Headline
Strategy and medium-term (3-5 years) strategic targets
Glaston sets medium-term strategic targets
Glaston’s Board of Directors has approved adjusted net sales and comparable return on capital employed (ROCE) targets and an extended target period for the strategic targets.
Since the previous strategy update in August 2021, there have been significant changes in the global economy and Glaston’s addressable markets started to soften in 2023. Due to these changes, the time for reaching the strategic targets has been modified to reflect the current expectations. Glaston has adjusted the timeframe for achieving the strategic targets from 2025 to the medium-term (3−5 years) except for the emissions reduction targets with a timeframe up to 2032.
Glaston has also slightly updated the net sales target and expects the annual average growth to exceed the addressable equipment markets’ growth. The updated target for comparable return on capital employed (ROCE) is above 16%. The target for the comparable operating margin (EBITA) of 10% remains unchanged.
Glaston currently estimates the annual addressable equipment market growth for architectural glass processing to gradually recover from -6% in 2023 back to approximately 5% during 2025−2026. The addressable equipment market for mobility, display and solar glass processing is expected to grow more than 5% each year.
More details in the February 15, 2024 Stock Exchange Release.
Glaston’s medium-term (3-5 years) strategic targets:
- Annual average net sales growth (CAGR) exceeding the addressable equipment markets growth
- Comparable operating margin (EBITA) of 10%
- Comparable return on capital employed (ROCE) of above 16%
- Customer satisfaction score (Net Promoter Score, NPS) above 40.
- Group-wide zero lost time accidents target, progress measured by lost time accidents per million working hours (LTIFR)
- Employee Engagement target above 75 (out of 100)
- GHG emissions reduction targets:
- Reduce absolute scope 1 and 2 GHG emissions by 50% by 2032, compared to the 2022 base year (1,491 tCO2e)
- Reduce the scope 3 GHG emission intensity by 58% per square meter of sold processing capacity by 2032. Base year 2022: 0.0043 tCO2/m2
President & CEO's Review
Interim CEO Antti Kaunonen in the January-June 2024 half-year financial report, published on August 9, 2024:
“In the second quarter, the challenging market environment continued. The Architectural market remained slow. Customers’ cautiousness caused by the slowdown of residential markets in Europe and the US also impacted the demand for Insulating Glass (IG) technologies. Demand for tempering and laminating equipment picked up clearly from the previous quarter’s very modest level. In China, the good demand for pre-processing technologies continued but the markets are expected to be volatile.
Due to the softer Architectural market, Glaston’s second-quarter order intake was down 6% year-on-year. The order intake for tempering and laminating technologies increased slightly, whereas order intake for insulating glass technologies fell compared to the comparison period. As demand for upgrades picked up, Services’ order intake saw an increase. In the second quarter, Glaston’s main market areas, EMEA and the US, had a come-back after a weaker first quarter.
Second-quarter net sales were down 10% to EUR 49.9 million, primarily due to lower net sales in the machine business of the Architecture segment. Service achieved good growth and its net sales share was at 38%. Comparable EBITA was in line with the level of the comparison period at EUR 3.3 million. The EBITA margin, 6.6%, improved compared to both the previous quarter (6.4%) and the corresponding period in 2023 (6.2%). The growth of the Services business supported profitability development.
Our good progress in sustainability continued. Promoting sustainable development is an integral part of our business strategy as our technologies enable more energy-efficient and safe glass products. We are committed to systematically reducing our carbon footprint and as one of the first glass processing technology companies in the world, we received the Science Based Target initiative’s (SBTi) approval for our greenhouse gas emission reduction targets.
Occupational safety is also high on our agenda, and zero lost-time accidents has been set as the Group-wide occupational safety target. Our systematic efforts to improve safety at work is progressing, and during the first half of the year, two lost-time accidents were reported. In the first half of 2023, eight lost-time accidents were reported.
Asia and China, in particular, are the fastest-growing mobility glass processing equipment markets. To further streamline our global production, adjust capacity to meet customer demand, and improve operational efficiencies while serving customers close to their markets, we announced earlier this week the plan to transfer all production of pre-processing equipment from Glaston Switzerland to our factory in Tianjin, China. The estimated costs of the planned production transfer are approximately EUR 6 million. Based on the initial analysis, the annual net cost savings from the transfer would take place in several phases and reach over EUR 2 million by the end of 2025.
