Eagle Filters - a market-leader in air filtration solutions for Gas Turbines

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In this case, it is still very evident that a part of the market views the company through its past history rather than its current operations. For many, Eagle is still the same company as it was when the NoCart crew found Loudspring to be a sufficiently large and gullible payer to quickly cash out their own wealth. Back then, management was completely out of their depth regarding what they were buying, under what terms, and with what kind of risk. Let’s remember that in 2017, for example, NoCart’s figures looked brilliant on paper, but the reality behind the balance sheet was something else entirely. This is still remembered, and that background cannot be completely erased, even though not a single person from that era’s management remains involved.

But it is equally important to notice that during Jarkko Joki-Tokola’s tenure, the direction has been completely different for over five years. This company has followed a very conservative line both accounting-wise and operationally, which culminated in the company’s name change to Eagle Filters Group and the focusing of the strategy purely on developing this company.

Nothing is put on paper that isn’t practically certain and demonstrable. Everything possible is written off immediately rather than being left to linger on the balance sheet with a “maybe something will come of this someday” mindset. A good example of this is the heavy write-offs in previous years, which cleaned the balance sheet of old legacy assets without overthinking the fact that such moves look very bad on the bottom line. It’s also reflected in why some people find the corporate communications to be frustratingly cautious.

Therefore, the market is currently divided quite logically into two camps:

  • Prisoners of the Past: They still look at the history and see the beginning of a new catastrophe in every delay.
  • Analysts of the Current Structure: They look at the automated factory in Kotka, the growing order levels, and the fact that management no longer lives in a “PowerPoint future.” The company has indeed managed to grow its order backlog significantly and is now specifically aiming for scalable profitability.

The author of the quoted comment is actually a good example of this market psychology. They don’t sound like someone who considers the company a completely lost cause. Rather, it’s a case of years of disappointments making people cautious. This is why moves like a credible CFO recruitment and the professionalization of the Board of Directors serve as concrete signals that the company is preparing for the next phase.

Many old shareholders likely no longer need absolute certainty to return. It’s enough that credible evidence starts to emerge showing that delivery capability, cash flow, and profitability are finally moving in a better direction. And that is exactly why cases like this often move violently on the stock exchange. After a long period of disbelief, sentiment can shift much faster than the fundamentals even have time to fully reflect in the reports.

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This is still a gamble, and past facts rightfully carry a lot of weight. If we get actual positive facts, the shares might become hard to come by at that point. Personally, I’ve been trying to build some kind of position in this with a bit of a “make or break” mentality.

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Since the company does not provide short-term guidance, and analysts or the press aren’t guessing them either—as there’s no payoff for doing so right now—I decided to do it myself.

I made an estimate of what the rest of the year could look like. This takes into account that already manufactured inventory can be delivered to customers, and money will be recognized from these and other deals. Q2 would already see the nose above water, and profitability would improve in proportion to revenue growth.

Q2/2026: Revenue €2.3M, Operating Profit +€0.10M

Q1/2026 already showed that revenue can rise quickly once deliveries get moving. The €1.56 million revenue achieved in the quarter was generated in a situation where the company was only just moving toward full utilization of its new production capacity. In Q2, the starting point is different, as the order backlog was already approximately €7.7 million at the end of Q1, and there is significantly more visibility in the delivery pipeline than a year ago. If customer schedules hold, revenue of €2.3 million does not require any exceptional success, but mainly that production and deliveries proceed as planned.

Regarding profitability, the most significant factor is operating leverage. In Q1, the operating loss was down to about €0.37 million, even though the company was still clearly in a growth phase. When revenue grows by nearly 50 percent from this level, fixed costs are distributed over a larger production volume, and the benefits from automation should begin to be seen more clearly than before. In this case, shifting to an operating profit of about €0.1 million does not seem like a particularly aggressive assumption.

