Rapala VMC’s H1/2026: Strong dynamics in North America led to improved sales and profitability
RAPALA VMC CORPORATION, Half Year Financial Report, August 20, 2026 at 2:10 p.m. EEST
April-June (Q2) in brief
- Net sales were 65.3 MEUR, up 9% from previous year (60.1). With comparable exchange rates sales were 9% up from previous year.
- Comparable operating profit* was 5.6 MEUR (3.0).
- Cash flow from operations was 20.5 MEUR (15.5).
January-June (H1) in brief
- Net sales were 134.8 MEUR, up 7% from previous year (125.5). With comparable exchange rates sales were 11% up from previous year.
- Comparable operating profit* was 13.5 MEUR (8.6).
- Earnings per share (basic and diluted) was 0.19 EUR (0.02).
- Cash flow from operations was 16.7 MEUR (6.2).
- Inventories were 80.1 MEUR (82.2).
- Short-term outlook: Rapala VMC expects 2026 full year comparable operating profit (excluding mark-to-market valuations of operative currency derivatives and other items affecting comparability) to be in the range of 12 to 14 MEUR (2025: 8.4 MEUR).
* Excluding mark-to-market valuations of operative currency derivatives and other items affecting comparability. Other items affecting comparability include material restructuring costs, impairments, gains and losses on business combinations and disposals, insurance compensations, regulatory-related items and other non-operational items
President and CEO Cyrille Viellard: “Replenishment demand has further remained robust in Q2/2026 in the Company’s core North American market, following strong initial fill deliveries in Q1/2026 for the open-water season. This has compensated for softer demand in Europe, where drought conditions and weaker consumer spending have weighed on market activity. Both growth and slower markets have been well managed by our Rapala VMC global team leading to improved performance year-over-year overall. Big thanks to all!
While macroeconomic uncertainty persists amid geopolitical instability and tariff volatility, the Company’s strong first-half 2026 performance, healthy inventory levels in the winter fishing category in North America, and a robust innovation pipeline reinforce the Company’s confidence in Rapala VMC's recovery trajectory.
Our continued focus on cash flow resulted in strong cash generation in H1/2026, supported by improved EBITDA, disciplined capital expenditure and working capital management, as well as the repayment of IEEPA tariffs. The expiration of the Section 122 global tariffs on July 24 and their replacement by permanent Section 301 tariffs is currently expected to have a neutral to slightly positive impact. However, we remain cautious as the tariff environment continues to evolve and further significant changes are expected.
The Group will continue advancing its brand strategy in H2/2026 and strengthen marketing investments to support sustained long-term growth.”
Key figures
| Q2 | Q2 | H1 | H1 | FY | |
| MEUR | 2026 | 2025 | 2026 | 2025 | 2025 |
| Net sales | 65.3 | 60.1 | 134.8 | 125.5 | 227.5 |
| Operating profit | 8.1 | 3.1 | 15.8 | 9.1 | 4.2 |
| % of net sales | 12.4% | 5.2% | 11.7% | 7.3% | 1.9% |
| Comparable operating profit * | 5.6 | 3.0 | 13.5 | 8.6 | 8.4 |
| % of net sales | 8.6% | 5.0% | 10.0% | 6.9% | 3.7% |
| Cash flow from operations | 20.5 | 15.5 | 16.7 | 6.2 | 5.5 |
| Gearing % | 41.0% | 39.2% | 41.0% | 39.2% | 53.5% |
| Earnings per share, EUR, basic and diluted | 0.19 | 0.02 | -0.23 |
* Excluding mark-to-market valuations of operative currency derivatives and other items affecting comparability. Other items affecting comparability include material restructuring costs, impairments, gains and losses on business combinations and disposals, insurance compensations, regulatory-related items and other non-operational items.
Rapala Group presents alternative performance measures to reflect the underlying business performance and to enhance comparability between financial periods. Alternative performance measures should not be considered in isolation as a substitute for measures of performance in accordance with IFRS. Definitions and reconciliation of key figures are presented in the financial section of the release.
