Analyst Comment
Spinnova: ARMEDANGELS signed a non-binding letter of intent for securing SPINNOVA® fiber
Summary
- Spinnova has signed a non-binding letter of intent with German fashion brand ARMEDANGELS to secure future access to SPINNOVA® wood-based fiber for use in ARMEDANGELS' collections.
- The agreement is seen as a positive addition to Spinnova's partner network, supporting long-term demand for its fiber, though it is not expected to have a significant immediate financial impact.
- Spinnova's current strategy focuses on brand partnerships to bolster technology sales and demand, but the company must still address technology investment and production costs for successful commercialization.
- Despite the partnership, Spinnova's revenue forecasts for 2025–2026 remain low, with a slightly reduced operating loss anticipated due to previous cost savings.
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Translation: Original published in Finnish on 12/12/2025 at 8:10 am EET.
We believe this new brand partnership is a positive addition to Spinnova's network of partners and will support the long-term outlook for demand of fiber produced using the company's technology. However, we do not believe that the agreement will have a significant financial impact in the near future. Reducing technology investment and production costs and identifying technology investment partners continue to play a key role in the company's commercialization efforts.
SPINNOVA® fiber planned to be used in ARMEDANGEL's collections
Spinnova announced yesterday that it had signed a letter of intent with German fashion brand ARMEDANGELS to secure access to fiber volumes in the future. This is a non-binding agreement for securing SPINNOVA® wood-based fiber. ARMEDANGELS therefore intends to develop future collections using SPINNOVA® fiber. According to ARMEDANGELS, however, it will take time to introduce materials to its collections, though the company sees potential in SPINNOVA® fiber as an alternative to cotton.
Partnership sends positive signal, but commercialization progress requires wins on multiple fronts
We believe that this new agreement is a positive sign that Spinnova's technology and fiber continue to attract clothing brands emphasizing sustainability. However, this is a non-binding letter of intent, and the press release did not disclose the volumes or other commercial terms of the agreement (in any case, Spinnova's current pre-industrial scale plant in Jyväskylä is unable to deliver large volumes). In our view, this cooperation aligns well with Spinnova's current strategy, in which brand partnerships primarily support technology sales and strengthen the demand base for materials for operators or consortia considering potential technology investments.
Nevertheless, the agreement does not prompt any immediate changes to Spinnova's estimates or the risk profile of the share. Therefore, in our view, our forecasts for Spinnova's very low revenue in 2025– 2026 and a slightly reduced, but still significant, operating loss due to savings from last year remain in the right direction. Regarding the commercialization of the technology, a key component of the company's investment story, the most critical factors remain reducing the technology's investment and production costs, finding parties interested in investing in the technology, and convincing them of the commercial potential of fiber production.
Spinnova operates in the textile industry. The company has developed a production technology for textile fibers, known as SPINNOVA® fiber, which is manufactured using a mechanical production process. In addition to its main business, research and development is conducted in the area, and the company offers service and related peripheral services. The company operates on a global level with headquarters in Jyväskylä.
Read more on company pageKey Estimate Figures2025-08-29
| 2024 | 25e | 26e | |
|---|---|---|---|
| Revenue | 0.8 | 0.4 | 0.3 |
| growth-% | -92.8 % | -47.5 % | -13.8 % |
| EBIT (adj.) | -18.3 | -15.3 | -14.8 |
| EBIT-% (adj.) | -2,408.0 % | -3,818.2 % | -4,301.7 % |
| EPS (adj.) | -0.32 | -0.34 | -0.28 |
| Dividend | 0.00 | 0.00 | 0.00 |
| Dividend % | |||
| P/E (adj.) | neg. | neg. | neg. |
| EV/EBITDA | neg. | neg. | neg. |
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