Financial Review

Annual Report 2025

This Board of Directors’ report and financial statements are a non-official and translated version from Vaisala’s official financial statements and Board of Directors’ report in accordance with ESEF regulations.

35

Board of Directors’ Report

Key figures

Key figure graphs

Financial statements 2025

Auditing

Key figure graphs

36

Board of Directors’ Report

Key figures

Key figure graphs

Financial statements 2025

Auditing

Board of Directors’ Report 2025

The global business landscape remained uncertain in 2025, marked by geopolitical tensions, trade policy shifts, and currency fluctuations. Amidst a changing market environment, Vaisala delivered a solid performance in 2025. The Industrial Measurements business area returned to growth after two flat years, demonstrating strong performance across market segments and reaching a record-high orders received and net sales. The Weather and Environment business area faced challenges in the renewable energy markets but delivered on its strong order book in the meteorology and aviation markets, where the demand normalized in 2025 after two exceptionally strong years. Subscription sales growth was further boosted by the addition of new businesses acquired in the fourth quarter of 2024.

Vaisala’s net sales increased by 6% in 2025 compared to the previous year, reaching EUR 596.9 million (564.6). In constant currencies, net sales grew by 7%. The depreciation of the US dollar and Chinese yuan negatively affected reported figures, particularly in the Industrial Measurements and subscription sales. Vaisala’s EBITA for 2025 was EUR 94.2 million (90.3), representing 15.8 (16.0) % of net sales. Cash conversion remained strong at 1.1 (1.0).

The company continued to invest in research and development to maintain its technological and market leadership, with R&D expenses accounting for 11.4 (12.1) % of net sales. To support its strategy execution and enable further growth, Vaisala also strengthened its sales capabilities within growth areas and made long-term investments in its Operations, where a new automated logistics center was completed during the year.

Earnings per share in 2025 were EUR 1.65 (1.76). The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.86 (0.85) per share be paid out of distributable earnings totaling EUR 31.2 (30.8) million.

* Excluding the impact of acquired businesses

* Change with comparable exchange rates

In 2025, Vaisala’s orders received decreased by 9% compared to the previous year and totaled EUR 517.2 million (EUR 565.6 million in 2024). In constant currencies, orders received decreased by 7%. Orders received does not include subscription business. The decline in orders received was attributable to the Weather and Environment business area, where the demand decreased very strongly, by 23%, due to the headwinds in the renewable energy market as well as due to normalization of the meteorology and aviation markets compared to exceptionally high levels in the previous two years. In contrast, the Industrial Measurements business area saw a strong 12% increase in orders received, with growth in all market segments: industrial, life science and power.

At the end of 2025, Vaisala’s order book amounted to EUR 185.8 million, which is 14% below the level at the end of the previous year (Dec 31, 2024: EUR 215.0 million). The decline in order book was attributable to the

Financial review 2025

Calculation of key figures is presented after the Board of Directors’ Report.

Weather and Environment business area’s subscription business has been excluded from orders received and order book.

37

Board of Directors’ Report

Key figures

Key figure graphs

Financial statements 2025

Auditing

Weather and Environment business area, where the order book decreased very strongly, by 19%, from year-end 2024. In the Industrial Measurements business area, order book at the end of 2025 was 13% above the level at the end of 2024. 76% of Vaisala’s book, EUR 140.4 million, is scheduled to be delivered during the current year (Dec 31, 2024: EUR 164.6 million). The EUR 25 million award for a project of airport weather systems and equipment to modernize 14 Indonesian airports, announced in August 2024, is not included in the order book. The project will be included in orders received if the customer secures financing by the end of Q2/2026.

* Amortization and impairment of intangible assets and income and expenses related to (non- operative) earn-outs related to acquired businesses.

** Change with comparable exchange rates

Vaisala’s year 2025 net sales increased by 6% compared to the previous year reaching EUR 596.9 (564.6) million. In constant currencies, net sales grew by 7%. Net sales increased in both business areas. Industrial Measurements returned to growth after two flat years, ending up with 9% net sales growth (12% net sales growth in constant currencies). Weather and Environment business area delivered on its strong order book, boosted by strong growth in subscription sales, which led to 3% net sales growth (4% net sales growth in constant currencies).

The new businesses (Maxar’s WeatherDesk, Speedwell Climate, and Nevis Technology acquired in Q4/2024 and Quanterra Systems acquired in Q3/2025), contributed EUR 18.6 million to the net sales compared to 2024. Excluding these acquisitions, Vaisala’s net sales increased by 2%. The acquisitions contributed mostly to subscription sales, which grew by 50% compared to the previous year. Organic growth of subscription sales was 9% in 2025 compared to 2024. The depreciation of the US dollar impacted negatively the reported subscription sales. In constant currencies, the organic growth of subscription sales was 11%.