In the first half of 2024, the Architectural market softened and currently, there are no clear signs of imminent change. During the rest of the year, our priority is to secure the order intake and project deliveries. We have already initiated cash and cost-control actions and these will continue throughout the year. If needed, we will take further measures. At the same time, we will keep the focus on growing the service business.
Glaston’s new President and CEO Toni Laaksonen will take up his position on August 12, 2024. As of the same date, I will step down from the role as interim CEO but will continue as a member of the Board of Directors. For my part, I would like to give thanks for the opportunity and interesting period as interim CEO while wishing Toni welcome to the company.”
Guidance
GLASTON SPECIFIES OUTLOOK FOR 2024
(published on August 9, 2024 in the half-year 2024 financial report)
In the second quarter of the year, the cautious development in the architectural glass processing equipment markets continued. The earlier expected market recovery has been delayed and the markets are now anticipated to recover towards the end of 2024 at the earliest. For mobility glass processing equipment, the market in China is expected to grow with increased short-term volatility. Amid global economic uncertainty and continued geopolitical tensions, higher-than-normal uncertainty exists concerning customers’ decision-making.
Glaston Corporation specifies its outlook and estimates that its net sales will stay at the same level as in 2023. Comparable EBITA is estimated to amount to EUR 14.5−16.0 million. The net sales growth is curbed by the delayed market recovery whereas the planned structural cost-saving actions support profitability. In 2023, Group net sales totaled EUR 219.7 million and comparable EBITA was EUR 14.9 million.
(Previous outlook: Glaston Corporation estimates that its net sales and comparable EBITA will stay at the same level or increase slightly in 2024 from the levels reported for 2023.)
GLASTON’S OUTLOOK FOR 2024 REMAINS UNCHANGED
Published on May 3, 2024 in the Q1 2024 interim report
The cautious development in the architectural glass processing equipment markets continued in the first quarter of the year. Despite the slow start, Glaston expects the architectural glass processing equipment markets to start recovering at some point in 2024. For mobility glass processing equipment, the positive development in China is expected to continue. Amid global economic uncertainty and increased geopolitical tensions, higher-than-normal uncertainty exists concerning customers’ decision-making.
Glaston started the year with a lower order backlog than the previous year. However, given the expected slowly improving market activity during the year, Glaston Corporation estimates that its net sales and comparable EBITA will stay at the same level or increase slightly in 2024 from the levels reported for 2023. In 2023, Group net sales totaled EUR 219.7 million and comparable EBITA was EUR 14.9 million.
GLASTON’S OUTLOOK FOR 2024
Published in the Financial Statements bulletin on February 15, 2024
Amid early signs of increasing market activity, Glaston expects the architectural glass processing equipment markets to start recovering slowly at some point in 2024. In Europe, demand is expected to remain at the current level with the recovery taking place towards the end of the year. In the Americas, the current demand level is expected to continue. In China, demand in the Architectural market is expected to remain at a reasonable level. In the mobility glass processing equipment market, the cautiously positive development is expected to continue driven by China. With global economic uncertainty and geopolitical tensions continuing, higher-than-normal uncertainty exists in relation to customers’ decision-making.
Glaston starts the year with a lower order backlog than the previous year. However, given the expected improving market activity during the year, Glaston Corporation estimates that its net sales and comparable EBITA will stay at the same level or increase slightly in 2024 from the levels reported for 2023. In 2023, Group net sales totaled EUR 219.7 million and comparable EBITA was EUR 14.9 million.
Net sales estimate specified, comparable EBITA estimate unchanged
(published in the Q3 2023 interim report on October 26, 2023)
In the third quarter of 2023, the increasing market uncertainty and more cautious customer behavior continued. The activity in the architectural market further decreased, and the environment of softer demand is expected to continue in Europe and China also in the final quarter of the year. In the Americas, the demand prospects are better. Despite the softening of the markets, demand continues to be supported by the need to modernize existing equipment and the strong megatrends driving interest in energy-efficient glass solutions.
