This article first appeared on GuruFocus.
Release Date: October 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Net sales grew 4.1% year-over-year to EUR 328.5 million, driven by hazardous waste and remediation businesses.
-
Hazardous waste and remediation business saw over 20% increase compared to previous year, with strong performance in environmental construction projects.
-
Corrective measures in waste management are yielding results, visible in Q3 with profitability almost reaching last year’s level.
-
Industrial services and water treatment showed healthy growth and successful execution of maintenance breaks, supporting EBITDA development.
-
Free cash flow improved year-on-year on a comparable basis, and financial position strengthened with net debt to adjusted EBITDA at 2.0.
-
Growth initiatives in plastics recycling at Kerava and Merikarvia facilities are progressing according to plan.
-
Fixed cost base is coming down through effective measures, while revenue still grew over 4% in the first nine months.
-
Carbon handprint increased, and work safety remains at a very good level; launched project to phase out separate collection of energy waste.
Negative Points
-
Adjusted EBITDA for the first nine months was EUR 59.5 million, EUR 4.5 million lower than the previous year.
-
Q3 adjusted EBITDA was EUR 25.2 million, down from EUR 31.6 million a year ago.
-
Diesel prices in Finland were approximately 38% higher year-on-year in Q3, with September almost 50% higher, negatively impacting costs by an estimated EUR 5 million.
-
Difficulties in waste-to-energy plants continued, causing extra costs and effort in Q3.
-
Amortization of ERP system affected this year’s numbers by EUR 1 million.
-
Net sales growth in Q3 was lower than in the first two quarters due to the end of active phase in two major environmental construction projects, impacting Q4 as well.
-
Unemployment rates remain high, affecting private consumption, especially discretionary spending.
-
Carbon footprint increased for the first time in several years due to temporarily reduced use of HVO in diesel purchases because of high prices.
-
Gate fees in waste management are expected to remain at higher levels for the next 12-18 months, with overcapacity in the waste-to-energy market persisting.
-
There is a delay of two to six months in implementing price increases to fully pass through fuel cost hikes.
Q & A Highlights
-
Is LSSTF fairly valued? Test your thesis with our free DCF calculator.
