CEO’s review

Componenta Corporation business review 1 January–31 March 2026, 8 May 2026/ Sami Sivuranta, CEO:

“We are pleased with our financial performance in the first quarter of 2026, which continued last year’s strong positive momentum. Our net sales increased by 15% year-on-year, and the review period marked the seventh consecutive quarter with an EBITDA higher than in the comparison period.

Our order book increased clearly from the comparison period and was more than 30% higher than in the previous year. The situation in the energy industry and the defence equipment industry remains very strong, with a positive market outlook. The outlook for the general machine building industry has also improved, and companies’ capital expenditure decisions are gradually materialising as incoming orders and in our customers’ longer-term production plans.

The demand for machinery and equipment in the agricultural and forest machinery industry, along with production volumes, remains low across Europe, and despite a slow increase in growth, expectations for recovery are focused on the latter part of the year. This continues to be highlighted by the low capacity utilisation rate in our foundry business operations. At the same time, the unstable situation in the Middle East and the acceleration of general inflation have added uncertainty, particularly to the near-term outlook for the agricultural machinery industry.

The impacts for Componenta of the geopolitical situation, tariffs, trade policy decisions and constant changes have so far been limited. At the same time, however, despite the postponement of capital expenditure decisions, a capital expenditure backlog in machinery and equipment is emerging across various industries, which means we expect our order book’s development to be positive going forward.

During the review period, we continued to actively implement development measures and capital expenditure across our units to prepare for increasing demand, higher capacity needs and the general growth in order books, particularly in the defence equipment and energy sectors. Our successful new sales are expected to contribute to our future net sales growth as a result of our customers’ product launches and market recovery.

The Group’s service capability remained at a strong level in the first quarter of the year. The availability of electricity has remained at a good level, but price fluctuations have continued to be significant. No major risks are currently evident in the availability of raw materials and other materials, but a prolonged situation in the Middle East could lead to changes in the market environment. We are actively monitoring the development of our order book, the progress of market recovery, the geopolitical situation and the impact of tariff and trade mechanisms on pricing and availability, and working to ensure the continued reliability of our supply chains.

As a contract manufacturer, we will continue to pursue measures to strengthen our market position, and we are working to be the preferred sustainable total supplier to our customers, with a wide offering.”