https://www.youtube.com/watch?v=IISBxZabQ3o defense industry mentioned.
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Scanfil’s peer Kitron raised its guidance, and here are Antti’s comments related to it. 
…Additionally, we consider it possible that the very strong growth outlook of the Western defense industry and the need to increase production will also open up growth opportunities for Scanfil and Incap.
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Nordea states in its new analysis that it expects Scanfil’s Q1 organic growth to remain negative and the operating profit margin to be weak due to investments. According to them, the threat of a trade war naturally adds uncertainty, which could delay orders and push down the upper end of the guidance.
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Viljakainen has completed an extensive report as his night work, and like other extensive reports, it is available for everyone to read.
We reiterate our Add recommendation for Scanfil and lower our target price to EUR 9.00 (previously EUR 9.40), reflecting forecast reductions due to the geopolitical situation and an increase in the required rate of return. We expect Scanfil’s playbook to continue to work, even though uncertainty related to investment-driven demand is now very high. The stock’s risk-adjusted expected return, comprising all components, is still slightly higher than the required rate of return in our papers.
Quoted from the report:
In our assessment, Scanfil is well within its comfort zone regarding its financial position. Therefore, the company can calmly continue to implement its strategy and organic and inorganic investments. Furthermore, in our opinion, the risks related to working capital are somewhat neutral or still slightly positive, and working capital management is largely in the company’s own hands. Thus, Scanfil’s financial position has the prerequisites to strengthen further. If the guidance is met, Scanfil will achieve net debt-free status within approximately one year, and in this scenario, the company’s financial position would be very strong.
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Antti’s preliminary comments as the company publishes its Q1 results on Thursday.
Scanfil has ramped up production of new projects won last year, likely at several factories, which has probably weighed on the company’s growth and profitability in the early part of the year. Consequently, we expect Scanfil’s Q1 figures to have weakened slightly from a satisfactory comparison period, although the figures are also organically supported by the SRX acquisition completed at the beginning of Q4’24. According to our assessment, Scanfil will reiterate its guidance in the Q1 report, although pressure on at least the upper ends of the fairly wide ranges may be downwards due to indirect negative repercussions of global trade policy. A recent comprehensive report on Scanfil can be read here.
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Antti was quick with his comments.
Scanfil’s Q1 numbers were slightly weaker than our forecasts in a quarter characterized by new project ramp-ups. The company updated its earnings guidance metric, but in practice, the guidance remained unchanged, which was also in line with our expectations. According to our preliminary assessment, the report does not cause significant pressure for changes to our Scanfil forecasts or consensus forecasts for the near future.
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Here is Viljakainen’s Q1 report.
The overall picture of Scanfil’s Q1 report, published yesterday, was in our opinion quite neutral, and we did not make any forecast changes after the report. In our view, the stock’s valuation is reasonable (2025e: P/E 13x, EV/EBIT 10x), but the expected return no longer exceeds the permanent required rate of return over a 12-month horizon due to elevated macro risks. Thus, we reiterate our target price for Scanfil at 9.00 euros and lower our recommendation to reduce (previously add) as the upside potential of the stock has narrowed.
Quoted from the report:
Balance sheet is strong and there would be capacity for inorganic growth
Scanfil’s net debt to EBITDA ratio was 0.35x (cf. financial target below 1.5x). Thus, the company’s balance sheet and liquidity are strong. According to our calculations, the company would still have over EUR 100 million in additional capacity for inorganic growth. This would enable significant inorganic growth, considering the industry’s typical valuations. Based on the comments, the company still seemed to have an appetite for acquisitions, although we would not be surprised if the prevailing high uncertainty limited the strongest deal-making enthusiasm in the very near future, both on the buyers’ and sellers’ side.
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Scanfil invests in a second electronics manufacturing line in Atlanta, USA. The demand for electronics manufacturing in the United States has grown over the past two years and is expected to continue its growth. Read more:Scanfil investoi elektroniikan valmistukseen Yhdysvalloissa - Scanfil
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Here are Antti’s comments on this new production line.
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@Pia_Maljanen and @Antti_Viljakainen talked about Scanfil in English.
This video can be found on the Inderes Nordic channel, which is worth subscribing to:
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Outsourcing news. Swedish company Freemelt, which develops and sells 3D printers, is outsourcing its entire production to Scanfil.
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This seems to be a classic example of the logic by which a customer outsources production to a contract manufacturer 
Freemelt, listed in Stockholm, appears to be a relatively early-stage company, so, initially, the customer relationship is unlikely to bring significant growth on Scanfil’s scale. However, the industry is very interesting, and Freemelt seems to have a strong desire for growth, at least in light of its financial targets (1 billion SEK revenue by 2030). Should the target be realized, the customer relationship could be of a reasonable size for Scanfil as well.
