Translation: Original published in Finnish on 6/25/2026 at 8:46 am EEST.

Componenta announced on Wednesday that it has signed a partnership agreement with the Finnish Defense Forces Logistics Command for defense equipment in the ammunition and explosives sector. We consider the agreement a significant strategic step that validates the company's investment story in the defense industry and locks in Componenta's position as a trusted supplier in Finland's security of supply landscape. In an environment of increasing defense budgets, the agreement signals recurring, long-cycle order potential instead of individual and sporadic deals. As the framework agreement, which is valid until further notice, does not include binding volumes, the news does not cause immediate changes to our earnings estimates, but it provides strong support for our long-term growth expectations for the segment. We have discussed our longer-term forecasts in more detail in the recently published extensive Componenta report, which can be read here.

Partnership cements position at the core of security of supply

The aim of the agreement is to ensure the availability of products manufactured by Componenta and military security of supply in all states of readiness. Although the partnership agreement does not directly specify production volumes and actual procurement agreements are made separately, from an investor's perspective, we believe the value of the news lies in the company's achieved position as a more permanent supplier. Joint long-term planning with the Finnish Defense Forces elevates Componenta from a transactional subcontractor to a strategic partner. We believe this is a strong signal that the company has successfully positioned itself as a key part of the domestic defense industry value chain. 

Tangible evidence for growth expectations of Defense Equipment Industry

According to the company, the partnership agreement has no impact on the current year's guidance, as the value of potential orders depends on the future equipment needs and funding of the Finnish Defense Forces. However, the news provides much-needed substance to the continued growth of the defense equipment industry segment, which we forecast for the current decade. We expect the segment's revenue to roughly double by 2030 compared to the 2025 level. The realization of this growth trajectory requires significant new orders from the segment's practically sole customer, the Finnish Defense Forces. In our view, the partnership agreement now concluded creates excellent structural conditions for securing these long-term order flows in the coming years.