Geographically, Vaisala’s 2025 net sales growth was driven by the Americas and EMEA regions, with both reaching double-digit growth compared to the previous year. In Americas, net sales growth was driven by strong Industrial Measurements sales and subscription sales. In EMEA, large project deliveries in the Weather and Environment business area supported the net sales growth. Despite the growth in Industrial Measurements, Vaisala’s net sales in the APAC region declined strongly, driven by the headwinds in the renewable energy markets. Depreciation of the US dollar and Chinese yuan against the euro had a negative impact on reported net sales in the Americas and APAC regions. Operations outside Finland accounted for 99 (98) % of net sales.

Vaisala’s 2025 gross margin decreased to 55.2 (56.3) % mainly due to exchange rates impact, proportional impacts of the US tariffs, as well as decline in the high-margin renewable energy business.

Operating expenses increased in 2025 compared to the previous year mainly as a result of operating expenses related to acquired businesses in the Weather and Environment business area and investments in sales and commercial excellence in the Industrial Measurements business area. The increase in operating expenses was partly offset by cost control measures in the Weather and Environment business area. Operating expenses

include EUR 4.9 million of one-off costs mainly related to organizational restructurings.

EBITA increased to EUR 94.2 (90.3) million, 15.8 (16.0) % of net sales. EBITA and EBIT margins were close to the previous year’s level, and exchange rates had a negative impact on the year 2025 margins.

In 2025, financial income and expenses were EUR -8.2 (-2.4) million. This was mainly a result of valuation of USD denominated items, USD currency hedging and interest expenses. Income taxes were EUR 17.4 (17.0) million and effective tax rate was 22.5 (21.1) %. Result before taxes was EUR 77.1 (80.8) million and result for the period was EUR 59.8 (63.7) million. Earnings per share was EUR 1.65 (1.76).

Statement of financial position and cash flow

Vaisala’s financial position remained strong during January–December 2025. At the end of December, statement of financial position totaled EUR 588.9 (589.4) million. Net debt amounted to EUR 14.3 (40.6) million. Cash and cash equivalents totaled EUR 92.8 (88.8) million. Dividend payment, decided by the Annual General Meeting on March 25, 2025, totaled EUR 30.9 million. On December 31, 2025, Vaisala had interest-bearing borrowings totaling EUR 85.0 (105.0) million. In October 2025, Vaisala made a voluntary prepayment of EUR 20.0 million regarding EUR 35.0 million unsecured term loan. The remaining term loan is due in 2026. The loan has a financial covenant (gearing), tested semi-annually. On December 31, 2025, Vaisala was in compliance with the covenant. In addition, Vaisala has EUR 70.0 million unsecured term loan which was signed on December 2, 2024. The loan matures three years after the signing date and has a financial covenant (gearing), which is tested semi-annually. On December 31, 2025, Vaisala was in compliance with the covenant. Vaisala had not issued any domestic commercial papers on December 31, 2025, as at the end of 2024. Vaisala has also a EUR 50 million committed revolving credit facility, which was undrawn on December 31, 2025, as at the end of 2024. Vaisala exercised second of the two one-year extension options of the facility in third quarter and hence the revolving credit facility expires on October 5, 2028. The facility agreement includes a financial covenant (gearing), tested semi-annually. On December 31, 2025, Vaisala was in

38

Board of Directors’ Report

Key figures

Key figure graphs

Financial statements 2025

Auditing

compliance with the covenant. In addition, interest-bearing lease liabilities totaled EUR 22.0 (24.5) million.

In 2025, cash flow from operating activities increased to EUR 90.4 (78.9) million. This was mainly a result of improved net working capital.

Capital expenditure and acquisitions

In 2025, capital expenditure in intangible assets and property, plant, and equipment totaled EUR 21.4 (19.1) million. Capital expenditure was mainly related to investments in facilities as well as in machinery and equipment to develop and maintain Vaisala’s production, R&D, and service operations.

The construction of Vaisala’s new automated logistics center in Vantaa, Finland, which began in 2024, was completed in the third quarter 2025. The investment amounted to EUR 8.3 million. The new logistics center was gradually taken in use during the fourth quarter. With new automation technology, the facility centralizes Vaisala’s logistics operations in Finland, ensuring fast and efficient deliveries to customers around the world.

Depreciation, amortization, and impairment were EUR 27.7 (24.3) million. This included EUR 9.1 (7.5) million of amortization of identified intangible assets related to the acquired businesses.

