Translation: Original published in Finnish on 2/4/2026 at 8:45 am EET.

NorrDigi's Director of Digital Business is leaving, and the company does not intend to refill the position. NorrDigi's growth outlook has previously been uncertain, and the departure of its business director does not exactly improve it, although the company still intends to recruit technical sales professionals to NorrDigi. We interpret this as a sign that the company wants to cut NorrDigi's costs, which would make the positive cash flow from the conventional cylinder business more apparent. Our Accumulate recommendation has been based on the turnaround of the conventional cylinder business and the strengthening of the balance sheet rather than on NorrDigi. The company will publish its Q4 report on February 19, at which time updated business outlook information will be available.

NorrDigi's separate director position to be discontinued

Norrhydro announced on Tuesday that its Director of Digital Business and Management Team member, Carl Mattson, will leave the company on March 31, 2026, to take up a position with another employer. The release states that the position of Director of Digital Business will not be refilled. All digital business sales tasks will be transferred under the responsibility of Sales and Marketing Director Anniina Piira-Wendeler. NorrDigi's technology team in Tampere will, from now on, report directly to the company's CEO, Yrjö Trög, under the team lead. According to the company, the digital business focus is shifting more strongly towards product sales and marketing. Product development will concentrate on maintenance and enhancement development, as well as final testing of selected areas. New technical sales professionals will be recruited to support digital business sales, and the identification of global technology partnerships will continue.

Company has ambitious targets for NorrDigi

The digital business, i.e., NorrDigi technologies (including MCC multi-chamber cylinders and EMA electromechanical cylinders), is in the early stages of commercialization. Digital solutions accounted for an estimated 1–2% of Norrhydro's revenue in 2025. The company aims for digital solutions to represent over 30% of its revenue in 2028. While the company did not comment on changes to its targets or growth outlook in the release, we consider it likely that the targeted growth in NorrDigi will not materialize within the stated timeline. In our view, the departure of the business director increases uncertainty regarding growth outlooks.

May improve short-term profitability

Eliminating NorrDigi's Director of Digital Business position will reduce the company's expenses and may support its short-term earnings outlook. The conventional cylinder business has developed positively during 2025, and the cash flow it generates will also help reduce the company's relatively high debt.

Of course, a potential slowdown in NorrDigi's growth outlook would pose a risk to the balance sheet because we estimate that it includes several million euros in intangible assets related to NorrDigi, such as capitalized development costs. If these had to be written down, the company's equity ratio could weaken significantly. For now, however, the company will continue NorrDigi's growth efforts, albeit with potentially fewer resources.