Q3/2026: Revenue €2.7M, Operating Profit +€0.30M

If Q2 confirms the growth trend, Q3 would no longer be about a single successful quarter but a new level of business operations. The company’s own message has been that a lack of sales hasn’t been the biggest bottleneck, but rather the coordination of delivery capability, timing, and capacity. If the new production line operates as planned and the order backlog is cleared normally, a quarterly revenue of €2.7 million would still be quite moderate relative to the existing backlog and the fact that new sales are constantly being generated to replace the old.

At this stage, the bottom line should start improving faster than revenue. When the factory runs at a higher utilization rate, every additional euro of sales increases profit proportionally more than before. At the same time, potential growth in the materials business and improvements in production efficiency support margins. An operating profit of about €0.3 million would be a logical continuation of the Q2 development at this stage and would not require exceptional margins.

Q4/2026: Revenue €3.0M, Operating Profit +€0.40M

The last quarter of the year could be the first period where the impact of the company’s investments and capacity additions is fully visible. If deliveries have normalized during the year and no significant customer postponements occur, a quarterly revenue of three million euros is still a very realistic level and not particularly optimistic relative to the available capacity.

In this scenario, operating profit would rise to approximately €0.4 million. The primary driver would be the same phenomenon already seen when moving from Q4/2025 to Q1/2026—a relatively small increase in revenue improves the result significantly more than many expect. Once the fixed cost structure is largely covered, a larger portion of the additional revenue flows directly into EBITDA and further into operating profit.

In summary, such a development path would mean an annual revenue of approximately €9.5–10 million in 2026. It would be more than triple compared to 2025, but still not a particularly exceptional level relative to figures from previous years, the order backlog at the turn of the year, production capacity, or the company’s long-term growth targets. The most essential part would be that the break-even point is crossed as early as the beginning of the year, allowing growth in the latter half of the year to be reflected more strongly in the results. If deliveries are again postponed due to changes in customer schedules, there may be significant variation between quarters, but in that case, it would be more about timing than a lack of demand. On the other hand, if the clearing of the order backlog proceeds faster than expected, these figures could prove to be conservative.

Note! These scenarios do not include any impact from the fabric business (kangaskauppa) on revenue or profit. The figures for this business sector are still very hazy.

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I started thinking more about these capacity issues and the company’s own announcements. On discussion forums, the default assumption often seems to be that management is sugarcoating the situation, hiding problems, and spinning tales designed to keep the stock price alive. That’s why an old catchphrase from ancient astronaut programs came to mind: “But what if this is actually true?”

In other words, what if management has been reporting events exactly as they occurred all along?

The first thing I started investigating was the development of Eagle Filters Oy. The 2025 financial statements are not yet available from the PRH (Patent and Registration Office), so the latest public figures available are from 2024.

https://www.finder.fi/Suodattimet/Eagle+Filters+Oy/Kotka/yhteystiedot/130814:

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At that point, I began comparing the figures to the group reporting. Eagle Filters Oy’s revenue was approximately 5.7 million euros in 2023 and already 7.1 million euros in 2024. At the same time, the group’s revenue was 6.0 million euros in 2023 and 7.6 million euros in 2024. The figures practically go hand in hand. The operating company appears to have grown, and the same growth is reflected in the group. It is difficult to build a theory from this where production was superficial or demand was non-existent.

Then comes the year 2025, when group revenue suddenly drops to 3.1 million euros, while orders received rise to 7.6 million euros and the order backlog grows from 1.2 million to nearly 5.8 million euros. At this point, it’s worth stopping for a moment to think about what those numbers actually mean.

If the business had genuinely withered away, the first thing to be visible should be the melting of the order backlog and a decrease in new orders. Now, the exact opposite happened. Revenue collapsed, but the order backlog multiplied. Furthermore, the company states itself that a significant amount of working capital was tied up in finished products as deliveries were delayed due to customer-related reasons.

This raises an interesting question. If at the end of the year the order backlog increased by about 4.6 million euros compared to the previous year, and at the same time the company says the amount of finished goods increased significantly, how much production was actually carried out during the year? Official revenue was 3.1 million euros, but the business flow was clearly much higher. Orders received alone were 7.6 million euros.

