This caught my eye in the news. If plastic recycling is so difficult that it takes another company 3 years at a pilot plant, it’s unlikely to become profitable very quickly for Lamor either.
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Kaipola has certainly been an infamous place in recent years. The permit process might also be quite stiff when Kaipola and plastic recycling are mentioned 
. Hopefully, Lamor succeeds with a continuous process, even though Italian technology doesn’t inherently inspire confidence. Considering Lamor’s recent success as a company and the reputation of plastic oil in general, I would estimate that Lamor gets one shot, and if it fails, then whatever little is left of their reputation will be gone.
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Thomas has provided his comments as Lamor is set to report its Q1 results on Friday, May 29th 
We expect revenue for the review period to have declined significantly from the comparison period, weighed down by a thin order book, and for the operating result to have settled roughly at break-even in line with the company’s guidance. On the results day, our attention will specifically focus on the recently announced extension of the Kuwait project, the ramp-up of the Kilpilahti recycling facility, the tight balance sheet position, as well as management’s comments regarding the prerequisites for an earnings improvement toward the end of the year.
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It’s looking difficult: Lamorin liiketoimintakatsaus Q1/2026: Ensimmäinen vuosineljännes ennakoidun haastava – kulusäästöt etenivät suunnitellusti | Kauppalehti
Lamor’s revenue and earnings in January–March were, as anticipated, at a lower level than in the comparison period. During the review period, the company transitioned to a new global operating model and the cost-savings program progressed as planned. After the review period in April–May, supplementary additional installations related to potential emergency situations have continued at the Kilpilahti recycled oil plant in good cooperation with the safety authorities. The goal is to start the production ramp-up by the end of June.
January–March 2026 in brief
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Revenue was EUR 14.3 million (19.0)
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Operating profit (EBIT) was EUR -0.4 million (1.6)
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Adjusted operating profit (EBIT) was EUR -0.3 million (1.7)
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Cash flow from operating activities was EUR -0.7 million (-5.6)
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Earnings per share (undiluted) was EUR -0.06 (0.00)
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Net working capital at the end of the period was EUR 35.1 million (55.8)
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Orders received were EUR 8.3 million (27.6)
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Here are the key takeaways from the review:
Bond refinancing is considered uncertain, even by the company management.
Covenants were breached during the review period.
The goal is to sell a majority stake in the plastics business over the longer term.
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Thomas has published a new company report on Lamor following the Q1 results
Lamor’s Q1 figures fell short of our expectations, primarily due to a sluggish order book and weak new sales. Financial covenant terms were breached during Q1, though the company received a waiver from its financiers. The guidance for the current year was reiterated, but given the weak start to the year and the thin order book, we believe achieving the earnings guidance appears challenging. We reiterate our Reduce recommendation, but lower our target price to EUR 0.9 (previously EUR 1.1) following the Q1 earnings miss.
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I find it an interesting, though not surprising, detail that the financiers are not taking action regarding the covenant breaches. I believe this indicates that there is an open dialogue between the company and the financiers, and that the financiers trust the company’s management to at least some extent. Of course, it would also be foolish to slaughter the pig at this stage.
June is exciting for reasons beyond just the ramp-up of the Kilpilahti plant. By the end of the month, we should receive a press release regarding the refinancing of the maturing loan, especially if they have to resort to an emergency rights issue. I believe the announcement will come alongside an operational status update by the end of the month. The success of the Kilpilahti plant’s ramp-up will have a massive impact on the resulting loan terms. If the ramp-up schedule fails again, it’s unlikely they will succeed in modifying the terms of the maturing loan without egregious changes in favor of the financiers. I personally still believe we will see a combination of a bridge loan and a large rights issue in the summer or by autumn at the latest. As things stand, I intend to participate in the offering.
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Do you really believe that they are about to start the plant this time? How many times now has management said that it will start any moment now, but to please be patient for a little longer? Wasn’t the plant originally supposed to be completed in 2023?
My own confidence vanished ages ago and I would short Lamor, but I haven’t found any shares available to borrow anywhere. Is there anyone on this forum willing to lend?
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According to the company, there is operational readiness to start up the plant, and additional installations required by Tukes (Finnish Safety and Chemicals Agency) for emergency situations are currently being carried out. I have no reason to doubt this information. Perhaps my optimism stems from the fact that I only jumped in as an investor at the beginning of this year, when I was searching the “trash bin” of the Helsinki Stock Exchange for more small potential turnaround companies.
