Neova Financial Statements release January-December 2025
Strong demand in the horticulture sector supported Neova’s performance in 2025.
October-December 2025 in brief:
- The Group’s net sales amounted to EUR 104.5 million (EUR 96.4 million).
- EBITDA was EUR 10.3 million (EUR 9.1 million), or 9.9 % (9.5 %) of net sales
- Comparable EBITDA was EUR 7.8 million (9.2). EBITDA included a total of non-recurring items EUR 2.5 million (EUR -0.1 million).
- Operating profit was EUR -20.5 million (EUR -0.8 million), or -19.6 % (-0.9 %) of net sales, including EUR -22.0 million (EUR -2.4 million) in non-recurring items.
- Free cash flow before taxes was EUR -6.9 million (EUR -6.4 million).
January-December 2025 in brief:
- The Group’s net sales amounted to EUR 472.7 million (EUR 469.0 million).
- EBITDA was EUR 52.2 million (EUR 48.8 million), or 11.0% (10.4%) of net sales. EBITDA included a total of EUR 2.2 million (EUR -8.1 million) of non-recurring items.
- Comparable EBITDA was EUR 50.0 million (EUR 56.9 million).
- Operating profit was EUR -3.2 million (EUR 14.0 million), or -0.7% (3.0%) of net sales, including EUR -22.6 million (EUR -11.1 million) of non-recurring items.
- Free cash flow before taxes was EUR 4.7 million (EUR 45.1 million).
- Gross investments totalled EUR 29.9 million (EUR 38.7 million).
- Earnings per share were EUR -382.38 (EUR 287.81).
- The ratio of interest-bearing net debt to EBITDA was 3.3 (2.6)
- Return on invested capital (%, previous 12 months): -0.7 (3.2).
Figures in brackets to the corresponding period in 2024 unless otherwise stated.
Pekka Tennilä, CEO, comments:
“Both the full year and the last quarter of 2025 were twofold for Neova Group. Kekkilä‑BVB finished the year strong, with both net sales and result improving during the final quarter. Neova Terra, in turn, saw its net sales and result decline due to the mild early winter, which reduced fuel demand. For the full year, Neova’s net sales increased slightly from the previous year, while profit decreased. The primary reason for the decline was the mild winter at both ends of the year, which impacted fuel demand in the first and fourth quarters.
I am pleased that Kekkilä‑BVB returned to a growth path in 2025. All our business areas performed well, although BA Global was affected by uncertainties around global trade. We witnessed steady demand across all business lines: professional growing, landscaping, and hobby gardeners. BA Materials increased its result from the comparison period driven by increased demand in the markets.
However, we also faced some challenges. The fire at our casing soil factory in the Netherlands in November was a tragic incident, and we were relieved that no personal injuries occurred. Production has been transferred to other sites and external partners, enabling us to secure the majority of on-time customer deliveries. The rebuild of the factory is expected to be completed towards the end of 2026.
In January 2026, we successfully deployed Kekkilä-BVB’s new ERP across the remaining business areas, and now our whole organisation is using the same system. The implementation of the ERP has required significant resources and caused some delays in production and customer deliveries, but I am confident that we will see benefits from the new system already this year.
In the summer 2025, we also completed the construction of our new wood fibre production line in the Netherlands. As the global demand for growing media continues to rise, the demand for wood fibre will also increase and with our own production we can serve our customers even better.
In 2025, Neova Terra’s net sales decreased due to lower fuel demand. However, the division succeeded in mitigating this decline by increasing deliveries of horticultural peat. Going forward, Neova Terra will continue to fulfil its security of supply role in securing Finland’s domestic fuel supply, while steadily transitioning from an energy company into a player in the global food value chain.
Neova Terra’s operating profit was negatively impacted by a one-time write‑off related to the completion of the construction of Novactor’s factory. In 2025, both Novactor’s net sales and production volumes increased. It made important progress towards further processing of activated carbon, which we expect to strengthen profitability levels going forward.
