Teleste Oyj — Audit Report / Information 2025

Feb 13, 2026

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TELESTE CORPORATION FINANCIAL STATEMENT RELEASE 1 JANUARY - 31 DECEMBER 2025

TELESTE CORPORATION: STRONG FINANCIAL PERFORMANCE CONTINUED IN THE FOURTH QUARTER

Unless otherwise specified, the figures in parentheses refer to the year-on-year comparison period.

OCTOBER-DECEMBER 2025 IN BRIEF

• Net sales were EUR 36.1 (36.5) million, on level with previous year.
• Adjusted EBITDA was EUR 2.5 (2.2) million, representing an increase of 12.9%.
• The adjusted operating profit was EUR 1.2 (0.9) million, representing an increase of 38.6%.
• The operating profit was EUR 1.2 (-5.6) million, representing an increase of EUR 6,8 million.
• Earnings per share were EUR 0.02 (-0.27), representing an increase of EUR 0.29.
• Cash flow from operations was EUR 1.8 (1.8) million.
• Orders received decreased by 13.0% to EUR 31.6 (36.3) million.

JANUARY-DECEMBER 2025 IN BRIEF

• Net sales were EUR 138.6 (132,5) million, representing an increase of 4.6%.
• Adjusted EBITDA was EUR 12.1 (9.3) million, representing an increase of 29.1%.
• The adjusted operating profit was EUR 7.1 (4.2) million, representing increase of 69.7%.
• The operating profit was EUR 6.8 (-5.4) million, representing an increase of EUR 12.2 million.
• Earnings per share were EUR 0.15 (-0.32), representing an increase of EUR 0.47.
• Cash flow from operations was EUR 12.9 (12.4) million, representing an increase of 3.6%.
• Orders received were EUR 138.2 (124.9) million, representing an increase of 10.7%.

OUTLOOK FOR FINANCIAL YEAR 2026

Teleste estimates that Net sales for 2026 will be in the range of 140 to 160 million euros and adjusted Operating profit in the range of 7 to 10 million euros. Profit is expected to be weighted toward the second half of the year. Material changes in the operating environment, including geopolitical tensions, changes in trade policies, and the development of the US dollar exchange rate can create uncertainty for parts of the business.

DIVIDEND

The Board of Directors proposes to the Annual General Meeting that a total dividend of up to EUR 0.08 (0.03) per outstanding share will be distributed from the distributable funds for the financial year ended 31 December 2025. In addition, the Board proposes that the dividend will be paid in two instalments, the first during the third quarter of 2026 and the second at the latest during the first quarter of 2027.

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KEY FINANCIALS

EUR million	10-12 2025	10-12 2024	Change	1-12 2025	1-12 2024	Change
Net sales	36.1	36.5	-1.0 %	138.6	132.5	4.6 %
Adjusted EBITDA1)	2.5	2.2	12.9 %	12.1	9.3	29.1 %
Adjusted EBITDA, % 1)	6.8 %	6.0 %	0.8 ppt	8.7 %	7.0 %	1.6 ppt
Adjusted Operating profit1)	1.2	0.9	38.6 %	7.1	4.2	69.7 %
Adjusted Operating profit, % 1)	3.3 %	2.4 %	1.0 ppt	5.1 %	3.2 %	2.0 ppt
Operating profit	1.2	-5.6	n/a	6.8	-5.4	n/a
Operating profit, %	3.3 %	-15.5 %	18.7 %	4.9 %	-4.1 %	9.0 %
Net result for the period	0.4	-5.0	n/a	2.6	-6.1	n/a
Earnings per share, EUR	0.02	-0.27	n/a	0.15	-0.32	n/a
Cash flow from operations	1.8	1.8	0.3 %	12.9	12.4	3.6 %
Orders received	31.6	36.3	-13.0 %	138.2	124.9	10.7 %
Order backlog				114.5	115.0*02)	-0.4 %
Net gearing, %				34 %	46 %	-12.4 %
Equity ratio, %				48 %	45 %	2.2 %
Personnel at period-end				633	673	-5.9 %

¹⁾ An alternative performance measure defined in the tables section of the report.

²⁾ Specified order backlog value, EUR 118.3 million as reported in the 2024 financial statements.

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"Strong fourth quarter concluded a successful financial year. Full-year orders received and net sales increased year-onyear, and profitability improved considerably."

Esa Harju, President & CEO

COMMENTS BY ESA HARJU, PRESIDENT & CEO

"The fourth quarter of 2025 was another strong quarter for both business segments. Net sales were in line with the comparison period and increased from the previous quarter. Profitability improved significantly year-on-year, and cash flow from operations continued positive. For the full year, orders received and net sales increased from the prior year, and profitability improved considerably, with full-year operating profit landing at the top end of the guidance range.

In the Broadband Networks segment, orders received returned to growth in the fourth quarter and increased significantly from the previous quarter. In the European markets, we strengthened our position and accelerated deliveries of DOCSIS 4.0 network systems. Consolidation among customers in the U.S. has temporarily slowed some ordering activity, but we have successfully broadened our customer base. Late in the year, Canada's largest operator selected Teleste's intelligent amplifiers as part of its network solution. The first orders from this significant new customer were received in December, and deliveries are expected to continue over several years. For the full year, orders received, net sales and operating profit all increased from the prior year. North America's share of full-year segment revenue increased significantly year-on-year, reaching 30% of total segment revenue.

In the Public Safety and Mobility segment, performance in the fourth quarter was positive and in line with our plans. Net sales were generated from multiple projects, and we delivered several key projects scheduled for year-end in accordance with contract terms. In December, we signed a multi-year framework agreement with France's national railway operator (SNCF) for the delivery of station displays. In addition, we announced the start of station display deliveries to the Belgian railways. For the full year, orders received, net sales and operating profit all increased year-on-year.

The global operating environment remained quite unpredictable. Considering many uncertainties, we continue to proactively prepare for multiple scenarios. Market consolidation in North America is driving significant activity in the broadband technology market, and we are closely monitoring developments and responding as needed. We expect some uncertainty in the operating environment to continue in 2026.

We will continue to execute consistently toward our long-term strategic growth targets in 2026, and our new guidance anticipates growth in both net sales and profitability."

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Group Summary

From the beginning of 2025, the Company will report the Group's financial information in the Group Summary. In addition, the two business segments—Broadband Networks and Public Safety and Mobility, will be presented in separate sections, covering orders received, net sales, profitability, and business environment descriptions.

ORDERS RECEIVED AND ORDER BOOK

EUR Million	10-12 2025	10-12 2024	Change	1-12 2025	1-12 2024	Change
Orders received	31.6	36.3	-13.0 %	138.2	124.9	10.7 %
Order book				114.5	115.0	-0.4 %

Orders received

October-December: Orders received by the Group amounted to EUR 31.6 (36.3) million in the last quarter, representing a year-on-year decrease of 13.0%. Orders received by the Broadband Networks segment totaled EUR 20.6 (25.7) million, representing a year-on-year decrease of 19.9%, reflecting customers placing larger orders earlier in the year. Orders received by the Public Safety and Mobility segment totaled EUR 11.0 (10.6) million, representing a year-on-year increase of 4.0%.

January-December: Orders received by the Group amounted to EUR 138.2 (124.9) million, representing a year-on-year increase of 10.7%. Orders received by the Broadband Networks segment totaled EUR 82.5 (74.8) million, representing a year-on-year increase of 10.3%. Orders received by the Public Safety and Mobility segment totaled EUR 55.6 (50.1) million, representing a year-on-year increase of 11.1%, primarily due to growing order intake from the public transport operators.

Order book

The order book at the end of the Group's reporting period amounted to EUR 114.5 (115.0) million, remaining at the same level to the comparison period. Approximately 61% of the deliveries in the order book are scheduled to take place during the 2026 financial period. Broadband Networks constituted 22% of the total order book value, while Public Safety and Mobility segment represented

Orders received, EUR million

Order book at period-end, EUR million

78%. The order book remained at the same level to the comparison period in both business segments.

