It is certainly interesting to see what the partial demerger—
The industry has indeed consolidated heavily over the last 4-5 years, and I agree that by 2030, only these large players will be left—depending, of course, on the companies’ strategies.
Remondis is involved in a way, as they own Delete; I think they and other international operators are intimidated by the municipalization you mentioned and the increasing regulation, and are waiting for the situation to stabilize.
The aforementioned factors also mean that small local players will surely be happy to sell their businesses. In addition to these largest ones, there are a few mid-sized operators in the industry, and it will be interesting to see whether they end up in the arms of the larger ones or if they lead the consolidation—by mid-sized, I mean those with a turnover of €20–40m operating in a segment broader than just local.
L&T, being the only publicly listed one, is certainly an interesting case now that Luotea has been spun off, to see what they will do—will they invest in facilities, continue organic and inorganic expansion, etc.
Over the years, there has been much speculation about whether L&T could become an acquisition target. Surely several PE investors have evaluated this and made inquiries over the years.
L&T’s largest owner is still the Evald and Hilda Nissi Foundation (9.15% of shares/votes). The Evald and Hilda Nissi Foundation was established in 1964, and its operations are based on the assets bequeathed by the Nissis for the foundation. Evald Nissi made his life’s work as a member of the Board of Directors of Lassila & Tikanoja Oyj.
Unless this particular foundation wants to reinvest its holdings, I find it difficult to see a situation where L&T would become the target of a takeover bid. History and steady dividends certainly carry weight in the balance.
Addition: I personally believe that L&T would be more valuable outside the stock exchange as part of a larger entity or if it could be successfully developed into a Nordic consolidator. On the stock exchange, the valuation is in the bargain bin.
Phoebus added 50k shares in April. Not surprising as such, since AO is such an inveterate old-school value investor that he cannot resist these multiples…
LTM EV/EBITA (Adj.) 11.0x and P/FCFE 8.1x, meaning approximately a 12% yield. At first glance, the multiples are attractive, but I am still slightly skeptical about earnings growth (stock price follows earnings).
We are probably talking about 2-3% normalized organic earnings growth in the long run, in which case the stock is moderately undervalued.
Lassila & Tikanoja strengthens its waste management services by acquiring the share capital of Kempeleen Siirtokuljetus Oy and Kempeleen Jätekuljetus Oy
Lassila & Tikanoja has signed an agreement on 18 May 2026 to acquire the share capital of Kempeleen Siirtokuljetus Oy and its subsidiary Kempeleen Jätekuljetus Oy. The acquisition supports L&T’s strategic growth targets and strengthens the company’s waste management and recycling service offering in the Northern Ostrobothnia region. The completion of the transaction is subject to approval by the Finnish Competition and Consumer Authority (KKV).
Kempeleen Siirtokuljetus Oy (founded in 1993) and Kempeleen Jätekuljetus Oy (founded in 1981) form a group specializing in waste management and recycling services operating in Northern Ostrobothnia, providing comprehensive solutions from waste collection and transport to processing and material recovery. In 2025, the combined net sales of Kempeleen Siirtokuljetus Oy and Kempeleen Jätekuljetus Oy were approximately EUR 14 million. The companies employ a total of about 50 people. The operations of the companies will continue normally within the current entities for the time being.
Here are Rauli’s comments on L&T’s recent acquisition
Lassila & Tikanoja announced on Monday that it is acquiring the share capital of Kempeleen Siirtokuljetus Oy and its subsidiary Kempeleen Jätekuljetus Oy. The combined revenue of the acquired companies was approximately EUR 14 million in 2025, but their profit level or the purchase price were not disclosed. Since the company’s targeted 6% annual growth relies partly on acquisitions, we consider the transaction strategically logical for L&T. It adds approximately 3% to the company’s revenue. We will revise our forecasts upward at the latest when the transaction is confirmed.
The operating profit margin, according to Asiakastieto’s figures, was just over 7% overall. In all likelihood, the purchase price should be below L&T’s multiples, and there is likely some room for efficiency improvements.
L&T is starting to become so cheap that even I, as a growth and risk investor, am starting to get interested. There are surely reasons for the low price, but if one were to give the company two or three years, could there be potential here?
I wonder what L&T’s management thinks—is the share price already so depressed that it’s time for buybacks? Would the company have the cash position for this? Generally speaking, too much is paid out in dividends in Finland compared to growth investments and share buybacks.
I was in pretty much the same mood about three years ago when I became an L&T shareholder. Unfortunately, the stock chart has just been gradually trending downwards from what I considered a bargain price back then.
My spark of hope for any significant rally is starting to fade, and I actually sold a third of my position yesterday. In my opinion, the corporate management hasn’t been inspiring either — if I remember correctly, it was the previous CFO who didn’t own a single share.
I wouldn’t be surprised if we hear another profit warning this summer due to rising diesel prices caused by the crisis in the Middle East.
Diesel prices have risen, but perhaps that is already being priced in, and in the long run, its impact will likely remain fairly short-lived. Indeed, the company’s dividend yield is starting to look attractive at these prices. I’ll put this on my watchlist: will it drift closer to 6 than 7 euros?
At the same time, however, I feel like calling the CEO in for a “stern talk.” By what means does L&T intend to convince the markets that the company is a good investment? Where will growth—specifically profitable growth—come from? Surely the intention isn’t to settle for the role of a micro-growing dividend machine? Should we launch a share buyback program already, or is there a better use for the cash?