Neova Terra’s peat harvesting season was moderately successful, considering the challenging weather conditions in the Baltics during the summer. Demand for horticultural and bedding peat remained strong throughout the year. Solar and wind power projects also advanced significantly, with the first projects reaching readiness for investment decisions.
Neova Agro continued to progress in export markets with its animal feed and biostimulants products. In 2025, the business area also introduced a new product line, soil improvers, which has received positive feedback from customer testing.
Turmoil in global politics may affect global trade and demand also in 2026, but the impacts for our business are difficult to forecast at this stage. However, Neova and its two divisions are well positioned for the year ahead. We expect the demand for horticultural peat only to increase and this will create opportunities for us. With the investments made in 2025, we have secured the supply of other key raw materials such as wood fibre and reed canary grass and diversified our portfolio. We will continue building our “Safety first!” culture and improving occupational safety for all our employees and partners. In the end, I want to thank all our employees for their successful work in delivering the 2025 results.”
Events after the review period
There were no significant events after the review period.
Outlook for 2026
The megatrends of urbanisation, climate change and sustainable production are in many ways beneficial for Neova, and the company believes them to support positive development of the company’s businesses.
During the current financial period, Kekkilä-BVB will focus on sales growth as well as improving profitability. The efficiency programs of the previous years have created a good foundation for improving profitability and competitiveness of Kekkilä-BVB.
For Neova Terra, the demand for energy peat as a fuel is expected to continue to decrease. The demand for horticultural peat is expected to grow along the growing media market itself. The company will continue the commercialisation of new businesses, and the commercialisation of the first new peat-based innovations is proceeding as planned.
Key uncertainty factors affecting the outlook include the success of the growing media sales season and peat production season. International conflicts and unstable world politics also cause uncertainty in the operating environment. These factors may have an indirect effect on demand and financial development.
Consolidated key figures
| EUR million | 10-12/ 2025 | 10-12/ 2024 | 1-12/ 2025 | 1-12/ 2024 |
| Net sales | 104.5 | 96.4 | 472.7 | 469.0 |
| Operating profit (EBIT) | -20.5 | -0.8 | -3.2 | 14.0 |
| % of net sales | -19.6 | -0.9 | -0.7 | 3.0 |
| Operating profit (EBIT) before impairment | 4.1 | 1.4 | 21.6 | 16.9 |
| % of net sales | 3.9 | 1.4 | 4.6 | 3.6 |
| Result for the period | -22.0 | -0.9 | -11.4 | 8.8 |
| EBITDA | 10.3 | 9.1 | 52.2 | 48.8 |
| +/- Change in working capital | -8.8 | -6.3 | -26.2 | 23.3 |
| -net investments | 8.3 | 9.2 | 21.4 | 27.1 |
| Free cash flow before taxes | -6.9 | -6.4 | 4.7 | 45.1 |
| Gross investments | 9.0 | 13.5 | 29.9 | 38.7 |
| Return on invested capital %* | -0.7 | 3.2 | ||
| Return on invested capital % before impairment | -6.3 | 2.6 | ||
| Return on equity %* | -4.2 | 2.9 | ||
| Total assets | 546.5 | 599.7 | ||
| Total equity | 252.3 | 296.6 | ||
| Interest-bearing net debt | 172.1 | 129.0 | ||
| Equity-to-assets ratio % | 46.4 | 49.8 | ||
| Interest-bearing net debt/EBITDA | 3.3 | 2.6 | ||
| Gearing % | 68.2 | 43.5 | ||
| Average number of employees | 791 | 817 |
*) Previous 12 months
For further information, please contact:
- Pekka Tennilä, CEO, Neova, tel. +358 40 821 5302
- Hannu Nyman, CFO, Neova, tel. +358 50 306 9913
- Susanna Inkinen, Chief Communications & Sustainability Officer, Neova, tel. +358 50 530 6245