Translation: Original published in Finnish on 01/05/2026 at 08:31 am EET

Canatu and DENSO deepen their cooperation to develop production equipment for producing larger-area carbon nanotube films. The agreement is a concrete step towards the most significant long-term market potential for the company's automotive segment, i.e., heaters covering the entire windshield. The news supports our view of the company's technology development progressing and our estimates for strong growth in 2026.

The co-development agreement aims for larger-scale CNT films

  On Friday, Canatu announced that it had signed a 17-month co-development agreement with its long-term partner, DENSO Corporation. The agreement aims to develop a large-scale CNT collection chamber that enables the manufacturing of larger carbon nanotube (CNT) films than currently possible. Increasing the size of the films is critical for Canatu's technology to be utilized in future applications, such as full windshield heaters. The system will first be built and tested at Canatu's factory in Finland, after which it can be transferred to DENSO's factory in Japan.

The value of the agreement falls into the lowest quartile of Canatu's "medium-sized" category (1.0-5.0 MEUR) according to its disclosure policy, i.e., in the 1-2 MEUR range. The revenue related to the agreement is expected to be recognized mainly in the first half of 2026.

A step toward the biggest market potential of the automotive industry

The agreement did not come as a major surprise, as Canatu and DENSO have been collaborating since 2018, and the companies have previously carried out co-development programs, for example, related to advanced driver-assistance systems (ADAS) heaters. However, the news is strategically significant, as it concretely moves Canatu's technology toward the largest application area in the automotive industry. We have previously estimated that the market potential for windshield heaters will grow to over 800 MEUR by 2030, which is many times larger than the current market for ADAS and LiDAR heaters. Canatu's current production line has scaled to a width of 600 mm, but solutions covering the entire windshield require a larger size.

The announced agreement adds more substance to our 2026 revenue estimate (29.8 MEUR, +100% year-on-year), which we expect to include growing revenue from automotive industry development projects. Although the monetary value of the agreement (1-2 MEUR) is moderate relative to the full-year estimate, it is an indication of the progress in the commercialization path of the company's technology. The release does not create an immediate need for estimate changes, but it strengthens our confidence in the long-term revenue growth prospects of the company's automotive segment.