CEO’s review

Componenta Corporation Business Review 1 January–30 September 2026, 30 October 2026/ Sami Sivuranta, CEO:

“Componenta performed well during the first nine months of 2026, in line with expectations, and we are very satisfied with the Group’s financial development over the review period. Our net sales increased by 19.3% year-on-year, exceeding EUR 100 million. In the third quarter, our EBITDA improved on the comparison period for the ninth consecutive quarter, while our operating result for the year to date reached a good level, standing at 6.1%.

Our order book grew significantly and was up 37.6% on the comparison period. The growth in the order book was supported by positive market recovery and an expected increase in Componenta’s market share. The order book was exceptionally strong against our expectations, partly driven by the timing of certain deliveries at the beginning of the fourth quarter. Our customers’ confidence is also reflected in Componenta’s outlook, which is highly positive, supported in particular by strong demand in the energy and defence equipment sectors, as well as improved visibility.

We have responded to strong market conditions across the energy sector by investing in our capabilities, resources and production capacity. Driven by strong end-customer order books and longer-term demand planning, we are currently working even more closely with our energy sector customers on reserving future capacity and enabling growth.

The outlook for the defence equipment industry has improved further, and several new investments are underway, with phased ramp-ups starting during the past quarter. These investments are related to both new technologies and our capacity, playing our part in supporting the industry’s strong growth. The partnership agreement signed in June with the Finnish Defence Forces Logistics Command has further strengthened our cooperation, particularly across critical supply chains for ammunition and explosives.

The outlook for the general mechanical engineering industry has continued its relatively modest recovery. However, the pace of market recovery depends on how each end-customer’s own market develops, and the sector’s investment appetite remains heavily tied to general market sentiment. Overall, the recovery is expected to continue going forward, driven by a growing backlog of investment across the sector arising from the operational use of machinery and equipment.

Despite tentative signs of growth, the recovery outlook for the agricultural machinery industry remains very modest, partly due to the situation in the Middle East. Both demand for machinery and equipment and overall production volumes have remained at a low level across Europe. General expectations for an industry recovery have been pushed back even further. Componenta is also preparing for very modest sector growth in 2027. A positive driver for industry expectations, however, is the launch of new model series, which will support Componenta’s market share growth over the longer term. Currently, the continued weak demand across the sector is being reflected particularly in our foundry operations through capacity utilisation rates that remain relatively low.

During the third quarter, our productivity was slightly weighed down by several new product ramp-ups scheduled for the current year, alongside investments in capacity and resources to prepare for growing demand, especially in the energy and defence equipment sectors. Componenta has successfully met the growing needs of its customers, supported by the Group’s excellent service capabilities.

The availability of electricity has remained at a good level, but price fluctuations have continued to be significant. No significant risks are foreseeable regarding the availability of raw materials and supplies, but prolonged geopolitical tensions may cause changes in the market and accelerate inflation. Alongside other impacts, the situation in the Middle East has somewhat contributed to rising transport costs. 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 the availability of materials, and working to ensure the continued reliability of our supply chains.

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