Iikka and Pauli chatted about Norrhydro, inspired by a comprehensive report. 
Topics:
00:00 Start
00:14 Events after listing
01:46 Commercial development has been slow
04:31 Norrdigi EMA
06:13 Distribution agreement to the United States
07:30 Q3 was good
09:58 Recommendation is âaddâ, but risk is high
I donât know for sure, but in previous trading spikes, Trög sold (and the stock price plummeted). And yesterday was the most traded day ever, if the IPO is not taken into account.
Could you clarify what this âgood opportunityâ is? Aberdeen Dynamics is a relatively small outfit that serves 10+ different industrial sectors, with oil and gas being just one of them.
Iâve mentioned this before, but it seems that the potential of these new technologies is quite heavily overestimated (even on this forum). Forum participants remember to praise the energy efficiency of the solutions, the growth potential of productivity, etc. (information, of course, comes from the company) without knowing more precisely how significant these factors are when the end customer makes their investment decision.
The high P/E doesnât concern me as much due to weak earnings, but the somewhat high P/B does. Norrhydroâs P/B ratio is 1.6. This feels a bit high, as in my opinion, one shouldnât pay over one for this due to the lack of demonstrated performance and also the high risk. A better âmargin of safetyâ would be obtained by buying below book value, e.g., P/B 0.8, which would be a 50% lower price from about âŹ1.2 â âŹ0.6.
It wouldnât be surprising if we get a stock exchange release in the coming days stating that Yrjö Trög has sold more shares, and this was the reason for the decline.
Peculiar binary thinking regarding that MCC. New technology is not necessarily sold in such a way that âyay this is goodâ and then billions of orders come in, or âthis is crapâ and no one orders. Norrhydro is a small company and the penetration of new technology into the market will continue to be slow, if it happens at all. If the device is good, it will gradually enter the market as awareness grows; if not, then very little of it will go there, and at a decelerating pace as awareness grows 
And that Aberdeen Dynamics is hard not to see as a good opportunity: a free entry into the US market. Why wouldnât it be a good opportunity even if it is a small company and serves, say, 100+ industrial sectors? If a euro coin is found on the ground, itâs a good opportunity to put it in your pocket, even if itâs not a gold bar.
Itâs hard to say precisely, of course, but I somehow donât believe that anything more than, say, contract lawyer fees and flight tickets has necessarily been invested at this point. Itâs also an advantage for Aberdeen to expand its offering, so itâs a win-win. For this reason, I believe itâs a free lunch for Norrhydro. And if similar ones were to appear all over the world, then surely it would generate at least some revenue if the product has any appeal? It would be difficult to see it as negative. I would see it more negatively if investments and efforts were made towards moving to the USA. That money is easily thrown away if nothing happens in the market.
Our bull case is primarily based on the upward development of the traditional cylinder business. This would likely enable the company to reduce its debt in the coming years (debt has been at a relatively high level for the past 3 years) and would reduce earnings-based valuation multiples (EV/EBIT) quite quickly. Key drivers for earnings development include, among others, economic development and demand from key customers. In the big picture, it is also observed that the new factory enables stronger profitability than historically and helps gain market share (for which there is also historical evidence).
NorrDigi is rather seen as an uncertain option, to which significant value is not yet ready to be assigned until stronger evidence of commercialization is obtained. There is certainly demand in the market for the features of MCC and EMA, but as an outsider, it is difficult to assess how well the technologies actually work in customersâ work machines.
Yrjöâs sales are strong relative to turnover:
This is what happened. Is the consensus still that thereâs no reason to worry?
There can be many reasons for selling, but only one for buying. I wonder who buys?
Shares are indeed being sold off at a rapid pace. I have indeed expressed my stance before regarding the companyâs situation, which is not very flattering. The balance sheet is tight.
I have followed the company a bit less lately, but how exactly did the CEO situation unfold? When the company was listed, Matias Parviainen served as CEO, and he was announced to resign immediately sometime in 2023. After this, Trög became the interim CEO, and the search for a new one began. Trög still remains as CEO and is selling his shares to a considerable extent. Has there been any comment on the recruitment of a new CEO after the events of 2023?
Lately, Iâve been inclined to think that this is Yrjöâs personal matter and doesnât seem to be related to the company. If it were related to the company, one would think that other insiders would also be selling. Of course, Yrjöâs sales certainly make all of us following the company cautious, but perhaps thatâs exactly why one should buy now, because the stock price would clearly be higher without Yrjöâs sales.
