Componenta Q2'25 flash comment: Continuing the upward trend

Translation: Original published in Finnish on 7/23/2025 at 9:28 am EEST.

Componenta published its Q2 report this morning. Overall, the report was slightly better than we expected, with EBITDA slightly above our forecast. Looking ahead to the rest of the year, the business environment remains challenging and growth expectations for the Agricultural Machinery segment, – important for the foundry business – have largely been pushed back to 2026. This was, however, broadly in line with our expectations, meaning that the forecast changes for the current year appear to be limited. Componenta retained its broad guidance, and we expect the company to meet this guidance without difficulty.

Organic revenue growth was modest

Componenta's revenue increased by about 17% to 30.9 MEUR in Q2, which was roughly in line with our expectations. Organic revenue growth was modest at around 2%, according to our estimates. Thus, a large part of the growth came from the business acquisitions made at the end of 2024. Organic growth was driven by the Defence Equipment Industry in particular, though we estimate that the Energy Industry achieved softer organic growth despite business acquisition being the main driver of growth in this customer segment. It was also positive that revenues in the larger customer segments did not decline much further.

At the end of the review period, Componenta's order book stood at 14.2 MEUR, which was slightly better than we expected and higher than in the comparison period. This puts the company in a good position to pursue organic growth for the rest of the year.

Pricing adjustments supported profitability

Componenta’s EBITDA for Q2 was 2.6 MEUR, corresponding to a margin of 8.5%. This means that the company managed to improve its profitability slightly more than we had expected. At the quarterly level, the company's reporting format does not provide a more detailed view of the cost structure, but based on the commentary, the drivers of the profitability improvement were pricing adjustments and stronger production volumes than in the comparison period. The sluggish agricultural machinery market continued to keep production volumes in the foundry business low, further weighing on profitability. On the lower lines, the deviations from forecasts were small, resulting in Q2 EPS of EUR 0.07, which also slightly exceeded our forecast.

EBITDA for the previous financial year already achieved in H1

Componenta's current guidance is that the company's revenue and adjusted EBITDA will improve from the previous financial year's levels (2024 revenue 97.1 and adj. EBITDA 4.9 MEUR). Componenta's H1 EBITDA (5 MEUR) exceeds the adjusted EBITDA generated for the entire previous financial year, and revenue grew by around 19%, indicating that the guidance will be met. As a result, the informative value of the guidance is currently minimal. The slightly better-than-expected order book supports our projections for the rest of the year, but the weak business environment and the postponement of the expected recovery in the agricultural machinery market to 2026 keep the outlook subdued. Overall, pressures to change estimates for the current year appear to remain low after the Q2 report.