Q2 2026 Siili Solutions Oyj Earnings Call
Speaker #1: Good afternoon, everyone. My name is Markku Savusalo, and I work as an interim CEO of Sealy Solutions. I will go through today together with Tuomas our first half 2026 results for you.
Speaker #1: But first, if there's some people in the audience that are not that familiar with Sealy, some basic facts and some also about our offering.
Speaker #1: Sealy is an end-to-end AI partner and our key markets are Finland, US, UK, and Germany. Our key client sectors are services, industry, public, finance, and automotive.
Speaker #1: We do have a specialized Sealy companies as a subsidiaries charge, Vala, in the quality assurance, Sealy Auto, and integrations group specializing on integrations. As you can see Sealy offering is covering the all throughout the product lifecycle of digital services, all the way from advisory and design all the way to the managed services.
Speaker #1: We added about 1.5 years ago this advisory team in the AI area, and now we have also paid a special attention on managed services mentioned as a continuous solutions in this slide.
Speaker #1: We have a strong and diversified client base. Here are some examples from the private and public sector from both from domestically and internationally well-known names.
Speaker #1: Then if we go a little bit on the second half and what are the recent agentic solutions that Sealy has been implementing or is implementing.
Speaker #1: The first one is we're doing work for a large industrial manufacturer on legacy modernization more than 300,000 lines of code will be modernized using AI agents on this work.
Speaker #1: We also have done AI agent for customer service for LähiTapiola Finance. It's a RAG-based AI agents running on Microsoft Azure. Then we have deepened our relationship with Pihlajalinna, in the area of data and AI.
Speaker #1: During this first half of the year the relationship goes back already for two years. And then one of the most significant ones is the fourth one, the global industrial player that we are doing a comprehensive AI transformation Sealy's co-designing an AI native software development lifecycle capability set to gain speed and efficiency for their development.
Speaker #1: And then the Aalto University where we have done enterprise grade AI search. Our strategy remains the same. There are three elements on that. First one is the community of top talent.
Speaker #1: That's what we want to provide for good talented people. We want to again significant growth in data and AI business. And thirdly, we want to be a pioneer in AI powered development.
Speaker #1: We have done a lot of work and investments on our personal for their on their competencies for AI native way of delivery. And we built on our values ambition humane joy and responsibility.
Speaker #1: Then if you look at the highlights from the first half and then second quarter of 2026, we have put a lot of effort to crystallize our offering to better match the market demand and also we have strengthened our sales team we have been able to get important wins in a new client projects towards the end of the second quarter.
Speaker #1: We have put a lot of effort into crystallizing our— our offering to better match the market demand, and also we have strengthened our sales team.
Speaker #1: We have been able to achieve important wins in new client projects toward the end of the second quarter, both domestically and internationally. We also continued group-wide actions to improve profitability and boost sales.
Speaker #1: Both domestically and internationally. We also continued group wide actions to improve profitability and boosting sales. We announced a change of Sealy solutions CEO and the process for appointing a new CEO is still ongoing.
Speaker #1: We announced a change of Siili Solutions CEO, and the process for appointing a new CEO is still ongoing. And we have strengthened our strategic partnership network. We now have recognized partnership status with all three hyperscalers: Microsoft, Amazon, and Google. We have also added new sovereign cloud partners.
Speaker #1: And we have strengthened our strategic partnership network on we have now recognized partnership status with all three hyperscalers Microsoft Amazon and Google and then we have also added new sovereign cloud partners.
Speaker #1: Then if we go to the numbers, on the first half the revenue was 50.1 million euros adjusted EBITDA 0.4 million and share of international revenue was 26.6% on the first half of this year.
Speaker #1: Then if we go to the numbers, in the first half, revenue was €50.1 million, adjusted EBITDA was €3.4 million, and the share of international revenue was 26.6% in the first half of this year.
Speaker #1: Then if we look at the second quarter key figures the revenue resulted 24.4 million euros adjusted EBITDA minus 0.2 million and the share of international revenue was a bit higher 27.6%.
Speaker #1: Then, if we look at the second quarter key figures: revenue was €24.4 million, adjusted EBITDA was minus €0.2 million, and the share of international revenue was a bit higher at 27.6%.
Speaker #1: Okay then first half financials I will hand it over to Tuomas.
Speaker #2: Thank you Markku.
Speaker #1: Okay, then, first half—financials. I will hand it over to Tuomas.
Speaker #1: So hello everybody. My name is Tuomas Toropainen and I'm the group CFO of Sealy. So let's go through the first half 2026 financial results.