On the other hand, other close associates have not increased their ownership either, which could also have been an interesting opportunity, now that an economic turnaround is almost visible and yet the stock price has fallen due to Yrjöâs sales. The fact that other close associates are not buying despite the stock price drop could also indicate that even they do not see the stockâs risk-adjusted return expectation as sufficiently attractive, despite the economic turnaround in sight. This is still a rather peculiar case, no matter how one thinks about it!
Thatâs incorrect. Norrhydro was listed at the end of -21. Parviainen started as Norrhydroâs CEO in 11/22 (though he was fired already in 5/23):
Based on Parviainenâs LinkedIn, he has at least done several interim CEO roles. Was there a phase where an interim person was needed, or did he get fired anyway? Itâs probably useless to speculate about this.
In any case, itâs a shame that the Company canât find, or Yrjö wonât give up, the CEO position and bring in a young and hungry CEO like Harviaâs Matias JĂ€rnefelt, who wouldnât exude the kind of giving up that the company currently does.
Years just fly by and get mixed up â shouldnât try to dig them up from memory. Thanks for the correction, I stand corrected.
Based on Parviainenâs LinkedIn, he has at least done several interim CEO jobs. Was there a phase where an interim person was needed, or did he get fired anyway? Itâs probably pointless to speculate about this.
Pointless to speculate, indeed, but I do remember that the departure happened quite quickly. Hopefully, a suitable CEO will be found, if the search for one is still ongoing.
Regarding the previous point, when you refer to Harviaâs JĂ€rnefelt. He organized the planning of organizational changes at the end of 2024. In 2025, the reorganization began, and they changed sales, country/regional organizations, and personnel. New professionals from outside the business. Krauth is responsible for EOS, Sabbato started in 2025 and is responsible for European operations. Hagemeier started in the US last month. Harviaâs management team is large and has strong expertise from many different industries.
Norrhydro will henceforth report its results quarterly (previously semi-annually). Itâs about time.
Norrhydro customer Avant Woodâs project in Bhutan seems to be progressing.
Norrhydro published a stock exchange release today:
Change in the management team: Carl Mattson leaves the company
03.02.2026 at 13.00
Norrhydro Group Plcâs Director of Digital Business Carl Mattson is leaving the company and moving to the service of another company. Mattsonâs employment will end by 31.3.2026.
The position of Director of Digital Business will not be refilled. Digital business sales tasks will be transferred in their entirety under Sales and Marketing Director Anniina Piira Wendeler. The Tampere technology team will report directly to the Companyâs CEO Yrjö Trög under the leadership of a team leader.
In digital business, there is an increasingly strong shift towards product sales and marketing, and in the future, the focus of product development will be on maintenance and development tasks and the final testing of certain areas. New technical sales experts will be recruited for digital business sales, while the mapping of global technology partnerships will also continue.
âOn behalf of all of Norrhydro, I would like to warmly thank Carl (Kalle) for his significant contribution to the company. I wish Kalle success in his new challenges,â says Norrhydroâs CEO Yrjö Trög.
The mention of a new focus for (digital business) product development sounds significant, possibly even a major change. I donât know the company well enough myself to know how that should be interpreted. 
I canât comment on that matter either.
But this mention sounds very good to me: âNew technical sales professionals will be recruited for digital business sales.â It feels like this is exactly what Norrhydro needs right now.
Pauli Loheâs comments on the release:
A few highlights:
NorrDigiâs growth prospects were already uncertain, and the departure of the Business Director does not exactly support the outlook, although the company still intends to recruit technical sales experts for NorrDigi. Our interpretation is that the company wants to save on NorrDigiâs costs, allowing the positive cash flow from the traditional cylinder business to be better reflected. Our âaccumulateâ (lisÀÀ) recommendation has been based on the earnings turnaround of the traditional cylinder business and the strengthening of the balance sheet, rather than on NorrDigi.
Digital solutions accounted for an estimated 1â2% of Norrhydroâs revenue in 2025. The companyâs goal is for digital solutions to represent more than 30% of revenue in 2028. The company did not comment on changes to targets or growth prospects in the release, but we consider it likely that the targeted growth in NorrDigi will not be realized within the mentioned schedule. In our view, the departure of the Business Director increases the uncertainty related to the growth prospects.