One-off item announced by Componenta suggests tax benefits exceeding our expectations in coming years

Translation: Original published in Finnish on 2/12/2026 at 8:13 am EET.

Componenta announced on Wednesday that it will record a total of approximately 5.7 MEUR deferred tax asset in its 2025 financial statements. This entry will have a significant, one-time positive impact on the reported financial result for the period but will have no impact on the company's cash flow or operating profit for the current financial period. The tax asset exceeds our assumption of the tax benefit of confirmed losses in the coming years, and we will reevaluate our tax assumptions in connection with the next update. We will include the one-time item in our forecasts when we publish our earnings preview.

Entry reflects improved earnings performance and strengthened balance sheet

The recognized tax asset consists of a portion of confirmed tax losses and other temporary differences. Recognition is based on the criteria set out in IFRS standards and the company's assessment of future taxable profits. The assessment is supported by the group’s improved operational performance, favorable profitability development, and strengthened balance sheet and financial position. Following this recognition, the company still has approximately 3.6 MEUR in unrecognized deferred tax assets related to confirmed tax losses on the balance sheet. The deferred tax asset is presented on the income statement's tax line and has no impact on the group's adjusted EBITDA or cash flow. This recognition will increase reported earnings per share and the equity ratio while decreasing net gearing, which could improve Componenta's standing with debt financiers. This announcement has no impact on the 2025 guidance, according to which the group's revenue is expected to be 115–118 MEUR and adjusted EBITDA 9.0–9.8 MEUR.

As of the end of the 2024 financial year, Componenta had confirmed losses of 65 MEUR resulting from the company's post-financial crisis cycle of losses. Confirmed losses can be utilized gradually until 2032, though a significant portion will expire by the end of 2026. This is because the tax benefit made possible by the losses can be utilized for 10 years after they occur. The benefit of confirmed losses is equal to the share of the tax rate on the confirmed loss (65*20% = 13 MEUR), but this requires the company to have tax-deductible profits before the losses expire. We predict the company will avoid paying taxes until 2029, supporting the cash flow in our forecasts by approximately 3 MEUR. In comparison, the activated tax asset of nearly 6 MEUR seems substantial given our forecast and would necessitate either improved earnings beyond our expectations or a slower-than-expected expiration of losses. Going forward, tax asset assumptions will be tested annually, so corresponding write-downs of balance sheet items are possible in the coming years. We will update our tax assumptions and include the reported one-time item in our forecasts in connection with the next update.