Of course, I’m not claiming that the entire order backlog was ready in the warehouse. Some of it was certainly still in production or awaiting delivery. But based on the financial statements, it seems entirely possible that during 2025, products worth several million euros were manufactured and tied up in inventory that did not yet appear in the revenue. If, for example, 2–4 million euros of deliveries shifted to the following year due to customer schedules, then the factory’s actual activity level would have been in a completely different class than the 3.1 million euro revenue in the income statement suggests.

That’s why I no longer look at the year 2025 solely through revenue. A more interesting metric is the question of how much goods were manufactured but remained unrecorded as revenue. If management’s description holds true, the 2025 income statement primarily tells a story about the timing of deliveries. Actual demand is better reflected in the growth of the order backlog, orders received, and the fact that more capacity was built for production at the same time as finished products accumulated in the warehouse. It may be that the estimates in my previous post regarding future revenue and profit margins turn out to be overly cautious. This will be seen when more figures are released.

One detail, however, stuck in my mind from the annual general meeting report. While leaving the hall, the CEO had remarked with a smile: “Next year, we won’t fit in such a small room anymore.” Everyone can draw their own conclusions from this, but the comment fits quite poorly with the idea that the company expects demand to fade or business to shrink. On the contrary, it sounds like the capacity built over the years is finally expected to be put to use on the scale for which it was built.

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Offering coming through

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Based on the prospectus, the purpose of the arrangement is both to strengthen the balance sheet and to improve liquidity. Part of the offering is implemented by offsetting loans into shares, which lightens the debt burden without a corresponding cash outflow. Additionally, during Q2, debt has already decreased by approximately EUR 708,000 as Business Finland forgave the financing of an old project for which the current Eagle Filters Group was responsible.

A stronger cash position allows the company to spend money on what generates growth: raw materials, working capital, production automation, and improving delivery capacity. If orders are available, accepting them does not need to be restricted solely due to financing or material procurement issues.

The fact that shares are being offered to the public so extensively suggests that the company wants to broaden its shareholder base, which has been concentrated among a specific core group due to previous directed offerings to management.

Tomorrow will certainly see a dip, as the offering shares are priced at 7 cents while the closing price was 9.36 cents. This is a move to accelerate growth, because without additional financing, part of the profit would go toward debt service costs, and more orders could be accepted if those funds could instead be used for material procurement. Now, this stagnant phase can be sped up with the additional capital.

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It remained unclear to me how I can get the shares into Nordea, where my current holdings are, when the offering is being organized on Nordnet? How are these situations usually handled? I do not want the shares in Nordnet because it is expensive.

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Aktia Alexander Corporate Finance Oy (“ACF”) is acting as the lead manager of the share issue and as the subscription place for the Institutional Offering for investors other than Nordnet Bank customers. Nordnet Bank AB, Finnish Branch is acting as the subscription place for the Public Offering and as the subscription place for the Institutional Offering regarding its own customers. Smartius Oy is acting as the legal advisor to Eagle Filters.

More information:

Jarkko Joki-Tokola, CEO, Eagle Filters Group Oyj, jarkko@eaglefiltersgroup.com
Aktia Alexander Corporate Finance Oy, merkinnat@alexander.fi, +358 50 520 4098

The matter is mentioned at the end of the release, i.e., for those other than Nordnet customers, subscriptions are handled through ACF. By messaging that address or calling, the process will proceed. You will at least need your own book-entry account (AOT) number where you want the shares to be registered.

Edit: it seems to be available through Nordnet for customers of other banks as well, at least a link can be found there:

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The offering was oversubscribed. Now we just have to wait and see how many new shares will be allocated.

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No need to worry about that, everyone got what they subscribed for. I’m reciting the numbers from memory, but the size of the directed offering was €2m and they had the right to increase it by €1.6m if it was oversubscribed. Now €2.6m was subscribed, meaning everyone got everything.

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Then there’s not much to worry about. :slightly_smiling_face: Thanks for the comment.

