Translation: Original published in Finnish on 9/9/2026 at 7:35 am EEST.

Framery announced on Tuesday that it will initiate a share buyback program of up to 10 MEUR. The program corresponds to just under two percent of the company's shares, and the acquired shares are intended to be canceled. The company's strong balance sheet and abundant cash flow enable the creation of shareholder value through share buybacks in a situation where the share price is, in our view, under pressure mainly due to temporary market challenges. We view active capital allocation positively.

Strong balance sheet enables flexible profit distribution

The share buyback program will acquire a maximum of 1.5 million shares, starting no earlier than September 15 and ending no later than the end of March 2027. The acquired shares are intended to be canceled on a quarterly basis, which will reduce the number of shares outstanding and thus support EPS development. We already highlighted in connection with our Q2 report that Framery's balance sheet is in excellent condition (Q2'26 net debt/EBITDA of 1.2x) and the company's copious cash flow gives management plenty of leeway for capital allocation decisions. The company's dividend policy is to distribute 70–90% of the profit for the financial year, and part of the capital return can be executed through share buybacks. The company emphasized in its release that its general capital allocation targets and dividend policy will remain unchanged.

Framery's business model is capital-light, as growth investments are mainly expensed through the income statement and growth does not require heavy balance sheet investments. This leaves the company with plenty of free cash flow to be distributed to the owners. We have previously highlighted that we consider share buybacks to be a particularly attractive option when the share's valuation is weighed down by temporary uncertainties in the operating environment. At the current valuation level (2026e P/E ~15x, EV/EBIT ~12x), we consider buybacks to be a smart way to leverage the company's strong financial position and create shareholder value until the market is once again convinced of the recovery in baseline demand.