CEO's review

Tensions in global politics continued to have a significant impact on market conditions in the first quarter. The discussions regarding Greenland in January, followed by the outbreak of war in Iran in late February and its spillover effects, led to a situation where our customers made hardly any decisions on new projects, and even ongoing projects were postponed or canceled. The uncertainty also slowed consumer demand, which further weakened the market situation. Investments continued in the defence industry and the energy industry, and the mining industry again showed signs of recovery, but the demand situation in our other customer industries was very difficult.

Our revenue and operating profit declined due to the difficult market situation. We had to implement new adaptation measures during the review period, which had a negative impact on our result. In the Software and Embedded Solutions service area, we implemented significant organizational restructuring measures to respond to the weak demand situation and adapt our competence base to the changes and developments in the industry.

Despite the difficulties, we continued to invest in the implementation of our strategy and, in particular, the development of our service offering during the review period. The share of our revenue represented by AI-driven service solutions increased to six percent. During the review period and immediately thereafter, we launched new and updated AI-driven service solutions that have attracted interest among our customers. We expect that the new solutions will enable us to accelerate the growth of the share of revenue represented by AI-driven service solutions and return to a growth trajectory during this year.

Due to the weak first quarter and difficult market situation, we make an adjustment to our financial guidance with regard to operating profit. However, discussions and tendering activity on new projects, especially with regard to our new service offering, picked up significantly during the review period, which gives us confidence in the effectiveness of our strategy and future development. Nevertheless, market uncertainty and risk levels remain high in the prevailing circumstances, and we are closely monitoring the situation.

Juha Näkki
President and CEO

Updated May 7, 2026