Market Environment
The Group’s net sales for the first half of the year were 7% above the comparison period with reported translation exchange rates. With comparable translation exchange rates, net sales were organically up by 11% from the comparison period.
During the first half of the year, the operating environment was affected by geopolitical instability and tariff volatility. Despite continued macroeconomic uncertainty, the North American market remained resilient, with consumer demand improving compared to the prior year. The European market remained subdued, with consumer demand further dampened by drought conditions.
Business Review January – June 2026
North America
In the first half of the year sales in North America increased by 12% from the comparison period. With comparable translation exchange rates sales were up by 19%.
Sales in the North American market remained strong in the second quarter, building on the strong performance in the first quarter. Second-quarter replenishment sales demonstrated healthy sell-through of the initial load-in orders shipped at the beginning of the year, as well as the success of new product introductions. Growth remained broad-based across all key brands, led by the flagship Rapala brand.
Europe
In the first half of the year sales in Europe stayed on the same level as the comparison period with both reporting and comparable exchange rates.
The year started with an improved outlook and higher pre-season deliveries. However, drought and challenging weather conditions weakened consumer demand in parts of continental Europe, impacting replenishment sales in the second quarter. Sales of Rapala and Okuma exceeded the prior-year level, while sales declined for brands with greater exposure to the parts of continental European markets affected by adverse weather conditions.
Rest of the World
In the first half of the year sales in the Rest of the World market increased by 9% from the comparison period with both comparable translation exchange rates and reporting rates.
Growth in the region was mainly driven by Latin American markets, where positive momentum continued throughout the reporting period and the new Okuma distributorship in Chile contributed incremental sales. Sales in Asian markets remained challenging and declined, as global trade disputes continued to weigh on consumer sentiment and discretionary spending.
External net sales by area
| Q2 | Q2 | Change | Comparable | FY | |
| MEUR | 2026 | 2025 | % | change % | 2025 |
| North America | 36.7 | 31.5 | +17% | +18% | 122.8 |
| Europe | 21.7 | 22.6 | -4% | -4% | 79.7 |
| Rest of the World | 6.9 | 6.0 | +15% | +11% | 25.0 |
| Total | 65.3 | 60.1 | +9% | +9% | 227.5 |
| H1 | H1 | Change | Comparable | FY | |
| MEUR | 2026 | 2025 | % | change % | 2025 |
| North America | 77.2 | 69.0 | +12% | +19% | 122.8 |
| Europe | 44.4 | 44.5 | 0% | 0% | 79.7 |
| Rest of the World | 13.2 | 12.1 | +9% | +9% | 25.0 |
| Total | 134.8 | 125.5 | +7% | +11% | 227.5 |
Financial Results and Profitability
In the first half of the year comparable (excluding mark-to-market valuations of operative currency derivatives and other items affecting comparability) operating profit increased by 4.9 MEUR from the comparison period. Reported operating profit increased by 6.7 MEUR from the comparison period and the items affecting comparability had a positive impact of 2.4 MEUR (positive 0.5) on reported operating profit.
Comparable operating profit margin was 10.0% (6.9) for the first half of the year. The improved profitability was primarily driven by increased sales in the open water markets. Overall profitability also benefitted from slightly improve sales margin and from lower operating expense level.
Reported operating profit margin was 11.7% (7.3) for the first half. Reported operating profit includes a -0.1 MEUR (0.6) mark-to-market valuation of operative currency derivatives. Other items affecting comparability, included in the reported operating profit, were 2.4 MEUR (-0.2). This amount includes mostly gains from the refunding of IEEPA tariffs in the US. Prior year’s other items include the disposal of real estate in Finland, as well as a non-cash currency translation loss relating to the closure of the Russian manufacturing operation.