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NET SALES

EUR million	10-12 2025	10-12 2024	Change	1-12 2025	1-12 2024	Change
Broadband Networks	19.9	20.0	-0.5 %	82.8	78.2	5.8 %
Public Safety and Mobility	16.2	16.5	-1.7 %	55.9	54.3	2.9 %
Total	36.1	36.5	-1.0 %	138.6	132.5	4.6 %

October-December

The net sales of the Group amounted to EUR 36.1 (36.5) million, remaining on the same level to the comparison period.

The net sales of the Broadband Networks segment totaled EUR 19.9 (20.0) million. The net sales in Europe grew in the last quarter compared to comparison period.

The net sales of the Public Safety and Mobility segment totaled EUR 16.2 (16.5) million.

January-December

The net sales of the Group amounted to EUR 138.6 (132.5) million, representing a 4.6% increase, with growth in both segments.

The net sales of the Broadband Networks segment totaled EUR 82.4 (78.2) million, representing an increase of EUR 4.2 million (5.8%). The growth was driven by increased volumes of intelligent amplifiers to the North American market, offsetting the strong European deliveries recorded in the first quarter of the comparison period.

The net sales of the Public Safety and Mobility segment totaled EUR 55.9 (54.3) million, growing 1.6 million (2.9%) from the comparison period. Performance varied across business areas, which partly compensated each other.

In terms of the geographical distribution of net sales, the share of "North America and other countries" increased to 25.2% (15.2%), which was particularly due to significant growth in the North American market for the Broadband Networks segment, and the Public Safety and Mobility segment's strategic project deliveries to North America and Middle East. Finland accounted for 7.9% (8.7%) of net sales, the Other Nordic countries for 9.3% (9.2%), and Other Europe for 57.6% (66.9%).

Net sales, EUR million

Net sales by market area, January-December 2025

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PROFITABILITY

EUR Million	10-12 2025	10-12 2024	Change	1-12 2025	1-12 2024	Change
Adjusted EBITDA	2.5	2.2	12.9 %	12.1	9.3	29.1 %
Adjusted EBITDA margin, %	6.8 %	6.0 %	0.8 ppt	8.7 %	7.0 %	1.6 ppt
Adjustment items	0.0	-0.4	n/a	-0.3	-2.9	n/a
EBITDA	2.4	1.7	40.2 %	11.8	6.4	82.7 %
EBITDA margin, %	6.7 %	4.8 %	2.0 ppt	8.5 %	4.9 %	3.6 ppt
Adjusted Operating profit	1.2	0.9	38.6 %	7.1	4.2	69.7 %
Adjusted Operating profit margin, %	3.3 %	2.4 %	1.0 ppt	5.1 %	3.2 %	2.0 ppt
Adjustment items	0.0	-6.5	n/a	-0.3	-9.6	n/a
Operating profit	1.2	-5.6	n/a	6.8	-5.4	n/a
Operating profit, %	3.3 %	-15.5 %	18.7 ppt	4.9 %	-4.1 %	9.0 ppt

October-December

The Group's adjusted EBITDA was EUR 2.5 (2.2) million, representing an increase of EUR 0.3 million, or 12.9%. The Group's adjusted EBITDA margin was 6.8% (6.0%), representing a year-on-year increase of 0.8 ppt. Group's material and manufacturing costs were 46.8% (53.0%) of net sales. The improvement of 6.2 percentage points was due to better product and market mix, higher share of service and software revenue, and savings in material and production costs. Personnel expenses increased by 24.8%, amounting to EUR 12.4 (9.9) million, due to investments to North America in the reporting period and temporary cost-saving actions during the comparison period.

The Group's EBITDA was EUR 2.4 (1.7) million, representing an increase of EUR 0.7 million. The adjusted items in the comparison period were related to restructuring costs and strategic development projects. The EBITDA margin was 6.7% (4.8%).

The Group's adjusted operating profit was EUR 1.2 (0.9) million, and the adjusted operating profit margin increased to 3.3% from 2.4% in the comparison period. Depreciations remained on the same level with comparison period and were EUR 1.3 million (1.3).

Operating profit was EUR 1.2 (-5.6) million, representing an increase of EUR 6.8 million. In the comparison period, non-recurring R&D

Adjusted cumulative operating profit, EUR million

impairments of EUR 5.6 million were reported. Operating profit margin was 3.3% (-15.5%).

The Group's net financial expenses were at the same level as in the comparison period EUR -0.4 (-0.4) million.

Direct taxes for the reporting period amounted to EUR -0.3 (1.0) million. The deferred tax in the comparison period was due to the reversal of the tax liability for the write-down of capitalised R&D expenses. The result for the review period was EUR 0.4 (-5.0) million.

Earnings per share were EUR 0.02 (-0.27).

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January-December

The Group's adjusted EBITDA was EUR 12.1 (9.3) million, representing an increase of EUR 2.7 million, or 29.1%. The Group's adjusted EBITDA margin was 8.7% (7.0%), representing a year-on-year increase of 1.6 percentage points. Group's material and manufacturing costs were 46.3% (49.9%) of net sales. The improvement of 3.6 percentage points was due to different product and market mix, higher share of service and software revenue, savings in material expenses, and improvements in production efficiency. Personnel expenses increased by 10.8% and amounted to EUR 45.4 (40.1) million. In the comparison period, the Company's temporary layoffs reduced personnel expenses, while investments in the North American business increased during the reporting period.

The Group's EBITDA was EUR 11.8 (6.4) million, representing an increase of EUR 5.3 million. The adjusted items in the comparison period were related to restructuring costs and strategic development projects. The EBITDA margin was 8.5% (4.9%).

The Group's adjusted operating profit was EUR 7.1 (4.2) million, and the adjusted operating profit margin was 5.1% (3.2%).

Operating profit grew significantly and was EUR 6.8 (-5.4) million, representing 4.9% (-4.1%) of net sales. The increase in operating profit was partly due to the EUR 2.9 million restructuring costs and the non-recurring R&D impairment of EUR 6.7 million reported as adjustment items in the comparison period.

The Group's net financial expenses were EUR -3.8 (- 1.7) million, representing an increase of EUR 2.1 million. The increase was mainly due to unrealized foreign exchange losses of approximately EUR 0.9 million, realized foreign exchange losses of EUR 0.5 million, negative changes in foreign exchange and interest rate hedges amounting to EUR 0.4 million, the effective financial expense impact of refinancing arrangement fees and higher interest expenses totaling EUR 0.3 million.

Additionally, in accordance with the company's hedge accounting policy, the fair value of USD currency hedges recognized in other comprehensive income increased by EUR 0.1 million during the period.

Direct taxes for the reporting period amounted to EUR -0.4 (1.0) million. Driven by strengthening profitability and an improved outlook, the Group companies have recognized previously unrecorded deferred tax assets of EUR 0.3 million in their financial results. The deferred tax in the comparison period was due to the reversal of the tax liability for the write-down of capitalised R&D expenses.

The Group result for the review period was EUR 2.6 (-6.1) million. Earnings per share was EUR 0.15 (- 0.32).

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CASH FLOW AND FINANCIAL POSITION

Cash flow

Cash flow from operations in January–December 2025 was positive EUR 12.9 (12.4) million, representing a year-on-year increase of 3.6%, due to stronger net sales and reduced net working capital.

Cash flow from investing activities was EUR -4.3 (- 4.6) million. Cash flow improved mainly due to the sale of a property owned by the Group's UK subsidiary, with the favorable impact being partly offset by the acquisition of the remaining part of the US-based joint venture.

Cash flow from financing activities was EUR -8.2 (- 5.4) million. In accordance with its loan agreements, the company made loan repayments totaling EUR 3.7 million and reduced short-term borrowings under its credit facility by EUR 2.0 million. Payments of finance lease liabilities were EUR 1.9 (1.9) million. The dividend payment amounted to EUR 0.5 million.

Financial position

At the end of the period under review, the Group's interest-bearing debt stood at EUR 28.7 (34.2) million, with short-term loans from banks representing EUR 6.2 (8.2) million of that amount. Interest-bearing liabilities associated with leases capitalized in accordance with IFRS 16 amounted to EUR 4.4 (4.5) million, of which EUR 1.6 (1.4) million were short-term liabilities. The Group's cash and cash equivalents amounted to EUR 9.1 (8.8) million. At the end of December 2025, the amount of unused binding credit facilities was EUR 16.0 (14.0) million.

