Finnish fishing equipment manufacturer Rapala VMC Group reported a 57% year-over-year increase in comparable operating profit for the first half of 2026, reaching EUR 13.5 million. Reported operating profit totaled EUR 15.8 million, including a EUR 2.5 million benefit from U.S. tariff refunds under the IEEPA program.
The company posted H1 2026 sales of EUR 134.8 million, a 11% increase in comparable currency terms and a 7% reported gain after adjusting for foreign exchange effects. Net profit rose to EUR 8.5 million from EUR 2.3 million in the same period of 2025, while earnings per share were EUR 0.19. Operating cash flow increased to EUR 16.7 million from EUR 6.2 million a year earlier.
Regional performance showed North America as the primary growth driver, accounting for about 60% of global sales and delivering 19% comparable-currency growth in H1. Comparable operating profit in the region rose 57% year-over-year. Europe faced uneven conditions, with continental markets declining 4% in Q2 due to heat waves and drought, though Nordic countries remained resilient. Latin America and Asia contributed 11% Q2 comparable sales growth, supported by a new Okuma distributorship in Chile, while Asia continued to face challenges from trade disputes and weaker consumer sentiment.
Management raised its full-year 2026 comparable operating profit guidance to a range of EUR 12-14 million, with expectations of higher volumes and EBITDA in Q3. The company plans to gradually increase marketing and product development spending in the second half. Net interest-bearing debt decreased to EUR 60 million, down EUR 13 million from Q4 2025, while the leverage covenant improved to 2.28.
Executives noted that the July U.S. Section 301 tariff adjustments were less severe than anticipated, though additional tariff announcements were still expected after Labor Day. The CEO emphasized margin protection as a priority, stating that top-line impacts would be secondary to maintaining profitability.
