Spinnova H2'25 flash comment: Progress in technology development

Source: Inderes

Translation: Original published in Finnish on 2/12/2026 at 9:27 am EET.

Spinnova released its H2 report this morning, which was the company's first full reporting period since the decision to terminate its cooperation with Suzano. For a development company like Spinnova, short-term numbers are of secondary importance, so our attention in the report was particularly drawn to comments on the development of the technology's cost competitiveness and the building of the consortium. At first glance, the company appears to have made clear progress in reducing the production and investment costs of its technology in H2 (incl. a 50% drop in energy consumption for MCF production). However, even with the new information, it is very difficult to assess the remaining time until a commercial breakthrough and/or the challenge of overcoming obstacles on the path.

Steps forward in the cost-efficiency of the technology

The most interesting aspect of the report was the information on the progress of technology development, which is critical for commercial scaling. Spinnova announced that it has achieved significant improvements, especially in the production of MFC, which serves as a raw material, reducing its energy consumption by over 50% compared to previous levels. In our view, the inefficiency of MCF production was one of the biggest individual reasons why the technology has not been techno-economically competitive from the perspective of parties considering production investments. In addition, the cost of additives in the fiber recipe has been reduced by approximately one-fifth, and the processability of the fiber has been improved.

The company also reported progress in the development of its fiber finishing concept and a new drying concept. If these progress as expected to a demo scale, they could significantly reduce investment costs relative to capacity. In our view, these are important steps towards the goal of bringing the technology's investment and production costs to a competitive level relative to other fibers. However, based on the report, it is at least preliminarily difficult to estimate the number and magnitude of remaining development steps and the time required for them.  

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

Spinnova has continued to build an international consortium in the second half of the year, with ARMEDANGELS, TOMMY HILFIGER, and Fashion for Good joining by the end of the year. 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 the development of Respin with ECCO has progressed as planned, and leather waste-based fiber has been produced for a product launch in 2026 (likely small-scale). We believe this offers Spinnova another interesting commercial path alongside the wood pulp-based solution. However, 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.

Losses were deeper than we expected, but the cash position is still secured

Spinnova's revenue in H2 was minimal, roughly in line with expectations, as the company did not have any technology delivery projects underway. However, the H2 operating loss (-14.5 MEUR) was clearly larger than our forecast (-6.8 MEUR). The loss was mainly due to a 9.5 MEUR write-down on the lease agreement for the Jyväskylä demo plant (the demo plant was located at a different address than Woodspin's pre-industrial production facility, which was transferred to Spinnova during the period). Adjusted for the write-down, the company's operating loss was likely smaller than our forecasts. Also, according to our preliminary interpretation, H2 cash flow appears to have been somewhat better than we expected, but we will need to analyze this in more detail during the day.

On the positive side, the company's liquid assets were 44 MEUR at year-end, which was slightly higher than we anticipated. As a result, while the company's cash position remains reasonable, on the other hand, the time needed to transition to the commercial phase remains largely unresolved. The company's net cash, on the other hand, decreased significantly to 18.2 MEUR when the lease liabilities of Woodspin's pre-industrial factory were transferred to Spinnova. 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.