Earnings call transcript: Scanfil Q3 2025 shows strong growth, stock rises

Scanfil Oyj reported robust financial results for the third quarter of 2025, with a 10% year-over-year increase in revenue to €191.3 million. Despite missing the revenue forecast of €196.59 million, the company’s stock surged by 9.54% in pre-market trading, reflecting investor optimism. The earnings per share (EPS) were €0.01 higher than the previous year, contributing to the positive market sentiment. According to InvestingPro data, the company maintains strong financial health with a "GOOD" overall score, supported by solid profitability metrics including a 32.6% gross profit margin and 13% return on equity over the last twelve months.

Key Takeaways

• Scanfil’s Q3 revenue increased by 10% year-over-year to €191.3 million.
• The stock price rose by 9.54% after the earnings call.
• The company continues to expand in the Americas and invest in automation.
• Strong growth observed in Energy & Cleantech and MedTech sectors.

Company Performance

Scanfil demonstrated strong performance in the third quarter of 2025, with revenue and EBITDA both increasing by 10% year-over-year. The company’s strategic focus on expanding its presence in the Americas and investing in AI and automation through its "Dream Factory" program has contributed to its sustained growth. Additionally, Scanfil has maintained seven consecutive quarters of growth in the Americas region. The company’s financial strength is evident in its healthy balance sheet, with liquid assets exceeding short-term obligations and a moderate debt level of just 23% debt-to-equity ratio. Notably, Scanfil has maintained and raised its dividend for 13 consecutive years, demonstrating consistent shareholder returns.

Get comprehensive insights into Scanfil’s financial health, valuation metrics, and growth potential with InvestingPro’s detailed research report, part of their coverage of over 1,400 stocks.

Financial Highlights

• Revenue: €191.3 million, up 10% year-over-year
• EBITDA: €14.1 million, up 10% year-over-year
• EBITDA Margin: 7.4%
• Earnings per share: €0.01 higher than the previous year

Market Reaction

Following the earnings announcement, Scanfil’s stock price increased by 9.54%, closing at €11.02. This positive reaction suggests investor confidence in the company’s growth prospects, despite the slight revenue miss. The stock is trading near its 52-week high of €11.86, indicating strong market sentiment. InvestingPro analysis suggests the stock is currently fairly valued, with a notable year-to-date return of 24.39%. The stock has demonstrated low price volatility, making it potentially attractive for stability-focused investors. Subscribers to InvestingPro have access to 10 additional exclusive ProTips about Scanfil’s investment potential.

Outlook & Guidance

Scanfil maintained its current guidance, focusing on closing announced mergers and acquisitions and continuing its organic growth. The company aims to improve cost control and inventory management while expecting consistent growth in the future.

Executive Commentary

CEO Christophe Sut highlighted the company’s strong financial performance and strategic initiatives, stating, "We landed at €191.3 million of revenue, which was an increase of above 10% versus last year." He also expressed confidence in sustaining long-term organic growth and emphasized the strength of the company’s project pipeline.

Risks and Challenges

• Potential challenges in maintaining growth amid market consolidation in the EMS sector.
• Mixed performance in the industrial sector could impact future growth.
• Macroeconomic pressures and supply chain issues may pose risks to the company’s operations.

Q&A

During the earnings call, analysts inquired about the company’s cost efficiency improvements and strategic expansion in the Americas. Executives confirmed no changes to guidance and expressed optimism about recovery in European markets, particularly in energy, cleantech, and defense sectors.

Full transcript - Scanfil Oyj (SCANFL) Q3 2025:

Pasi Hiedanpää, Director of Industry Relations and Communications, Scanfil: Good morning. Welcome to Scanfil’s Q3 2025 results webcast. Together here with me, my name is Pasi Hiedanpää. I’m the Director of Industry Relations and Communications. Together here with me is our CEO, Christophe Sut, and our CFO, Mr. Kai Valo. You can ask questions through the chat box window during the presentation, and all the questions will be addressed at the end of the presentation. Now, handing over to Christophe. Christophe, please.

Christophe Sut, CEO, Scanfil: Thank you, Pasi, and welcome to all of you for this Q3 report. Really, really pleased to be with you today. Let me start first by giving you an update. As you might have seen, we had a fire in an operation in Italy that we are planning to close in Q4. I felt I’d just give you an update on that before we go to the formal quarterly report. The fire broke on the 17th of October in one of the wings of the building where we have the outgoing goods warehouse located. The good news there is now all employees are back to work, and the team locally is ensuring business continuity and working with customers to restore the situation as normal. This is a company that we announced we will acquire during July, and we are still planning to close that acquisition during Q4.

