Componenta: Loan agreement to support growth investments
By Pauli Lohi
Translation: Original published in Finnish on 11/20/2025 at 07:45 am EET
The 3 MEUR loan agreement announced by Componenta supports, for example, the financing of growth projects in the defense industry. We also believe that the loan will enable a reduction in financing costs in the medium term, as the use of existing, likely more expensive, financing solutions can be gradually decreased. We have already included the expected decrease in financing costs in our estimates, so we do not see a need for significant estimate changes on the back of the release.
The loan supports the financing of growth projects
Componenta announced on Wednesday that it has agreed on a new 3 MEUR loan with LocalTapiola and Elo Mutual Pension Insurance Company. The loan term is five years, and the loan is to be drawn down in full during 2025. According to the press release, the loan will be used to finance growth projects, particularly a new surface treatment line serving the defense equipment industry. The new line is expected to be in serial production in 2026. Revenue from the defense industry has recently been growing for the company and has improved Componenta's relative margin.
The balance sheet is stable, but there is potential for efficiency gains in financing costs
We find Componenta’s balance sheet to be on a moderately stable footing, so the loan news has no significant revision impact on the investment case. The company’s net debt at the end of Q3’25 was 9.7 MEUR, and net gearing was relatively low at 35%. The ratio of net debt to 2025e EBITDA is around 1x, which is also quite low. We believe the company's financing costs have been relatively high, considering its stable financial position. We estimate that the company's high financing costs reflect its weaker earnings performance in previous years, but the recent earnings turnaround has, in our view, also decreased debt servicing risks. We consider it likely that the new loan has relatively favorable terms and will help the company gradually reduce its financing costs. We have estimated that financing costs will decrease significantly in the medium term (2025e: 2.0 MEUR, 2027-2028e: 1.4 and 1.0 MEUR).
Componenta is a manufacturing company. The company is a supplier of casting solutions that are further used in a number of industrial vehicles, mainly trucks and larger machines. In addition to the main business, related engineering services are offered. Customers are found on a global level, mainly around the European market. The head office is located in Vantaa.
Read more on company pageKey Estimate Figures31.10
| 2024 | 25e | 26e | |
|---|---|---|---|
| Revenue | 97.1 | 113.3 | 129.5 |
| growth-% | -4.6 % | 16.6 % | 14.4 % |
| EBIT (adj.) | -0.3 | 4.0 | 5.6 |
| EBIT-% (adj.) | -0.3 % | 3.5 % | 4.3 % |
| EPS (adj.) | -0.28 | 0.21 | 0.38 |
| Dividend | 0.00 | 0.07 | 0.14 |
| Dividend % | 1.6 % | 3.2 % | |
| P/E (adj.) | neg. | 20.8 | 11.3 |
| EV/EBITDA | 4.1 | 5.0 | 3.9 |
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