The only surprise was that a profit warning wasn’t issued yet. Revenue needs to double (!) in the second half from the first just to reach the minimum guidance. Although the guidance has now been qualified in such a way that even a fool understands what’s coming. The massive Kilpilahti project, considering the company’s size and balance sheet, is a farce beyond compare. The CEO even dares to postpone the schedule estimate (again) to the next quarter. Growth and cost-cutting measures are alternated without any direction. The board constantly changes management and organization, but the board itself apparently enjoys full confidence and doesn’t have the sense to go mess around elsewhere. But Lamor just sings Kumbayah in the intensive care unit: the market is in good shape, big things are coming, sales are doing an excellent job. This will surely work out. Can’t wait.
Yep, but you can read between the lines that a negative profit warning is probably coming.
“Due to delays, our turnaround is taking longer than we estimated at the beginning of the year. In terms of revenue and profitability, we now expect the third quarter to remain clearly below the comparison period. We expect the number of orders received to grow across all product lines this year. However, reaching the guidance still requires a very strong final quarter and a strong order intake, especially in the coming months.”
- I read this myself as hands are crossed and praying that a lot of orders come from somewhere soon or a negative profit warning will be issued. If everything goes according to plan, it will be avoided. Probability of a negative profit warning 70-90%.
I listened to Thomas Westerholm’s interview. As a comment, I can say that Thomas’s questions were good. Grön’s answers were complete nonsense. Listen to the story. For example, eight million euros in fixed cost savings. If the CEO doesn’t know exactly at the turn of July-August where those savings will be taken from by the turn of the year, then there’s no point talking about savings. Pure gibberish. We are talking about a company with a turnover of 80-120 million. At the same time, the company has 60-70 million euros tied up in an investment that isn’t working. I would immediately set up a project group to handle the factory opening by a specified date. Soon. The date is non-negotiable. Such a sum of money cannot sit idle indefinitely.
What is Ståhlberg and his board thinking? At a five percent interest rate, the investment incurs annual interest costs of 3.0-3.5 million euros. Each additional percentage point costs 0.6-0.7 million per year in interest. For a company that is making dismal profits… an operating profit level of 6 million in 2024. Wake up now, all of you at Lamor, and make functional decisions. Explanations will only drag you down.
Here is an interview with CEO Johan Grön, conducted by Thomas. 
Topics:
00:00 Introduction
00:10 Q2 highlights
03:41 Customer decision-making and projects
04:55 Achieving guidance and its underlying assumptions
06:14 Efficiency program
07:37 Postponement of factory process equipment commissioning
10:17 Product and end customers
11:36 Value chain certification
The cost of Lamor’s debt is probably 2-3 times that 5%. This squandering of shareholder value by this same board has reached truly epic proportions relative to the size of the company.
Has the magnitude of the Kilpilahti investment been disclosed anywhere? What Lamor has done, especially concerning Kilpilahti, is truly so incomprehensible that a person with normal reason cannot understand it. What concepts were presented to the board that led to the decision to implement this investment?
At the beginning of the year, a level of 60 million was discussed. Now, based on Grön’s statements today (no idea about the opening), interest rates alone will raise the investment to the category of 65-70 million, not to mention everything else that needs to be invested to actually get things working. When a year ago it was said that Kilpilahti would open in H2 2024, today in H2 2025 it’s said that the technology isn’t even ready yet. Who knows what it will ultimately cost?
Compared to the size of the company… shockingly much.
Thomas has prepared a new company report after Lamor’s Q2.
Lamor’s revenue decreased more sharply than we expected from the comparison period, which weighed on profitability. The development of new orders continued positively compared to the previous year, but considering the current order book and the company’s comments regarding the third quarter, the guidance, in our view, leaves too much dependent on the last quarter.
Quoted from the report:
The balance sheet position still needs to be monitored
At the end of Q2, Lamor’s net debt stood at EUR 54.1 million, and the company’s net debt/adj. EBITDA ratio was quite high at 4.8x. According to the company, its covenant terms were met at the end of the review period, but in our view, the balance sheet position still needs to be strengthened, considering the working capital required by Lamor’s core business and the plastic recycling business approaching its ramp-up phase.
Here is a new comprehensive report on Lamor by Thomas. As usual, this comprehensive report is also available for everyone to read, meaning there are no paywalls.
We reiterate our Reduce recommendation for Lamor and our target price of 1.2 euros. In recent years, the company has expanded its customer base, reduced its dependence on large service projects, and advanced its chemical plastic recycling plant towards commissioning. At the current valuation level, we see the stock’s risk-adjusted return expectation as subdued until we gain more visibility into strengthening new sales and the successful ramp-up of the new concept plant.
https://www.inderes.fi/research/lamor-laaja-raportti-kohti-parempaa
Quoted from the report:
Market Growth Drivers
Lamor expects its target markets to grow significantly in the areas of material recycling and land restoration in the coming years, as sustainability awareness increases demand for comprehensive environmental solutions that combine all operations.
Regarding soil remediation and restoration, the company expects its target market to grow, supported by Lamor’s expanding geographical coverage. The initiation of remediation and restoration projects is driven particularly by new and/or tightening regulations and increasing awareness of the adverse effects of environmental damage. Due to existing oil and chemical spills, contaminated soil is particularly prevalent in developing countries, where a significant amount of oil damage remains unremediated. Developed countries also have a substantial amount of restoration work yet to be done. According to Lamor’s assessment, remediation work will essentially be sufficient for several decades. We consider the reduction of the remediation backlog as a significant long-term option, but on the other hand, there is significant uncertainty associated with project financing.