Speaker #2: Thank you, Markku. So, hello everybody. My name is Tuomas Toropainen, and I'm the Group CFO of Siili. So, let's go through the first half 2026 financial results.
Speaker #1: So starting with our revenue performance where Sealy had a challenging first half of the year but we started seeing some positive signals in stronger sales towards the end of the second half.
Speaker #2: So, starting with our revenue performance: we had a challenging first half of the year, but we started seeing some positive signals in stronger sales toward the end of the second half.
Speaker #1: So the picture on the top is showing Sealy's revenue development split between the first half of 25 and the first half of 26. During the first half of 26 our revenue was 50.1 million euro and respectively minus 13% compared to the first half of 25.
Speaker #2: So, the picture on the top is showing Siili's revenue development, split between the first half of 2025 and the first half of 2026. During the first half of 2026, our revenue was €15.1 million, and, respectively, minus 13% compared to the first half of 2025.
Speaker #1: The picture below is showing our quarterly revenue between the second quarter of 25 and the second quarter of 26. In the second quarter the revenue drop was minus 11.8% compared against the second quarter in 2025.
Speaker #2: The picture below is showing our quarterly revenue between the second quarter of 2025 and the second quarter of 2026. In the second quarter, the revenue dropped 11.8% compared against the second quarter in 2025.
Speaker #1: It goes without saying that we are not satisfied with the revenue performance of the first half of 2026 and actions to boost our sales performance are already underway.
Speaker #2: It goes without saying that we are not satisfied with the revenue performance of the first half of 2026, and actions to boost our sales performance are already underway.
Speaker #1: So moving on to the international revenue share. The picture is showing the revenue share of our international operations. During the first half of 2026 international revenue share in euro terms decreased by minus 11.4% compared against the first half of 2025 while the relative revenue share increased slightly from 26.1 to 26.6.
Speaker #2: So, moving on to the international revenue share. The picture is showing the revenue share of our international operations. During the first half of 2026, international revenue share in euro terms decreased by 11.4% compared to the first half of 2025, while the relative revenue share increased slightly from 26.1% to 26.6%.
Speaker #1: Growing the share of our international revenue remains as one of our key priorities. Then profitability. The revenue decline affected H1 2026 profitability considerably. Our H1 adjusted EBITDA was minus 0.4 million while Q2 was minus 0.2 million euros.
Speaker #2: Growing the share of our international revenue remains one of our key priorities. Then, profitability: the revenue decline affected H1 2026 profitability considerably. Our H1 adjusted EBITDA was minus; Q2 was minus €0.2 million, so the quarter-to-quarter result in 2026 remained moderately flat.
Speaker #1: So the quarter to quarter result in 2026 remained moderately flat. During Q2 we initiated heavy cost savings actions which are not yet showing in our in full in our Q2 results but are expected to improve profitability considerably during H2.
Speaker #2: During Q2, we initiated heavy cost-saving actions, which are not yet showing in full in our Q2 results, but are expected to improve profitability considerably during H2.
Speaker #1: We remain determined and committed to continue strong efforts to improve our profitability towards our long-term financial targets. Then capacity. Our capacity at the end of H1 was approximately 929 employees and subcontractors combined we have continued to adjust our capacity to match current market conditions and demand.
Speaker #2: We remained determined and committed to continue strong efforts to improve our profitability toward our long-term financial targets. Regarding capacity: our capacity at the end of H1 was approximately 929 employees and subcontractors combined. We have continued to adjust our capacity to match current market conditions and demand.
Speaker #1: Our focus remains in improving our operational efficiency while retaining recruitment activity in our strategic core areas. If needed temporary layoffs give us flexibility to respond to changing market conditions during the second half.
Speaker #2: Our focus remains on improving our operational efficiency while retaining recruitment activity in our strategic core areas. If needed, temporary layoffs give us flexibility to respond to changing market conditions during the second half.
Speaker #1: Finally a review to our balance sheet. So we continue to retain strong financial position and a healthy balance sheet. Net debt to EBITDA increased as a result of declining revenue and profitability performance.
Speaker #2: Finally, a review of our balance sheet. We continue to retain a strong financial position and a healthy balance sheet. Net debt to EBITDA increased as a result of declining revenue and profitability performance.
Speaker #2: Our equity ratio grew to 51.6% from 49.9% the year before, and balance sheet total liabilities increased year-on-year, while equity held up relatively well despite the weak results, reflecting the moderate dividend payout.
