Review by the President and CEO
Vaisala’s President and CEO Kai Öistämö
“Vaisala delivered strong net sales and profitability in the third quarter, while order intake declined. Our net sales increased in both business areas, as Industrial Measurements continued to grow and Weather and Environment achieved very strong net sales, driven by large project deliveries as well as subscription sales.
Demand continued strong in the Industrial Measurements business area. However, Vaisala’s third quarter order intake declined by 21% year-on-year due to weak demand in the Weather and Environment business area, which also faced a strong comparison period. Our net sales increased very strongly by 13%, with both business areas contributing to this growth. The depreciation of the US dollar and Chinese yuan against the euro had a negative impact on our reported net sales. In constant currencies, our net sales grew by 16% year-on-year. We were largely able to offset the impact of the US tariffs through price increases. We maintained solid profitability, achieving a 20% EBITA margin, excluding EUR 3.0 million restructuring costs related to organizational changes.
The Industrial Measurements business area delivered yet another strong quarter, achieving positive results across all market segments. Orders received increased by 9%, fueled by very strong growth in the EMEA and APAC regions. Net sales grew by 6% (10% in constant currencies), with the APAC region leading the growth.
The Weather and Environment business area had a very strong quarter in net sales, driven by large project deliveries in the meteorology market as well as subscription sales in the Xweather business. Weather and Environment net sales increased by 18% (20% in constant currencies) compared to the previous year. However, order intake continued to be impacted by weak demand in the renewable energy market, as well as by industrial cyclicality and reductions in public sector spending compared to the exceptionally high levels last year. We have implemented necessary cost-control measures and adjusted our organization to address the significant change in demand in the renewable energy market. Decisions impacting our people are never easy, but this restructuring has been a necessary step to adapt to the new market reality.
In September, we acquired Quanterra Systems, a company specializing in atmospheric monitoring of CO2 fluxes, to expand our capabilities in greenhouse gas measurements.
Subscription sales in our Xweather business grew by 57% in the third quarter. Underlying organic growth in constant currencies was also a solid 14%. Over the past quarters, we have seen subscription sales contributing positively also to our profitability. We continuously strengthen and upgrade our offerings, with one recent example being the launch of advanced hail forecasts.
As we move into the fourth quarter, we anticipate that global market uncertainty will remain, making future market developments difficult to predict. We continue to monitor the overall global market situation and are prepared for different scenarios to mitigate possible impacts on our business. Despite market uncertainty, we continue to estimate, excluding potential significant changes in market conditions, that our full-year 2025 net sales will be in the range of EUR 590–605 million and EBITA will be in the range of EUR 90–100 million.”
Interim Report January–September 2025, October 23, 2025.