CEO’s Overview

Moving forward steadily in a time of change

2025 was a year in which we clearly felt how quickly the world around us can change. The global economy was characterised by low to moderate growth, geopolitical uncertainty and increasingly fragmented world trade. Trade relations between the US, China and the EU continued to be politicised, and the conflicts in Ukraine and the Middle East affected energy markets and logistics flows. We can see the world moving towards a more regional structure in which robustness and security of supply outweigh maximum cost-effectiveness.

Economic development was stable but uneven. The United States showed relative strength, while Europe was characterised by weaker industrial activity and cautious investment. The inflation rate slowed, but cost levels remain at a higher level than we are used to. Interest rates gradually started to move downwards, although financing costs still affect willingness to invest.

In this situation, the KWH Group’s revenue amounted to EUR 631.0 million, an increase of 0.9 percent compared to the previous year. The fact that we are managing to keep revenue stable in a subdued market is a sign of strength. Our diversified structure and broad geographical presence mean that we stand firm even when individual markets fluctuate.

Operating profit (EBIT) amounted to EUR 56.8 million, compared to EUR 77.0 million in the previous year. This decline is mainly attributable to lower volumes in the abrasives market, higher relative fixed costs and a one-off impairment of EUR 7.6 million related to previous investments. At the same time, our EBITDA level (operating margin) shows that the operational core of the Group is strong. 2025 meant normalisation after an exceptionally strong 2024, not a structural shift.

Our diversified structure and broad geographical presence mean that we stand firm even when individual markets fluctuate

During the year, we had a clear focus on cost discipline, cash flow and selective growth. We prioritised measures and investments that strengthen our long-term competitiveness and improve the return on capital employed. Our investments amounted to EUR 90.2 million, which is an expression of the fact that we continue to develop our operations even in more challenging times.

Sustainability work continued to be integrated more deeply in our business. The implementation of CSRD (Corporate Sustainability Reporting Directive) went from planning to concrete implementation for the first companies. At the same time, we are enhancing the quality of our reporting and our work on transparency. Throughout the Group, we see sustainability increasingly becoming a competitive factor, not just a regulatory issue.

a in which we have taken important steps forwards. Investments in automation, data analysis and digital tools improve our productivity and strengthen our ability to innovate. At the same time, cyber security has become a strategic management issue, which is a natural consequence of both digitalisation and a more complex external situation.

As we look ahead to 2026, we see the conditions for gradual stabilisation. A more predictable interest rate environment and subdued inflation may improve the investment climate, although geopolitical uncertainty remains. At the same time, the structural transition towards sustainability, regionalisation and digitalisation continues to create opportunities for us that are long-term and financially stable.

The KWH Group is strong, financially, operationally and strategically. With disciplined execution, continued focus on innovation and active capital allocation, I am convinced that we will strengthen our profitability and continue to create long-term value for our customers, owners and other stakeholders.

Front Page

KWH at Glance