CEO review

CEO Rolf Jansson: 

In the third quarter of 2025, Aspo’s net sales Group total was on last year’s level due to the challenging market conditions affecting both ESL Shipping and Telko. Aspo’s comparable EBITA Group total improved and was EUR 9.6 million in the third quarter of 2025 compared to EUR 8.7 million in the corresponding period in the previous year. The comparable EBITA Group total rate increased to 6.6% (5.9%). As stated before, Aspo’s agenda for year 2025 focuses on profitability improvement, and it is clear that the ongoing profitability improvement programs in all our businesses are delivering results. In addition, we take advantage of the acquisitions completed by Telko and Leipurin, as well as the investments of ESL Shipping which are gradually over time reflected on the company’s profitability.

The international Science Based Targets initiative (SBTi) approved Aspo's emission reduction targets in October 2025. ESL Shipping is the first dry bulk cargo shipping operator to receive approval for its SBTi targets.

ESL Shipping’s comparable EBITA slightly declined to EUR 3.5 (3.8) million. ESL Shipping’s profitability was negatively impacted, especially in the Coaster vessel segment, by the continued weak spot market and softer than expected forest industry demand. Profitability remained solid for the new generation Handy and Coaster vessels, which are expected to support future profitability generation of ESL Shipping. The off-hire days were high due to planned dockings and an engine fire accident onboard M/S Tali in August, impacting profitability negatively. On the coaster segment, the vessel capacity was reduced by redelivering two loss-making time-chartered Coaster vessels to their owners.

Telko’s comparable EBITA of EUR 4.8 (4.6) million developed favourably in the third quarter due to absence of acquisition-related expenses and higher sales margin, driven by a higher share of value-added products. Profitability improved, despite modest demand in most European markets, and uncertainty in the global economy.

Leipurin’s strong financial performance continued and the comparable EBITA of discontinued operations was EUR 1.9 (1.3) million. Profitability improvement was boosted by EUR 0.4 million as no depreciation or amortization were recognized in August and September 2025, due to the classification of Leipurin as a discontinued operation as a consequence of the announced divestment plan. In a like-for-like comparison, Leipurin’s profitability improved approximately by EUR 0.2 million, due to strong organic growth particularly in Sweden. Overall market development was stable.

During the first three quarters of year 2025, Aspo achieved net sales growth of 5.9% and the comparable EBITA Group total was EUR 27.5 million compared to EUR 21.1 million in the corresponding period previous year. The EBITA Group total rate increased to 6.0% (4.9%). All businesses improved their profitability with very limited support from the market, showing that company’s profitability improvement actions have been successful.

We remain committed to our-longer term financial ambition and vision of creating two separate companies out of Aspo, i.e. Aspo Infra and Aspo Compounder. This is an integral part of Aspo’s aim to create value to its shareholders.

During the third quarter of 2025, on August 15, 2025, Aspo announced the divestment of Leipurin to Lantmännen at an enterprise value of EUR 63 million. Preparations for receiving regulatory approvals for this transaction have proceeded as planned and the closing is expected to be completed in the first quarter of 2026. Alongside the already completed acquisitions of Telko and the new generation vessel investments of ESL Shipping, the divestment on Leipurin represents a major step towards reaching Aspo’s strategic vision. The divestment of Leipurin is estimated to generate a sales gain of approximately EUR 16 million which will strengthen the balance sheet of Aspo. The proceeds from the transaction will primarily be used to finance further acquisitions of Telko, supporting the company’s compounding strategy.

Aspo’s net debt to comparable EBITDA ratio has increased to 3.9 (2.8) because of repayment of the hybrid bond as well as Green Coster investments. The leverage should decline over the next quarters due to expected strong operating cash flow, low investment activity, and the announced sale of Leipurin.

I want to express strong gratitude to the entire personnel of Aspo for successful strategy execution and profitability improvement so far in year 2025!