Rapala VMC Oyj reported a 57% year-over-year increase in comparable operating profit for the first half of 2026, rising to 13.5 million euros from 8.6 million euros in the same period of 2025. The Finnish fishing tackle manufacturer attributed the gain to an 11% rise in net sales to 134.8 million euros, with North America delivering a 19% comparable sales increase.
The company’s Q1 2026 net sales reached 69.5 million euros, a 9% comparable increase, while Q2 2026 sales totaled 65.3 million euros, also up 9% on a comparable basis. Comparable operating profit stood at 7.8 million euros in Q1 and 5.6 million euros in Q2, reflecting a sequential softening despite the overall strong first-half performance.
North America accounted for 57% of total sales in H1 2026, up from 52% a year earlier, with regional revenue climbing to 77.2 million euros. Europe, by contrast, contributed 33% of sales at 44.4 million euros, essentially flat year-over-year, while the Rest of World segment grew 9% to 13.2 million euros.
Net profit rose to 8.5 million euros from 2.3 million euros in H1 2025, while earnings per share increased to 0.19 euros from 0.02 euros. Cash flow from operations more than doubled to 16.7 million euros, and adjusted net profit contribution to cash flow reached 22.8 million euros.
The company’s reported operating profit stood at 15.8 million euros, with an 11.7% operating margin, compared with 9.1 million euros and a 7.3% margin in the prior-year period. Inventory levels declined 3% to 80.1 million euros by the end of June, representing 33.8% of sales, down from 36.4% a year earlier.
Net interest-bearing debt fell to 60.1 million euros at the end of Q2 2026 from 72.9 million euros at year-end 2025, with cash and cash equivalents totaling 28.5 million euros. Undrawn committed long-term credit facilities amounted to 21.3 million euros. The gearing ratio rose to 41.0% from 39.2% in the prior year due to the replacement of a 30 million euro hybrid bond with a 25 million euro issue in November 2025.
Rapala VMC maintained its leverage ratio at 2.28 in Q2 2026, below the covenant level of 3.80 and ahead of the revised covenant threshold of 3.50 set for Q3 2026 through Q4 2027. The company expects full-year 2026 comparable operating profit to reach between 12 million euros and 14 million euros, compared with 8.4 million euros in 2025.
