# Framery Group Oyj

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/fi/companies/framerygroup).

## Overview

Framery Group Oyj is a Finland-headquartered manufacturer of soundproof acoustic pods, private booths, and smart office solutions for modern workplaces. Listed on Nasdaq Helsinki, the company designs, engineers, and sells modular acoustic workspaces alongside integrated digital software platforms globally to enterprise and commercial clients.

## Products & services

• Acoustic office pods and phone booths (e.g., Framery One, Framery Four, Framery Six)
• Framery Gradus product line engineered for North American workspaces
• Smart office digital solutions, software platforms, and occupancy analytics
• Pod spare parts, accessories, and maintenance components
• Pod subscription models and lifecycle service agreements

- **Pods** (97%) — Soundproof acoustic private booths and meeting pods for office environments
- **Services & Subscriptions** (2%) — Digital workplace software platforms and subscription-based pod services
- **Spare Parts** (1%) — Replacement parts, components, and maintenance accessories for pods

- Acoustic office pods and privacy booths for phone calls, focused work, and meetings
- Framery Gradus product family tailored specifically for the North American market
- Smart office software and digital workspace management solutions
- Pod subscription arrangements combining hardware access with recurring services
- Lifecycle services, replacement components, and spare parts

## Customers

Framery serves corporate enterprises, technology firms, and institutional clients looking to enhance open-plan office acoustics and hybrid work environments. Sales occur both directly to large multi-location corporate accounts and through international dealer networks and commercial interior design channels.

- **Global Enterprise Accounts** (primary) — Large multi-national corporations outfitting corporate real estate across multiple geographies
- **Commercial Dealer & Distribution Network** (primary) — Office furniture dealers and commercial interior specifiers driving localized project sales
- **Subscription & Digital Clients** (emerging) — Enterprises utilizing pod-as-a-service models and cloud-connected smart office platforms

- Global corporations outfitting modern corporate headquarters across multiple continents
- Semiconductor and high-tech enterprises investing in smart workplace infrastructure
- Architectural, commercial interior design, and workplace consulting partners specifying pods
- Small and mid-sized enterprises acquiring modular acoustic rooms via distribution networks

## Geography

Framery operates internationally with primary manufacturing in Finland and an expanding assembly footprint in Zeeland, Michigan to serve North America. Revenue is distributed across Europe, the Middle East, Africa, the Americas, and Asia-Pacific, with EMEA and the Americas representing the majority of sales.

- **Europe, Middle East and Africa** (53%) — Generated EUR 118.3M of EUR 222.1M total revenue in FY2025
- **North, Central and South America** (30%) — Generated EUR 65.9M of EUR 222.1M total revenue in FY2025
- **Asia Pacific** (17%) — Generated EUR 37.9M of EUR 222.1M total revenue in FY2025

- EMEA represents the largest operating region, anchoring consistent European corporate demand
- North America is the fastest-growing market, supported by a dedicated Michigan assembly facility
- Asia-Pacific demand features higher project-driven sales and noticeable quarterly seasonality
- Assembly presence in Finland and the U.S. shortens delivery lead times to core regions

## Strategy

Framery focuses on expanding North American market share through localized assembly and regionalized products like the Gradus line. The group also aims to transition into smart office solutions, pairing acoustic hardware with connected digital technologies while sustaining high operating margins.

- **North American Manufacturing Localization** (short-term) — Optimizes delivery capability, insulates against import tariffs, and lowers shipping emissions
- **Smart Office Ecosystem Expansion** (medium-term) — Differentiates acoustic pods via software analytics and generates recurring service revenue
- **Gradus Product Commercialization** (medium-term) — Broadens regional product offerings specifically configured for Americas workplace standards

- Ramp up local assembly operations in Zeeland, Michigan to lower transit times and tariff exposure
- Scale the North American-specific Framery Gradus pod family to address regional demand
- Expand smart office digital software platform and recurring subscription revenue
- Target long-term organic growth exceeding 10% and adjusted EBIT margins of 25%

## Risks

Framery faces exposure to macroeconomic volatility and commercial real estate cycles, which can cause clients to postpone office investments. Additional operational risks stem from international tariffs, supply chain reliance on Chinese electronic components, and currency volatility between the euro and the U.S. dollar.

- **Cyclical Office Real Estate Investments** [high] — Uncertain economic environments or regional geopolitical shocks prompt corporate deferrals of office furnishing projects
- **Trade Tariffs and Customs Regulations** [high] — U.S. import tariffs on manufactured goods or raw materials can impair gross margins and price competitiveness
- **Foreign Exchange Volatility** [medium] — Revenue is significantly generated in USD and SGD, while the manufacturing cost base is primarily in EUR
- **Component Sourcing from China** [medium] — Disruptions or trade barriers affecting specialized electronic components could halt assembly schedules

- Corporate expenditure delays in office fit-outs driven by macroeconomic uncertainty
- Import tariffs and international trade regulations on steel, aluminum, and components
- Supply chain dependency on Chinese electronics and critical component suppliers
- Foreign currency translation and transaction risks, primarily in USD and SGD against the EUR
- Operational ramp-up risks and unexpected costs at the new U.S. manufacturing facility

## Accounting

Framery applies IFRS 15, recognizing the overwhelming majority of pod revenue at a point in time upon delivery, while digital services and pod subscriptions are recognized over time. Key balance sheet items include significant goodwill from historical acquisitions, capitalized R&D software costs, and IFRS 16 lease liabilities for premises.

- **Revenue Recognition (IFRS 15)** — Point-in-time accounts for >98% of total group turnover
- **Goodwill Impairment Testing (IAS 36)** — Requires annual evaluation against cash-generating unit discount rates and cash flows
- **Capitalized Development Costs (IAS 38)** — Affects operating expenses and intangible asset asset balances during active product development
- **Alternative Performance Measures** — Creates divergence between reported IFRS operating profit and non-IFRS Adjusted EBIT

- Point-in-time revenue recognition for acoustic pods versus over-time recognition for digital subscriptions
- Substantial goodwill asset (EUR 68.7M) subject to annual impairment testing
- Capitalization of internal R&D software development costs alongside physical product testing
- IFRS 16 lease liabilities reflecting long-term production and showroom facilities
- Adjusted EBIT metrics isolating IPO costs, incentive program redemptions, and tariff mitigations

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*Last updated: 2026-10-24T10:30:38.241998+00:00*