Review by the President and CEO

Vaisala’s President and CEO Kai Öistämö

“Vaisala continued to perform well in the second quarter of 2026 after a strong start to the year. Record-high demand in Industrial Measurements bolstered Vaisala’s growth in both orders received and net sales. Xweather continued to grow at a double-digit percentage. In Weather, Energy, and Environment, the second quarter was more muted, as expected.

Vaisala’s order intake increased by 11% in the second quarter, driven by record-high demand in the Industrial Measurements business area. Net sales increased by 4% (6% in constant currencies), driven by double-digit growth in Industrial Measurements and Xweather. Profitability remained solid, and the EBITA margin improved to 14.6%. We closed the quarter with an order book of EUR 198.9 million, which is 7% higher than the level at the end of last year.

The Industrial Measurements business area had yet another excellent quarter, reaching record-high order intake and net sales. Orders received increased by 26% compared to the previous year (28% in constant currencies) as the demand grew across market segments and geographies. Large orders from data center and power customers further boosted the order intake, along with increased number of service contracts. This has also driven a shift in the Industrial Measurements order book profile compared to the previous year, resulting in a notably high order book. Net sales increased by 10% (13% in constant currencies), driven especially by the APAC region. The largest market segments in the Industrial Measurements business area are life science, which represents about 30% of the business area’s net sales, as well as data centers and power, which both represent about 10% of the business area’s net sales.

The Xweather business area’s double-digit growth continued in the second quarter. Net sales increased by 13% compared to the previous year (15% in constant currencies). Annual recurring revenue (ARR) was EUR 58.0 million. A key event in the quarter was the announcement of the acquisition of Atmo Inc., a San Francisco-based technology and AI weather company. This acquisition is a natural expansion to accelerate Xweather's technology roadmap and growth, and it places Vaisala in a strong position to lead the transformation of meteorology: over 90 years of weather science expertise and measurement technology used in over 150 countries, now paired with the most advanced AI forecasting models in the field. The acquisition is expected to close by the end of 2026.

The Weather, Energy, and Environment business area had a slow quarter in project orders, which resulted in a decrease in order intake compared to the previous year. The EUR 25 million project for airport weather systems and equipment in Indonesia, announced in August 2024, progressed during the second quarter as the customer’s financing arrangements were clarified. We expect the order to be confirmed in the third quarter. Weather, Energy, and Environment’s second-quarter net sales were close to the previous year’s level, with growth in large project and product deliveries in the EMEA region and a decline in the renewable energy market segment. In May, we launched the new PRECICAP® Radar Precipitation Sensor, designed to enhance measurement accuracy and reliability across a variety of weather monitoring environments. This new innovative product supports customers in responding to increasing extreme weather events, such as intense rainfall and floods.

Geopolitical tensions and shifting market conditions have been present during the first half of the year, resulting in ongoing uncertainties within the business environment and supply chain. Looking ahead to the second half of the year, these uncertainties are expected to persist. Nevertheless, Vaisala has demonstrated the ability to remain resilient in a changing environment, and we continue scenario planning to stay adaptable.

We reconfirm our business outlook for 2026 and estimate, excluding potential significant changes in market conditions, that our 2026 net sales will be in the range of EUR 600–630 million and our EBITA will be in the range of EUR 95–110 million."

Half Year Financial Report January–June 2026, July 21, 2026