That’s the update on the situation there, and I felt it was good that you can get that information from us. Moving now to the Q3 report 2025 and the key events. This is a quarter that was extremely rich in activities and happenings. We acquired significant amounts of new contracts during the quarter in the range of $70 million. One of the ones that we promoted during the quarter is the deal we closed with Staubli, which is a significant player in their industry and has decided to go with Scanfil as a manufacturing partner. Very pleased about that and thanking them for that. We also continued to prepare our growth journey with SRX Global, where we inaugurated the modernized factory in Johor Bahru in Malaysia.

We have now a fully operational factory, one of the most modern you can have, and we are already starting to ramp up some of our customers in that operation. At the same time, we are also getting a lot of interest. I was myself down in Malaysia two times during the previous quarter, and a lot of people flying from around the world to see that operation. Extremely, extremely pleasing and moving accordingly to our plan. We also continue to build competence in our company, and I was very pleased to have Anna-Maria Trumonen and Raini joining us. Anna-Maria has a long-standing experience in supply chain. We know that supply chain and procurement are important in our industry. Very pleased to complete our management team with her competence. A good add-on to our team. We announced during Q3 the intention to acquire MB Elettronica s.r.l. in Italy.

This acquisition is key to Scanfil’s future and to our strategic development. It will give us a very strong footprint in aerospace and defense with some very major customers in that field in Europe. A very good complement to Scanfil today. Very pleased with those developments. Last but not least, during August, we announced that we have received a gold rating from EcoVadis. I think it shows, and it in a way gives us the comfort with all the effort we have been doing on building a modern company. Sometimes maybe manufacturing doesn’t get the place it should deserve, but getting from EcoVadis this gold rating shows that we can be a sustainable company. We are respecting our employees. We are respecting the environment. That’s in a way a proof of that. Very pleased with that development. Moving now to some numbers related to that.

I think that in a way the number reflected the high level of activity and enthusiasm we could see in the quarter. We landed at €191.3 million of revenue, which was an increase of above 10% versus last year. It was a mix of acquired growth, but also a return to organic growth with almost 8% in the quarter, which is, I would say, a strong performance from all our teams. Very pleasing to see that the contracts we had been piling over the last 12 months start to create revenue. The impact on our EBITDA was positive. We landed at €14.1 million, which was an increase versus last year of 10%. A very solid margin at 7.4%, which allowed us to deliver an increase in our EPS. I would say the financials were positive. A few other KPIs or numbers that I think are very pleasing to me.

First of all, and it’s maybe the most important, we are measuring on a regular basis our NPS score. It was actually all-time high, the outcome we got during September, landing at 54. I think 54 NPS is, I think, a good performance for a service company. That’s where we want to be. I think we have put significant effort to be a better partner over the last years. It was very pleasing to see that. We also saw a development in our employee satisfaction survey that went up two points, which also is going and pointing in the right direction. From that perspective, not only the numbers or the financial numbers were good, but also the way we can measure satisfaction of our employees and satisfaction about our customers showed in a good way.

In the same times, we acquired €72 million of new contracts during the quarter, which is something that will be delivered over time. You will see later a little bit more in detail, but a very strong MedTech and Life Science related to that. That was very positive. In the same time, we continue the transformation of our APAC region, having strong momentum, and the transformation of our American region, where we have now become a very significant and solid electronic supplier through the transformation of our Atlanta site. In many ways, the quarter was proofing the strategy implementation. As I mentioned before, revenue increased to €191 million from €173 million last year in the same quarter. EBITDA was also obviously significantly impacted, going up to €14.1 million against €12.8 million during the same quarter last year. A positive development on those two indicators.

Looking now a little bit to our regions. Americas, we landed the quarter with €12.7 million. Very, very pleasing to see that we were coming with new quarters of growth. Now seven quarters of growth. As I said, we started two years ago a journey to transform that factory to be a real player in the electronic manufacturing. We can see now that this has taken off and is in a way landing in a good way. Revenue is increasing. The number of projects in that operation is increasing. The pipeline is strong. The profit is in line with our expectation. We therefore decided to invest in a new line in that operation. We will add another manufacturing line that will be up and running towards the end of this year, beginning of next year, to continue to support the growth.

