Summa Defence Plc Company announcement, inside information 13 May 2026 at 7:30 p.m. EEST
Summa Defence Plc estimates that, without new financing or payment arrangements, its current working capital will not be sufficient for the company's needs for the next 12 months or for the implementation of its strategy to the planned extent. Based on the company's current cash flow forecast, the current working capital is estimated to be sufficient for approximately two months, provided that the payment and financing arrangements required in the short term progress as planned. The company's liquidity position is currently very tight, and the company is actively engaged in negotiations to strengthen its financial position.
On 19 December 2025, the company announced conditional working capital financing, which was estimated to secure the company's working capital financing for the first half of 2026. Furthermore, on 31 March 2026, the company announced that it had fully utilised the financing in question as a result of significantly increased order backlog and delivery volumes.
During 2026, the company's order backlog and the number of delivery projects have, as previously announced, developed more strongly than anticipated, which has increased and continues to increase the need for working capital more than previously estimated, particularly with respect to working capital tied up in production, material procurement and delivery projects before such working capital investments are converted into margin.
The need for working capital is also increased by the obligations arising from the Group's loss-making businesses and financing structure, as well as by the fact that certain Group businesses are still in the development or growth phase and do not yet generate positive cash flow. The company has previously announced that it is evaluating strategic alternatives regarding the loss-making Summa Energy Oy. The above-mentioned factors, together with the full utilisation of the previously announced working capital financing, have significantly tightened the Group's liquidity situation.
The company's financial guidance for 2026 has been:
"Summa Defence Plc estimates that its net sales from continuing operations in 2026 will be EUR 110-120 million and EBITDA is expected to turn positive during 2026. The focus of growth and profitability is expected to be in the second half of the year. The financial assessment is based on the company's strengthened order book, which was EUR 134 million as of March 30, 2026. The defence and security sector accounts for 75 million euros of the order backlog."
The company does not change its previously issued financial guidance and, based on this, estimates its new working capital requirement to be approximately EUR 10-20 million during the next 12 months, depending on delivery schedules that will be specified later. The company aims to strengthen its financial position by carrying out the planned equity financing share issue, share issues or directed issuances of special rights pursuant to Chapter 10, Section 1 of the Finnish Limited Liability Company Act, as well as debt financing arrangement or arrangements, or a combination thereof, in one or several tranches during 2026. In connection with the above, the company is engaged in active negotiations to obtain subscription commitments and underwriting commitments.
The effects of the cost-saving programmes implemented and to be further implemented by the company are expected to improve profitability during the second half of 2026.
If the planned financing and profitability improvement are not implemented as planned or to a sufficient extent, this may have a material adverse effect on the company's business operations, compliance with financing agreement terms, financial position, profitability, liquidity and ability to continue as a going concern. Loss of liquidity may result in the company entering into liquidation, corporate restructuring proceedings or bankruptcy.
SUMMA DEFENCE PLC
Further information:
Arto Räty, Chairman of the Board
Tel: +358 50 411 7384
Email: arto.raty@miltton.com
Robert Blumberg, CEO
Tel: +358 40 839 7408
Email: robert.blumberg@summadefence.com
Summa Defence in brief
Summa Defence Plc is a Finnish defence and security technology group whose mission is to create a strong industrial foundation of innovative defence and dual use SMEs for strengthening the comprehensive security of society.
Summa Defence aims for both organic and inorganic growth across three focus areas: maritime technologies, land technologies and new technologies. The company's vision is to be a forerunner in comprehensive security industry.
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, info@augment.se, tel. +46 8 604 2255
