Business Review January – September 2025
President & CEO Mika Mahlberg’s comments
The long-term outsourcing trend of OEMs continued in the third quarter, and we started contract manufacturing for several new strategic customers.
As we had estimated earlier this year, in the third quarter of 2025, the market situation showed signs of recovery, although there are significant differences in demand volumes between different market segments. The recovery of the market situation was also reflected in our comparable order intake, which increased by 16 per cent during the quarter compared to the corresponding period last year and amounted to EUR 77.1 million.
Our comparable net sales for July–September increased by 16% year on year and totalled EUR 79.7 (69.0) million. Operational profitability also improved. Our recurring EBITDA was EUR 4.3 (3.7) million, or 5.4% (5.0%) of net sales. The result continued to be significantly burdened by the ramp-up costs of the business unit in Gliwice, Poland, but this was offset by the increase in net sales and the Fortaco 25 performance improvement programme, which have resulted in a positive development in the profitability and cash flow of our core business.
The long-term outsourcing trend of OEMs continued in the third quarter, and we started contract manufacturing for several new strategic customers. In August, our Kurikka business unit in Finland also received NATO’s AQAP-2110 certificate, which is NATO’s quality standard for defence sector partners. Thanks to the certificate, we strengthen our position as a reliable preferred partner in demanding projects in the defence segment.
We continue our performance improvement programme
Next year, we will continue our determined efforts to improve profitability. We are currently planning the Fortaco 26 programme, which will continue and expand our current performance improvement programme throughout the Group.
Although market uncertainty continues, for example due to the US tariff policy, we believe that the market will continue to pick up cautiously during the rest of the year. However, the visibility of most of our customers does not extend beyond six months, so the outlook for next year is still uncertain. The market has been in a deep rut and has not yet returned to normal levels, although the trend is reversing.
Supplier Assurance is our preferred external rating platform used by many of our key customers – we are ahead of both country-specific and industry-specific average results.
The development of our sustainability programme continued
In the third quarter, we continued to advance our sustainability programme, for example by developing our climate programme. We set climate targets and prepared a transition plan and assessed climate risks and related economic impacts.
We also strive for responsible sourcing by promoting the use of more sustainable materials. Supplier Assurance is our preferred external rating platform used by many of our key customers. Our score has increased from around 60 in 2023 to around 80 in 2025 (the highest possible score is 100), and based on the results, we are ahead of both country-specific and industry-specific average results.
I would like to thank all Fortaco employees for their dedicated work and our partners for their smooth cooperation, as well as our customers and principal shareholder for the trust they have shown.