In the same times, we are working to close the acquisition of Atco Circuits that should be closed during Q4. Atco Circuits, which is located on the north part of America, in Detroit, will actually bring a lot of complementarity, a lot of redundancy, will allow us to secure our customers in the region. It will be a perfect complement to our American strategy. A very pleasing development in Americas. Continuing with APAC, where we also had positive development, growing to almost €54 million against €42 million last year at the same time. We continue to enjoy strong development in our operation in China, where our Suzhou operation remains a best-in-class operation and a state-of-the-art operation and gains traction from customers on a continuous basis.

We were also extremely pleased with the performance in the quarter from our operation in Australia, that we are actually in the top of Scanfil deliveries. I mean, in terms of growth, in terms of profitability. Very pleasing to see that this operation we acquired a year ago is proving solid results. Last but not least, we have been working and the teams there have been working very strongly to transform our Europol operation in what we call between ourselves maybe a mini Suzhu, meaning a very modern factory with top-notch equipment. I was pleased to be there with customers, as I said, during Q3, to demonstrate our new capabilities there. I’m convinced it will make a difference for Scanfil. Central European region. For Central Europe, the quarter was a little bit of what I will call a transition quarter.

They had a slight decline in revenue, a 3% decline, and also a decline in profit, 6.5% against 7.1%. You could say it’s always disappointing when you don’t go up. Sometimes that’s the price to pay. They will have a very strong first quarter, and we had to prepare for it and get the resource in place and the people in place for that. That happened accordingly to the plan. We started to gain momentum during the end of Q3. That will translate in the future. We also had a lot of activity on the M&A front, as I mentioned before, since we signed an agreement to acquire MB Elettronica s.r.l. during that quarter. The business will be actually included in that region when it’s joining Scanfil. Moving now to Northern Europe. We had very positive development in Northern Europe, moving to $63.1 million from $56 million last year.

A good contribution on profit with 8.6% EBITDA, which is a very strong performance. Here we got mainly two drivers. The first one is an extremely strong performance and development from our defense customers that grew extremely significantly. It was complemented by a good development from a couple of energy and cleantech customers that are delivered out of that region as well, which landed in a good development in sales with an organic growth in the range of 12%, which is good for Northern Europe, I would say, and also a good level of profitability. Positive development from that side. I think that mixed with good cost control, it allowed us to deliver in a good way on that region.

Looking now a little bit at the customer picture, we remain with a balance that is quite close to the previous quarter, even if you can see that our top 10 customer is right now very active. I think that it’s probably the outcome of the effort we have been putting over the past years to create a strong relationship. We have won a significant amount of deals with those customers. What we can see is that they are moving more and more towards us. It translates in our number, and it shows also that our focus to deliver to those customers is creating growth in a good way. Now looking at the different customer groups we have. First of all, industrial was still slightly negative in the quarter. You know, industrial for us is a mix of many things, and some were very positive.

Actually, defense customers, as I mentioned before, were growing extremely high double-digit numbers, when some more traditional industries were more flat-ish or slightly negative. The positive side was we won an amount of deals in the quarter in that segment that was very important, with $39 million. It was mainly driven by one customer in the logistics sector that has decided to get closer to Scanfil and push a very big part of his manufacturing to Scanfil. We thank him for that. Very appreciated. It also shows the commitment we have had over the years to win that position with the customer. Very pleasing development. Looking now to energy and cleantech, I was very pleased to see the outcome of the quarter.

I mean, I have said for many quarters now that I believe in energy and cleantech long-term, even if it went through tough times after the hype of 2023. It bounced back in a very good way in the quarter, up 28% versus where we were last year, going up to $70 million. It’s very pleasing to see that now all customers in that customer group are coming back to a good level of business. In the same time, they are appreciating our help. We are discussing new projects with them, and it translated in wins of €18 million of win. Good to see that the long-term dynamic of that customer group is positive, and that it now starts again to translate in numbers. Last but not least, we had a very strong development in our MedTech and Life Science business, with a growth of 16%.

That was also coupled to very significant wins with $15 million, which if you look at historically, is an outstanding number. We have not had that. I think that the reason for that is a mix of the current turnover. We have grown and developed our current customer in a good way. We have good partnerships there, and it translates in the numbers. The warm deals also show that now we are onboarding new customers. The effort we have made to build competence in that field, to get certification to deliver to that customer group in many of our factories, is now something that is getting recognized with our customers. We got a few strong brands and names joining us during the quarter.

I am extremely pleased with that, because when we decided to create focus on that customer group, it was hoping to reach such a result. I am very pleased with that development. I will with that hand over to you, Kai.

