Review by the President and CEO

Vaisala’s President and CEO Kai Öistämö

“Vaisala had a solid third quarter as we continued executing our strategy to grow as a global leader in measurement instruments and intelligence for climate action. One of the highlights was the acquisition of Speedwell Climate to further expand our subscription-based business. We experienced a good order intake despite the soft market environment. Boosted by a large weather radar order to Spain, our order book was all-time high at EUR 220 million. Compared to the previous year, our orders received grew by 26% and net sales by 5%. Our Q3 operating result was strong 17.7% of net sales.

Industrial Measurements business area continued to grow supported by early signs of recovery in the industrial instruments market in North America. The growth of orders received in industrial instruments as well as in power and energy market segment led to a 12% increase in orders received and 6% growth in net sales. The operating result margin returned to a high level of 26.9%.

Following a very strong Q2, Weather and Environment business area’s Q3 performance was solid. The Spanish weather radar order significantly contributed to a 36% growth in orders received. Net sales growth of 4% was driven by large orders received in the past quarter and an 18% growth in subscription sales. The operating result margin was good at 11.1%.

In October, we announced changes in Vaisala’s Leadership Team to continue our strategy execution and growth. Sampsa Lahtinen, EVP Industrial Measurements, will retire after a long and successful career. As of January 2025, Jarkko Sairanen, currently EVP Weather and Environment, will lead the Industrial Measurements business area. The leadership for Vaisala’s Weather and Environment business area will be divided between Anne Jalkala and Samuli Hänninen to drive growth in renewable energy and subscription sales. Anne Jalkala, currently Chief Strategy and Sustainability Officer, was appointed to lead the Weather, Energy and Environment business. Samuli Hänninen joins the leadership team and continues to lead the Xweather business. Our financial reporting structure remains unchanged. I want to give my warmest thanks to Sampsa for his great contribution and wish him, Jarkko, Anne, and Samuli all the best for their future endeavors.

Despite the continuingly uncertain business environment, we continue to estimate that our full-year 2024 net sales will be in the range of EUR 540–570 million and operating result (EBIT) in the range of EUR 68–78 million.”

Interim Report January-September 2024, October 24, 2024.