remaining shares of SVB. The acquisition supports the implementation of Lassila & Tikanoja’s strategy and strengthens its position in the Swedish industrial services market. SVB has been fully consolidated into the Group’s financial statements since 1 February 2022 based on control. The deferred consideration related to the redemption of the 30 per cent non-controlling interest has been presented under financial liabilities. The final purchase price of the shares amounted to SEK 65.8 million. As a result of exercising the purchase option, this liability was derecognised from the balance sheet, and the increase in ownership to 100 per cent has no other impact on the consolidation of SVB in the Group’s consolidated financial statements.

NEAR-TERM RISKS AND UNCERTAINTIES

General economic uncertainty may affect the level of economic activity among customers and the development of material volumes, which may reduce the demand for L&T’s services.

Lassila & Tikanoja’s business is susceptible to economic fluctuations and changing market conditions and variations in the industries of L&T’s customers may affect the demand for L&T’s
services and solutions.

Lassila & Tikanoja’s business lines are competitive, and increased competition or failure in reacting to competitive situations may result in L&T losing market position.

Lassila & Tikanoja’s business is sensitive to fluctuations in the pricing and supply of materials, raw materials, and capital goods.

The Finnish Waste Act was amended in July 2021. Under the reforms to the Waste Act, municipalities take on a larger role in organising the collection of packaging materials and
biowaste from housing properties. As a consequence of the reform, L&T’s direct customer agreements with housing properties on the separate collection of packaging waste and biowaste
were transferred to municipalities for competitive bidding gradually between 1 July 2022 and 1 July 2025. L&T estimates that, as a result of municipalisation, approximately EUR 100 million of the Finnish waste management market will be moved out of the scope of free competition between 2024 and 2028. L&T participates in the competitive tendering of municipal contracts and is a significant operator in municipal contracts. Nevertheless, L&T estimates that the overall impact of the change will be negative for the company.

Lassila & Tikanoja may become liable for environmental damages, which could result in significant costs and reputational harm.

The company has several ERP system roll-outs under way. Temporary additional costs arising from system deployments and establishing the operating model may weigh down the
company’s result.

Lassila & Tikanoja’s merger and acquisition activities expose L&T to various risks that may have a material adverse effect on its business operations.

Lassila & Tikanoja operates in a labour-intensive industry and failures in recruiting skilled personnel, losing senior managers or key employees or other disruptions in the availability or work capacity of personnel may adversely affect L&T’s business, and it may fail in recruiting and retaining people with the required skill set.

Lassila & Tikanoja’s operations and services rely largely on data networks and digital solutions, and any malfunctions in and breaches or attacks targeting such networks and solutions as well as potential failures in information system development projects as well as lack of adequate data processing agreements may adversely affect the business and financial position of L&T and lead to reputational damage.

The geopolitical situation involves uncertainty stemming from Russia’s war of aggression, the crisis in the Middle East and the United States’ trade and tariff policy. The indirect effects of these factors on general economic activity and cost levels in Finland and Sweden may adversely affect net sales and profitability.

Helsinki 5 May 2026

LASSILA & TIKANOJA PLC

Board of Directors
Eero Hautaniemi
President and CEO

For additional information, please contact:
Eero Hautaniemi, President and CEO, tel. +358 10 636 2810
Joni Sorsanen, CFO, tel. +358 50 443 3045
Lassila & Tikanoja is a leading Nordic circular economy company committed to unleashing the potential of circularity together with its customers and partners. Our services include waste management and recycling, hazardous waste and remediation services as well as industrial services and water treatment. Our goal is to strengthen an efficient infrastructure in society and promote the sustainable use of materials by transforming waste streams into valuable raw materials. L&T employs approximately 2,300 people in Finland and Sweden and is listed on Nasdaq Helsinki.

Attachment

• LT Interim Report Q1 2026