Kesla Oyj’s Q1 2025 Financial Results: A Mixed Bag

In a recent update, Finnish company Kesla Oyj, listed on the NASDAQ OMX Helsinki Ltd, reported its first-quarter financial results for 2025, revealing a mixed performance that has caught the attention of analysts and investors alike. The company’s close price on April 27, 2025, stood at 4.05 EUR, with a market capitalization of 10.66 million EUR. Despite a challenging start to the year, Kesla’s financials have shown some promising signs amidst the hurdles.

Financial Highlights

Kesla’s Q1 2025 financials indicated a 22.5% decrease in revenue, bringing it down to 8.3 million EUR from 10.7 million EUR in the same period the previous year. This downturn was primarily attributed to a lower order intake compared to the last quarter of the previous year and production delays caused by labor disputes. Analysts had anticipated a slightly less severe decline, forecasting a 19% drop to 8.7 million EUR. Despite these challenges, Kesla managed to exceed expectations in terms of order intake, with a 26.1% increase to 11.5 million EUR from 9.2 million EUR in the previous year.

The company’s order backlog saw a 30% reduction from the previous year but showed improvement from the year-end, indicating a potential recovery in the coming quarters. However, the financial strain was evident as Kesla reported a net loss of 778,000 EUR, a significant downturn from the 85,000 EUR profit in the same quarter of the previous year. The earnings per share also reflected this downturn, moving from -0.02 EUR to -0.28 EUR.

Market Reaction and Outlook

The financial results led Kesla to adjust its guidance for 2025, projecting a decrease in revenue and a stabilization of operating income compared to the previous year. This adjustment reflects the company’s cautious stance in the face of ongoing challenges, including the impact of labor disputes and a slow start to the year due to a low order backlog.

Analysts from Inderes, who had previously forecasted a revenue of 8.7 million EUR, a loss of 0.5 million EUR, and an EPS of -0.17 EUR, noted that while the revenue figures were in line with their predictions, the loss and EPS were more severe than anticipated. The focus for investors and analysts moving forward will be on the order intake flow, which Kesla expects to improve from the previous year, and the potential impacts of increased uncertainty on customer decision-making.

Conclusion

Kesla Oyj’s Q1 2025 financial performance underscores the challenges faced by the company in a competitive and uncertain market environment. While the decrease in revenue and net loss highlight the difficulties encountered, the increase in order intake offers a glimmer of hope for recovery. As Kesla navigates through these turbulent times, the company’s ability to adapt and overcome these challenges will be crucial for its future success. Investors and market watchers will be keenly observing Kesla’s next moves, especially in terms of operational adjustments and strategic initiatives aimed at bolstering its market position and financial health.