Speaker #1: Our equity ratio grew to 51.6% from 49.9 the year before as balance sheet total liabilities decreased year on year while equity held up relatively well despite the weak results reflecting the moderate dividend payout.
Speaker #2: Our return on investment and earnings per share also reflect the dip in profitability, but are expected to recover during the following quarters. Overall, Siili still has a good financial position to move forward with the strategy execution in the second half of 2026.
Speaker #1: Our return on investment and earnings per share also reflect the dip in profitability but are expected to recover during the following quarters. Overall Sealy still has a good financial position to move forward with the strategy execution in the second half of 2026.
Speaker #2: Thank you very much. I'll now hand it back to Markku, who will tell you a bit more about the 2026 priorities. Thank you.
Speaker #1: Thank you very much and I'll now hand it over back to Markku. Who will tell you a bit more about the 2026 priorities. Thank you.
Speaker #1: All right, let's move on to the priorities for the second half. Yes, we continue to focus on ensuring profitable growth and strengthening the strategy implementation.
Speaker #1: All right let's move move on for the priorities for the for the second half. Yes we continue to focus on ensuring profitable growth and strengthening the strategy implementation.
Speaker #1: We believe that we have the right strategy, and what we did at the end of last year was reorganize our sales organization. Now, we have hired new people and strengthened our sales force, and that is showing positive results toward the end of the period.
Speaker #1: We believe that we have the right strategy and what we did last end of last year we reorganized our our sales organization and now we have a hired new people and strengthened our our sales force and that is showing positive results towards the end of the period.
Speaker #1: We believe that we are on the right track with our actions to strengthen our offering. We have done a lot of work to crystallize the offering to better match market needs, especially in the area of AI, and to better meet our clients' current needs. This work continues towards the end of the year.
Speaker #1: We believe that we are on the right track with our actions to strengthen our offering we have done a lot of work to to crystallize the offering to better match the the market need especially on the area of AI and better meet our client current current needs and this work continues towards the end of the year.
Speaker #1: We will have a strong focus on international growth. We're investing in acquiring new clients as well as extending existing client relationships. Then, if we look at the guidance, which was updated on the 6th of August last week, the new financial guidance for revenue in 2026 is estimated to be from €95 million to €105 million, and adjusted EBITDA from €0.5 million to €3.3 million.
Speaker #1: We will have a strong focus on international growth. We're investing in acquiring new clients as well as extending the existing client relationships. Then if we look at the guidance which was updated on 6th of August last week the new financial guidance of revenue for 2026 is estimated to be from 95 million to 105 million.
Speaker #1: And adjusted EBITDA 0.5 to 3.5 3.3 million euros. Our long-term financial targets for the period of 2026 to 2028 remains the same. This was it and now we have time for the questions.
Speaker #1: Our long-term financial targets for the period 2026 to 2028 remain the same. That concludes this part, and now we have time for questions.
Speaker #2: Thank you. So, we have seen three questions come through at this point. First, starting with: Have you seen the average AI project size growing over the past year?
Speaker #1: Thank you. So we have we're seeing three questions coming through at this point. So first starting with have you seen an average AI project size growing over the past year?
Speaker #2: Also, are you seeing clients preparing for AI-driven projects, for example, with data and IT infrastructure-related project work?
Speaker #1: Also are you seeing clients preparing for AI projects for example with data and IT infra related project works?
Speaker #1: Yes, we have seen that the cases that we see in the area of AI have grown. Last year, I think there was a lot of getting experience and having like a spot or certain proof of concepts, and now I think this year we're seeing much more significant cases. And like I had this reference, the fourth one is the most significant one that we are doing for the global industrial player.
Speaker #2: Yes we have seen that the the cases that we we we see in the area of of AI has grown last year I think there was a lot of lot of like getting experience and having like a spot or or certain certain proof of concepts and now I think this year we're seeing much more significant cases and like like I had this references the the the fourth one is the most significant one that we are doing for the global industrial player.
Speaker #2: Thank you. And the second one, could you provide some color on how large a share of your business is in growing AI projects, and what is the growth pace in such projects?
Speaker #1: Thank you. And the second one could you provide some color on how large share of your business is in growing AI projects and what is the growth pace in in such projects?
Speaker #2: We don't typically disclose that split exactly, but it's a color which...
Speaker #1: Well, certainly it is growing, and more and more projects that we do, whether it's AI modernization or any kind of development, we are certainly using AI tools.
