Suominen Q2 comparable EBITDA of EUR 5.1m came 8% above Vara Research consensus expectations. Net sales of EUR 101m were up 1% y/y and came 7% below consensus. FX had EUR 1.4m posigive impact on sales. EBITDA improvement was mainly related to higher volumes and lower fixed cost while mix had a negative impact. Net pricing contributed positively. Q3 operating cash flow of EUR -8.5m was weak and down from EUR 15.7m a year ago due to higher net working capital. The company aims to optimise its working capital which we believe could lead to weaker profitability if demand is not improving. The company continued to have operational challenges in two US production lines. Suominen reiterated its guidance for improving comparable EBITDA in 2026 from EUR 12.6m in 2025 while consensus is at EUR 15.6m. Initially, we expect consensus revisions to be muted.