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I don’t remember if there has been much talk about that before, but it caught my eye in the latest earnings presentation. There’s certainly enough money, and the latest acquisition doesn’t move the needle much yet.
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On Friday, this stock exchange release was published
Scanfil’s General Counsel Teemu Ohtamaa Joins the Company’s Management Team
Scanfil’s General Counsel Teemu Ohtamaa (LL.M.) Joins the Company’s Management Team on June 1, 2025.
“Teemu has worked for the company for over 20 years. He has become a valuable asset to the company and its success. He understands the company, its history, the industry, and is an experienced business law expert. Congratulations Teemu and welcome to the Management Team,” says CEO Christophe Sut.
Teemu has worked for the Scanfil Group since 2000 as a lawyer, HR Manager, General Counsel, and Board Secretary. From 2011 to 2017, he also served as General Counsel and Board Secretary for Sievi Capital Oyj.
Teemu’s CV and photo can be found in the attachments.
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Scanfil organized an investor meeting at its Sievi factory on May 22nd, which was arranged for local retail investors. I had the pleasure of attending this event, and here’s my two cents On site, it was possible to chat with the management at length. Additionally, we got to know the Sievi factory through a factory tour. The company’s management gave a presentation on its history, present, and future.
Special thanks to @Pasi_Hiedanpaa for the company and for the good answers to all the questions that were asked. In addition to Pasi, the event was attended by, among others, the company’s Chairman of the Board, CEO Sut, and CFO. Regarding Pasi, it’s clear that the company has been studied thoroughly. Therefore, Pasi can correct all my mistakes in this message; these numbers are just thrown out from memory 
1. The Chairman of the Board’s (and largest shareholder’s) historical recollection. Harri was the right man for this, as the company was founded by his father, and Harri has been involved in its operations more or less since he was little:
- Scanfil will turn 50 next year! To celebrate this, a book about the past years is coming out. This is truly a “must-have” item for all shareholders!
- The 1990s was a period of rapid growth for Scanfil. Did you know that Scanfil’s revenue grew from 5 million in 1990 to 100 million in 2000 as a working figure?
- Scanfil has not had A SINGLE loss-making year during its entire (almost) 50-year stock market history! (ok, there was a story that apparently during the 90s recession, there was one year where the numbers were a bit ‘on the fence’ )
Essential and critical events for historical development:
- 1980s: Jorma’s reaction and investment in the electronics industry; this was seen as a clear growth area with plenty to do, allowing them to “catch the megatrends”. They dared to invest in the right things.
- 1990s: aggressive growth, which led to becoming a major supplier for Nokia (they had to be large enough for this to succeed), and naturally, through that, they also got a share of Nokia’s growth.
- 2002: Acquisition of Wecan Electronics. Competitors around them were merging, so Scanfil had to react to avoid becoming a “hot dog stand”. A very important strategic move that ensured they could respond to the competition. There were also some business synergies in the background.
- 2015: Acquisition of PartnerTech; the acquired company was probably slightly larger than Scanfil, so it was a big purchase.
- Miscellaneous figures and facts about the company:
- The company produces 10,000 different products for various customers!
- I asked about the company’s position in the value chain and its changes over the decades – typically, the position of electronics contract manufacturers is perceived as difficult. Harri didn’t quite buy into the idea that they have been or ever were under significant pressure. The company’s strategy has always essentially included the desire to produce large entities and critical stages for customers’ products. That is, products where the switching costs for the customer are higher.
- Referring to the above, both Harri and CEO Sut repeatedly stated that the company’s “stickiness” has always been very good. And if you look at the company’s major customers
- The year 2024 definitely proceeded with a “destocking” theme for Scanfil’s customers and the entire industry. This was clearly reflected in the company’s revenue. Nothing unusual, this is how economic cycles have gone, especially recently.
- The company sees very good growth opportunities, both organically and inorganically. And this story was somehow easy to buy. It felt like the CEO was enthusiastically able to describe several different geographical areas and genuinely demonstrate that opportunities abound. And it’s no wonder there are opportunities even organically: if I look at the company’s major customers, they are, damn it, such defensive and high-quality organic growers themselves, so it’s no wonder Scanfil grows too: KONE, ABB, Tomra, Danfoss, Valmet, Vaisala, ThermoFisher, Planmeca, Sandvik.