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Now let’s get those bots moving, chop chop. We didn’t participate in this for nothing.

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Many are wondering why it’s dropping or failing to rise, even though momentum was so strong during and after the offering.

Puttonen is still selling his shares. However, he only has 531,279 shares left, so it’s not such a large block anymore that it could significantly depress the share price. But, it’s not worth buying from the ask side right now; instead, place a large bid on the buy side and he will likely fill it, provided he intends to sell out completely and doesn’t stop at, say, half a million shares.

He has a habit of selling in batches of 64,000 shares at a time, and this is what led me to suspect that a “usual suspect” might be spoiling the rally.

EDIT: This was the situation the day before yesterday. It is entirely possible that he managed to sell those 31,000 shares yesterday and left the portfolio at half a million. At least today, an active seller has no longer been visible at these levels.

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Dropped significantly today. Perhaps those who subscribed to shares in the offering have been taking quick profits? How do you see the situation in the Middle East affecting Eagle? Currently, working capital is being tied up as orders grow and operations are scaled up. Will there be delays because of the Middle East, and how will the cash flow look in Q3 after the offering? I became interested in following this after the article in Arvopaperi. Realizing, of course, that timing is difficult with turnaround companies.

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The situation in the Middle East is unlikely to have any impact on the company. There has never been trading volume like this before, as some are trying to score quick profits by selling immediately after the offering. Well over 2 million shares have changed hands.

It’s worth buying now; under no circumstances should you sell. There will be news in Q2 that will make you regret it if you sell for under 10 cents now.

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Most likely, some have sold immediately for a quick small profit or out of a necessity for cash/risk mitigation. Let’s see if there are more buyers or sellers. I bought a bit when it started moving around 7.2–7.3 cents. Need to start following this.

What do you mean that the Middle East situation doesn’t matter for Eagle? According to the article in Arvopaperi, with the CEO as the source, the markets are in countries that have their own gas. Asia, Africa, and the Middle East are specifically mentioned as main markets. Let’s hope there haven’t been many delays in deals/deliveries. Last year’s result was explained in the article specifically by postponements of customer orders. The order backlog is good now; hopefully, the cash flow turns around with the help of this €2 million share issue.

Through which company does Puttonen own this? I couldn’t find it under his own name in the May 31st list.

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Enable Oy is Puttonen’s company, through which he holds this ownership.

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I didn’t mean that the Middle East market isn’t important to Eagle. On the contrary, the company itself has stated that its main markets are in Asia, Africa, and the Middle East, so investment activity in the region should be monitored closely.

What I mainly meant was that the current crisis situation in the Middle East doesn’t necessarily affect Eagle in the same way it affects, for example, companies transporting oil or gas. Eagle sells filtration solutions for power plants and industry, and in many countries in the region, the energy sector is based on domestic gas production. The need for electricity and industrial capacity doesn’t disappear, even if the geopolitical situation fluctuates.

Of course, risks exist. If customers’ investment decisions are postponed, projects are delayed, or logistics become difficult, the effects may be seen in the timing of deliveries. The company described exactly these kinds of timing issues last year, when there were orders, but their revenue recognition was pushed to a later date.

At the moment, the most essential thing is that the order book is strong, according to the company. Now, the market is primarily watching how quickly the order book translates into deliveries, invoicing, and cash flow. The recent share issue provides peace of mind and working capital for this, so in the coming months, attention will be more on delivery capability than on hunting for new orders.

Puttonen’s company is named Enabla Oy.

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I agree. The essential factors are how quickly orders turn into cash flow and when the cash flow becomes positive after investments. In other words, will further share issues be required. Personally, for turnaround companies with a tight liquidity situation, I consider cash flow to be the primary metric. The company has now secured liquidity for working capital management and time to scale up production.

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Strong selling pressure continued today as well. Can anyone estimate if there are other major sellers besides Puttonen, or are retail investors just taking their money back from a rights issue they couldn’t really afford or where the risk was too high? The coming days will show if it drops below 7 cents..