The Group's total assets at the end of the period under review stood at EUR 122.7 (121.2) million, and own equity amounted to EUR 57.9 (54.8) million. The Group's equity ratio was 47.6% (45.4%) and the net gearing ratio was 33.9% (46.3%). The company's net debt/adjusted EBITDA ratio was 1.67 (2.76), indicating an improvement in the company's debt repayment capacity.

In the third quarter of 2024, the company signed a syndicated refinancing arrangement that includes a repayable loan, credit limits and a non-binding guarantee limit. All financing agreements include financial covenants regarding the minimum equity ratio, the maximum net debt to adjusted EBITDA ratio and the minimum liquidity. The company met all of its financial covenants. Enterprise mortgages totaling EUR 68.9 million are used as collateral for the financing agreements.

At the end of the review period, the company's financing agreements included:

• A EUR 26.0 million repayable loan maturing in August 2027, the principal of which was EUR 21.5 million on December 31, 2025. The loan is amortized four times a year in installments of EUR 0.8 million.
• A EUR 15.0 million binding Revolving Credit Facility (RCF) maturing in August 2027, of which EUR 3.0 million was in use on December 31, 2025.
• A EUR 4.0 million binding credit limit, valid until August 2027. On December 31, 2025, EUR 4.0 million of the credit limit was unused.
• A EUR 8.0 million non-binding bank guarantee limit
• The financing agreement includes two conditional one-year extension options, of which it was agreed that the first option would be used during the reporting period.

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INVESTMENTS, RESEARCH AND PRODUCT DEVELOPMENT

Investments by the Group totaled EUR 6.6 (6.3) million, representing 4.7% (4.8%) of net sales. Leases capitalized in accordance with IFRS 16 amounted to EUR 1.7 (1.8) million consisting primarily of lease renewals. Other investments in tangible and intangible assets were minor and totaled EUR 0.4 (0.3) million. A total of EUR 4.5 (4.3) million of the R&D expenses were capitalized during the reporting period. Depreciation on capitalized R&D expenses was EUR 2.0 (2.1) million.

R&D expenses amounted to EUR 15.8 (14.1) million, representing 11.4% (10.0%) of consolidated net sales. Product development projects in the Broadband Networks segment were focused on DOCSIS 4.0-compliant intelligent network technology, including telemetry and remote management software solutions targeted at the North American market. In the Public Safety and Mobility segment, product development projects were focused on public transport information systems and customer-specific product platforms.

PERSONNEL

The Group employed 627 (633) people on average in October-December 2025 and 633 (673) people in January-December 2025. At the end of December, the Group employed 630 (630) people, of whom 28% (31%) worked abroad. At the end of the financial period 2024, the Group employed 630 people. The company has specified the reporting of employees during 2025 and, therefore, the previously reported number of employees at the end of the financial period 2024, 619, has been restated to correspond to the reporting practice applied in the current financial period.

During January-December, personnel expenses increased by 10.8% year-on-year to EUR 45.4 (41.0) million. During the comparison period, the company's temporary layoffs lowered the personnel expenses, while investments in the North American business increased during the reporting period.

SUSTAINABILITY AND CORPORATE RESPONSIBILITY

Sustainability and corporate responsibility are an integral part of the company's operations and the product and service offering. The company's products and services promote safety, security, environmentally friendly and efficient public transport and energy-efficient digital communications solutions.

The company's management has assessed the materiality of different aspects of corporate responsibility with respect to the company's stakeholders and business operations. By taking all facets of corporate responsibility into consideration, the company wants to ensure that its measures enable a sustainable future for generations to come. At the same time, the company responds to the expectations of customers, investors and other stakeholders, and ensures its position as an attractive employer.

In March 2025, Teleste Corporation published its first sustainability report in accordance with European Sustainability Reporting Standards (ESRS) under the Corporate Sustainability Reporting Directive (CSRD) and in compliance with the provisions of Chapter 7 of the Finnish Accounting Act. The report includes assured information on the company's most material sustainability matters. The company will publish an assured sustainability report for the financial year 2025 in the same manner as for the financial year 2024. The Omnibus package currently under consideration by the EU includes amendments to several directives, including the Corporate Sustainability Reporting

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Group Summary

Directive (CSRD). The company is monitoring the legislative developments, assessing the impacts, and will decide on the format of its own sustainability and taxonomy reporting once the changes have been confirmed.

The taxonomy is the EU's classification system that entered into effect at the beginning of 2022 and lists economic activities that are sustainable with respect to the climate and the environment. In 2025, 39% (39%) of Teleste's net sales was classified as EU taxonomy-aligned, representing activities that substantially contribute to the EU's environmental objectives.

In addition to sustainability reporting, the impact of the company's sustainability efforts has been monitored by means of the international EcoVadis sustainability assessment for several years now. Teleste has achieved a Gold Medal in the assessment, a level reached by the top 5% of audited companies. In the EcoVadis assessment, companies are benchmarked against other companies, which means that maintaining the Gold Medal rating requires continuous development and progress. In 2024, the company made a commitment to the Science Based Targets initiative (SBTi) to achieve a clear path towards the emissions targets stipulated by the Paris Agreement. The process to define SBTi targets is currently underway.

In 2023, the company also made a commitment to the UN Sustainable Development Goals and the UN Global Compact, which is based on the SDGs and is the world's largest corporate responsibility initiative. Together, EcoVadis, the UN Global Compact and the EU's reporting obligations support the continuous development of sustainability efforts.

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Broadband Networks

ORDERS RECEIVED AND ORDER BOOK

EUR million	10-12 2025	10-12 2024	Change	1-12 2025	1-12 2024	Change
Orders received	20.6	25.7	-19.9 %	82.5	74.8	10.3 %
Order book				24.8	25.0	-0.8 %

October-December: Orders received by the Broadband Networks segment totaled EUR 20.6 (25.7) million, representing a decrease from the comparison period, but a significant increase from previous quarter. Orders increased in both DOCSIS 4.0 intelligent networks and the video business.

January-December: Orders received by the Broadband Networks segment totaled EUR 82.5 (74.8) million, representing a year-on-year increase of 10.3%. The growth was primarily from the DOCSIS 4.0 intelligent network technology and video business.

The order book remained on the same level for the Broadband Networks segment totaling EUR 24.8 (25.0) million.

Broadband Networks – Orders received, EUR million

Broadband Networks – Order book at period-end, EUR million

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NET SALES

October-December

The net sales of the Broadband Networks segment were EUR 19.9 (20.0) million, remaining on the same level as the comparison period. Deliveries of 1.8 GHz DOCSIS 4.0-compliant intelligent amplifiers increased, offsetting the decline in net sales in certain other regions, such as the service business in the UK.

January-December

The net sales of the Broadband Networks segment totaled EUR 82.8 (78.2) million, representing a yearon-year increase of EUR 4.6 million (5.8%). Deliveries of 1.8 GHz DOCSIS 4.0-compliant intelligent amplifiers to North America increased significantly. The comparison period included significant deliveries to the European market during the first quarter.

The revenue share of "North America and other countries" increased to 31.1% (16.0%), primarily due to the increased delivery volumes to North America. Finland accounted for 9.3% (9.8%) of net sales, Other Nordic countries for 6.7% (9.8%), and Other Europe for 53.4% (64.4%).

Broadband Networks – Net sales, EUR million

Broadband Networks – Net sales by market area, January-December 2025

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PROFITABILITY

Broadband Networks	10-12 2025	10-12 2024	Change	1-12 2025	1-12 2024	Change
Adjusted EBITDA	2.4	1.8	32.4 %	10.9	8.9	22.2 %
Adjusted EBITDA margin, %	11.9 %	8.9 %	3.0 ppt	13.2 %	11.4 %	1.8 ppt
Adjusted Operating profit	1.7	1.1	50.8 %	8.3	6.3	32.9 %
Adjusted Operating profit margin, %	8.5 %	5.6 %	2.9 ppt	10.1 %	8.0 %	2.0 ppt

October-December

The Broadband Networks segment's adjusted EBITDA increased to EUR 2.4 (1.8) million, representing an increase of EUR 0.6 million or 32.0% from the comparison period. The increase in EBITDA was driven by improved product and market mix. The company has continued to accelerate its investments aimed at strengthening its market position in North America. In addition, in the comparison period, other expenses and personnel expenses were lower due to temporary cost-saving actions. The adjusted EBITDA margin was 11.9% (8.9%).