At the same time, I am slightly concerned about this schedule, as it is not entirely in Lamor’s hands; the final word rests with the authority. Hopefully, the company has taken this external uncertainty into account in its announced schedule. The timing is also relevant in the sense that agencies like Tukes are practically closed in July, with the exception of emergency duty.
The company’s situation is binary in the sense that the end-of-June schedule and its adherence will largely define the situation from which the company’s balance sheet will need to be rescued in the fall. If the ramp-up is delayed again, the company will be at the mercy of financiers, and a large rights issue will have to be organized while the share price is at rock bottom. This would result in massive dilution.
Edit: As an addition, it is not uncommon for significant delays to occur when scaling new technology to industrial scale for the first time. I also remain slightly skeptical about the reliable and profitable functionality of the technology (continuous process, yield, input quality). This can only truly be determined if and when the permit for the ramp-up is granted.
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Pyrolysis is not even new technology when it comes to plastic waste. To my knowledge, no one has succeeded in doing it profitably on an industrial scale so far, and I don’t understand why the one to succeed would be specifically Lamor, which has no experience in chemical engineering, oil refining, or the process industry.
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I should have phrased it better: New for Lamor and, on this scale, for Finland
You’re right that pyrolysis is not a new technology and is a challenging process.
As I understand it, the collection and transportation of plastic to the plants brings its own challenges in terms of profitability.
That’s why they see that there could be demand for small-scale production facilities.
I haven’t followed Lamor’s progress for a while. Is there any information on why they ended up buying out Resiclo? Did the startup run out of money?
Didn’t the Resiclo shareholders jump ship from Neste, meaning that’s where the experience in chemical processes and pyrolysis came from? I remember that when Lamor announced their project, Neste released their own stock exchange release. I would imagine the Resiclo shareholders were involved in that project.
Resiclo has never actually had any money. In the 2024 financial statements, equity (OPO) was 80k in the red and there was 20k in the bank. How could a company like that invest tens of millions on an industrial scale?
Lamor’s main owner, Larsen Family Company, isn’t in a much better cash position. In the latest financial statements, they had 150k in cash, 6 million EUR in long-term loans, and 2 million EUR in short-term loans. With these specs, I believe they are trying every possible means to postpone Lamor’s share issue as far into the future as possible.
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Lamor has received significant orders for oil spill response equipment from five Finnish rescue services. The orders consist of oil recovery collection systems to be delivered to the rescue services of Southwest Finland, Western Uusimaa, Helsinki, Eastern Uusimaa, and Kymenlaakso. These procurements will strengthen regional preparedness, particularly for the efficient recovery of renewable fuels in demanding conditions.
The delivery package received by Lamor includes a total of 15 containers of response equipment. This represents an exceptionally large delivery for the Finnish market.
The total value of the orders exceeds two million euros and has been recorded in Lamor’s order book for the second quarter of 2024. The equipment deliveries are scheduled to take place during 2026.
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In the midst of the Kilpilahti case, it is easy to forget that the company has other business operations as well. There is the Persian Gulf, for instance, waiting to be cleaned up like the vestibule of hell.
By the way, the timing is excellent; a public entity placing a major order with a company critical to national security right in the middle of its financing challenges.
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The streams are small at Lamor; this much of the order backlog is burned through in just over a week with a €90m revenue, and I wouldn’t get carried away by overemphasizing its significance for the refinancing either. It is, of course, an improvement compared to the beginning of the year, during which I don’t recall seeing even one(!) order of this size. As for the Persian Gulf, I don’t believe Lamor has ever done anything significant there, so why now.
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Now would be a good time to re-check the company’s references in the region and perhaps the Q1/2026 report.
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Can you help me find the references, specifically in the Persian Gulf? I am of course aware of the Kuwait and Saudi projects, but those are quite a different matter than the Persian Gulf. If Lamor has done something on the shores of the Persian Gulf in recent years, I’ve missed it. From the Q1 report, I only remember the CEO saying something general about the region.
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A significant order, over 15 containers of equipment, an exceptionally large delivery… over two million euros. The company needs to have deliveries like this every week. Those adjectives could be used if the order value was 20 million. An interesting press release.
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Yes, Kuwait and Saudi Arabia are there. Then there are also Oman and the UAE. For example, just an internet connection and Google are enough to familiarize yourself with the company’s Middle East operations.