KH Group Plc’s Half-Year-Report 1 January–30 June 2025: KH-Koneet’s profitability declined – NRG performed well, orderbook at record-high level

KH Group PlcStock Exchange Release 15 August 2025 at 8:00 am EEST KH Group Plc’s Half-Year-Report 1 January–30 June 2025KH-Koneet’s profitability declined – NRG performed well, orderbook at record-high level This is the summary of the Half-Year Report for January–June 2025. The full Half-Year Report is attached to this release and is also available on the company’s website atwww.khgroup.com. KH Group, April-June 2025   Net sales amounted to EUR 54.2 (52.2) million...

Helsinki, 15/08/2025 (informazione.news - comunicati stampa - servizi)

KH Group Plc
Stock Exchange Release 15 August 2025 at 8:00 am EEST

 

 

The Group’s net sales from continuing operations increased, but operating profit decreased year-on-year during the April–June review period. KH-Koneet’s net sales increased and operating profit decreased. The machine dealership and rental business grew in Finland in terms of both net sales and operating profit. In Sweden, the machine rental business, in particular, generated lower net sales and operating profit than in the comparison period. Sales of heavy crawler excavators in Finland continued to increase year-on-year. Nordic Rescue Group’s net sales declined, but operating profit for the second quarter was on a par with the comparison period. The order book strengthened during the review period in both Finland and Sweden.

KH Group announced in March 2025 that it had initiated a sale process for Indoor Group. KH Group has engaged a financial advisor to explore various options for its Indoor Group shareholding. No final decision has been made on the sale of Indoor Group holdings and there is no certainty as to the timing, terms or completion of any such transaction. KH Group aims to complete the process during 2025.

In Indoor Group, the general uncertainty in the market continued to have a negative impact on net sales and operating profit. The extensive operating model reform programme to improve Indoor Group’s profitability targets an annual improvement in operating profit of at least EUR 10 million by the end of 2026. A significant part of the targeted profitability improvement is estimated to be realised already during 2025. The change negotiations concluded in December 2024 will generate annual savings in wage costs of approximately EUR 6–7 million, which improved the company's result significantly in the second quarter. In June 2025, Indoor Group carried out change negotiations related to the renewal of the management model and the reorganisation of functions. The aim was to identify measures to improve profitability by approximately EUR 2 million per year. The outcome of the change negotiations was that up to 21 employment relationships will be terminated in Indoor Group, and temporary lay-offs will be implemented by the end of May 2026.

In March 2025, KH Group acquired the remaining KH-Koneet Group Oy minority shares in accordance with the shareholder agreement. As a result, KH-Koneet is now a fully-owned subsidiary of KH Group Plc. In May, the Board of Directors of KH Group Plc resolved to establish a performance share plan for KH-Koneet's key employees. The plan replaced the performance-based matching share plan announced on 31 May 2024. The purpose of the new scheme is to align the goals of shareholders and key employees in order to increase the company's shareholder value in the long term, guide the key employees to achieve the company’s strategic objectives, and offer them a competitive incentive scheme based on the earning and accrual of KH Group shares.

In 2025, the business areas will focus on securing net sales and operating profit as well as improving the efficiency of working capital. KH Group’s change in strategy is being advanced according to plan."

                

KH Group's net sales amounted to EUR 54.2 (52.2) million, representing a year-on-year increase of 4%. Comparable operating profit for the review period was EUR 0.8 (2.4) million. The net sales of KH-Koneet increased by 6% year-on-year, but operating profit declined. Nordic Rescue Group's net sales were lower than in the comparison period and operating profit was on par with the comparison period. The parent company's share of the operating profit for the review period was EUR -0.8 (-0.6) million. Financial expenses were on a par with the comparison period.

KH Group’s net sales amounted to EUR 95.9 (92.5) million, representing a year-on-year increase of 4%. Comparable operating profit for the review period was EUR 1.0 (2.3) million. The net sales of KH-Koneet increased by 9% year-on-year, but operating profit declined. Nordic Rescue Group's operating profit was on par with the comparison period despite lower net sales. The parent company’s share of the operating profit for the review period was EUR -1.2 (-1.0) million. Financial expenses were substantially lower than in the comparison period due to lower interest rates, the amortisation of interest-bearing financial liabilities, and changes in exchange rates. 

There were no significant events after the review period.

KH Group’s objective is to become an industrial group built around the KH-Koneet business and to divest other business areas in line with the Group's strategy. At the same time, active developments will continue regarding other business areas. Exit planning and the assessment of exit opportunities for the other business areas will also continue.

During the next few years, the aim is to invest in the growth of the core business and pay dividends after significant exits within the limits established by the balance sheet structure and financing agreements.

The guidance with the current Group structure of continuing operations for 2025 is as follows: the company estimates that both the net sales (EUR 194.0 million) and the comparable operating profit (EUR 7.2 million) will remain approximately at the same level year-on-year.

KH Group will organise a webcast in Finnish for analysts, investors and the media on 15 August 2025 at 1:00 pm EEST. You can follow the live webcast at https://khgroup.events.inderes.com/q2-2025
The webcast recording and the presentation material will be available on KH Group’s website later on the same day.

KH GROUP PLC

FURTHER INFORMATION:
CEO Ville Nikulainen, tel. +358 400 459 343

DISTRIBUTION:
Nasdaq Helsinki Ltd
Major media
www.sievicapital.fi

KH Group Plc is a Nordic conglomerate operating in business areas of KH-Koneet, Nordic Rescue Group and Indoor Group. We are a leading supplier of construction and earth-moving equipment, rescue vehicle manufacturer as well as interior decoration retailer. The objective of our strategy is to create an industrial group around the business of KH-Koneet. KH Group’s share is listed on Nasdaq Helsinki.

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