- The company also emphasized its defensiveness by stating that even though the largest customer accounts for 13% of revenue and the top 10 for 55%, these customers buy numerous different products from Scanfil across various product areas, which also have completely different market cycles. This highlighted and gave the impression that Scanfil’s revenue is much more diversified and “safer” than one might superficially imagine.
One of Scanfil’s biggest “problems” for external investors has been its highly concentrated and loyal ownership base. The owners are perhaps a bit too satisfied, which is reflected in the trading volumes. I calculated that the founders of Scanfil and their close circles still own 68% of the entire share capital And there are no eager sellers, because all long-term owners who know the company recognize that such good long-term investment targets are hard to find in Finland. The company’s DNA has always included a strong balance sheet, nurturing profitability, and a desire for growth. The company does not grow at any cost, and it would rather leave a new, poorly profitable customer relationship on the table than engage solely for the sake of growth. The company also emphasizes this in its fresh, new strategy.
Harri made a good quip related to this topic, which I don’t remember verbatim (how did that go, Pasi?) but the idea was: “no one forces you to buy from us if our price doesn’t please you”
P.S. Pasi, try to advocate for small investors so that next spring’s annual general meeting can be held physically due to the 50th-anniversary celebrations
Other listed companies should also organize such events for investors!
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Thanks @JNivala for the comprehensive report and it’s great that you were able to attend. Nothing to correct. If you have any questions about Scanfil, you can contact me via private message on the Inderes discussion forum, or directly at pasi.hiedanpaa@scanfil.com or by phone at 0503782228.
Best regards, Pasi
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Good summary @JNivala of the company visit. It was a pleasure to be involved in and co-organize the company visit to Scanfil. Many thanks to the company for their excellent presentation and for putting their A-team into it. I myself was involved in something similar about 20 years ago. Scanfil has internationalized further, and a lot of goods have passed through the shipping departments of various factories in the interim. As a resident of a neighboring municipality, I have known the Takasia family since the 80s and have followed the company’s long-term development and great success. The company has always maintained a low and cautious profile, letting its actions speak for themselves. Often, Scanfil’s valuation has been rather low, but due to @JNivala’s untold focused ownership, this has not been perceived as a problem (owners generally have had little desire to sell shares, and trading is minimal). This, of course, makes it difficult to use the share as a means of payment in potential corporate arrangements. During the time of the previous CEO, Petteri Jokitalo, Scanfil created shareholder value very well, likely belonging to the top decile of the Helsinki stock exchange during his era. Now, during the visit, it became clear, at least between the lines, that profitability and profitable customer relationships are being emphasized even more. This may have even been reflected in weak revenue growth/decline over the past year, in addition to customers reducing inventory levels, but hopefully, this slight strategic refinement will benefit the company with better profitability as industrial demand activity increases. Scanfil’s factory network has expanded, and its geographical coverage close to key customers has improved significantly over the last ten years. Scanfil has historically adhered to moderate guidance (based on forecasted customer demand), and these have indeed been exceeded more often by a combination of organic and acquisition growth than fallen short over a long period. Let’s hope that success will be at least as good during the current CEO’s era as his predecessor’s, and that Scanfil will exceed the very moderate growth forecasts presented now, at least in the long run.
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Scanfil Oyj has announced its acquisition of an 80 percent stake in ADCO Circuits Inc., an electronics contract manufacturer in the Greater Detroit area in the United States. This strategic acquisition strengthens Scanfil’s position in the United States and in the aerospace and defense industry, which accounts for 37 percent of ADCO’s revenue.
- In 2024, ADCO’s revenue was 30.6 million euros, operating profit was 3.5 million euros, and operating profit margin was 11.4 percent.
- The estimated purchase price for the 80 percent stake is 13.6 million euros.
The transaction is expected to receive regulatory approval during the third quarter of the year.
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Here are Antti’s comments on how Scanfil is acquiring 80 percent of a US-based electronics contract manufacturer.
Scanfil announced yesterday that the company is acquiring 80% of ADCO Circuits, an electronics contract manufacturer located in the Greater Detroit area in the United States. This strategic acquisition will accelerate Scanfil’s growth in the Americas business segment and in the aerospace and defense industry, which accounts for 37% of ADCO’s revenue.
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A recording of Scanfil’s webcast related to the acquisition is here. The presentation also included ADCO’s 2023 figures, and there was evidence of strong margins for the second year as well. The presentation also revealed ADCO’s customer structure, which was quite concentrated, typical for small contract manufacturers. As part of Scanfil, ADCO’s customer risk will naturally diversify significantly, but I would assume that Scanfil might have used this as leverage in the formation of the purchase price. The acquisition multiples were quite moderate, for example, when compared to Scanfil’s own multiples and ADCO’s profitability.
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