In September 2025, Vaisala announced an acquisition of its client, Quanterra Systems Ltd, a company specializing in atmospheric monitoring of CO₂ fluxes. With the acquisition, Vaisala is expanding its business in greenhouse gas measurements. Quanterra offers site-specific atmospheric carbon monitoring for nature-based industries such as agri-food and biofuels, as well as public and private research communities, including carbon certification and trading markets.

Research and development

Product and technology leadership from sensors and instruments to the latest artificial intelligence and machine learning technologies is the very core of Vaisala. Vaisala’s measurement solutions are based on a thorough understanding of its customers’ needs in diverse industries and applications from industrial processes and life science to meteorology,

renewable energy, finance and insurance. Vaisala leverages digital insights and continuously collaborates with its customers and partners to meet their measurement requirements and enable climate action. In addition to its own research and development work, scientific collaboration strengthens the company’s position as an industry pioneer and an innovative technology leader. To secure the technology and market leadership, Vaisala invests strongly in its growth markets and makes significant investments in research and development.

In 2025, Vaisala’s research and development costs were EUR 68.3 (68.6) million, 11.4 (12.1) % of net sales. Research and development costs include both development of new products and software as well as maintenance and further development of services and existing products. During the past years, research and development focus has shifted towards development of new technologies and products.

Research and development costs are recognized as costs in the financial year in which they incur, except for machinery and equipment acquired for research and development purposes, which are capitalized and depreciated on a straight-line basis. More information on accounting principles is available in Consolidated Financial Statements note 8. Research and development expenditure.

Further information about major product launches in 2025 is presented in the chapter Strategy and its implementation in 2025 in this Board of Directors’ Report.

Personnel

The average number of personnel employed in 2025 was 2,486 (2,368). At the end of December 2025, the number of employees was 2,465 (2,439). 77 (76) % of employees were located in EMEA, 16 (16) % in Americas and 8 (8) % in APAC. 64 (63) % of employees were based in Finland.

In Q3/2025, Vaisala acquired Quanterra Systems Ltd, and with the acquisition, 14 employees moved to Vaisala.

In 2025, personnel expenses totaled EUR 240.6 (225.3) million.

Vaisala has share-based incentive plans that are targeted to its key employees. In 2025, expenses related to share-based incentive plans totaled EUR 4.2 (2.5) million.

Further information about share-based incentive plans is available in Consolidated Financial Statements note 7. Share-based payments.

39

Board of Directors’ Report

Key figures

Key figure graphs

Financial statements 2025

Auditing

2025 review by business area

* Amortization and impairment of intangible assets and income and expenses related to (non- operative) earn-outs related to acquired businesses.

** Change with comparable exchange rates

Industrial Measurements business area’s 2025 orders received increased by 12% compared to the previous year and totaled EUR 255.9 (228.1) million. In constant currencies, orders received increased by 15%. Demand grew in all market segments with particularly strong growth in life science and power markets. Growth in the industrial market segment was driven by data center and semiconductor industries as well as orders from industrial OEM's.

At the end of 2025 the Industrial Measurements business area’s order book amounted to EUR 41.9 (37.0) million and increased by 13% compared to the year-end 2024. 74% of the order book, EUR 31.1 million, is scheduled to be delivered during the current year (Dec 31, 2024: EUR 32.9 million).

In 2025, the Industrial Measurements business area’s net sales grew by 9% compared to the previous year and were EUR 247.8 (226.5) million. In constant currencies, net sales grew by 12%. The growth was driven by the Americas region, but net sales increased also in the EMEA and APAC regions. Net sales increased very strongly in the life science and power market segments. In industrial markets, net sales growth was driven by data center and semiconductor industries as well as sales to industrial OEM's.

Gross margin improved to 62.5 (61.9) % despite the proportional impacts of the US tariffs and unfavorable exchange rates.

Operating expenses increased compared to the previous year mainly as a result of investments in sales and commercial excellence as well as EUR 1.2 million one-off costs mainly related to organizational restructurings.

The Industrial Measurements business area’s EBITA increased compared to the previous year following the net sales growth and totaled EUR 52.9 (48.9) million, 21.4 (21.6) % of net sales.

Weather and Environment business area

The Weather and Environment business area provides critical weather and climate measurements and intelligence through advanced instruments, systems, and subscription-based data and software services. It enables customers – ranging from energy, technology and insurance companies to meteorological institutes and airport operators – to ensure people’s safety, protection of property, and efficient operations. Key market segments are meteorology, aviation, roads, and renewable energy.

* Amortization and impairment of intangible assets and income and expenses related to (non-operative) earn-outs related to acquired businesses

** Change with comparable exchange rates