H1 2025: CEO Pietu Parikka’s review

“The car market continued to be challenging in the second quarter of 2025. During April–June, the revenue of Wetteri’s con-tinuing operations were EUR 109.0 million (117.3 million), adjusted EBITDA was EUR 2.3 million (2.8 million), and the adjust-ed operating profit was a loss of EUR -1.4 million (-0.7 million). Wetteri’s revenue of continuing operations for January–June was EUR 224.5 (244.1) million, its adjusted EBITDA was EUR 4.6 (6.7) million, and its adjusted operating result was EUR -2.8 (0.1) million. The loss for the period before taxes for continuing operations was EUR -8.8 (-8.3) million. Profitability was bur-dened by subdued market demand and the resulting price competition, low sales efficiency and weak working capital turnover.

In January–June, the revenue of Wetteri’s Passenger Cars segment decreased by 13% year-on-year and amounted to EUR 162.5 million. The adjusted operating profit of the Passenger Cars segment showed a loss, amounting to EUR -4.1 million. 

The number of new car orders during January-June was 2,100 units, which is 11.7 percent more than in the corresponding period of the previous year. An increase in order volumes was seen toward the end of the review period. In January–June, Wetteri’s invoiced sales of new cars totalled 1,989 (1,994) units, which was in line with the previous year’s figures. Order and invoicing volumes were influenced, among other things, by new car brand representations. In line with our strategy, we ex-panded our operations in early 2025 by opening a new full-service dealership in Lahti, featuring brand representation for Kia, Mitsubishi and Mazda. After the review period, we also announced the launch of Mercedes-Benz representation in Lahti, start-ing in August 2025. The new market area and strong brands provide a solid foundation for increasing sales potential in the Päijät-Häme economic region.

Competition in the used car trade remained intense, while demand was subdued, which was reflected in car prices and slow inventory turnover. During the six-month reporting period, 4,200 (4,965) used cars were sold, and their invoicing decreased by 15.4% year-on-year. The inventory optimisation measures initiated in the first quarter continued into the second quarter, including efforts to improve working capital turnover. The impacts of these measures are expected to materialise during the second half of 2025, providing a strong foundation for a turnaround in the profitability of the used car business. Towards the end of the first half of the year, we began to see positive signs in the unit profitability of sold vehicles and in the development of sales of the Wetteri Turva additional service.

The weak performance in car sales also had an impact on maintenance and repair shop operations. The revenue of the Maintenance Services segment in January–June was EUR 46.2 (49.3) million, and its adjusted operating profit was EUR 1.0 (2.4) million. The number of damage repairs decreased as a result of the mild winter. Due to the uneven distribution of demand, there were significant differences in profitability between locations. For example, the maintenance and damage repair workshops at our new locations in Lempäälä and Lahti were still in the start-up phase during the review period. Performance improvement measures will be planned for low-profitability locations during the remainder of the year. 

The revenue of the Heavy Equipment segment developed favourably during the review period and amounted to EUR 14.1 (7.1) million. During the review period, we discontinued the importing of SANY earth-moving machinery.

In May, we launched a profitability program aimed at achieving an annual improvement of EUR 8 million in profitability by enhancing the quality of revenue and unit margins, improving working capital turnover, and reducing capital tied up in operations as well as indebtedness. The measures will be fully reflected in the results during 2026. Wetteri’s financial position already improved in January–June 2025 thanks to the Wetteri Power transaction and profitability measures: interest-bearing debt decreased by a total of EUR 24.8 million, and our equity ratio improved to 20 percent.

During the review period, we made preparations for the sale of our heavy equipment maintenance and spare parts operations in Joensuu and Kajaani. The transaction was signed on 7 July 2025 and will be completed during the second half of 2025. The transaction further strengthens Wetteri’s self-sufficiency and creates a foundation for further business development.

I started as the CEO of Wetteri at the beginning of August, after which we also renewed the composition of the management team. In the current challenging market situation, we continue to improve profitability and focus on enhancing efficiency. The strategy update process is also progressing, and we will publish our updated strategy in the second half of 2025.

Due to the company’s financial situation and weaker-than-expected market development, we initiated change negotiations on 27 August 2025. The negotiations concern the personnel of Wetteri Yhtiöt Oy and Wetteri Auto Oy, excluding mechanics. The aim is to achieve annual personnel cost savings of approximately EUR 4 million. In addition, the goal is to harmonize job descriptions and align organizational structures. If implemented, the measures may result in certain positions being discontinued or reorganized.

Towards the end of the review period, cautious signs of a pick-up in car sales began to emerge in the market. The used car market is stabilising, and the prices of used cars are beginning to level out. The sales of new cars also appear to be developing positively toward the end of the year, with an increase in demand for electric cars. Affordable new electric vehicle models are entering the market, lowering the average price of new cars and thereby reducing the threshold for customers to purchase a new car. We also believe that the new scrapping bonus campaign presented by the government will support the development of the market. 

During the remainder of the year, we will continue measures to achieve synergy benefits from acquisitions and improve profitability. Wetteri holds significant potential, and by harnessing this potential, we can take major steps forward in our development. By focusing on sales management, the more efficient use of financial and human resources and the development of used car sales, and by ensuring an even better customer experience, we are laying a strong foundation for business recovery and sustainable growth.”