Published: 2025-11-06 09:00:12 EET
Exel Composites Oyj - Interim report (Q1 and Q3)

Exel Composites Plc Business Review Q1-Q3 2025: Order intake and adjusted operating profit increased by double digits in Q3

EXEL COMPOSITES PLC | STOCK EXCHANGE RELEASE | 7 NOVEMBER 2025 AT 9:00 EET

Order intake and adjusted operating profit increased by double digits in Q3

This release is a summary of Exel Composites' business review for
January-September 2025. The complete publication is attached to this release as
a pdf file and available on the company's website at
https://investors.exelcomposites.com/publications/

Figures in parentheses refer to the corresponding period in the previous year,
unless otherwise specified.

July-September 2025 in brief

  · Order intake increased by 27.8% to EUR 26.9 million (Q3 2024: 21.0)
  · Revenue was stable at EUR 24.1 million (24.6)
  · Operating profit was EUR 0.4 million (0.6) and operating profit margin 1.8%
(2.5%)
  · Adjusted operating profit increased to EUR 0.9 million (0.7) and adjusted
operating profit margin was 3.9% (2.9%)
  · Earnings per share was EUR 0.00 (-0.02)

January-September 2025 in brief

  · Order intake increased by 18.2% to EUR 89.9 million (Q1-Q3 2024: 76.1)
  · Revenue was stable at EUR 74.2 million (74.5)
  · Operating profit was EUR 1.3 million (1.2) and operating profit margin 1.8%
(1.6%)
  · Adjusted operating profit increased significantly to EUR 2.7 million (1.5)
and adjusted operating profit margin was 3.7% (2.0%)
  · Earnings per share was EUR -0.05 (-0.03)

Guidance for the full year 2025 (unchanged)

Exel Composites expects revenue to increase and adjusted operating profit to
increase significantly in 2025 compared to 2024. (Published on 14 February 2025)

President and CEO Paul Sohlberg:

We advanced on all fronts in the third quarter - both commercially,
operationally, and strategically - turning customer demand into a stronger order
book while ramping capacity to support growth.

Exel's order intake grew by 27.8% to EUR 26.9 million in the third quarter,
outpacing revenue of EUR 24.1 million, which was stable year on year due to
customer delivery phasing. Adjusted operating profit improved to EUR 0.9
million, corresponding to a 3.8% margin, up by 31% year on year. Our order
backlog increased to EUR 49.2 million, 61% higher than a year ago, supporting
our growth for the coming quarters. This progress is as anticipated: we are
about to complete our strategy's stabilization and profitability phase and
continue working closely with customers to build for the growth phase.

In the quarter, we saw market activity develop favorably in line with our chosen
customer industries: Energy remained strong, while Buildings & Infrastructure
and Transportation showed good demand. We also experienced continued activity in
defense-related applications where composites deliver low weight and high
durability.

Operational execution delivering results

Operational execution advanced across both business units. Industrial Solutions
began commercial shipments from our new India factory in September and will
continue increasing volumes, thus improving proximity and cost-to-serve for wind
customers and strengthening our global supply chain. In Engineered Solutions
business unit, we advanced multiple new customer engagements and continued the
planned transfer of product families from the closed Belgium site. In relation
to these activities, our third quarter earnings reflect closure-related items
from the Belgium site where operations stopped in March 2025. The process
following the closure is ongoing and approaching completion. We will continue to
manage the transition carefully while maintaining delivery performance and
quality.

Our renewed operational model continues to produce results, as reflected in our
improved profitability. We operate with fewer sites following our ongoing
network optimization and are seeing increased utilization rates in the remaining
footprint. As a result, adjusted operating profit was higher year on year even
with revenue broadly in line with last year.

Operating cash flow was negative in this quarter, reflecting a build-up in
working capital tied to our larger order backlog, India ramp-up and delivery
scheduling. We expect our operating cash flow and working capital efficiency
both to improve as we grow, while total working capital is expected to increase
as revenue grows.