The adjusted operating profit of Broadband Networks segment was EUR 1.7 (1.1) million, representing an increase of EUR 0.6 million. The adjusted operating profit margin was 8.5% (5.6%).

January-December

The Broadband Networks segment's adjusted EBITDA was EUR 10.9 (8.9) million, representing an increase of EUR 2.0 million. The increase in EBITDA was driven by higher net sales, material and production costs savings, as well as improved

product and market mix. The company has continued to accelerate its investments aimed at strengthening its market position in North America. In addition, in the comparison period, other expenses and personnel expenses were lower due to temporary cost-saving actions. The adjusted EBITDA margin was 13.2% (11.4%).

The adjusted operating profit of the Broadband Networks segment was EUR 8.3 (6.3) million, representing an increase of EUR 2.0 million. The adjusted operating profit margin was 10.1% (8.0%).

Broadband Networks – Adjusted cumulative operating profit, EUR million

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BUSINESS ENVIRONMENT

Demand for broadband technology returned to growth in 2025. Growth has been driven by intensified competition among network operators to provide fast, reliable broadband connectivity to households and businesses using multiple access technologies, even as operators' own revenues have remained under pressure.

DOCSIS 4.0 –based intelligent access network technologies enable highly competitive internet services by combining fiber and cable technologies within the same network architecture. At the same time, the importance of software-driven intelligence, telemetry and remote management capabilities has increased significantly, supporting more reliable broadband services while reducing network build and maintenance costs.

Investments in DOCSIS 4.0 technology began in North America during 2024. In Europe, investments started during 2025 in parts of the market. The North American cable market is significantly larger than the European market.

In May 2025, Charter Communications and Cox Communications announced a proposed merger. Once completed, the transaction would create the largest fixed broadband and pay-TV operator in North America. The transaction is subject to customary regulatory approvals and is expected to close by mid-2026. The planned merger has temporarily impacted network investment activity by our customer (the selling party) from the second

" North America represented 30% of segment revenue in 2025, and we ended the year with more than 20 network operator customers in the region."

Ulf Andersson Executive Vice President

half of 2025 onward, as pre-closing investments have been optimized during the process.

U.S. import tariffs and shifting trade policies continue to create uncertainty in the market. However, it is not expected to materially impact customers' investment plans or the longer-term growth of the North American network market.

Teleste's DOCSIS 4.0 technology delivery volumes increased significantly during 2025. North America's share of Teleste's revenue rose to 30% in 2025, and we expect this share to continue increasing in 2026. At year-end 2025, the Company served more than 20 network operator customers in North America. We initiated production ramp-up activities in Mexico during the third quarter of 2025, and the first products are expected to be manufactured at the Mexico facility during the first quarter of 2026.

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EUR million	10-12 2025	10-12 2024	Change	1-12 2025	1-12 2024	Change
Orders received	11.0	10.6	4.0 %	55.6	50.1	11.1 %
Order book				89.7	90.0	-0.3 %

October-December: Orders received in the Public Safety and Mobility segment increased compared with the comparison period and amounted to EUR 11.0 (10.6) million. A significant increase in orders from public transport operators and service business compensated for the lower order intake in the video security business. Growth in the service business was also driven by an order received from a Polish tram operator for a mid-life system modernization. In accordance with the recognition of contract obligations, only a portion of the multi-year projects contracted with public transport operators was reported as order intake. Orders from rolling stock manufacturers increased slightly compared with the comparison period. The changes in order intake are typical in project business.

Public Safety and Mobility – Orders received, EUR million

January-December: Orders received in the Public Safety and Mobility segment amounted to EUR 55.6 (50.1) million, representing an 11.1% increase compared to the comparison period. The growth was driven primarily by orders received from public transportation operators, with deliveries of significant projects partly scheduled for 2026. Orders from the rolling stock manufactures exceeded the comparison period, offsetting somewhat lower order intake in service and video security businesses.

Public Safety and Mobility – Order book at period-end, EUR million

The Public Safety and Mobility order book totaled EUR 89.7 (90.0) million, remaining on par with the comparison period. The order book for public transport operators increased, while the order book for the video security and service business declined. In video security business a long-term project was completed earlier in the year. For rolling stock manufacturers, the order book remained stable due to follow-up and change orders. The decline in the services order book is explained by the exceptionally large earlier refurbishment project in Poland, which has now been fully delivered.

{16}------------------------------------------------

NET SALES

October-December

The net sales of the Public Safety and Mobility segment were on the same level with comparison period and amounted to EUR 16.2 (16.5) million. Deliveries to video security business and public transport operators decreased from the comparison period as part of the typical nature in the project business. Services business deliveries exceeded notably the comparison period, especially in the high refurbishment delivery level. Deliveries to rolling stock manufacturers exceeded the level of the comparison period.

January-December

The net sales of the Public Safety and Mobility segment increased 2.9%, totaling EUR 55.9 (54.3) million. Performance varied among the different business areas within the segment. Deliveries to public transport operators have been particularly strong compared to the reference period. The Video security business developed favorably, particularly in North America and Middle East. Net sales in the Services business exceeded the level of the comparison period. The net sales from deliveries to the rolling stock manufacturers remained below the reference period, as customers postponed deliveries to a later schedule than initially anticipated.

The revenue share of "North America and other countries" increased to 16.6% (14.1%) due to larger project deliveries to strategic customers, especially in video security.

Finland accounted for 5.7% (6.1%) of net sales, the Other Nordic countries for 13.2% (8.3%), and Other Europe for 64.5% (71.1%). The decrease in Other Europe's contribution was primarily due to lower deliveries to train manufacturers according to normal project timing fluctuations.

Public Safety and Mobility – Net sales, EUR million

Public Safety and Mobility – Net sales by market area, January-December 2025

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PROFITABILITY

Public Safety and Mobility	10-12 2025	10-12 2024	Change	1-12 2025	1-12 2024	Change
Adjusted EBITDA	1.3	1.5	-10.9 %	5.7	4.5	27.8 %
Adjusted EBITDA margin, %	8.2 %	9.1 %	-0.9 ppt	10.2 %	8.2 %	2.0 ppt
Adjusted EBIT	0.8	0.9	-11.6 %	3.4	2.0	68.8 %
Adjusted EBIT margin, %	4.7 %	5.2 %	-0.5 ppt	6.0 %	3.7 %	2.3 ppt

October-December

The quarterly profitability was slightly lower than comparison period in the Public Safety and Mobility segment. Cost savings were achieved in materials and production services, however, the impact was partly offset by a less favorable project mix compared to the reference period. The effect of increased personnel expenses was balanced by a reduction in other fixed operating costs. These changes were driven by the successful recruitment of personnel, which enabled the insourcing of tasks requiring critical expertise that were previously outsourced.

The adjusted operating profitslightly decreased and was EUR 0.8 (0.9) million. The decrease was driven by the aforementioned profitability factors and lower net sales. The adjusted operating profit margin increased to 4.7% from 5.2% year-on-year.

January-December

Full-year profitability improved considerably in the Public Safety and Mobility -segment, due to lower material and production service costs, as well as a more favorable project mix compared to the comparison period. The increase in personnel expenses was offset by a decrease in other fixed costs. This was driven by successful recruitment efforts, which enabled some previously outsourced tasks to be handled in-house.

The adjusted operating profit was EUR 3.4 (2.0) million, representing an increase of EUR 1.4 million. The increase in profit was a result of the abovementioned profit levers as well as lower amortizations compared to the comparison period. The adjusted operating profit margin increased to 6.0% (3.7%).

Public Safety and Mobility – Adjusted cumulative operating profit, EUR million

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BUSINESS ENVIRONMENT

Urbanization, the expansion of sustainable public transportation solutions, and the integration of digital systems into everyday life are creating a strong long-term growth foundation for passenger information solutions. At the same time, ensuring the security of critical infrastructure through intelligent digital technologies is opening up new growth opportunities in the market.

