Reka Rubber expects full-year earnings growth despite challenges

Aura, Finland – Reka Industrial’s Rubber segment has reported a 22.2% year-on-year drop in earnings (EBITDA) for the third quarter on sales 5.4% higher at €7.8 million.

Over the first three quarters, the Rubber segment turnover increased 5.9% year-on-year to €25.2 million, while earnings fell 10.3% to €2.6 million, Reka’s unaudited interim report shows.

The Middle East conflict, said president and CEO Sari Tulander, had “led to a significant increase in raw material, energy, and freight costs, as well as a slowdown in certain customer projects.”

Reka Rubber was able to pass on the cost increases to the customer prices largely only during September, reported Tulander, while noting a “varied performance” across company segments during the third quarter.

Turnover in hose products increased and is still increasing, while a dip in moulded products sales order have decreased towards the end of the year, the Reka leader stated.

Production in Dopiewo, Poland, she continued, is “under pressure, while capacity at the Aura factory is at times underutilised as customers draw down their buffer stocks with the turn of the year approaching.”

Preparations for the modification work of Reka Rubber’s production facility in Ukraine “proceeded according to plan”, according to Tulander.

Reka aims to transfer silicone product manufacturing from Poland to Ukraine during early 2027 and so increase production capacity of ‘black hoses’ at Dopiewo.

Previously announced investments in injection moulding machines at the Aura factory “progressed and both machines will still be delivered during the rest of the year.”

With regard to the near-term outlook, Tulander said the “remainder of the year will be influenced by general market uncertainty and potential changes in customer-specific deliveries.

“Customer price adjustments related to increase in material costs caused by the energy crisis were implemented during September, supporting positive EBITDA development for the rest of the year.”

For full-year 2026, earnings are “expected to be better than in the previous year and the company will continue to explore M&A arrangements,” concluded the Reka president and CEO.