Throughout 2023, Glaston has focused on the execution of its strategy, which will incur costs and capital expenditure ahead of the effect on revenue growth. With ongoing geopolitical tensions and increasing uncertainty in the global business environment, a higher-than-normal level of unpredictability is related to customers’ investment decisions.
Due to the prevailing uncertainties, Glaston Corporation specifies its net sales estimate and expects net sales in 2023 to grow marginally or to be on the same level as reported for 2022. Glaston continues to estimate that comparable EBITA will increase to EUR 13.7−15.7 million. In 2022, the Group’s full-year net sales totaled EUR 213.5 million and comparable EBITA was EUR 13.6 million.
GLASTON SPECIFIES OUTLOOK FOR 2023
published in the H1 2023 report on 1 August 2023
In the first half of 2023, signs of increasing market uncertainty and more cautious customer behavior were visible. Due to the slowdown in the architectural market, the demand environment is expected to be softer in Europe and China during the rest of the year, while demand prospects are better in the Americas. Despite the softening of the markets, demand continues to be supported by the strong megatrends driving interest in energy-efficient glass solutions.
In 2023, Glaston has continued to focus on the execution of its strategy, which will incur costs and capital expenditure ahead of the effect on revenue growth. With ongoing geopolitical tensions and increasing uncertainty in the global business environment, a higher-than-normal level of unpredictability is related to customers’ investment decisions.
Glaston’s net sales and profitability development in 2023 continue to be supported by a healthy order backlog.
Despite the prevailing uncertainties, Glaston Corporation estimates that its net sales will increase in 2023 from the levels reported for 2022 and specifies its outlook for comparable EBITA, which is estimated to increase to EUR 13.7−15.7 million. In 2022, the Group’s full-year net sales totaled EUR 213.5 million and comparable EBITA was EUR 13.6 million.
(Previous outlook: Glaston Corporation estimates that its net sales and comparable EBITA will improve in 2023 from the levels reported for 2022.)
GLASTON’S OUTLOOK FOR 2023 REMAINS UNCHANGED
published in the Q1/2023 interim report on 26 April 2023
In 2023, Glaston expects the markets to remain active despite some regional differences. The strong megatrends driving the demand for energy-efficient glass solutions continue to support Glaston’s markets. Europe could however be particularly affected by the slowdown in the architectural market. In the Americas, Glaston expects the demand to continue strong, whereas, in China, the prospects of the architectural market remain uncertain.
In 2023, Glaston continues to focus on the execution of its strategy, which will incur costs and capital expenditure ahead of the effect on revenue growth. Amid geopolitical tensions and increasing uncertainty in the global business environment, the higher-than-normal level of unpredictability is related to customers’ investment decisions.
Glaston entered 2023 with an order backlog 46 % higher than in the previous year, which supports the company’s net sales and profitability development. The Automotive production ramp-up in China continues to have a negative impact on profitability in the second quarter of 2023. Glaston Corporation estimates that its net sales and comparable EBITA will improve in 2023 from the levels reported for 2022. In 2022, Group full-year net sales totaled EUR 213.5 million and comparable EBITA was EUR 13.6 million.
GLASTON’S OUTLOOK FOR 2023
as published in the Financial Statements bulletin on 9 February 2023
In 2023, Glaston expects the overall market activity to remain at a good level despite some regional differences. Although the megatrends support the use of energy-efficient windows, demand in Europe could be affected by the slowdown in the architectural market. In the Americas, Glaston expects the demand to continue strong, whereas in China, the prospects of the architectural market are uncertain.
In 2023, Glaston continues to focus on the execution of its strategy, which will incur costs and capital expenditure ahead of the effect on revenue growth. As supply chain disturbances and geopolitical tensions continue, a higher-than-normal uncertainty is related to the development of economic activity and customers’ investments.
Glaston entered 2023 with an order backlog 46% higher than in the previous year. This provides a strong starting point for 2023 and supports the company’s net sales and profitability development. Glaston Corporation estimates that its net sales and comparable EBITA will improve in 2023 from the levels reported for 2022. As is typical, Glaston expects the first quarter of 2023 to be the weakest of the year, additionally impacted by low upgrade net sales and a higher share of new products. In 2022, Group full-year net sales totaled EUR 213.5 million and comparable EBITA was EUR 13.6 million.