The operating environment has become more favorable and predictable, supporting steady growth. The business typically consists of end-toend projects that include development, delivery and lifecycle support phases. Publicly funded projects are inherently cost-conscious, which places high requirements on suppliers in terms of efficiency and competitiveness.

The importance of real-time software solutions has continued to increase. Passenger information systems are becoming more intelligent, and software capabilities have become a key differentiator.

Solutions and services aimed at improving the passenger experience are increasingly influencing customer decision-making. In parallel, lifecycle management of systems, ensuring cybersecurity, service and maintenance, and building long-term partnerships around these capabilities are becoming increasingly important parts of the business.

The market is seeing growing demand for intelligent, interoperable solutions that enhance the security of public and critical infrastructure. Alongside traditional video surveillance solutions, real-time mobile surveillance systems —both mobile and stationary —have emerged, together

" It is encouraging to see our customers recognizing our long-term efforts, reflected in multiple new orders from leading global customers."

Valerian Sand, Executive Vice President

with integrated situational awareness platforms that enable unified management and analysis of video and other data streams.

During 2025, Teleste expanded its customer base across both rolling stock manufacturers and public transport operators. Service and maintenance business is generating an increasing stream of recurring revenue alongside new project deliveries. Investments in software development, artificial intelligence and cybersecurity increased, and this trend is expected to continue in 2026.

The markets for passenger information and security solutions in public transport and critical infrastructure offer attractive opportunities, and Teleste's strong position supports sustainable growth and continued development.

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GROUP STRUCTURE

The parent company has a branch office in the Netherlands and subsidiaries in 12 countries outside Finland.

SHARES AND SHARE CAPITAL

On March 31, 2025, Teleste Corporation conveyed a total of 14,264 treasury shares without consideration to the key employees participating in Teleste's long-term share-based incentive program launched in 2022. The start of the performance periods and their key conditions were disclosed in stock exchange releases published on February 10, 2022.

The conveyance of the shares by means of a directed share issue without consideration is based on the terms and conditions of the program and the authorization granted to the Board of Directors by the Annual General Meeting held on April 11, 2024.

On June 26, 2025, Teleste Corporation transferred a total of 38,532 own shares held by the company without consideration to key personnel under the share-based incentive program launched in 2022. The launch of the program and its key terms were disclosed in stock exchange releases published on February 10, 2022 and February 9, 2024.

The transfer of shares through a directed share issue without consideration is based on the terms of the program and the authorization granted to the Board of Directors by the Annual General Meeting held on April 23, 2025.

On December 31, 2025, Tianta Oy was the largest single shareholder of Teleste with a holding of 25.2% (25.2%). According to Euroclear Finland Ltd, the number of Teleste shareholders at the end of the period under review was 4,880 (5,047). Foreign shareholders accounted for 0.9% (0.8%) of the shares, while nominee-registered holdings accounted for 2.4% (2.4%).

On December 31, 2025, the company's registered share capital stood at EUR 6,966,932.80, divided into 18,985,588 shares. The Group's parent company Teleste Corporation held 685,602 (738,398) treasury shares, representing 3.6% (3.9%) of all Teleste shares, on December 31, 2025.

In January–December 2025, the share turnover of Teleste on Nasdaq Helsinki was 1.5 (1.3) million shares and EUR 5.0 (3.4) million. The volumeweighted average price of the share was EUR 3.40 (2.61), the lowest share price in the review period was EUR 2.47 (2.07) and the highest EUR 4.28 (3.45). The closing price of the Teleste share on December 31, 2025, was EUR 3.76 (2.64) and market capitalization was EUR 71.4 (50.1) million.

GOVERNANCE

Company leadership

On December 31, 2025, Teleste's Leadership Team included Esa Harju, President and CEO; Mervi Kerkelä-Hiltunen, CFO; Pasi Järvenpää, Senior Vice President, Research and Development; Linda Kallas, Senior Vice President, Strategy, Communications & Sustainability; Esa Korolainen, Senior Vice President, Operations, Logistics & Sourcing; Ulf Andersson, Executive Vice President, Broadband Networks; Valerian Sand, Senior Vice President, Public Safety and Mobility; and Tuomas Vanne, Senior Vice President, People and Culture.

Annual General Meeting

The Annual General Meeting (AGM) of Teleste Corporation, held on April 23, 2025, adopted the financial statements and consolidated financial statements for 2024 and the remuneration report of the company's governing bodies for the financial period 2024, and discharged the members of the Board of Directors and the CEO from liability for the financial period 2024. In accordance with the proposal of the Board of Directors, the AGM resolved that, based on the adopted balance sheet, a dividend of EUR 0.03 per share be paid for the financial period that ended on December 31, 2024, for shares other than those held by the company. The dividend will be paid to shareholders registered

{20}------------------------------------------------

on the record date of June 30, 2025, as a shareholder in the company's shareholders' register maintained by Euroclear Finland Ltd. The dividend payment date was July 7, 2025.   

The AGM decided that the Board of Directors shall consist of six members. Timo Luukkainen, Jussi Himanen, Vesa Korpimies, Mirel Leino-Haltia, Anni Ronkainen and Kai Telanne were elected as members of Teleste Corporation's Board of Directors.  

Teleste's AGM decided on the annual remunerations to be paid to the members of the Board of Directors as follows: EUR 66,000 per year to the Chairman and EUR 33,000 per year to each member. The annual remuneration of the Board member who acts as the Chairman of the Audit Committee shall be EUR 49,000 per year. Of the annual remuneration to be paid to the Board members, 40 % of the total gross remuneration amount will be used to purchase Teleste Corporation's shares for the Board members through trading on the regulated market organized by Nasdaq Helsinki Ltd, and the rest will be paid in cash. However, a separate meeting fee shall not be paid to the members of the Board of Directors nor the Chairman of the Audit Committee. A meeting fee of EUR 400 per meeting is to be paid to the members of the Board of Directors' committees for those committee meetings that they attend.

PricewaterhouseCoopers Oy, a firm of Authorized Public Accountants, was elected as the company's auditor. The audit firm has appointed Markku Launis, APA, as the auditor with principal responsibility. It was decided that the auditor's fees will be paid according to the invoice approved by the company.

BDO Oy, an Authorized Sustainability Audit Firm, was elected as the company's sustainability reporting assurance provider, and BDO Oy has appointed Mr. Vesa Vuorinen, APA, Authorized Sustainability Auditor, as the principally responsible sustainability auditor. It was decided to pay the sustainability reporting assurance provider's compensation against an invoice approved by the company.

The AGM decided to authorize the Board of Directors to decide on the purchase of the company's own shares in accordance with the proposal of the Board. According to the authorization, the Board of Directors may acquire 1,200,000 of the company's own shares otherwise than in proportion to the holdings of the shareholders with unrestricted equity through trading on the regulated market organized by Nasdaq Helsinki Ltd at the market price at the time of the purchase.

The share purchase authorization is valid for eighteen (18) months from the date of the resolution of the Annual General Meeting. The authorization overrides any previous authorizations to purchase the company's own shares.

The Annual General Meeting decided to authorize the Board of Directors to decide on issuing new shares and/or transferring the company's own shares held by the company and/or granting special rights referred to in Chapter 10, Section 1 of the Limited Liability Companies Act, in accordance with the Board's proposal.

The new shares may be issued and the company's own shares held by the company may be conveyed either against payment or for free. New shares may be issued and the company's own shares held by the company may be conveyed to the company's shareholders in proportion to their current shareholdings in the company, or by waiving the shareholder's pre-emption right, through a directed share issue if the company has a weighty financial reason to do so. The new shares may also be issued in a free share issue to the company itself.

Under the authorization, the Board of Directors has the right to decide on issuances of new shares and/or transferring the company's own shares held by the company, so that the maximum total number of shares issued and/or transferred is 2,000,000.

The total number of new shares to be subscribed for under the special rights granted by the company and the company's own shares held by the company to be transferred may not exceed 1,000,000 shares, which number is included in the above maximum number concerning new shares and the Group's own shares held by the company.

The authorizations are valid for eighteen (18) months from the resolution of the Annual General Meeting. The authorizations override any previous authorizations to decide on issuances of new shares and on granting stock option rights or other special rights entitling to shares.