Iikka and Thomas talked about Lamor.
Lamor has invested heavily in new plastics recycling business. At the same time, the company’s result has weakened from the peak years. Analyst Thomas Westerholm comments in the video.
Topics:
00:00 Start
00:16 Lamor as a company
02:29 The stock has fallen sharply
04:28 Markets
05:44 Plastics recycling plant
07:10 Balance sheet is leveraged
10:13 Forecasts
11:54 Bull scenario
Was the analysis of the plastic recycling business a bit lazy after all? There are several listed comparables. Pryme can be found in the Netherlands and, for example, Agilyx in Norway. Quantafuel, for instance, has been listed, and Recycling Technologies sought to be listed. What unites all of them is that the business has not been particularly profitable, although in Agilyx’s case, they are still quite early in their industrial story.
Pryme has sought money from owners and creditors multiple times. It also made a significant write-down on the balance sheet value of its equipment when production did not meet planned levels.
Recycling Technologies indeed sought to go public in the UK but canceled the listing. They were supposed to have a revolutionary chemical recycling equipment, the RT70000, but this revolution ended in bankruptcy.
Quantafuel was listed in Norway until 2024 and destroyed owner value quite considerably during its four years of listing. Viridor bought the entire company off the stock exchange.
The ramp-up of chemical recycling plants has been very challenging for all entrepreneurs, and tens of millions have been burned in cash at an industrial scale. Can Lamor’s cash even withstand the ramp-up of the first plant without having to dip into the owner’s wallet for replenishment?
Recycling Technologies is still alive and well. EMV Capital acquired the technology and other assets, and the name is now Deeptech Recycling. As I understand it, it only offers technology, so it’s not entirely comparable to Lamor, which tries to act as an integrator. I agree with you that pioneers in the field have faced alarmingly great difficulties, and I strongly doubt Lamor’s ability to rise to the top of successful companies. The track record is so weak that I don’t really understand how one could justify believing in the company outside its core business. Furthermore, no one seems to grasp the potential or profitability of this facility or business. From the revenue forecast, one could estimate that it will take at least 10 years to pay back the investment - this could be a “success case”. Lamor simply cannot afford significant scaling, so it will wait for the happy day when someone better and bigger buys it out.
Lamor to Supply Arctic Oil Spill Response System for Polarstern
Shipping company F. Laeisz has ordered a complete oil spill response system from Lamor for its research icebreaker Polarstern. The system includes a skimmer suitable for Arctic conditions with a heater, heavy-duty oil booms, pumps, oil transfer hoses, and a hydraulic power unit, all customized to fit into two 10-foot shipping containers. The system will be delivered later this year.
The order is valued at less than half a million euros and has been recorded in Lamor’s order book in the second quarter of 2025.
Shell appears to have announced the suspension (cessation) of construction work on a biofuel plant in Rotterdam. I started to wonder if this pivot has any direct or indirect impact on the future of Lamor’s Kilpilahti plant and the market access of its products? At least the direction of Shell’s strategy is clear, and it is not favorable for Lamor.
I don’t think it has any significance for Lamor. The pyrolysis oil that might eventually come out of Lamor’s plant is not intended for use as fuel, nor is it profitable in terms of price. Pyrolysis oil made from plastic is in very high demand, but manufacturing it on an industrial scale has been difficult and expensive.
Shell’s announcement should not have a direct impact on Lamor, as the company is, to my understanding, involved in the Moerdijk chemical value chain rather than the Rotterdam refinery mentioned in the announcement. In its statement, Shell cited the reason for abandoning the Rotterdam biofuel project as the product not being competitive enough to meet customer needs. To my understanding, this refers to the demand in the sustainable aviation fuel (SAF) value chain, which the Rotterdam project was intended to focus on, and not recycled plastic. Therefore, I would not draw a direct conclusion about the demand for Lamor’s Kilpilahti plant’s end product. Of course, it would be a setback for Lamor if Shell’s strategic direction were to turn more strongly towards crude oil in the long run.
We might get an answer to this teaser about something new tomorrow, when Lamor opens a service center in Saudi Arabia. Also, the manufacturing of oil spill response equipment will be started in the same country. The following are from LinkedIn. Hopefully everything goes well to the finish line this time.
One would now believe this will go to completion. That’s good.
One thing stands out to me. What is the concrete business in dollars related to this, in late 2025 and in 2026. Only clear figures are needed.
Another thing that puzzles me is Lamor’s deals…in millions or tens of millions of euros/dollars in Q3. Simply nothing noteworthy has been heard. Well, there are still 12 working days left in the period…
This was now also published as a release on Lamor’s website
Lamor Establishes New Service Center in Saudi Arabia to Strengthen Its Position in a Key Market
The service center will include an assembly and delivery center, as well as a showroom showcasing Lamor’s innovative products and services. Initially, fifteen environmental protection professionals will work at the center, with the goal of training new experts in Saudi Arabia.
In addition, the center will offer training and consulting within the framework of IMO’s (International Maritime Organization, a UN agency) globally recognized accredited programs. Lamor has so far trained over 4,000 oil spill response workers in Saudi Arabia, supporting national competence development and preparedness. Such training is vital in a country with nearly 1,800 kilometers of coastline on the Red Sea – one of the world’s busiest shipping routes with a high volume of oil tankers. In recent years, Lamor has played a key role in establishing several oil spill response centers in the Red Sea region in cooperation with local environmental authorities.
It’s good that Lamor is taking concrete growth measures (as well) and not just "