GLASTON SPECIFIES OUTLOOK FOR 2022
(published in the January-September 2022 report on 27 October 2022)
In the third quarter, overall demand in most of Glaston’s markets remained strong, which indicates good development for machines and services businesses for the coming quarters. Glaston began 2022 with a solid order backlog. The strong order intake in January−September further supports Glaston’s 2022 full-year net sales and profitability development. Costs and capital expenditure related to the execution of the updated Group strategy, announced in August 2021, will occur ahead of the effect on revenue growth.
Contrary to the overall strong market demand, inflation, energy cost increases, raw material prices, and the slowdown in economic growth are causing hesitation among some customers in their investment decisions. Supply chain disturbances are expected to continue, which means higher than normal uncertainty over Glaston’s short-term net sales and profitability development. Despite an improved situation, the impact of the COVID-19 pandemic cannot be fully ruled out, especially in China.
(Previous outlook: Despite the prevailing uncertainties, Glaston Corporation estimates that its net sales will increase in 2022 from the levels reported for 2021 and specifies its outlook for comparable EBITA, which is estimated to increase to EUR 12−15 million. In 2021, Group net sales totaled EUR 182.7 million and comparable EBITA was EUR 11.1 million.)
GLASTON SPECIFIES OUTLOOK FOR 2022
(published in the half-year January-June 2022 report on 4 August 2022)
During the first half of 2022, the overall demand in most of Glaston’s markets remained strong, indicating good development for machines and services businesses. In 2022, Glaston’s net sales and profitability development are supported by the solid order backlog at the beginning of the year as well as healthy order intake during the first half of 2022. Costs and capital expenditure related to the execution of the refined Group strategy, announced in August 2021, will occur ahead of the effect on revenue growth.
Currently, higher than usual uncertainty is related to the development of global economic activity and customers’ investments. The uncertainty is driven by, in particular, the supply chain disturbances, which have become a longer-term challenge, and the Russian attack on Ukraine with its implications for energy and raw material prices. The impacts of the still ongoing COVID-19 pandemic add to the uncertainty, especially in China.
Despite the the prevailing uncertainties, Glaston Corporation estimates that its net sales will increase in 2022 from the levels reported for 2021 and specifies its outlook for comparable EBITA, which is estimated to increase to EUR 12−15 million. In 2021, Group net sales totaled EUR 182.7 million and comparable EBITA was EUR 11.1 million.
(Previous outlook: Glaston Corporation estimates that its net sales and comparable EBITA will improve in 2022 from the levels reported for 2021.)
GLASTON’S OUTLOOK FOR 2022
(published in the January-March Interim Report 27 April 2022)
In 2021, Glaston’s markets saw a strong recovery and growth. This positive development continued in the first quarter of 2022, indicating good development for both machines and services business. Glaston started the year with a 48% higher order backlog than in 2021, which supports Glaston’s net sales and profitability development. In 2022, Glaston is focusing on the execution of its strategy, which will incur costs and capital expenditure ahead of the effect on revenue growth.
Currently, higher than normal uncertainty is related to the development of economic activity and customers’ investments. The uncertainty is driven by several simultaneous factors, such as the supply chain disturbances that have become a longer-term challenge, the Russian invasion of Ukraine with its implications on energy and raw material prices, and the still ongoing COVID-19 pandemic.
Despite the prevailing uncertainties, Glaston Corporation expects market development to continue to be positive and estimates that its net sales and comparable EBITA will improve in 2022 from the levels reported for 2021. In 2021, Group net sales totaled EUR 182.7 million and comparable EBITA was EUR 11.1 million.
GLASTON’S OUTLOOK FOR 2022
(as published in the Financial Statements on 14 February 2022)
In 2021, Glaston’s markets saw a continued recovery and strong growth. We expect positive development to continue in 2022 with good progress for both machines and services business. At the start of 2022, our order backlog was 48% higher than the previous year providing a strong starting point for 2022 and supporting Glaston’s net sales and profitability development. In 2022, Glaston will focus on the execution of its strategy which will incur costs and capital expenditure ahead of the effect on revenue growth. As the COVID-19 pandemic continues and supply chain disturbances have become a longer-term challenge, a higher than normal uncertainty is related to the development of economic activity and customers’ investments.