Kai Valo, CFO, Scanfil: Thank you, and good morning from my side also. I will start with the EBITDA bridge from year-on-year Q3 numbers. On the left-side bar, you can see the EBITDA last year Q3, which was very strong, $12.8 million, 7.4%. On the right side, you can see the EBITDA of this year Q3, $14.1 million, and even improvement from the last year. How did that happen? The main driver is the organic growth. We made almost 8% in a quarter, year-on-year. Besides that, we have a 5% growth coming inorganically, meaning SRX acquisition of last year. In total, it was driving the growth of 13% year-on-year. Although we have then impact translation of the P&L was causing negative impact due to the weakening Chinese Yuan and USD, and that was $4.3 million negative impact in the revenue. Even after that, the growth was on the level of 10.4% in total.

10.4% growth was well in line with our expenses growth, 10.3% a bit less, and with a good efficiency, and keeping in mind that there are activities ongoing for preparation of the new product ramp-up and for Q4 volumes. Depreciation was eating a bit the percentage-wise, and it means the investments for the future, for instance, the investment in the Malaysia electronic line. End result 7.4%, very nice for the quarter. That was also supporting us to catch up for the year-to-date, and we are now here. I’m showing the year-to-date numbers in the same way. Left side is the last year, 7.1% year-to-date, $40.2 million of EBITDA, and on the right side then this year, now we are year-to-date 7.97%. Year-to-date as well, we are organically on the growth mode, and overall growth over 5% in the revenue.

Again, an even larger impact due to the translation differences of FX for the same reason than Q3, after which the growth is 3.2%. Anyway, it’s well in line with the expenses growth and the efficiency. We have been able to keep on the good level. Again, the depreciation is slightly impacting to the relative result. Anyway, good result 7% year-to-date. Jump into the balance sheet. Not big news here. Inventories have declined $7 million year-on-year. The pace is a bit lower, but in Q3 also, we were growing a bit with the inventories for the reason that the volumes were growing, and that’s a quite natural effect. Cash, we have enhanced nearly $5 million more than a year ago. Good to remember that that includes the effect of SRX acquisition. That happened in between. We have now a bit more cash than we did before the acquisition.

That cash compared to the debt, interest-bearing debt 66.4%, including the leasing liabilities, about $28 million, almost $30 million. The debt is less than $40 million from the financer, and basically we don’t have a net debt if excluding the leasing liabilities. Equity is clearly more than half of the total, $550 million of assets. Cash generation, for the same reason that we needed to buy the take some inventories in for the growth and higher volumes, the cash generation was a bit more modest than in the past few quarters. Although still clearly positive, $7.4 million, and year-to-date we are now $40 million of positive cash flow. Looking at these last two or three years, almost three years now, we have generated over $200 million of positive cash flow. Half of that we have spent for the dividends and for the machine investment.

There has been another $100 million remaining after those spenditures. Net debt, can say that it remains low level, like I said, $10 million, practically no net debt excluding the leasing liabilities. We are slightly below the last year Q3 level, and keeping in mind that in between we had this SRX Global acquisition. Basically that has been neutralized in our net debt by now. In relation to the EBITDA, it’s 0.14, year ago 0.15. Our liquidity status is good. We have $250 million of liquidity, which then of course consists of this $50 million of cash. We have about $100 million of unutilized loan commitments and agreements, and about $100 million of overdraft or working capital facilities. The last page, we have the key figures here, 55% of equity rates. It’s rather flat, some variation in quarter to quarter, but more or less in the same level.

Return on equity, nearly 13%. Gearing is reflecting the debt level, and earnings per share in the quarter is $0.01 higher than last year. That was all from my side, and hand over back to Christophe.

Christophe Sut, CEO, Scanfil: Thank you, Kai. We reiterate our guidance, no modification on that side. As I mentioned, we have a couple of focus areas. One of them is obviously the closing on the M&A we have announced in the previous quarters, and we aim for that during the coming quarter, during Q4. The second one is obviously we want to continue and keep the momentum on our organic growth, both in delivering on it, but also in acquiring new contracts with customers. Finally, we try to do that with keeping cost control and keeping control of our inventory. That was for our Q3. Pasi, I hand it over to you.

Pasi Hiedanpää, Director of Industry Relations and Communications, Scanfil: Now heading to Q&A. We ended the presentation to guidance, so let’s continue with the guidance. Jakob had a question. What are the factors withholding you from narrowing your guidance?

