CEO's review

In terms of the operating environment, the year 2025 was full of surprises. Geopolitical tensions were at a very high level, and the erratic nature of trade policy made our customers’ decision-making difficult. These factors, combined with weak consumer demand, led to a slowdown in our customers’ investments and the postponement of decisions, which weakened our demand situation in Europe throughout the year. In China, the market situation was better than in Europe and the demand situation was at a good level throughout the year. Among our customer industries, demand remained at a good level only in the defense industry and at a moderate level in the energy industry. In the other customer industries, the demand situation was difficult and there were large customer-specific differences in demand.

However, supported by acquisitions, we managed to maintain our revenue at the previous year’s level. In the challenging market situation, we had to implement various adaptation measures in order to improve our operational efficiency. This caused significant non-recurring expenses, particularly in the first half of the year. In addition, our profitability was negatively affected by losses resulting from customer bankruptcies. Profitability for the full year was at a modest level. However, due to efficiency improvement measures and the optimization of working capital, our cash flow was strong throughout the year.

At the beginning of the year 2025, we published our updated strategy “Transformation with AI” to respond to the changes driven by the development of AI in our industry. During the year, we have taken numerous measures and continued to invest in the implementation of the strategy. We continuously develop our competence base through training and recruitment, and we see significant growth opportunities in leveraging AI. The company’s transformation is progressing, and we will continue to invest and take actions to accelerate the implementation of the change and our strategy also in 2026. As part of the transformation, however, we must also make difficult decisions and in some areas adjust our operations to meet future needs.

Our largest investments in leveraging AI in our business have focused on developing our service offering. During the year, we increased the share of revenue derived from AI-driven service solutions to five percent, which is a good start. Our Technical Communication and Data Solutions service area was especially successful in increasing the share of AI-driven service solutions. With the help of new solutions, we gained market share in the service area, achieved growth despite the difficult market situation and clearly improved the service area's profitability towards the end of the year, which is a good indication of the effectiveness of our strategy. During the year, we made changes to the management of the Software and Embedded Solutions service area to accelerate the implementation of the strategy in that service area as well. The new management has created an action plan for the implementation of the strategy. With the action plan, we aim to return the service area to a growth path and achieve a clear improvement in its profitability. The implementation of the plan has started well and is progressing on schedule.     

Even though 2025 was a difficult year in many ways, we managed to develop the company further and improved our profitability in several businesses. With that in mind, I want to thank our personnel for their good work, excellent attitude and fighting spirit in a difficult market situation. The outlook for the market situation in 2026 is largely similar to what we faced at the end of 2025. Uncertainty is high. We do not know what will happen in our operating environment at any given time, and for example January was extremely challenging due to the Greenland controversy. However, we are confident that, through our own actions and strong implementation of our strategy, we can continue to develop the company and focus on profitable growth in 2026.

Juha Näkki
President and CEO

Updated February 12, 2026