Total financial (net) expenses were 3.3 MEUR (4.9) for the first half of the year. Net interest and other financing expenses were 3.6 MEUR (3.5) and (net) foreign exchange gains were 0.2 MEUR (losses 1.3).
Net profit for the first half of the year increased by 6.2 MEUR and was 8.5 MEUR (2.2) and earnings per share (basic and diluted) was 0.19 EUR (0.02).
Key figures
| Q2 | Q2 | H1 | H1 | FY | |
| MEUR | 2026 | 2025 | 2026 | 2025 | 2025 |
| Net sales | 65.3 | 60.1 | 134.8 | 125.5 | 227.5 |
| Operating profit / loss | 8.1 | 3.1 | 15.8 | 9.1 | 4.2 |
| Comparable operating profit * | 5.6 | 3.0 | 13.5 | 8.6 | 8.4 |
| Net profit / loss | 8.5 | 2.2 | -4.9 |
* Excluding mark-to-market valuations of operative currency derivatives and other items affecting comparability. Other items affecting comparability include material restructuring costs, impairments, gains and losses on business combinations and disposals, insurance compensations, regulatory-related items and other non-operational items.
Bridge calculation of comparable operating profit
| Q2 | Q2 | H1 | H1 | FY | |
| MEUR | 2026 | 2025 | 2026 | 2025 | 2025 |
| Operating profit / loss | 8.1 | 3.1 | 15.8 | 9.1 | 4.2 |
| Mark-to-market valuations of operative currency derivatives | 0.0 | -0.1 | 0.1 | -0.6 | -0.6 |
| Other items affecting comparability | -2.4 | 0.0 | -2.4 | 0.2 | 4.8 |
| Comparable operating profit | 5.6 | 3.0 | 13.5 | 8.6 | 8.4 |
More detailed bridge of comparable operating profit and definitions and reconciliation of key figures are presented in the financial section of the release.
Financial Position
In January–June cash flow from operations increased from the previous year and landed at 16.7 MEUR (6.2). Change in net working capital had a negative 1.8 MEUR (negative 4.8) impact on cash flow. Excluding working capital impact, cash flow from operations improved from the previous year and was 18.5 MEUR (11.0), driven by improved profitability, strong focus on cash flow, as well as the repayment of IEEPA tariffs.
End of the period inventory was 80.1 MEUR (82.2). The change in obsolescence allowance decreased inventory value by 2.3 MEUR. Changes in translation exchange rates increased inventory value by 1.0 MEUR. Organic decrease in inventory was 0.8 MEUR. Inventory turn improved and the composition was healthy.
In January–June net cash used in investing activities was 1.6 MEUR (0.7). Capital expenditure was 1.6 MEUR (1.8) and disposals 0.1 MEUR (1.1). Expenditure consisted mainly of maintenance of manufacturing capacity and investments in new products. Prior year disposals include proceeds from the sale of real estate in Finland.
Liquidity position of the Group was good. Undrawn committed long-term credit facilities amounted to 21.3 MEUR. Commercial papers sold under the commercial paper program amounted to 11.0 MEUR (14.0) at the end of the reporting period. Gearing ratio increased and equity-to-assets ratio decreased from last year.
The Group’s 91.5 MEUR senior secured term and revolving credit facilities agreement includes financial covenants based on the net debt to EBITDA ratio (“leverage ratio”), the ratio of net debt to consolidated equity and the minimum liquidity. The financial leverage ratio covenant level for periods Q4/2025 to Q2/2026 is 3.80, for periods Q3/2026 to Q4/2027 3.50 and from Q1/2028 onwards 3.20. Covenants are regularly tested, either quarterly or on the last day of each month. The risk of breaching the covenants would trigger negotiations between the Group and lending banks to resolve the potential covenant breach, and to agree on actions to rectify the situation. In the unlikely event of unresolved covenant breach, the lending banks would have the right to call all or any part of the loans and related interest.
