Summa Defence Oyj: Summa Defence Plc's half-year report January-June 2025: Inside information: Summa Defence Plc started operations, significant investments in growth

Summa Defence Plc
Company announcement 22 August 2025 at 9:00 EEST

CEO Jussi Holopainen

Summa Defence Plc, a new growth company in the defence and security sector, started operations on 9 June 2025 after the merger of Summa Defence Oy and Meriaura Group Plc. We are the first defence and security industry company on the First North Growth Market marketplaces in Stockholm and Helsinki.

The directed share issue arranged for the share exchange significantly strengthened the company's equity, and our financial position is strong. The amount of investments raised in connection with the corporate transactions was EUR 28.15 million. At the end of June, the company was net debt-free, and our equity ratio was 63.4%.

Investments in new production facilities

In line with our strategy, we have been able to quickly support the operations of our subsidiaries and secure financing and working capital for product development, internationalization and next-stage corporate transactions.

After the merger, our subsidiary Uudenkaupungin Työvene acquired the property of Olkiluoto shipyard to increase its production capacity, and Lightspace Technologies announced an investment in its production facility in Ventspils, Latvia, to improve its cleanroom production capacity. In addition, our subsidiaries have several ongoing product development projects.

The new production facilities of the Summa Drones business have been put into operation in Southern Finland, and the first test batch is being manufactured with our Ukrainian partner. We expect the first production batches to be completed and deliveries to begin during the second half of the year.

Pro forma net sales increased by 35 per cent

Several of our subsidiaries have already increased their net sales significantly compared to the previous year. In January-June 2025, our pro forma net sales were EUR 42.1 million, compared to EUR 31.1 million a year earlier. The net sales of our companies increased by more than 35 per cent in the first half of the year. Net sales in Summa Defence's continuing operations focusing on defence and security were EUR 34.9 (25.3) million and in the Renewable Energy business EUR 7.2 (5.8) million.

Profitability improved

During the first half of the year, our profitability also started to improve clearly, although the delay in the transaction slowed down the growth of the business volume of our subsidiaries. The profitability of our continuing operations was already slightly positive in the first half of the year, but Group administration expenses (EUR -1.9 million) and the result of the Renewable Energy business (EUR -1.9 million) pushed the pro forma adjusted operating profit to EUR -3.7 (-5.2) million.

In most of our businesses, there was a clear turnaround in profitability, and in some companies, operating profit rose to positive numbers. The profitability of the Renewable Energy business has been burdened by delays in customer deliveries of large plants. In addition, industrial investments in low-carbon solutions have been slowed down by the uncertain political climate, especially in Germany, the challenging nature of project financing, the slowness of support systems and the strong focus of public budgeting on defence investments. We have started measures to improve the profitability of the business area. Change negotiations have been initiated in the unit.

Thanks to the strong market situation, we expect the growth of our companies to accelerate and the turnaround in profitability to accelerate during the rest of the year.

Closer cooperation with the defence sector

Our subsidiaries have a long and extensive history as partners in the defence sector around the world. Summa Defence and its subsidiaries will continue and develop this good cooperation together in the future as well. With the funding and support of the Summa Defence Group, our subsidiaries can make quick investment decisions, scale up production quickly and increase production to a whole new level.

At the end of June, our subsidiaries had a strong order book of more than EUR 160 million. Over the years, the value of deliveries from our subsidiaries to the defence and armed forces of various countries and other security authorities has been approximately EUR 300 million, and demand continues at a good level.

I would like to thank our customers, partners, investors and personnel for a successful merger and the first half of the year.

Summa Defence Plc

Summa Defence Plc is a Finnish defence and security technology group that brings together security companies and together secures resources for product development and growth in a globally growing and developing sector. The company focuses on dual-use technology, i.e. developing and producing products for the defence, security and civilian sectors.

Summa Defence Plc was born on 9 June 2025 following the merger of Summa Defence Oy and Meriaura Group Plc. The company's share is listed on the Nasdaq First North Growth Market Finland and Sweden marketplaces.

As part of the transaction, Meriaura Group Plc sold the shares of the marine logistics company Meriaura Oy to Meriaura Invest Oy. In the transaction, the Renewable Energy business of Meriaura Group remained in Summa Defence Plc.

This half-year report presents financial information for the combined Summa Defence Plc for the period 1 January-30 June 2025 including information on the following businesses for the time that they have been part of the Group. Thus, the focus of the financial information in the half-year report is on the companies from the time of Meriaura Group Plc:

• Marine logistics: divested business (for 1 January-9 June 2025)
• Renewable Energy: business remaining in the Group (for 1 January-30 June 2025)
• Summa Defence's continuing operations (for 9-30 June 2025)

Summa Defence's continuing operations refer to the Group's subsidiaries, which are Lännen Tractors, Aquamec, Uudenkaupungin Työvene, IntLog, Lightspace Group, Summa Drones and administrative companies.

The financial information has been prepared in accordance with the principles of the Finnish Accounting Standards (FAS). Unless otherwise stated, figures in parentheses refer to the comparison period. This half-year report is unaudited. The figures for the financial year 2024 are audited.

Pro forma financial information on Summa Defence's subsidiaries

This half-year report also includes other unaudited pro forma financial information on Summa Defence's subsidiaries. They present the result of Summa Defence's continuing operations as if the merger with Meriaura had taken place on 1 January 2025.