Authorizations

Valid authorizations at the end of the review period on December 31, 2025:

• The Board of Directors may acquire 1,200,000 of the company's own shares otherwise than in proportion to the holdings of the shareholders with unrestricted equity through trading on the regulated market

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• organized by Nasdaq Helsinki at the market price of the time of the purchase.
• The Board of Directors may decide on issuing new shares and/or transferring the company's own shares held by the company, so that the maximum total number of shares issued and/or transferred is 2,000,000.

The total number of new shares to be subscribed for under the special rights granted by the company and the company's own shares held by the company to be transferred may not exceed 1,000,000 shares, which number is included in the above maximum number concerning new shares and the Group's own shares held by the company.

Organizational meeting of the Board of Directors

The Board of Directors, which convened after the Annual General Meeting on 23 April 2025, elected Mr. Timo Luukkainen as its Chair.

Mirel Leino-Haltia was elected as Chair of the Audit Committee of the Board of Directors, with Jussi Himanen and Vesa Korpimies as members. Kai Telanne was elected as Chair of the Personnel and Remuneration Committee of the Board of Directors, with Timo Luukkainen and Anni Ronkainen as members.

Business risks and uncertainties

This financial bulletin mainly describes the most relevant changes to the risks and uncertainties as presented in the Report of the Board of Directors and financial statements for 2024. Risk management constitutes an integral part of the strategic and operational activities of the business. Risks are reported to the Audit Committee and the Board of Directors on a regular basis and whenever necessary.

Import tariffs imposed by the U.S. administration since April 2025 and other broader trade-policy measures, including periodically changing tariff rules, potential retaliatory tariffs, export restrictions and other trade barriers, may affect the Company's business and profitability. In addition, potential export restrictions and tariffs in supplier countries within the Company's subcontracting network may disrupt supply chain operations and impact the availability and pricing of materials. The Company seeks to prepare for multiple scenarios and to mitigate impacts through proactive measures. However, in a continuously evolving operating environment, not all impacts can necessarily be avoided or fully offset.

As the Company expands into new markets, its foreign exchange exposure is increasing, particularly to the U.S. dollar. This exposure is partially balanced by U.S. dollar– and renminbidenominated purchases of raw materials and components, as well as the ramp-up of production in Mexico. Currency fluctuations may have a material impact on the Company's revenue, product costs and earnings. The most significant exposures relate to the U.S. dollar and the Chinese renminbi against to euro. Short-term currency risks are managed using forward contracts and options.

In May 2025, Charter Communications and Cox Communications announced a proposed merger. Upon closing in 2026, the transaction would create the largest fixed broadband and pay-TV operator in North America. In connection with the transaction, the parties may optimize or defer investments prior to closing, which could temporarily weaken market demand. Consolidation among operators may also accelerate the need for similar moves among technology suppliers.

Since the second half of 2025, increasing upward price pressure has been observed in global markets for certain semiconductors, memory components and processors, driven by capacity needs for AIenabled data centers. This may lead to higher material costs or supply chain delivery delays.

Legal proceedings and judicial procedures

In 2023, Teleste's subsidiary in Germany has filed a claim for damages related to a project which the customer terminated without a valid reason in Teleste's opinion. The deliveries of the terminated project included passenger information systems to a group of local public transport operators. The claim proceedings are still ongoing. Teleste estimates that the legal proceedings will not have any significant financial impact on the Group's operations.

At the end of the period under review, there were no other legal proceedings or judicial procedures pending that would have had any essential significance to the Group's operations.

Events after the end of the review period

On January 12, 2026, the Company announced the proposals of the Shareholders' Nomination Board to the Annual General Meeting. The Company's Board of Directors will convene the Annual General Meeting separately.

{22}------------------------------------------------

Shares and Governance

On January 20, 2026, the Company announced a four-year framework agreement with Infrabel, a Belgian state-owned company, for the delivery of station displays to the Belgian railways.

On January 29, 2026, the Company announced that it had signed a multi-year framework agreement with France's national railway operator (SNCF) for the delivery of station displays to the French railways.

{23}------------------------------------------------

FINANCIAL INFORMATION IN 2026

Teleste Corporation's schedule for publishing financial information in 2026 is as follows:

February 13,2026 Financial Statement Bulletin 2025

May 8, 2026 Interim report January–March 2026

August 14, 2026 Half year financial report January–June 2026

November 6, 2026 Interim report January–September 2026

The full annual report for financial year 2025 will be published on March 27, 2026, at www.teleste.com.

Teleste Corporation's Annual General Meeting will be held on Wednesday, April 22, 2026, in Helsinki, Finland.

Earnings release presentation

Teleste will organize a results presentation call on February 13, 2026, at 9.30 a.m. Finnish time (EET). The event will feature presentations by CEO Esa Harju and CFO Mervi Kerkelä-Hiltunen. Registration for the results event is according to separately provided customary instructions.

Turku, February 13, 2026

Teleste Corporation Board of Directors

For further information, please contact:

Esa Harju, President and CEO Mervi Kerkelä-Hiltunen, CFO

tel. +358 2 2605 611 investor.relations@teleste.com

Teleste in Brief

Teleste's technologies and products are used to build a networked society. Our solutions bring high-speed broadband and television services to homes, secure your safety in public places and guide you in the use of public transport. With solid industry experience and a drive to innovate, we are a leading international company in broadband, security and information technologies and related services. We work in close cooperation with our customers, both virtually and through our worldwide sales network. In 2025, Teleste's net sales amounted to EUR 138.6 million and, on average, it had approximately 627 employees. Teleste is listed on Nasdaq Helsinki. For more information, please visit our website www.teleste.com.

{24}------------------------------------------------

The company has decided to change its reporting principles for the interim reports so that, in the future, with the exception of hedge accounting, all items arising from realized and unrealized exchange rate differences will be reported as financial items in the income statement. Comparative period items have been adjusted to correspond to the current reporting principle. The adjustment did not have a material effect on the figures for the comparative period.

Except for the above, this financial bulletin has been compiled in compliance with IAS 34, as it is accepted within EU, using the recognition and valuation principles with those used in the Annual Report. Teleste has prepared this interim report applying the same accounting principles as those described in detail in its consolidated financial statements except for the adoption of new standards and amendments effective as of January 1, 2025. Audit principles can be found from the latest annual report. The data stated in this report is unaudited.

STATEMENT OF COMPREHENSIVE INCOME (tEUR)	10-12/2025	10-12/2024	Change %	1-12/2024
Net Sales	36,136	36,504	-1.0 %	132,524
Other operating income	475	117	305.2 %	607
Materials and services	-16,909	-19,358	-12.7 %	-66,094
Personnel expenses	-12,413	-9,945	24.8 %	-40,981
Depreciation	-1,255	-1,308	-4.1 %	-5,157
Impairment	0	-6,073	-100.0 %	-6,653
Other operating expenses	-4,851	-5,580	-13.1 %	-19,622
Operating profit	1,183	-5,643	n/a	-5,375
Financial income	407	607	-32.9 %	991
Financial expenses	-800	-958	-16.5 %	-2,682
Profit after financial items	790	-5,994	n/a	-7,066
Profit before taxes	790	-5,994	n/a	-7,066
Taxes	-348	1,006	-134.6 %	1,013
Net profit	442	-4,988	n/a	-6,053
Attributable to:
Equity holders of the parent	442	-5,003	n/a	-5,853
Non-controlling interests	0	15	-100.0 %	-200
	442	-4,988	n/a	-6,053
Earnings per share for result of the year attributable to the equity holders of the parent (expressed in euro per share)
Basic	0.02	-0.27	n/a	-0.32
Diluted	0.02	-0.28	n/a	-0.32
Total comprehensive income for the period (tEUR) Net profit	442	-4,988	n/a	-6,053
Possible items with future net profit effect
Translation differences	157	-209	-175.3 %	-65
Cash flow hedges	-41	-11	273.7 %	-306
Total comprehensive income for the period	558	-5,208	n/a	-6,424
Attributable to:
Equity holders of the parent	558	-5,179	n/a	-6,189
Non-controlling interests	0	-28	n/a	-235
	558	-5,208	n/a	-6,424

