Taaleri Q2 2025 slides: Renewable energy drives growth as fund exceeds €500M

Published 13/08/2025, 12:34
Taaleri Q2 2025 slides: Renewable energy drives growth as fund exceeds €500M

Introduction & Market Context

Taaleri Oyj (HEL:TAALA) reported its second quarter 2025 financial results on August 13, showing revenue growth of 8.3% year-over-year to €12.9 million, driven primarily by strong performance in its renewable energy business. The stock responded positively to the results, rising 3% to €7.21, as investors welcomed the company’s progress in key strategic areas despite challenges in some segments.

The Finnish asset manager continues to strengthen its position in renewable energy infrastructure while navigating mixed conditions in its insurance and investment operations. Transaction activity in Finland shows signs of recovery, with real estate transaction volumes up 31% in the first half of 2025 compared to the same period in 2024.

Quarterly Performance Highlights

Taaleri’s continuing earnings grew by 5.3% to €10.6 million in Q2 2025 compared to €10.0 million in Q2 2024. Operating profit increased slightly to €4.5 million from €4.4 million a year earlier, with an operating profit margin of 34.8% (Q2 2024:36.9%). Assets under management remained stable at €2.7 billion.

As shown in the following comprehensive overview of key financial metrics:

The company’s earnings per share declined to €0.07 in Q2 2025 from €0.11 in the same period last year. On a rolling 12-month basis, Taaleri has achieved 1.5% growth in continuing earnings, 5.6% growth in revenue, and 9.2% growth in operating profit.

The following breakdown illustrates the factors affecting operating profit in Q2 2025:

Renewable Energy Success

The Private Asset Management segment, particularly the renewable energy business, was the standout performer in Q2 2025. Continuing earnings of this segment grew by 34.5%, and profitability improved significantly. The renewable energy business reported revenue of €7.2 million (Q2 2024:€5.4 million) and operating profit of €3.1 million (Q2 2024:€1.9 million), with an impressive operating profit margin of 43.8% (Q2 2024:34.7%).

The key highlights of the renewable energy business performance are illustrated here:

A major achievement during the quarter was the continued fundraising success for the Taaleri SolarWind III Fund, which raised an additional €64 million in Q2. The fund has now exceeded €500 million in total commitments, making it Finland’s largest infrastructure fund. The fund has attracted both Finnish (56%) and international investors (44%) and is already 55% invested.

The following chart details the fund’s success and investor mix:

CEO Ilkka Laurila highlighted the company’s resilience amid mixed market signals, stating, "Even though the media is somewhat more negative, the actual discussions with investors have been quite positive." The company is also advancing exit negotiations for Taaleri SolarWind Fund, while Taaleri Wind II and Taaleri Wind III Funds were partially refinanced after the second quarter.

Garantia’s Mixed Results

Taaleri’s insurance subsidiary Garantia delivered mixed results in Q2 2025. While the company’s market position in residential mortgage guarantees strengthened significantly during the first half of 2025, its insurance service result decreased to €2.4 million from €3.5 million in Q2 2024. This decline was attributed to increased insurance service expenses, mainly due to costs arising from onerous contracts and higher acquisition costs.

On the positive side, Garantia’s total net income from investment operations increased to €3.5 million (Q2 2024:€2.4 million), boosted by stronger performance in equity markets during the second quarter.

The following slide illustrates Garantia’s performance metrics:

Garantia’s investment portfolio is well-diversified, with 55% allocated to debt funds, exchange-traded instruments, cash and cash equivalents, while its guarantee insurance portfolio is predominantly focused on corporate exposure (82%).

As shown in the following portfolio breakdown:

Strategic Initiatives

Taaleri continues to advance several strategic initiatives across its business segments. In the bioindustry sector, the company reported that its production plant in Joensuu shipped its first batches of torrefied biomass to customers, while Taaleri’s associated company Fintoil’s biorefinery in Hamina is operating close to full capacity.

The company has also strengthened its management team with three key appointments in Q2 2025: Lauri Lipsanen as CFO, Marjatta Rytömaa as Managing Director of Bioindustry, and Timo Teivaanmäki as Head of Institutional Sales. These appointments are part of Taaleri’s efforts to enhance its distribution and sales capabilities.

The following slide highlights these key management changes:

In real estate, Taaleri’s strategic partnership with Keva made its first investment in a build-to-rent residential project in the Herttoniemi neighborhood in Helsinki. This initiative comes as transaction activity in Finland shows signs of recovery, with real estate transaction volumes up 31% in the first half of 2025 compared to the same period in 2024.

Forward-Looking Statements

Looking ahead to the remainder of 2025, Taaleri provided segment-specific guidance. For Private Asset Management, the growth in continuing earnings from the renewable energy business will depend on the final size of the Taaleri SolarWind III Fund. Fundraising has been extended to the second half of 2025 to accommodate one pending investment decision.

For Garantia, continuing earnings are expected to remain slightly below the comparison period due to the prolonged weak development of the Finnish housing market, despite the company’s strengthened market position in residential mortgage guarantees.

The Investment segment’s operating profit for 2025 will depend on changes in the fair value of direct investments and non-strategic investments, as well as potential exits. Meanwhile, the cost level of Group operations is expected to remain approximately at the level of the corresponding period.

CFO Lauri Lipsonen noted the company’s strong liquidity position, with €46 million available, including a €30 million unused revolving credit facility, providing Taaleri with financial flexibility to pursue its strategic initiatives.

The comprehensive financial results for Q2 2025 are detailed in the following table:

With its strong performance in renewable energy, strategic initiatives in bioindustry and real estate, and enhanced sales capabilities, Taaleri is well-positioned to navigate the mixed market conditions and capitalize on emerging opportunities in the second half of 2025.

Full presentation:

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