Glaston Corporation estimates that its net sales and comparable EBITA will improve in 2022 from the levels reported for 2021. In 2021, Group net sales totaled EUR 182.7 million and comparable EBITA was EUR 11.1 million.
Business Operations
Glaston Corporation develops, manufactures, sells and services glass processing machines, equipment, and technology to glass processors who provide glass products for different needs. Main customers are glass processors in the architectural glass, mobility and display glass, and solar energy equipment.
Our operations are divided into two business areas: Architecture and Mobility, Display & Solar. The business areas also form the company’s two reporting segments in which Services are included.
Glaston Architecture
The Architecture business area consists of Glaston’s Heat Treatment technologies for Laminating and Tempering and Insulating Glass technologies.
Glaston offers a wide and technically advanced range of glass heat treatment machinery, services, upgrades and modernizations as well as spare parts for flat tempering, and laminating lines.
Glaston is the most known tempering line manufacturer in the market and the fastest growing manufacturer of laminating lines. We differentiate ourselves in the market through industry-leading know-how to provide our customers with the most innovative technology and the lowest operating costs.
In insulating glass technologies, Glaston offers tailor-made and flexible solutions to meet the most demanding customer needs. We have a more than 25 years experience as a leader in «warm edge» technology and inventor of the TPS® spacer system.
Energy efficiency and the need to improve the energy performance of buildings is gaining more importance in the market and drives the demand for insulating glass.
More information about our products is available in the Offering section.
Glaston Mobility, Display & Solar
The Mobility, Display & Solar business area consists of the pre-processing technologies and heat treatment technologies for the mobility, display and solar glass markets.
Glaston offers standardized and tailor-made solutions for the processing of mobility, display and solar glass from the raw glass to the final product. Our technologies enables cutting and grinding the glass into the correct shape, to bending, tempering or bending-tempering the glass into its final form used in different applications. Glaston provides advanced pre-processing and heat treatment technologies to produce even the most demanding solar solutions.
In the mobility industry, the use of glass is increasing in the exterior and the interior and new functionalities and glass types like thin glass increase processing complexity and quality requirements. Glaston is the leading supplier for pre-processing solutions for mobility glass with a >40% market share.
Please click to see our Offering.
Research and Development
Glaston is a frontrunner in its field, and known in the glass industry for its technology leadership and high quality. Our position is particularly strong in developing technologically demanding products. Glaston carries out product development in close cooperation with its customers and partners, such as research institutes, universities and other higher education institutions.
The most advanced glass processing machines developed by Glaston have risen to the status of standards in many countries. We hold patents for all of our key solutions.
The main themes of our product development are projects and innovations related to glass processing and robotics that facilitate the transition towards fully automated glass processing.
One of our latest innovations is the tempering process Autopilot, which is based on the same solutions that are used in autonomous passenger cars. Autopilot presages a huge change for the entire glass processing industry, as it minimizes the need for machine operator input and offers process control without parameters.
To further strengthen our product development and innovation efforts and speed up the time-to-market for development projects, a group-wide Automation & Innovation function was established in 2023.
To support the automation and quality scanning for heat-treated glass, we launched a new AI-based online measurement device to the market in 2023. We continued the development of the new automation platform for all heat treatment machines and the development of new retrofit solutions for existing machines. To better match customers’ demand for double-glazing units, the sealing robot family offering in Insulating Glass technologies was extended. In addition, we cxontinued the development of the Thermo Plastic Spacer (TPS®) technology. In Mobility, Display & Solar product development, the focus continued to be on broadening the application field of the products.
In 2023, research and product development expenditure amounted to 4.2 (4.3)% of net sales.
More information about our major technology innovations here.
Why invest in Glaston
- Global megatrends support demand for Glaston’s products
- Glaston estimates the annual addressable equipment market growth for architectural glass processing to gradually recover from -6% in 2023 back to approximately 5% during 2025−2026. The addressable equipment market for mobility, display and solar glass processing is expected to grow more than 5% each year*)
*) Source: Glaston’s etimate
- Long history of developing glass processing equipment
- Technology leadership based on continuous, customer-oriented product development, enabling us to consistently bring to the market more advanced technology to meet customers’ changing needs
- At the heart of product development is digitalisation, which facilitates the shift towards automatic glass processing
As the innovative frontrunner in its industry, Glaston’s ambition is to continue being the leader in developing the industry towards a more sustainable future. The majority of Glaston’s business is targeted at the architectural customer segment in which the company’s products provide key technologies for improving energy efficiency and the safety of buildings.