{25}------------------------------------------------

STATEMENT OF COMPREHENSIVE INCOME
(tEUR)	1-12/2025	1-12/2024	Change %
Net Sales	138,643	132,524	4.6 %
Other operating income	1,033	607	70.2 %
Materials and services	-64,202	-66,094	-2.9 %
Personnel expenses	-45,415	-40,981	10.8 %
Depreciation and amortization	-4,955	-5,157	-3.9 %
Impairment	0	-6,653	-100.0 %
Other operating expenses	-18,301	-19,622	-6.7 %
Operating profit	6,803	-5,375	n/a
Financial income	931	991	-6.0 %
Financial expenses	-4,692	-2,682	74.9 %
Profit after financial items	3,042	-7,066	n/a
Profit before taxes	3,042	-7,066	n/a
Taxes	-438	1,013	-143.2 %
Net profit	2,604	-6,053	n/a
Attributable to:
Equity holders of the parent	2,780	-5,853	n/a
Non-controlling interests	-176*	-200	n/a
	2,604	-6,053	n/a
Earnings per share for result of the year attributable to (expressed in euro per share) the equity holders of the parent
Basic	0.15	-0.32	n/a
Diluted	0.15	-0.32	n/a
Total comprehensive income for the period (tEUR) Net profit	2,604	-6,053	n/a
Possible items with future net profit effect
Translation differences	410	-65	-727.5 %
Cash flow hedges	92	-306	-130.1 %
Total comprehensive income for the period	3,106	-6,424	n/a
Attributable to:
Equity holders of the parent	3,246	-6,189	n/a
Non-controlling interests	-140	-235	n/a
	3,106	-6,424	n/a

^* On 2 July 2025, the Company acquired the remaining 20% interest in the former joint venture, resulting in 100% ownership. The Company has no other joint ventures.

{26}------------------------------------------------

STATEMENT OF FINANCIAL POSITION (tEUR)	31.12.2025	31.12.2024	Change %
Non-current assets Intangible assets	11,274	8,839	27.5 %
Goodwill	30,118	30,082	0.1 %
Property, plant, equipment	10,127	11,516	-12.1 %
Other non-current financial assets	27	27	0.0 %
Other non-current reiceivables	10	116	-91.2 %
Deferred tax asset	3,110	3,163	-1.7 %
	54,666	53,742	1.7 %
Current assets
Inventories	26,914	24,896	8.1 %
Trade and other receivables	30,867	32,703	-5.6 %
Tax Receivable, income tax	1,174	1,019	15.2 %
Cash and cash equivalents	9,064	8,808	2.9 %
	68,019	67,426	0.9 %
Total assets	122,685	121,168	1.3 %
Shareholder equity and liabilities
Share capital	6,967	6,967	0.0 %
Other equity	50,938	48,509	5.0 %
Owners of the parent company	57,905	55,476	4.4 %
Non-controlling interests	0*	-669	-100.0 %
EQUITY	57,905	54,808	5.7 %
Non-current liabilities
Deferred tax liability	26	50	-47.8 %
Non-current liabilities, interest-bearing	20,912	24,653	-15.2 %
Non-current interest-free liabilities	35	35	0.0 %
Non-current provisions	794	560	41.9 %
	21,767	25,297	-14.0 %
Current liabilities
Current interest-bearing liabilities	7,762	9,558	-18.8 %
Trade Payables and Other Liabilities	32,649	29,569	10.4 %
Advances received	996	365	173.4 %
Tax liability, income tax	72	139	-48.6 %
Current provisions	1,534	1,433	7.1 %
	43,013	41,063	4.7 %
Total shareholder equity and liabilities	122,685	121,168	1.3 %

^* On 2 July 2025, the Company acquired the remaining 20% interest in the former joint venture, resulting in 100% ownership. The Company has no other joint ventures.

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Income Statement and Balance Sheet

CONSOLIDATED CASH FLOW STATEMENT (tEUR)	1-12/2025	1-12/2024	Change %
Cash flows from operating activities
Profit for the period	2,604	-6,053	n/a
Adjustments to cash flow from operating activities	9,627	12,590	-23.5 %
Change in net working capital	4,016	8,807	-54.4 %
Other finance items	-838	-201	317.5 %
Paid interest and other finance expenses	-2,043	-2,130	-4.1 %
Received interests and dividend payments	209	204	2.5 %
Paid Taxes	-701	-788	-11.0 %
Cash flow from operating activities	12,875	12,431	3.6 %
Cash flow from investing activities
Purchase of tangible and intangible assets	-4,865	-4,642	4.8 %
Proceeds from sales of PPE	882	91	868.4 %
Acquisition of NCI	-270	0	n/a
Net cash used in investing activities	-4,253	-4,551	n/a
Cash flow from financing activities
Proceeds from borrowings	0	37,387	-100.0 %
Payments of borrowings	-5,749	-40,823	-85.9 %
Payment of leasing liabilities	-1,902	-1,933	-1.6 %
Dividends paid	-549	0	n/a
Net cash used in financing activities	-8,200	-5,369	n/a
Change in cash
Cash in the beginning	8,808	6,228	41.4 %
Effect of currency changes	-166	71	-335.4 %
Change	422	2,510	-83.2 %
Cash at the end	9,064	8,808	2.9 %

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OPERATING SEGMENTS (tEUR)				1-12/2025		1-12/2024	Change %
Broadband Networks
Orders received				82,537		74,807 10.3 %
Net sales				82,752	78,191 5.8 %
Adjusted EBITDA				10,916		8,932	22.2 %
Adjusted EBITDA %				13.2 %		11.4 %	15.5 %
Adjusted operating profit				8,323		6,264	32.9 %
Adjusted operating profit %				10.1 %		8.0 %	25.5 %
Public Security & Mobility
Orders received				55,632		50,054	11.1 %
Net sales				55,891		54,333	2.9 %
Adjusted EBITDA				5,719		4,476	27.8 %
Adjusted EBITDA %				10.2 %		8.2 %	24.2 %
Adjusted operating profit				3,356		1,989	68.8 %
Adjusted operating profit %				6.0 %		3.7 %	64.1 %
Group reconciliation
Adjusted operating profit from segments				11,679		8,253	41.5 %
Non-allocated items				-4,579	-4,069		n/a
Adjusted operating profit				7,100		4,184	69.7 %
Adjustment items				-298		-9,559	n/a
Operating profit				6,802		-5,375	n/a
Finance items				-3,761		-1,691	122.4 %
Profit before taxes				3,042		-7,066	n/a
								1/2024-
Information per quarter (tEUR)	10-12/25		7-9/25		4-6/25	1-3/25	10-12/24	12/2024
Orders received
Broadband Networks	20,574		14,132		23,624	24,207	25,699	74,807
Public Security & Mobility	11,006	15,917*			15,828	12,881	10,579	50,054
Total	31,580	30,049**			39,452	37,088	36,278	124,861
Net sales
Broadband Networks	19,887		20,816		22,640	19,410	19,978	78,191
Public Security & Mobility	16,249		13,648		13,247	12,747	16,526	54,333
Total	36,136		34,464		35,887	32,156	36,504	132,524
Adjusted operating profit
Broadband Networks	1,688		2,451		2,827	1,357	1,119	6,264
Public Security & Mobility	760		888		525	1,183	860	1,989
Non-allocated items	-1,245		-1,052		-1,199	-1,083	-1,110	-4,069
Total	1,203		2,287		2,153	1,457	868	4,184
Operating profit
Adjusted operating profit	1,203		2,287		2,153	1,457	868	4,184
Adjustment items	-20		-129		-150	0	-6,511	-9,559
Total	1,183		2,158		2,004	1,457	-5,643	-5,375

