“The total investment for the energy project is approximately 1.35 million euros, and Business Finland has granted the project a 20% energy subsidy.”
“Reka Kumi is reducing its carbon footprint. The Elstor thermal battery solution for steam production at the Aura factory is a significant and meaningful investment for us in more energy-efficient and environmentally friendly production,”
In news like this, it would be good to know how much benefit is actually gained in relation to the capital invested? Now it just looks like a good conscience has been bought with shareholders’ money.
Revenue of the rubber business was 6.5 (7.0) million euros
Operating profit (EBITDA) of the rubber business was 0.6 (-0.1) million euros
Group revenue was 6.5 (7.0) million euros
Group operating profit (EBITDA) was 0.3 (-0.4) million euros
Group’s result for the review period was 0.4 (0.1) million euros
January - December 2024
Revenue of the rubber business was 27.2 (30.6) million euros
Operating profit (EBITDA) of the rubber business was 1.4 (1.2) million euros
Group revenue was 27.2 (91.6) million euros
Group operating profit (EBITDA) was 0.4 (37.6) million euros
Group’s result for the financial year was 0.4 (34.5) million euros
Group’s cash and cash equivalents on 31.12.2024 totaled 26.4 million euros
Short-term outlook
The general economic situation and market uncertainty are reflected in Reka Rubber’s customers’ decreased order volumes and shortened order times. The challenging market situation is estimated to continue in 2025. The rubber business continues to improve productivity and profitability while creating further conditions for future growth. Investments in long-term growth will continue, supported by our investment in production technology that is less polluting and consumes fewer natural resources.
During the company’s strategy work, the company’s assets will be primarily invested in low-risk investments and short-term deposits.
Proposal for distribution of profits
The parent company’s distributable funds on 31.12.2024 were 9,846,422.85 euros, of which the profit for the financial year was 847,346.61 euros. The Board of Directors’ proposal for profit distribution is to pay a dividend of 0.07 euros per share. The proposal is based on the company’s financial situation and future strategic investments. For the financial year 2023, a dividend of 2.00 euros per share was paid due to the acquisition of Reka Kaapeli.
Quite pathetic tinkering with these rubber hoses and other junk. Dividend 7c even though there is money. To keep at least some of the investors, they should have distributed at least 50c/share. The Aura factory is almost in its original 80s condition. I also fell for it back then when a large dividend was paid due to the sale of the cable division. Now the share price has fallen by nearly 50%.
Exactly. I have visited the Aura factory. Very old-fashioned both in terms of its premises and technology. Machines are sitting idle and run on electricity or some gas/steam power. It’s an unrenovated facility over 40-50 years old.
They do not specify their customers in more detail. But strengthening demand would suggest that players in the defense equipment sector would also be customers. The locations of the facilities are excellent in that respect: Finland as a supplier to the Nordic countries, and the Polish factory as a supplier to the Central European (especially German) market.
Cash and cash equivalents are primarily invested in low-risk investments. At the end of June 2025, the group’s cash and cash equivalents and other financial assets amounted to EUR 25.9 million.
Of interest-bearing liabilities, non-lease liabilities amounted to EUR 2.1 million (EUR 1.0 million on December 31, 2024).
Reka’s policy is truly unproductive. Now Reka Rubber proudly announces that it is investing 1.3 million euros in its Finnish and Polish factories🤣 It’s hoarding that 26 million cash. The board also apparently resigned some time ago due to disagreements. Markku Rentto remained as owner. Can’t anything sensible be found to acquire now? I also fell for it once, chasing a large dividend, and am down 50%.
Wait, did I understand correctly that this company, in addition to its current hefty net cash, still has an 8 MEUR investment “stuck” in Reka Pension Fund at 4% interest
According to the financial statements, the pension fund’s assets significantly exceed its liabilities, so couldn’t they get rid of that pension fund quite easily and free up another 8 MEUR in capital?
Reka is starting to look interesting again, as the Rubber business becomes profitable.
Cash 29.5M€ and interest-bearing non-leasing debt 4.8M€. So 24.8M€ net
Market value now: 5,880,760 shares x 4.5€ = 26.5M€
So only 2M€ valuation for the profitable rubber business
Previously, I criticized the trend of this business in the other direction, but now, with it growing and profitable, the situation is very different.
Reka Industrial Plc: Volumes grew and profitability improved
July–September 2025
Revenue of the Rubber business was 7.4 (6.0) million euros
EBITDA of the Rubber business was 0.9 (0.5) million euros
Group revenue was 7.4 (6.0) million euros
Group EBITDA was 0.7 (0.2) million euros
January–September 2025
Revenue of the Rubber business was 23.8 (20.7) million euros
EBITDA of the Rubber business was 2.9 (0.8) million euros
Group revenue was 23.8 (20.7) million euros
Group EBITDA was 2.1 (0.1) million euros
Group profit for the review period was 1.2 (0.0) million euros
Group cash and other financial assets 29.5 million euros
Group cash assets are invested in low-risk instruments
Actually, Reka Kumi might end up with a negative valuation, as Reka still has an 8 MEUR guarantee capital investment in Reka Pension Fund on top of that significant net cash
Reka Kumi arranged its financing in September and replaced its loan from Reka Industrial
Plc with external bank financing.
At the end of September 2025, the group’s cash and
other financial assets were 29.5 million euros, whereas at the end of June they were
25.9 million euros.
If we engage in irresponsible speculation now, is there a good reason for such a scheme, unless the parent company’s cash is finally going to be used soon? Otherwise, the group would only be increasing its financing costs.
Inside information: Reka Industrial Plc: Reka Rubber establishes a subsidiary in Ukraine
Reka Industrial Plc’s subsidiary Reka Kumi Oy (Reka Rubber) has decided to establish a subsidiary in Ukraine.
The subsidiary to be established will purchase an industrial property in Ukraine to start the production of technical rubber products. The mapping of suitable properties is already underway, and the final selection of the property is expected to be made in the near future.
The establishment of the subsidiary is part of Reka Rubber’s ongoing strategy aimed at developing and increasing production capacity and supporting long-term growth.
“This investment is a continuation of our systematic development of production capacity and strengthens our ability to serve both current and new customers,” says Sari Tulander, CEO of Reka Rubber and Reka Industrial.
Earnings out tomorrow. After Q3, the comment in the interim report was: “We estimate revenue to be higher than last year also in the latter part of the year and EBITDA to be better than the previous year.” As I see it, this refers to the Q4 results; in Q4/2024, revenue was €6.5M and EBITDA was €0.3M. Since Q3/2025 revenue was €7.4M and EBITDA was €0.7M, one could guess at figures of that level for Q4/2025 – or even better? That would mean an EBITDA of nearly €3M and a profit of €2M for the full year (there are hardly any financial expenses). The company’s valuation is indeed starting to approach a P/E of 10, plus they have cash equivalent to the valuation. We’ll see if the valuation corrects in the right direction tomorrow, and if they finally pay out some cash as dividends.
I don’t know how you’re calculating the P/E ratio, but I can’t get it to 10 by any means, because the accumulated EPS for 1-9 is 0.2 euros and if Q4 goes well, the full-year EPS will be about 0.27, so the P/E ratio would be around 18.
I was already running the 2026 forecast in my head. Growth expectations are quite strong now that investments have been completed and the European heavy vehicle industry is powering ahead.