Speaker #1: We don't typically disclose a split exactly but is there any color which.
Speaker #2: Well certainly it is it is growing and more and more projects that we do whether it's AI modernization or or any kind of a development we are certainly using using AI tools so so I think it's rapidly growing but like like you said Thomas we are not not providing the exact numbers.
Speaker #1: So, I think it’s rapidly growing, but like you said, Thomas, we are not providing the exact numbers.
Speaker #2: Correct, yes. And then customers reducing their spending on Siili services. Is there any common denominator to point to? For example, certain types of services or competencies, or customer segments?
Speaker #1: Correct yes. And then customers reducing their spending on Sealy services. Is there any common denominators to point for example certain type services or competences or customer segments?
Speaker #1: These are pretty much the budget cuts that they've had. Some of them are preparing for the new wave of AI and preparing for that, and then some of them may be struggling budget-wise.
Speaker #2: These are pretty much pretty much the budget cuts that they've they've had some of them are preparing for for the new new wave of AI and and preparing for that and then some of them maybe maybe struggling or or on on the budget wise.
Speaker #1: There is no one nominator or one competence area, but unfortunately we had those in the first half, which were lowering our revenue.
Speaker #2: Yeah, so no common denominators really there. We have one more, and you noted some positive signs in sales toward the end of the quarter. Could you provide more color around this comment?
Speaker #2: There is no one nominator or one competence area but unfortunately we had those in the in the first half which were lowering our our revenue.
Speaker #1: Yeah. So no common denominators really there. We have one more and you note some positive signs in sales towards the quarter end. Could you provide more color around this comment?
Speaker #2: For example, are you about to win new clients, or grow with the existing ones?
Speaker #1: Yes, we provided—yeah, we provided in our report that we were selected for the Finnish Food Authority RFP as their vendor, which is very significant for us. That is a four-year contract, and now in two categories instead of one that we were previously selected.
Speaker #1: For example are you about to win new clients or grow with the existing ones?
Speaker #2: Yes we provided yeah we we provided in in in the in our report that we're we were selected. The Finnish food authority RFP as as their their vendor which is very significant for us that is four year contract and now in in two categories instead of one that we were previously selected then we have we also continued the Vala Group has continued a successful cooperation with Fennia that is very important in the in the quality assurance area and like said the the Pihlajalinna cooperation has been very fruitful for us we've been able to expand that in the area of data and AI and also what I had in the references the the the AI transformation case that we are at the moment developing for for the for the our client that is is significant win for us and provides a good base for the second half.
Speaker #1: Then, we have also continued—Vala Group has continued successful cooperation with Fennia. That is very important in the quality assurance area. And like I said, the Pihlajalinna cooperation has been very fruitful for us.
Speaker #1: We've been able to expand that in the area of data and AI. Also, as I mentioned in the references, the AI transformation case that we are currently developing for our client is a significant win for us and provides a good base for the second half.
Speaker #2: Correct. Okay, we have one more—so, it's about our international sales performance. So, international sales is clearly leveling off. Are you still seeing the automotive sector as being challenging?
Speaker #1: Correct. more so it's about our international sales performance. So international sales is clearly leveling off. Are you still seeing automotive sector being challenging? In other words is supercharged outperforming the rest of the group?
Speaker #2: In other words, is Supercharge outperforming the rest of the group? We don't disclose those types of comments either, but maybe you could comment about the automotive.
Speaker #1: Yeah, automotive sector, there are certainly challenges in that market, and what we have done is that we've taken some efficiency actions there, and also we are looking outside the automotive sector at how we could utilize our competencies. We have a very good set of competencies, which are internationally recognized.
Speaker #1: But we don't disclose those that's a comments either but maybe you comment about the automotive.
Speaker #2: Yeah automotive sector there are there are certainly challenges in in that market and what we have done is that we we've done some some efficiency actions there.
Speaker #2: Also also we are looking at the like outside the automotive sector how we could utilize our competences that we have very good set of competences which are are internationally recognized I think we we can have some use outside that sector also for for for our competence.
Speaker #1: I think we can have some use outside that sector also for our competence.
Speaker #2: Absolutely. I think that completes the list of questions we have at this point.
Speaker #1: Okay.
Speaker #2: Okay, so thank you very much.
Speaker #1: Absolutely. I think that completes the the list of question questions which we have. At this point. Okay. Very good. Okay. So thank you very much.
Speaker #1: Yes, thank you very much.
Speaker #2: Okay.
Speaker #2: Yes thank you very much. Bye bye.