Christophe Sut, CEO, Scanfil: I think that for us, I think that the policy we have had is as long as we are in our guidance, we will just remain in it and not change it. I mean, for me, I think I prefer to focus on delivering than playing with guiding numbers left and right. From that perspective, we will keep the guidance as long as we are in that corridor. If we get out of the corridor, we will just change it.

Pasi Hiedanpää, Director of Industry Relations and Communications, Scanfil: Jakob continues. Is there anything else you can do on the cost side, or will it be higher volumes required to expand margins from here?

Christophe Sut, CEO, Scanfil: There is a double answer. There is always something you can do on the cost side. As you know, we work with our Dream Factory program, which aims at creating efficiency. We have implementation of AI in our factories and in our admin functions to improve efficiency. We work with automation. There are always things we can do, and we do it on a regular basis. It is also obvious that I think we are still at a level of occupancy of our operation that leaves quite a significant amount of room. When the programs are ramping up, you can see positive development on EBITDA. It was the case in this quarter, but there is still room there to benefit from that.

Pasi Hiedanpää, Director of Industry Relations and Communications, Scanfil: Thank you. A question regarding the growth in the Americas. Scanfil’s turnover in the Americas is growing faster than the other regions. Atco Circuits acquisition further increases turnover in this area, but still the market area is quite small compared to the others. Are you looking clearly at higher growth in the Americas to balance turnover globally or to mitigate any problems caused by trade wars or changes in custom policies?

Christophe Sut, CEO, Scanfil: I think it’s yes on everything. First of all, I mean, we have global customers. They need support in the Americas region as they need support in the rest of the world. That’s why we decided to invest in that region. That investment has been clearly successful. It’s seven quarters of growth for that region, which is very pleasing. We have decided to invest in more capabilities just to support the orders we have got, the pipeline we have and follow. That’s for the organic exercise. As you saw, it remains a small region that has a lot of potential. In order to support that growth, we have also looked at M&A, and we were very pleased to find Atco Circuits that brings both a nice customer portfolio, but also very good competence in manufacturing, but also in fast prototyping.

I mean, they have fast prototyping capabilities, which will help us to win customers, to ramp up projects. Very complementary. Definitely, I mean, we see an opportunity business-wise. There is actually a trend to relocate and to become more regional in the world. Americas is definitely strongly impacted by that. Our customers trust us. For us, no reason to not expand. They are on the opposite.

Pasi Hiedanpää, Director of Industry Relations and Communications, Scanfil: Okay, thank you. Now, when we are talking about the regions, let’s continue with Europe. Antti asks about the European macro environment, and it has shown some signs of recovery. Have you seen changes in the demand environment or customer forecasts in Europe during Q3 or in October?

Christophe Sut, CEO, Scanfil: I mean, in a way, we were expecting it to go that way. The first thing you can see and you saw in our report is a strong growth in energy and cleantech. The strong growth is in big part coming from Europe, and that has either already come in during Q3 or is going to continue during Q4. In that perspective, yes, we see a rebound on that sector. The second element that is driving Europe for us is also defense that is growing very fast. It’s, I would say, only our European factories that are operating in that field. I would say the overall business is bouncing back in Europe for our traditional markets like energy, cleantech, and MedTech, where we are strong. Defense is giving, let’s say, its cream on the cake from that perspective.

Pasi Hiedanpää, Director of Industry Relations and Communications, Scanfil: Okay, continuing actually with the defense, what you mentioned in here. Sindre asks, do you work with the new customer prospects in defense in Northern Europe?

Christophe Sut, CEO, Scanfil: I think that we, I mean, there are two things on defense. We have already a nice customer portfolio. What I mean by that is in our portfolio, we have customers that can be sizable players that don’t necessarily have a sizable partnership with Scanfil. Obviously, we are talking to those ones to improve the situation. In parallel, we have strong manufacturing in quite a few countries in Northern and Central Europe. It is very natural that we talk with local authorities to see how we can support them in that way. The answer is obviously yes there.

Pasi Hiedanpää, Director of Industry Relations and Communications, Scanfil: Thank you. Given the ease and in comparison in Q4 2025, do you think that the current ramp-ups will still enable you to show this high organic growth?

Christophe Sut, CEO, Scanfil: I think that what I am very positive with is if you look at the amount of contracts we have won over the past years, if you look at the satisfaction of our customers, I believe that we are building up a situation that will allow us to sustain our long-term target in terms of organic growth. It will be a quarter that will be better than others. I think that we should be able from now on to deliver organic growth on a constant and continuous basis. We are prepared for that. I think that I was mentioning, I believe that Q4 will be good in Central Europe. I think we have prepared for good momentum. I think that we will continue to see organic growth from now on.