Strategic deals strengthen our position

During the third quarter, we achieved notable customer milestones. In Energy
customer industry, a large purchase order for composite conductor cores from De
Angeli Prodotti was prepared during the period and received after the period. In
Buildings & Infrastructure customer industry, we secured a deal with long
-standing customer KONE for increased UltraRope® deliveries.

Conductor cores is a growing application for composites as they offer superior
properties compared to traditional materials. Composite cores allow the
transmission line to carry more current, waste less energy, and sag less while
achieving longer spans - letting utilities to add capacity on existing lines
without rebuilding. Similarly, UltraRope®'s carbon-fiber core replaces steel,
improving the energy efficiency of elevators in high-rise applications. These
composite solutions are perfect examples of how Exel combines specialized
engineering with industrial-scale manufacturing to deliver consistent quality in
demanding applications.

Turning to growth ahead of expectations

Going forward, our strategic priorities are clear. We will continue working on
securing growth from existing and new customers, build the order book and
convert it efficiently, thus utilizing our capacity optimally, and deepen
partnerships where Exel's engineering improves our customers' business.

With the strategic customer deals in place, wind programs now shipping from
India, and operational programs on track, we are busy accelerating towards 2026
while completing this year in line with our full-year 2025 guidance framework. I
want to thank our customers and shareholders for their continued trust, and the
entire Exel team for their focused and committed work.

Consolidated key figures

                  Q3       Q3       Change  Q1-Q3    Q1-Q3   Change  Q1-Q4
EUR thousand      2025     2024     %       2025     2024    %       2024
unless otherwise
indicated

Revenue           24,094   24,585   -2.0    74,181   74,539  -0.5    99,614
Operating profit  438      620      -29.4   1,323    1,224   8.1     -2,853
% of revenue      1.8      2.5              1.8      1.6             -2.9
Adjusted          928      707      31.2    2,739    1,526   79.4    1,704
operating profit
1)
% of revenue      3.9      2.9              3.7      2.0             1.7
EBITDA            1,623    2,189    -25.9   5,087    5,699   -10.7   4,246
Adjusted EBITDA   2,113    2,276    -7.2    6,503    6,001   8       7,624
1)
Profit before     -435     -1,769   75.4    -5,603   -1,541  -263.6  -3,778
tax
Profit for the    -508     -1,824   72.1    -5,641   -1,850  -205.0  -5,027
period
Profit for the    -333     -1,730   80.7    -5,123   -1,600  -220.3  -4,663
period excluding
non-controlling
interest
% of revenue      -1.4     -7.0             -6.9     -2.1            -4.7
Shareholders'     28,334   36,726   -22.9   28,334   36,726  -22.9   32,337
equity
Interest-bearing  34,724   31,266   11.1    34,724   31,266  11.1    30,414
liabilities
Cash and cash     6,763    10,697   -36.8   6,763    10,697  -36.8   10,904
equivalents
Net interest      27,961   20,569   35.9    27,961   20,569  35.9    19,509
-bearing
liabilities
Net debt to       3.4      3.4      0.3     3.4      3.4     0.3     2.6
adjusted EBITDA
2)
Capital employed  63,057   67,991   -7.3    63,057   67,991  -7.3    62,751
Return on         -7.1     -19.7    63.9    -24.8    -9.1    -173.5  -20.1
equity, %
Return on         2.9      3.7      -21.9   2.9      2.9     1.8     -4.3
capital
employed, %
Equity ratio, %   31.8     39.7     -19.8   31.8     39.7    -19.8   36.8
Net gearing, %    98.7     56.0     76.2    98.7     56.0    76.2    60.3
Net cash flow     -1,880   -2,308   -18.6   -5,710   -1,314  334.5   581
from operating
activities
Net cash flow     -269     -701     -61.6   -2,194   -1,557  40.9    -2,595
from investing
activities
Capital           551      801      -31.2   2,454    1,616   51.8    2,658
expenditure
% of revenue      2.3      3.3              3.3      2.2             2.7
Research and      883      821      7.5     2,816    2,817   -0.1    3,738
development
costs
% of revenue      3.7      3.3              3.8      3.8             3.8
Order intake      26,883   21,043   27.8    89,914   76,061  18.2    104,872
Order backlog     49,195   30,557   61.0    49,195   30,557  61.0    34,177
Earnings per      0.00     -0.02    80.6    -0.05    -0.03   -49.7   -0.07
share, diluted
and
undiluted, EUR
Equity per        0.27     0.34     -21.59  0.27     0.73    -63.62  0.49
share, EUR
Average share     0.39     0.34     11.70   0.36     0.47    -23.40  0.40
price, EUR
Average number    105,654  106,470  -1      105,894  49,507  114     63,729
of shares,
diluted and
undiluted, 1,000
shares 3)
Employees,        626      616      1.6     625      620     0.8     632
average
Employees, end    628      616      1.9     628      616     1.9     637
of period