On Q1/2026 and Q2/2026 testing dates, the leverage ratio landed at 3.59 and 2.28. Calculation of the covenants include customary adjustments mainly related to items affecting comparability and asset disposals, and therefore deviate from the reported figures elsewhere in this report. The Group is currently compliant with all financial covenants and expects to comply with future bank requirements as well. The Group’s liquidity position remains good, and cash and cash equivalents amounted to 28.5 MEUR at June 30, 2026.
The Group equity includes a hybrid loan of 25.0 MEUR issued in November 2025. The accumulated non-recognized interest on hybrid bond were 1.3 MEUR.
Key figures
| Q2 | Q2 | H1 | H1 | FY | |
| MEUR | 2026 | 2025 | 2026 | 2025 | 2025 |
| Cash flow from operations | 20.5 | 15.5 | 16.7 | 6.2 | 5.5 |
| Inventory at the end of the period | 80.1 | 82.2 | 80.1 | 82.2 | 84.4 |
| Net cash used in investing activities | -0.7 | 0.1 | -1.6 | -0.7 | -2.7 |
| Net interest-bearing debt at end of period | 60.1 | 58.6 | 60.1 | 58.6 | 72.9 |
| Gearing % | 41.0% | 39.2% | 41.0% | 39.2% | 53.5% |
| Equity-to-assets ratio at end of period, % | 50.5% | 52.3% | 50.5% | 52.3% | 49.3% |
Definitions and reconciliation of key figures are presented in the financial section of the release.
Product Development
Rapala turns 90 years in 2026, but is not resting on its laurels. On the contrary: Innovation has again been driving the sales during the first half of 2026. Consumer adoption of the 2026 hero lure Claptail has been exceptionally good and led to the launch of two new sizes of Claptail, 75 and 90 at ICAST 2026. Topwater fishing continues to be a driving force in new freshwater hardbaits.
Other important new hardbaits that have been driving Rapala’s sales include the Harvest Shad and Snare crankbaits that are catering to the important 9,99€ retail category. Rapala also introduced Precision Xtreme Air Boss jerkbaits, which represent the next generation of highly technical wobblers specifically developed for European predator fishing.
Rapala softbaits continued to grow in all key markets. Crushcity range expanded with Mooch Minnow that is specifically developed for forward facing sonar applications. The combination of Rapala Predator softbaits and VMC Mustache heads continued as the driver of European softbait business.
On the accessories side Rapala tools have been sold in new packaging designed to reduce plastic use while strengthening the brand image. Following a successful early launch of the CountDown and Hydro bags in Southern Europe and Australia in Q4 2025, both product lines are now available across South America, Northern Europe and APAC, where they are delivering strong results and consistent turnover. Together, these launches are contributing to the continued rejuvenation of Rapala Accessories.
The first introductions of 2027 new items to retail chains have commenced in Q2. The reception has been very promising, and all the new exciting items are presented to consumers from July’s ICAST show followed by AFTA in Australia in August.
At ICAST 2026, 13 Fishing introduced a significantly expanded lineup of rods, reels, and combos designed to reinforce the brand’s position as an innovation and performance driven competitor. The launches strengthened the assortment across multiple price points and product categories, giving anglers more complete, purpose-built solutions while creating greater opportunities for retail placement and cross-category selling. Collectively, the introductions represent an important step in broadening the brand’s consumer reach, increasing its relevance at retail, and building a stronger platform for future growth. ICAST 2026 saw 4 wins for Rapala VMC with Best of Show for Freshwater Soft Lure with the sea urchin style C.E.O. bait, for Saltwater Soft Lure with the shrimp style Imposter, for Best Fishing Accessory with the High Capacity Line Remover and Best Novelty or Wellness with the Bald Eagle Giant Original Floater underlining the industry recognized innovation and brand strength of Rapala.
Sufix Calibr8 is a highly anticipated 8-carrier braided line introduced at ICAST 2026, designed to eliminate guesswork for anglers by tailoring the line's diameter and weave specifically to individual fishing techniques. Lighter pound tests feature a thinner, smoother weave for optimal performance on spinning reels. Heavier tests feature a slightly tighter weave and pick count to add body and strength for baitcasting and heavy-cover fishing.