Pasi Hiedanpää, Director of Industry Relations and Communications, Scanfil: Okay, thank you. Continuing, Jakob continues with the order intake numbers. Would it be fair to expect a return to order intake numbers more like Q1, Q2 2025, or do you see underlying improvement in sentiment leading order intake somewhere between Q2 and Q3 ahead?

Christophe Sut, CEO, Scanfil: I think it’s an incremental step. I think that we have started to see that coming in the previous quarter. I believe it will continue. It’s a mix of the sentiment and that I said. We have seen people returning. I mean, people that had our time last year now are back to a good level of revenue. It’s also mixed with us winning projects. I think that our pipeline of projects has never been as strong as it is now. It will continue to build up. We are in an industry where things take time. On the other end, it’s also for the good of it. I mean, it’s in a way a predictable business.

Pasi Hiedanpää, Director of Industry Relations and Communications, Scanfil: Okay, thank you. Antti asks about MB Elettronica s.r.l. What is the status at MB Elettronica s.r.l. as we speak?

Christophe Sut, CEO, Scanfil: Yeah, as I said, all employees are back and are working. Manufacturing is ongoing and delivering to customers. What you noticed in my comment is that it was a wing of a building that was impacted. It was the wing where we have a shipment going out from. I would say the main building and main manufacturing building was not impacted at all. They are working. It’s obviously not a fun or pleasant event to have. For the ones that have seen some videos, it looks more dramatic on the videos than it is in reality.

Pasi Hiedanpää, Director of Industry Relations and Communications, Scanfil: Okay, thank you. Antti continues about the possible impacts on M&A. Does the fire have any impact on the ongoing M&A anyhow?

Christophe Sut, CEO, Scanfil: We are working on closing that acquisition. We continue to work. It had an impact in the sense that we needed to understand where it was. For the rest, the activities are going on to close during Q4, which was our goal. There is nothing strange happening there.

Pasi Hiedanpää, Director of Industry Relations and Communications, Scanfil: Okay, thank you. Antti continues about M&A and consolidation. Consolidation of European EMS markets is speeding up recently. Do you expect this to change the competitive environment visibly from Scanfil’s point of view in the next few years?

Christophe Sut, CEO, Scanfil: Yeah, it’s good that you have noticed that. I think for me, it means that in the next few years, we will see a couple of sizable EMS companies building up. I believe that the strategy we have with a mix of organic growth and acquisitive growth is the right way to go to build that. I believe that we have a strong customer portfolio, a dedicated team, and that we have a strong financial position that helps us to carry that journey. Your answer is probably yes. The landscape will evolve. You will see a few players emerge. I think that Scanfil is very well positioned to be one of them at least.

Pasi Hiedanpää, Director of Industry Relations and Communications, Scanfil: Okay, thank you. Still, if you want to ask questions, type in the chat box window and we’ll see if we can have more questions coming in. It’s hard for a while. Sometimes it takes a bit of time. Okay, if no further questions, handing back to Christophe, please.

Christophe Sut, CEO, Scanfil: Thank you, Pasi. As a summary of this quarter and takeaways, you have seen revenue gaining speed with an organic growth of 7.8% and total revenue growing 10%, which is nice to get back to a position where we can capitalize on the effort we have made with our customers. It impacted our profit level that was also quite strong in the quarter. You could also see that in reality, our operational performance is looking even better than it is since we were impacted by currency during that quarter and during the first part of the year. I would say that we have good control of the situation. At the same time, we are continuing to work on our growth plan, both organic and acquisitive.

I believe that the acquisition we have announced will really contribute to build a position in aerospace and defense, which is a nice way to do it. We have also done major steps in building organic growth. We inaugurated our new site in Malaysia, or at least the modernization of the site in Malaysia. We have announced investment in the U.S. to support the growth. All of that is driven by the high level of contract wins that we have had in the quarter. $72 million was strong. As I mentioned, very pleasing to see that the effort we made to focus on MedTech and Life Science paid off with a very high level of wins and new logos coming in, which was very pleasing.

All of it with a strong balance sheet that should allow us to continue to prepare the future and to make Scanfil a strong player in the EMS field. Positive development during that quarter. I want to thank you for listening to us today and wish you a good day.

Pasi Hiedanpää, Director of Industry Relations and Communications, Scanfil: Thank you.

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