1) Excluding material items affecting comparability, such as restructuring
costs, impairment losses and reversals, and costs related to planned or realized
business acquisitions or disposals
2) Last 12 months' adjusted EBITDA
3) Exel's rights issue completed in June 2024 increased the total number of
shares from 11,896,843 to 106,728,395. Average number of shares excludes shares
held by the company.

Revenue by business unit

                         Q3      Q3      Change  Q1-Q3   Q1-Q3   Change  Q1-Q4
EUR thousand             2025    2024    %       2025    2024    %       2024
Engineered Solutions BU  19,651  20,008  -1.8    60,941  61,487  -0.9    82,485
Industrial Solutions BU  4,439   4,567   -2.8    13,227  13,041  1.4     17,109
Other                    4       10      -56.3   13      12      5.4     19
Total                    24,094  24,585  -2.0    74,181  74,539  -0.5    99,614

Revenue by customer industry

                Q3      Q3      Change  Q1-Q3   Q1-Q3   Change  Q1-Q4
EUR thousand    2025    2024    %       2025    2024    %       2024
Buildings and   4,889   5,715   -14.4   14,841  16,171  -8.2    21,502
infrastructure
Industrial      3,057   3,779   -19.1   10,817  11,404  -5.1    15,588
Energy          5,223   4,931   5.9     15,591  14,812  5.3     20,923
Transportation  4,564   3,956   15.4    14,298  12,970  10.2    17,391
Other           6,361   6,204   2.5     18,634  19,182  -2.9    24,210
Total           24,094  24,585  -2.0    74,181  74,539  -0.5    99,614

Vantaa, 6 November 2025

Exel Composites Plc
Board of Directors

Financial results briefing

We invite investors, analysts, and media to join our online results briefing
today at 1:00 p.m. EET, presented by President and CEO Paul Sohlberg and CFO
Mikko Rummukainen. The session will be held in English.

To attend, please register in advance at
https://events.teams.microsoft.com/event/aa026b2f-844a-4dab-819f
-855b50cb513f@d9f8eaa3-8213-467f-9971-5d2b15d45183 A viewing link will be sent
to registered participants prior to the event.

More information:

Lauri Haavisto, Investor Relations Director
investor@exelcomposites.com
+358 20 754 1214

Exel Composites in brief

Exel Composites is one of the largest manufacturers of composite profiles and
tubes made with pultrusion and pullwinding technologies and a pultrusion
technology forerunner in the global composite market. Our forward-thinking
composite solutions made with continuous manufacturing technologies serve
customers in a wide range of industries around the world. You can find our
products used in applications in diverse industrial sectors such as wind power,
transportation and building and infrastructure.

Our R&D expertise, collaborative approach and global footprint set us apart from
our competition. Our composite solutions help customers save resources, reduce
products' weight, improve performance and energy efficiency, and decrease total
lifetime costs. We want to be the first choice for sustainable composite
solutions globally.

Headquartered in Finland, Exel Composites employs over 600 forward-thinking
professionals around the world and is listed on Nasdaq Helsinki. To find out
more about our offering and company please visit www.exelcomposites.com



                 

Attachments:
11055835.pdf