Translation: Original published in Finnish on 8/31/2026 at 9:30 am EEST.

Source: Inderes

Spinnova released its H1 report this morning. For a development company like Spinnova, short-term numbers are of secondary importance, so our attention in the report was particularly drawn to the development of the technology's cost competitiveness and the building of the consortium. On a positive note, the first test runs of the Jyväskylä demonstration plant progressed as planned, though no significant new details were provided regarding production and investment cost development. Therefore, it is still very difficult to assess the remaining time until a commercial breakthrough and the challenge of overcoming obstacles on the path. The company's earnings release can be followed here at 10:00 am EEST.

First test runs at demo factory proceeded as planned

The most interesting part of the report was the information on the test runs at Woodspin’s demonstration plant, which began in the spring, during which Spinnova validated solutions developed at pilot scale to improve production efficiency and fiber quality. According to the company, the initial test runs were completed as planned, and both production volumes and fiber quality quickly reached the factory's previous operating performance. We view this as positive data regarding the production concept's viability on a demo scale.

However, the report did not provide any substantial new information about the development of production and investment costs. The company continues to focus on improving cost efficiency in both the pilot and demo environments, planning to continue test runs in the fall while preparing for a broader production ramp-up. Thus, developments appear to be moving in the right direction, but based on the report, it remains difficult to assess the scope and time required for the remaining steps.

Consortium built around the fiber is expanding, but production investments are still pending

During the first half of the year, Spinnova continued building an international consortium, adding new members including Tearfil, INSIDER, Circulose, Sulzer, and NZ TEX GROUP during the early part of the year. The company also stated that it is continuing discussions in the US regarding potential production and licensing opportunities. In our view, the primary purpose of the agreements is to demonstrate that there is demand for fiber volumes and processing opportunities in the value chain. However, based on our preliminary interpretation, the report does not provide clear new information on when and with what structure the consortium could proceed with actual production investments.

The company also reported that Respin advanced to a commercial product launch in H1, when ECCO launched a limited edition of shoes incorporating leather waste-based fiber. In addition, according to the company, interest has grown particularly among luxury brands, and development work with a new partner has begun. We believe this offers Spinnova another interesting commercial path alongside the wood pulp-based solution. Nevertheless, in our view, Respin plays a secondary role in Spinnova's investment story, at least for now, compared to the more technologically advanced wood pulp-based solution.

Figures largely in line with our expectations and cash position remains secure

Spinnova's revenue in H1 was minimal, roughly in line with expectations, as the company did not have any technology delivery projects underway. The operating loss in H1 (-6.9 MEUR) was slightly higher than our forecast (-5.5 MEUR), reflecting slightly higher costs than we expected. The result continued to be weighed down by expenses related to technological development, preparations for ramping up production, and commercialization.

The company's liquid funds totaled 38.5 MEUR at the end of the period, which was well within the range of our expectations. Therefore, Spinnova's cash position is still reasonable, but the time required to transition to the commercial phase is almost entirely open. The company's net cash (13.2 MEUR), on the other hand, decreased mainly due to the lease liability for the Woodspin production facility. This was in line with our expectations, and we recommend that investors assess the company's financial position based on gross cash for the time being.

The US listing process has advanced to the submission of a public registration statement to the SEC, but the report provided no new, material information on the terms or precise schedule of the offering.