Okuma's first half of 2026 was marked by the global launch of the Zyros spinning reel, with the European predator segment among its primary markets. Built around Okuma's C-40X™ long-strand carbon fiber construction, Zyros weighs just 199 g in the 2500 size at a €100 retail price. Consumer response was immediate: within two months, Zyros had become Okuma's third best-selling reel. In spinning rods, the newly introduced G-Control freshwater series and Ceymar SW range have been well received.
Personnel and Organization
Average number of personnel was relatively stable at 1 418 (1 424) for the first half of the year. At the end of June, the number of personnel was 1 442 (1 451).
Short-term Outlook and Risks
Replenishment demand remained robust in Q2/2026 in the core North American market, following strong initial fill deliveries in Q1/2026 for the open-water season. This has compensated for softer demand in Europe, where drought conditions and weaker consumer spending have weighed on market activity. While macroeconomic uncertainty persists amid geopolitical instability and tariff volatility, the strong first-half 2026 performance, healthy inventory levels in the winter fishing category in North America, and a robust innovation pipeline reinforce the confidence in Rapala VMC's recovery trajectory and underpin the Group’s improved full-year outlook.
Our guidance reflects current market conditions but remains subject to potential trade-related disruptions, including tariffs and regulatory changes, which may impact demand and cost structures.
Consequently, the Group revised the outlook (stock exchange release August 14, 2026) and expects 2026 full year comparable operating profit (excluding mark-to-market valuations of operative currency derivatives and other items affecting comparability) to be in the range of 12 to 14 MEUR (2025: 8.4 MEUR).
Short-term risks and uncertainties are described in more detail at the end of this report.
Annual General Meeting
The AGM approved the Board of Director’s proposal, according to which no dividend be paid based on the adopted balance sheet for the financial year 2025. The AGM approved that the Board of Directors consists of six members. Emmanuel Viellard, Julia Aubertin, Vesa Luhtanen, Alexander Rosenlew, Pascal Lebard and Johan Berg were re-elected as members of the Board of Directors. A separate stock exchange release on the decisions of the AGM has been given, and up to date information on the Board’s authorizations and other decisions of the AGM are available also on the corporate website.
Authorised Public Accountants Firm Deloitte Ltd was elected as the Company’s auditor. Deloitte Ltd will also carry out the assurance of the company’s sustainability reporting for the financial year 2026 in accordance with the transitional provision of the act amending the Limited Liability Companies Act (1252/2023) and will be imbursed for this task as per its invoice approved by the company.
Helsinki, August 20, 2026
Board of Directors of Rapala VMC Corporation
For further information, please contact:
Cyrille Viellard, President and Chief Executive Officer, +358 9 7562 540
Miikka Tarna, Chief Financial Officer, +358 9 7562 540
Tuomo Leino, Investor Relations, +358 9 7562 540
An audiocast on the first half year result will be arranged on Friday August 21, 2026, at 10:00 a.m EEST.
Please join the audiocast by registering using the following link: https://events.inderes.com/rapala/2026-h1-results
Financial information and recording of the audiocast will be available at www.rapalavmc.com
About Rapala VMC Corporation
Rapala VMC Group is the world’s leading fishing tackle company with a largest distribution network in the industry. The Group is a global market leader in fishing lures, treble hooks and fishing related knives and tools. The main manufacturing facilities are in Finland, France, Estonia, and the UK. The Group’s brand portfolio includes leading brands in the industry such as Rapala, VMC, Sufix, 13Fishing as well as Okuma in Europe. The Group, with net sales of EUR 228 million in 2025, employs some 1 400 people in approximately 40 countries. Rapala VMC Corporation’s share is listed and traded on the Nasdaq Helsinki stock exchange since 1998.
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