CEO Review Q3/2025

CEO Elisa Markula

“In the third quarter, our profitability remained at a strong level compared to the previous year, supported by growth in the number of journeys and a relatively stable operational environment. Comparable net sales declined by two percent due to the expiry of a few tendered traffic agreements and lower freight volumes. Logistics customer demand declined significantly compared to the previous year. Our determined efforts to improve profitability continued, and our profit improvement measures progressed as planned.

The profitability of VR Long-distance Traffic improved in the third quarter compared to the previous year. In Finland, the number of journeys, increased by four percent despite extensive track works and disruptions in the electrified rail network. Customer satisfaction remained excellent, with an NPS of 51 (48). In Sweden, significant track works led to a decline in the number of journeys and a decrease in customer satisfaction to an NPS of 50 (58).

VR City Traffic net sales declined due to the expiry of a few tendered traffic agreements, and profitability continued to be impacted by certain long-term contracts with low profitability. VR actively participates in regional tenders and is expanding its operations in Sweden. The start of Norrtåg and Öresundståg traffic at the end of 2025 will make VR the second-largest rail operator in the country. These new agreements support our strategic goal to grow profitably in Sweden’s competitive market and strengthen our readiness for intensifying competition in Finland.

Weak market demand reduced VR Logistics’ freight volumes by 14 percent in the third quarter, resulting in a decline in net sales. However, thanks to our profit improvement measures, we succeeded in maintaining profitability at the previous year’s level. We continued to develop our services by improving delivery reliability, deepening customer collaboration, and investing in low-emission solutions.

Our strategic profit improvement programme is progressing as planned and on schedule. This is essential for financing nearly one billion euros in rolling stock investments and for strengthening our long-term competitiveness. We continue to focus on our core business as a provider of passenger transport and rail logistics services. As part of this strategic direction, we continued the sale of station properties and have also sold used rolling stock to other operators in the industry.

VR is committed to promoting competition and the growth of the rail market in Finland. In line with the Government Programme, VR established Suomen Ostoliikennekalusto Oy, which enables equal market access for new operators in publicly funded passenger rail traffic. By decision of VR’s General Meeting, the rolling stock company will be transferred entirely to state ownership on 1 November 2025 and will continue to operate as an independent company under the ownership steering of the Prime Minister’s Office. In the next phase, rolling stock owned by VR and used in publicly funded passenger services is planned to be transferred to the rolling stock company through a business transaction. Rolling stock used in market-based passenger and freight services will not be transferred to the company.

A future-proof VR is built together. The commitment and expertise of our personnel are key success factors. I would like to thank all our employees for their valuable work and our customers for their trust. Together, we are on a shared journey towards a sustainable and competitive transport system that serves the whole society.”