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Helsinki Exchange: Weekly Results Summary (Feb 14)

Feb 14, 202610 days ago

The Helsinki Stock Exchange (OMXH25) fell by -0.20% this week, reflecting investor caution. The results highlighted a clear divide: companies that cut costs and demonstrated strong pricing power shone, while those caught between weak demand and rising expenses were punished. RYTM's analysis helps distinguish between one-off fluctuations and long-term business success.

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Tieto (TIETO)

What happened: Tieto demonstrated that efficiency is key in the current market. Operating profit grew by an impressive 73.5%, even as sales revenue slightly declined (-1.6%).

Why: The result was driven by successful cost-cutting and increased efficiency, particularly in the banking software segment.

Reaction: The stock rallied +11.4% for the week, supported by a new share buyback program. This helped investors overlook the weak sales forecast.

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Kempower (KEMPOWR)

What happened: Kempower's results came as a shock as the company unexpectedly fell into a €4.2 million operating loss.

Why: The main reason was a sharp increase in costs related to order bonuses, while sales growth decelerated.

Reaction: The stock plummeted -22.6% for the week. Although the order book was at a record high, the loss of cost control created serious uncertainty among investors about the recovery of profitability.

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Finnair (FIA1S)

What happened: Finnair executed a powerful turnaround, increasing its operating profit by 282.6% to €46.4 million.

Why: The key to its success was a significant reduction in fuel and maintenance costs, proving the airline's ability to operate profitably.

Reaction: The stock reacted to the news with a +15.3% surge. A strong 2026 forecast and analyst price target upgrades confirmed that the company's strategy is paying off.

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Kalmar (KALMAR)

What happened: Kalmar continued on a strong trajectory: operating profit grew by 54.9%, and new orders reached a record high.

Why: The result was driven by a 10.6% increase in equipment sales and successful cost management, which improved margins.

Reaction: The stock rose +4.8% for the week to a new high. The record order book gives investors confidence that the company can defy the economic slowdown and continue to grow.

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Marimekko (MEKKO)

What happened: Marimekko's operating profit fell by 4.4%, disappointing investors.

Why: Although sales in Asia showed growth, weakness in retail sales in its Finnish home market completely offset this success.

Reaction: The stock dropped -12.7% for the week. The results suggest that the problems in the domestic market are deeper than previously thought, and international expansion cannot yet fully compensate for local consumer uncertainty.

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Kemira (KEMIRA)

What happened: Kemira's operating profit plummeted by a sharp 64.6%, affected by both large one-off costs and weak market demand.

Why: Sales volumes decreased in a soft market, putting pressure on margins.

Reaction: The stock fell -1.0% for the week. To mitigate the negative reaction, the company launched a share buyback program, but the weakness in its core business and analyst rating downgrades keep the outlook cautious.

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Oma Savings Bank (OMASP)

What happened: Oma Savings Bank's operating profit fell by 46.9%, indicating serious challenges.

Why: A shrinking loan portfolio and declining interest income pressured the results, while the proportion of non-performing loans rose to a worrying level.

Reaction: The stock dropped -6.4%. Although the bank is well-capitalized, deteriorating loan quality and declining profitability are making investors cautious.

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Harvia (HARVIA)

What happened: Harvia's operating profit growth accelerated to 23.0%, exceeding expectations.

Why: The success was driven by growth in heater sales and strict cost control, which improved efficiency.

Reaction: The stock fell -8.9% for the week as the market initially reacted to a slowdown in sales growth, but it recovered slightly by the end of the week. Continued analyst support and strong profitability suggest the company's core business remains in good shape.

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Orion (ORNAV)

What happened: Orion's operating profit grew by 253.9%, but this was distorted by a one-off income of €181 million from drug development.

Why: Although the core business is strong, expectations were set too high, causing the stock to fall -8.3% due to profit-taking. The company confirmed a strong forecast, but the market corrected the price after a recent peak, seeking a balance between extraordinary income and stable growth.

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Huhtamaki (HUH1V)

What happened: Huhtamaki's operating profit fell by 6.3% and sales by 7.4%, reflecting weak demand and unfavorable currency exchange rates.

Why: Despite this, the stock rose +2.6% as investors positively valued the higher-than-expected dividend and stable outlook. The company managed to maintain cost-efficiency in a challenging environment, which gave the market confidence in the sustainability of its cash flows.

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Olvi (OLVAS)

What happened: Olvi delivered an impressive result, growing its operating profit by 72.5%.

Why: Price increases successfully compensated for a slight decline in volumes, significantly improving profitability.

Reaction: Despite the good news and a share buyback, the stock fell -2.5%. The market seems to have already priced in the good news, but the company's fundamental strength and outperformance compared to competitors are evident.

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Mandatum Group (MANTA)

What happened: Mandatum Group's operating profit fell by 13.7%, but this was solely due to a one-off dividend from the previous year.

Why: The core business, asset management, showed strong growth.

Reaction: The stock rose +3.9% to a new high as investors focused on the generous dividend and the underlying strength of the business. The market valued the company's cash flow more highly than the accounting-based profit decline.

Conclusion

This week's results confirmed that efficiency is king. Companies that managed to cut costs (Finnair, Tieto) were praised by the market, while those that sacrificed profitability for growth (Kempower) were punished. This sends a clear signal for the period ahead: investors are looking for certainty and cash flow, not just promises. Follow RYTM to find the next winners.

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