^* Specified orders received value, earlier reported EUR 17,435 thousands

^** Specified orders received value, earlier reported EUR 31,567 thousands

{29}------------------------------------------------

Net sales by category (tEUR)	1-12/2025	1-12/2024	Change %
Goods	124,867	118,147	5.7 %
Service	13,776	14,377	-4.2 %
Total	138,643	132,524	4.6 %
Impairment by category (tEUR)	1-12/2025	1-12/2024	Change %
Impairment of development costs	0	-6,652	-100.0 %
Impairments total	0	-6,652	-100.0 %
Inventories (tEUR)	31.12.2025	31.12.2024	Change %
Inventory at purchase value	35,240	33,954	3.8 %
Provision for net realization value	-8,326	-9,058	-8.1 %
Inventory total	26,914	24,896	8.1 %
KEY FIGURES	1-12/2025	1-12/2024	Change %
Operating profit, tEUR	6,803	-5,375	n/a
Earnings per share, EUR	0.15	-0.32	n/a
Earnings per share fully diluted, EUR	0.15	-0.32	n/a
Shareholder equity per share, EUR	3.17	3.00	5.5 %
Return on equity	4.6 %	-10.5 %	n/a
Return on investment	7.1 %	-5.0 %	n/a
Equity ratio	47.6 %	45.4 %	4.8 %
Net gearing	33.9 %	46.3 %	-26.8 %
Investments, tEUR	6,581	6,311	4.3 %
Investments % of net sales	4.7 %	4.8 %	-0.3 %
Order backlog, tEUR	114,513	114,983*	-0.4 %
Personnel, average	633	673	-5.9 %
Number of shares (thousands)	18,986	18,986	0.0 %
including own shares
Highest share price, EUR	4.28	3.45	24.1 %
Lowest share price, EUR	2.47	2.07	19.3 %
Average share price, EUR	3.40	2.61	30.4 %
Turnover, in million shares	1.5	1.3	13.8 %
Turnover, in MEUR *Restated value of order backlog, previously reported in annual report of 2024 118,3 MEUR	5.0	3.4	47.7 %
Treasury shares	Number		% of	% of
	of shares		shares	votes
Ownership of company's own shares 31.12.2025	685,602		3.61 %	3.61 %
Contingent liabilities and pledged assets (tEUR)	31.12.2025	31.12.2024	Change %
Leasing and rent liabilities	935	585	59.8 %
Derivative instruments (tEUR)
Value of underlying forward contracts	13,494	10,683	26.3 %
Market value of forward contracts	56	-26	-320.6 %
Interest rate swap	20,450	8,750	133.7 %

Market value of interest swap 130 257 -49.7 %

{30}------------------------------------------------

ALTERNATIVE PERFORMANCE MEASURES

Teleste Corporation uses and publishes alternative performance measures to describe the operational development of the business and to improve comparability between reporting periods. Alternative performance measures are reported in addition to IFRS-based key figures.

In the calculation of alternative performance measures, items affecting the comparability of the operational performance of the reporting periods are not taken into account, such as profits or losses resulting from the sale or termination of business activities, profits or losses resulting from restructuring operations, impairment losses, costs related to significant strategic changes, or other exceptional revenues or costs not part of the operational business.

The alternative performance measures reported by Teleste Corporation are adjusted operating profit and adjusted EBITDA. The adjusted items are recognized in the income statement within the corresponding income or expense group.

ALTERNATIVE PERFORMANCE MEASURES (tEUR)	10-12/2025	10-12/2024	Change %	1-12/2025	1-12/2024	Change %
Adjusted operating profit	1,203	868	38.6 %	7,100	4,184	69.7 %
Adjusted EBITDA, EUR	2,458	-3,897	n/a	12,056	9,340	29.1 %
BRIDGE OF CALCULATION
Operating profit	1,183	-5,643	n/a	6,803	-5,375	n/a
Business reorganization Strategic development	20	370	-94.7 %	298	2,742	-89.1 %
projects Impairment of development	0	68	-100.0 %	0	164	-100.0 %
costs	0	6,073	-100.0 %	0	6,653	-100.0 %
Adjusted operating profit	1,203	868	38.6 %	7,100	4,184	69.7 %
EBITDA	2,438	-4,334	n/a	11,758	6,434	82.7 %
Business reorganization Strategic development	20	370	-94.7 %	298	2,742	-89.1 %
projects	0	68	-100.0 %	0	164	-100.0 %
Adjusted EBITDA	2,458	-3,897	n/a	12,056	9,340	29.1 %

{31}------------------------------------------------

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (tEUR)

Attributable to equity holders of the parent

A	Share capital
B	Share premium
C	Translation differences
D	Retained earnings
E		Invested free capital
F	Other funds
G			Owners of the parent company
H		Non-controlling interests
I	Total equity
	A	B	C	D	E	F	G	H	I
Shareholder
equity 1.1.2025	6,967	1,504	-2,329	46,234	3,140	-40	55,476	-669	54,808
Net result	0	0	0	2,780	0	0	2,780	-176	2,604
Other comprehensive
items for the
period	0	0	148	225		92	466	36	502
Dividend	0	0	0	-549	0	0	-549	0	-549
Equity-settled
share-based payments	0	0	0	808	0	0	808	0	808
Aquisition of Non
Controlling
interests	0	0	0	-1,076	0	0	-1,076	809	-268
Shareholder equity 31.12.2025	6,967	1,504	-2,181	48,422	3,140	52	57,905	0	57,905
	A	B	C	D	E	F	G	H	I
Shareholder
equity 1.1.2024	6,967	1,504	-2,154	51,591	3,140	266	61,315	-433	60,882
Net result	0	0	0	-5,853	0	0	-5,853	-200	-6,053
Other
comprehensive items for the
period	0	0	-175	145		-306	-336	-35	-372
Dividend	0	0	0	0	0	0	0	0	0

payments 0 0 0 350 0 0 350 0 350

equity 31.12.2024 6,967 1,504 -2,329 46,234 3,140 -40 55,476 -669 54,808

Equity-settled share-based

Shareholder

{32}------------------------------------------------

CALCULATION OF KEY FIGURES

Return on equity: Profit/loss for the financial period

------------------------------ * 100 Shareholder equity (average)

Return on capital employed: Profit/loss for the period after financial items + financing charges

------------------------------ * 100 Total assets - non-interest-bearing

liabilities (average)

Equity ratio: Shareholder equity

----------------------------- * 100 Total assets - advances received

Gearing: Interest bearing liabilities - cash in hand and in bank - interest bearing

assets

----------------------------- * 100

Shareholder equity

Earnings per share: Profit for the period attributable to equity holder of the parent

---

Weighted average number of ordinary shares outstanding during the period

Earnings per share, diluted: Profit for the period attributable to equity holder of the parent (diluted)

---

Average number of shares - own shares + number of options at the period-

end

Major shareholders, as sorted by number of shares - December 31, 2025

	Number of shares	% of shares
Tianta Oy	4,788,298	25.2
Mandatum Life Insurance Company Limited	1,675,716	8.8
Ilmarinen Mutual Pension Insurance Company	899,475	4.7
Kaleva Mutual Insurance Company	824,641	4.3
Wipunen Varainhallinta Oy	800,000	4.2
Mariatorp Oy	800,000	4.2
Teleste Corporation	685,602	3.6
Varma Mutual Pension Insurance Company	521,150	2.7
The State Pension Fund	500,000	2.6
Ingman Finance Oy Ab	235,000	1.2

{33}------------------------------------------------

Shareholders by sector December 31, 2025

	No. of shareholders	% of Owners	Shares	% of shares
Households	4,632	94.9	5,180,525	27.3
Public sector institutions	3	0.1	1,920,625	10.1
Financial and insurance institutions	17	0.3	3,194,072	16.8
Corporations	184	3.8	8,492,755	44.7
Non-profit institutions	18	0.4	35,947	0.2
Foreign	26	0.5	161,664	0.9
Total	4,880	100.0	18,985,588	100.0
Of which nominee registered	9	0.2	464,976	2.4

Majorshareholders by distribution of shares December 31, 2025

	No. of	% of	Nbr. of	% of
Number of shares	shareholders	shareholders	shares	shares
1-100	1,579	32.4	75,988	0.4
101-500	1,834	37.6	481,855	2.5
501-1,000	616	12.6	498,977	2.6
1,001-5,000	635	13.0	1,397,346	7.4
5,001-10,000	101	2.1	697,288	3.7
10,001-50,000	84	1.7	1,801,407	9.5
50,001-100,000	13	0.3	950,943	5.0
100,001-500,000	10	0.2	2,086,902	11.0
500,001-& above	8	0.2	10,994,882	57.9
Total	4,880	100.0	18,985,588	100.0
of which nominee registered	9	0.2	464,976	2.4

{34}------------------------------------------------