L&T CEO Eero Hautaniemi to Step Down in Planned 2027 Transition

HELSINKI, FINLAND – March 19, 2026 – Lassila & Tikanoja Plc (L&T) announced today that President and CEO Eero Hautaniemi will step down from his position no later than June 30, 2027. The move, initiated at Hautaniemi’s own request, sets in motion a remarkably long and deliberate leadership transition for the prominent Nordic circular economy company. The Board of Directors has already commenced the recruitment process for a successor to guide the firm through its next strategic phase.

This announcement is not a signal of abrupt change, but rather the culmination of a multi-year strategic overhaul. It provides a clear and stable runway for the company as it solidifies its identity following a transformative period under Hautaniemi’s leadership, which began in 2019.

A Legacy of Strategic Transformation

Eero Hautaniemi’s tenure has been defined by one of the most significant strategic moves in Lassila & Tikanoja's recent history: the demerger that repositioned the company as a pure-play circular economy powerhouse. The process, which formally concluded on December 31, 2025, separated L&T’s environmental and industrial services from its facility services businesses, with the latter forming a new independent entity, Luotea Plc.

This strategic split was designed to unlock value and provide focus. For the “New Lassila & Tikanoja,” it meant a sharpened mission to capitalize on the growing demand for resource-efficient solutions. In his statement, Hautaniemi directly linked this successful transformation to his decision, noting the timing was right for a new leader to take the helm. “Following the successful demerger, Lassila & Tikanoja is now a pure-play circular economy company and in an excellent position to capitalize on the opportunities offered by growing markets,” he said.

The financial picture of the newly focused entity reflects both the challenges and resilience of this strategy. In 2025, the circular economy business posted net sales of €426.6 million, a slight increase from the previous year. However, adjusted EBITA saw a decrease to €40.6 million from €44.4 million in 2024, a reflection of a challenging economic climate in Finland that impacted waste management volumes. Despite these headwinds, the company launched an efficiency program in early 2025 targeting an annual performance improvement of at least €8 million by the end of 2026 and maintained a strong balance sheet with a net debt to adjusted EBITDA ratio of 1.8x, positioning it for future investment.

Charting a Stable Course for Growth

The decision to announce a CEO transition more than a year in advance is a clear message of stability to investors, employees, and customers. It allows for an orderly and thorough search for a successor while ensuring Hautaniemi remains to steer the company and support the handover. This approach is intended to prevent the leadership vacuum and market uncertainty that can accompany sudden executive changes.

Jukka Leinonen, Chair of the Board of Directors, praised the outgoing CEO’s contributions. “I would already like to express my sincere thanks to Eero for the excellent cooperation and his strong commitment to the company,” Leinonen stated. “Since 2019, Eero has successfully steered the company and, following the successful demerger, has decisively launched the implementation of the strategy of the new circular economy company.”

Looking ahead, L&T has provided a confident outlook for 2026, projecting net sales between €420–450 million and an adjusted EBITA of €38–44 million. This forecast underscores the board's belief in the foundational strength of the company's strategy as it prepares for its next chapter of leadership.

Navigating the Nordic Circular Economy Frontier

The new CEO will take charge of a company operating in a sector ripe with opportunity but also fraught with complexity. The circular economy services market is substantial, estimated at €2.5 billion in Finland and €6.2 billion in Sweden, with a projected annual growth rate of 3%. The transition to a circular model in the Nordic region could unlock an estimated €48 billion in annual economic opportunity by 2030.

This growth is fueled by powerful tailwinds, including tightening EU regulations like the Corporate Sustainability Reporting Directive (CSRD), increasing investor focus on ESG metrics, and growing consumer demand for sustainable practices. L&T is positioned to leverage its expertise in transforming waste streams into valuable raw materials to meet this demand.

However, the landscape is not without its challenges. The Nordic region’s current circularity rate of approximately 6% lags behind the EU average of 12%, indicating significant untapped potential but also a long road ahead. Companies must navigate a volatile regulatory environment and compete with other major players, such as NG Nordic, for market share. The next leader of Lassila & Tikanoja will need to be adept at turning these regional and regulatory pressures into competitive advantages.

The Search for a Visionary Successor

As the board begins its search, the profile of the ideal successor is intrinsically linked to L&T's ambitious vision: to be a “forerunner in resource efficiency and the circular economy.” The role will demand more than just traditional executive experience. The new leader will need a deep, authentic understanding of sustainability and the ability to integrate ESG principles into the core of the business strategy, not as a peripheral concern but as the primary driver of value.

The company has set aggressive long-term targets, including achieving net-zero emissions by 2045 and a 70% recycling rate for materials by 2030. Meeting these goals will require a leader capable of driving innovation, managing complex operational changes, and fostering a corporate culture dedicated to continuous improvement in sustainability.

Ultimately, the board will be seeking a candidate who can balance this visionary, mission-driven leadership with strong financial acumen. The mandate is clear: to build upon the focused platform created by the demerger and deliver profitable growth that proves the circular economy is not just good for the planet, but also for the bottom line. The success of this search will be critical in determining whether Lassila & Tikanoja can fully realize its potential as a leader in the next wave of industrial and environmental innovation.