April-June 2025 in brief

• Net sales were EUR 21.5 (22.1) million. Of net sales, EUR 12.1 (18.2) million was accrued from the divested business (Meriaura Oy) and EUR 9.4 (3.9) million from the Group's continuing operations and the Renewable Energy business.
• EBITDA was EUR 0.1 (2.3) million, or 0.9 (10.4) % of net sales.
• Operating profit (EBIT) was EUR -2.4 (0.8) million, or -11.3 (3.5) % of net sales.
• Result for the review period was EUR -3.1 (0.3) million, or -14.4 (1.3) % of net sales.
• EBITDA, operating profit (EBIT) and result for the review period included a loss of EUR 1.6 million caused by the sale of Meriaura Marine Logistics.
• Undiluted and diluted earnings per share were EUR -0.002 (0.000).

January-June 2025 in brief

• Net sales were EUR 42.9 (40.0) million. Of net sales, EUR 29.9 (34.1) million was accrued from the divested business (Meriaura Oy) and EUR 13.0 (5.8) million from the Group's continuing operations and the Renewable Energy business.
• EBITDA was EUR 1.6 (3.5) million, or 3.8 (8.7) % of net sales.
• EBITDA included a loss of EUR 1.6 million caused by the sale of Meriaura Marine Logistics and EUR 1.1 million of other costs arising from the transaction.
• Operating profit (EBIT) was EUR -2.5 (0.6) million, or -5.8 (1.5) % of net sales
• Result for the review period was EUR -3.6 (-0.2) million, or -8.5 (-0.4) % of net sales
• Operating profit (EBIT) and result for the review period included an increase of EUR 1.4 million in amortisation of goodwill arising from the transaction, in addition to the sales loss and costs arising from the transaction.
• Undiluted and diluted earnings per share were EUR -0.003 (0.000).

Key figures

EUR 1,000 unless otherwise stated	4-6/25	4-6/24	1-6/25	1-6/24	1-12/24*
Net sales	21,521	22,095	42,903	39,951	79,164
EBITDA	195	2,300	1,643	3,493	6,221
EBITDA, % of net sales	0.9%	10.4%	3.8%	8.7%	7.9%
Operating profit (EBIT)**	-2,438	781	-2,506	595	-15,960
Operating profit (EBIT), % of net sales	-11.3%	3.5%	-5.8%	1.5%	-20.2%
Result for the review period	-3,103	281	-3,647	-177	-20,688
Result for the review period, % of net sales	-14.4%	1.3%	-8.5%	-0.4%	-26.1%
Undiluted and diluted EPS, EUR	-0.002	0.000	-0.003	0.000	-0.024
Equity ratio, %	63.4%	53.8%	63.4%	53.8%	36.1%
Net gearing, %	-0.1%	43.2%	-0.1%	43.2%	54.1%
Cash and cash equivalents at end of period	9,734	7,023	9,734	7,023	8,114

*Audited.
**1-12/2024 includes non-recurring items, i.e. a capital loss of EUR 3.3 million related to the sale of a minority stake in Meriaura Oy on 2 July 2024 and an impairment loss of EUR 16.4 million related to the transaction announced on 29 January 2025.

Pro forma net sales and adjusted operating profit (EBITA) for Summa Defence's continuing operations

This unaudited pro forma financial information has been prepared to illustrate net sales and profitability of the Group's continuing operations during the review period. The profitability indicator used is the alternative performance measure adjusted EBITA, the content of which is described in the tables section of the half-year report.

• The subsidiaries' financial statements have been combined into pro forma figures as if the merger with Meriaura had taken place on 1 January 2025. Intra-Group transactions have been eliminated. The pro forma figures have been prepared in accordance with the same accounting principles as the official figures for the review period. The accounting principles are described in the tables section of the half-year report. As a result of the transaction completed on 9 June 2025, Summa Defence's continuing operations are the Group's subsidiaries, i.e., Lännen Tractors, Aquamec, Uudenkaupungin Työvene, IntLog, Lightspace Group, Summa Drones and administrative companies.
• The pro forma figures also include the figures for the Renewable Energy business, which remained in the Group in connection with the merger.
• In January-June 2025, pro forma net sales were EUR 42.1 (31.1) million, whereof net sales for Summa Defence's continuing operations EUR 34.9 (25.3) million and for Renewable Energy 7.2 (5.8) million.
• Pro forma adjusted operating profit (EBITA) was EUR -3.7 (-5.2) million, whereof Summa Defence's continuing operations amounted to EUR -1.7 (-3.9) million (including a total of EUR 1.9 million in Group administration expenses) and Renewable Energy to -1.9 (-1.3) million.

Financial guidance

Summa Defence Plc will issue financial guidance in connection with the Business review for January-September 2025.

Financial reporting in 2025

Summa Defence will publish the following financial reports in 2025:

• business review for January-September 2025 on Friday 31 October 2025

Media invitation: Summa Defence Plc's half-year report briefing on 22 August 2025

Summa Defence Plc will organise a media event on 22 August at 10:30 am. In the media event, CEO Jussi Holopainen and CFO Risto Takkala will present the half-year report and answer any questions.

The event is intended for media representatives and analysts. The event will be held on Teams.

Please register for the event by email to [e-mail]. The invitation link will be sent to registered participants.

SUMMA DEFENCE PLC

More information:
Jussi Holopainen, CEO
Phone: [phone]
email: [e-mail]

Media contact:
Tommi Manninen, Chief Communications Officer
Phone: [phone]
email: [e-mail]

Summa Defence in brief

Summa Defence Plc is a Finnish defense and security technology group supporting industry growth and strengthening industrial production capacity amid geopolitical change. Summa Defence focuses on dual-use technologies related to security of supply, situational awareness, mobility, and defense, which benefit the civilian, security, and defense sectors while strengthening comprehensive security, security of supply, and crisis management capabilities.

The shares of Summa Defence Plc are listed on the Nasdaq First North Growth Market in Sweden (SUMMAS) and Finland (SUMMA).
www.summadefence.fi/en/

The company's Certified Adviser is Augment Partners AB, [e-mail], tel. [phone].