Reka Rubber earnings surge on higher volumes

Aura, Finland – Reka Industrial Plc reported higher earnings (EBITDA) and improved profitability in 2025, driven by stronger volumes in its rubber business.

Group turnover rose 16% to €31.6 million from €27.2 million a year earlier. Earnings increased more than fivefold to €2.5 million from €0.4 million in 2024.

Operating profit margin improved to 3.7% from -3.2%, the Finnish group reported 26 Feb.

Reka Industrial currently consists of only Reka Rubber Ltd, a manufacturer of industrial rubber products in Northern Europe.

In the ‘rubber segment’, full-year turnover increased to 16% year-on-year to €31.6 million while earnings increased 150% to €3.5 million from €1.4 million.

In the fourth quarter, rubber segment turnover increased 20% to €7.8 million with flat earnings of €600,000.

At group level, fourth-quarter turnover was €7.8 million, up from €6.5 million the year before, while earnings were marginally up at €400,000.

According to Reka Industrial president and CEO Sari Tulander, volumes increased and profitability improved in 2025, although fourth-quarter earnings were held back by higher investments in future growth.

During the year, Reka Rubber “arranged its financing and repaid its loan” to Reka Industrial, while capital expenditure totalled €2.5 million, up from €1.6 million the year before.

Investments included a new extrusion line at the Dopiewo factory in Poland, costing €1.3 million, to increase output of black hose products.

The line was commissioned at the end of September, with initial production runs completed by year-end, increasing “shaped hose” capacity.

At the Aura factory in Finland, two medium-sized injection presses were commissioned in December 2025 to improve productivity and increase moulded product capacity.

Reka Rubber also expects a “power-to-heat thermal storage solution” to be delivered at the Aura factory this year, enabling heat recovery and lower carbon footprint at the site.

Reka Industrial said it continues to monitor market developments, including the impact of customs tariffs on customer volumes.

For 2026, the group anticipates earnings to improve compared with 2025.

The company also said it continues to explore M&A opportunities as part of its strategy to increase shareholder value.

Reka Rubber’s target is to grow turnover to €50 million over the next five years.