Translation: Original published in Finnish on 11/3/2026 at 8:20 am EET.

Driven by exceptionally strong momentum in North America, Framery’s Q3 report allayed concerns about the company’s earlier slowdown in growth. Growth excluding the largest customer accelerated much more than we expected, and profitability clearly exceeded our estimates. Following the report, we raise our earnings forecasts for the coming years somewhat. With revenue growth back on track and a moderate valuation, the share’s risk/reward is attractive, so we raise our recommendation to Buy (was Accumulate). We reiterate our EUR 8.0 target price.

North America drove faster-than-expected growth

Framery’s Q3 revenue grew slightly year-on-year, clearly beating our forecast, even though the comparison period still included exceptionally large orders from the company’s largest customer. Revenue excluding the largest customer, a better gauge of demand, grew by 12%, well above our 5% forecast, breaking the slowing trend in underlying growth. Framery’s performance and demand environment differed significantly across market areas. Growth was driven by the Americas, where underlying revenue surged by 63%, while EMEA was sluggish and APAC weak. According to Framery, showroom orders for the new Gradus product family significantly exceeded expectations, and assembly in Michigan started on schedule. On strong revenue and a lighter-than-expected cost structure, adjusted EBIT rose to 12.6 MEUR, comfortably above our forecast.

Fading comparison effect brings growth into view

While North America showed strong momentum, Europe was sluggish. Economic growth in Europe is slower than in the US, and soundproof office pods are also a more mature product category there, which makes high growth harder to sustain. A cyclical recovery would, however, also lift the European figures. In any case, Framery will find it easier to show revenue growth going forward, as the exceptionally large purchases by its largest customer drop out of the comparison figures. In Q4, these account for only ~3.7 MEUR of comparison-period revenue (Q3'25: 7.4 MEUR), and the effect will even out in Q1'27. We expect this to strengthen confidence in Framery’s profitable growth story over the coming quarters, and we forecast revenue growth to accelerate to 7–10% in the coming years. We raise our growth forecasts for the Americas and lower our EMEA forecasts, resulting in a slight increase in our earnings forecasts. Given Framery’s high margins, earnings growth depends heavily on revenue, and growth is generally highly value-accretive.

Risk/reward is attractive

Framery’s strong balance sheet and robust cash flow give management plenty of headroom for capital allocation, such as the share buybacks launched during the quarter. At current valuation levels, we view the company’s opportunistic buybacks favorably, and over the long term, they could become a key source of shareholder returns. On our 2026–2027 estimates, the share trades at around 14x P/E with a dividend yield of ~6%, which we consider moderate for a highly profitable growth company. Our DCF value of EUR 8.7 per share also points to upside in the share price. In the coming quarters, we will be watching in particular how the Gradus product range moves from dealer showrooms into customer projects and whether European demand stabilizes, as both will be decisive for next year’s growth trajectory. If growth accelerates as we expect, we also see upside potential in Framery’s current valuation multiples.