CEO Review 1 January to 31 December 2025

CEO Elisa Markula:

“In 2025, we successfully continued the execution of our strategy. Our profitability improved significantly as a result of our long-term profit improvement measures and favourable operating environment. VR’s comparable operating result increased over 53%, and reached nearly EUR 130 (85) million. Revenue growth in long-distance traffic and logistics offset the impact of expired tendered traffic contracts during the year, and comparable revenue remained at the previous year's level.

In Finland’s long-distance traffic, we reached record-high 16.1 million journeys, representing an increase of more than 4% year-on-year. Growth was especially driven by an increase in leisure travel and by long-term efforts to improve the customer experience, enabling us to strengthen the attractiveness of rail travel in several areas. We continued to put emphasis on travel comfort, new services, and disruption management. Furthermore, long-distance punctuality was exceptionally high at 89.5%. Customer satisfaction continued to grow, and the Net Promoter Score (NPS) rose to 57 (46), an all-time high on an annual basis.

VR has operated in Swedish long-distance traffic between Stockholm and Gothenburg since mid-2024. Extensive track works carried out throughout 2025 impacted the customer experience and particularly punctuality, which remained at a level 74%. Despite these challenges, occupancy rates remained high and VR’s brand awareness in Sweden clearly increased.

VR City Traffic’s revenue declined following the expiry of a few tendered traffic contracts. In Sweden, we started operating four new regional service contracts, of which two commenced only in December. Thanks to the improved operational efficiency and negotiated contract amendments, the comparable operating result showed, however, a clear improvement from the previous year.

Our strategy focuses on growth, profitability, and building a value-driven culture. By the end of 2027, we will implement EUR 250 million in profit improvement measures, ensuring our future competitiveness and enabling the financing of replacement and growth investments. Sweden is an important growth area for VR.

For VR Logistics, the year was twofold: in the first half of the year, volumes and revenue grew against a weak comparison period, whereas in the second half, market uncertainty and weakened customer demand led to a decline in logistics volumes year-on-year. Despite this, profit improvement measures, renewed customer operating models, and a favourable operating environment improved our profitability compared to the previous year. We continue to develop our logistics services by strengthening delivery reliability, deepening customer collaboration, and investing in low-emission solutions.

In December, VR FleetCare and UPM signed an agreement for the delivery of more than 150 roundwood wagons. The project is a significant milestone for Finnish wagon manufacturing, as it represents the first delivery of roundwood wagons to an external customer. In 2025, the manufacturing of heavy transport wagons for the Norwegian and Swedish Defence Forces also commenced. These projects strengthen the security of supply in the Nordics and the domestic industrial sector.

Our strategy focuses on growth, profitability, and building a value-driven culture. By the end of 2027, we will implement EUR 250 million in profit improvement measures, ensuring our future competitiveness and enabling the financing of replacement and growth investments. Sweden is an important growth area for VR. Following new tendered traffic contracts and the acquisition of VR Snabbtåg’s long-distance operations, we are now the second-largest rail operator in Sweden. We believe that VR’s extensive industry expertise and experience provide clear added value to the Swedish market.

VR is committed to promoting competition and the growth of the rail market in Finland. Commuter trains, railbuses, and night train coaches to be used in future tendered traffic will be transferred to the state-owned rolling stock company, Suomen Ostoliikennekalusto Oy, in phases during 2026. This will enable equal access for new operators to publicly tendered traffic. Rolling stock used in market-based open access passenger traffic and rail logistics will not be transferred to the rolling stock company.

We continue to focus on our core business as a provider of passenger transport and rail logistics services. As part of this strategic direction, we continued to divest our station properties. We also sold used rolling stock to other operators in the industry.

A warm thank you to our employees for their commitment and for the valuable work we do for our customers every day. I would also like to thank our customers and partners for their trust and for being part of our shared journey. Together, we are building a sustainable and competitive transport system that creates value for society as a whole.”