Mergers and Acquisitions
| Time | Company/Industry | Event | Description |
| 1981 | Tamglass Oy | Acquisition | Kyro acquires the entire share stock of Tamglass Oy, founded in 1970. Exports already account for 93 % of Tamglass’ net sales of FIM 54.7 million and the company has 148 employees. Kyro becomes a diversified company. |
| 1985 | Tecnomen | Acquisition | Kyro expands its electronics business by acquiring Tecnomen, which supplies Tamglass with automation and control systems. The company also operates in the field of telecommunications. |
| 1986 | Glaston forest holdings and local electricity network | Divestment | The company sells its forest holdings to Suomi-Salama and its local electricity distribution network to Oy Nokia Ab. |
| 1995 | Glaston’s forest industry business | Divestment | Kyro sells its forest industry business to Metsä-Serla Oy, amid a major restructuring of the entire sector. |
| 1996 | Cattin Machines | Acquisition | Cattin Machines, a Swiss manufacturer of safety glass machines, is acquired for the Tamglass Group. |
| 2002 | Finton Oy | Acquisition | The Tamglass Group’s glass processing business is supplemented by the balcony glazing manufacturer Finton Oy from Lahti Finland. |
| 2002 | Uniglass Oy | Acquisition | The Tamglass Group’s machine business is supplemented by the flat tempering machine manufacturer Uniglass Oy from Tampere Finland. |
| 2003 | Z. Bavelloni Immobiliare S.p.A. and Glasto Holding B.V. as well as Suomen Lämpölasi Oy | Acquisition | Kyro acquires Italian Z. Bavelloni Immobiliare S.p.A’s and Dutch Glasto Holding B.V’s all share as well as a majority shareholding in Suomen Lämpölasi Oy. Glaston Technologies, consisting of Tamglass and Bavelloni, becomes the world’s largest comprehensive supplier of glass processing machines, and its glass processing product range becomes the biggest in Finland. |
| 2005 | Glaston’s hydropower and district heat distribution businesses | Divestment | At the end of the year, the Group sells its hydropower and district heat distribution businesses. |
| 2007 | Glaston’s Energy Business | Divestment | Kyro sells its energy business area to M-real Oyj. |
| 2007 | A+W Software AG Group | Acquisition | Glaston acquires the German A+W Software Group in July 2007, after which the Business Area, Software Solutions, is formed. |
| 2009 | Tamglass Glass’s insulated and architectural glass processing operations | Divestment | Glaston Corporation’s subsidiary Tamglass Glass Processing Ltd. sells its insulated and architectural glass processing operations to INTERPANE Glass Oy. |
| 2010 | Glass processing operations | Divestment | Glaston’s joint venture, the glass processing company INTERPANE Glass Oy, is sold to Rakla Finland Oy. |
| 2013 | A+W Software GmbH | Divestment | Glaston sells A+W Software to Constellation Software Inc. acting through its Friedman Operating Group. |
| 2014 | Glassrobots | Acquisition | Glaston acquires the industrial property rights to all Glassrobots products. |
| 2015 | Pre-processing machines business | Divestment | Glaston sells 100% of the shares of Glaston Italy S.p.A. to the local management of Glaston Italy S.p.A. |
| 2017 | Pre-processing machines business in USA and Canada | Divestment | Glaston continues as a reseller of Bavelloni’s Pre-Processing machines in Mexico, Brazil and Singapore. |
| 2018 | Tools business | Divestment | Glaston sells its Tools business to Italian Bavelloni S.p.A. The sale is carried out through a share deal of Glaston Tools S.r.l in Italy. |
| 2019 | Bystronic glass | Acquisition | Glaston acquires Bystronic Maschinen AG and Bystronic Lenhardt GmbH and their subsidiaries (“Bystronic glass”) from Conzzeta Group |