Bpc Instruments

For those who haven’t heard of BPC Instruments before, could you tell us a bit more about your business, what you do, and which markets you address?

We’re a Swedish company based in Lund, with 20 years of operating history and a focus on analytical instruments for process analysis. We transform complex, labour-intensive laboratory bioanalysis into automated, standardised, and reliable workflows for the renewable energy and environmental biotechnology sectors.

We are more than an instrument manufacturer. Our offering combines precision hardware, software, application expertise and knowledge transfer into complete analytical solutions. The value lies in the combination of these elements and the expertise we have built over two decades. This gives us a competitive advantage that is difficult to replicate.

Biomethane and biogas remain our largest market, where we have an established position as a technology leader. In recent years, we have successfully applied the same core expertise to biodegradability testing of polymers and plastics, as well as animal nutrition and wastewater treatment. This expansion builds on an international business model with customers in more than 90 countries and partners across 16 markets.15 years of profitability and cost-control have given us the financial capacity to continue investing in new products and applications that fits our business model.

Can you tell us more about your platform, AMPTS, BPC Blue and the software around BPC Go, its advantages, and how it compares with competing solutions?

Our core strength lies in developing integrated, patented measurement technologies embedded across several platforms, improving automation, reproducibility, and efficiency.

AMPTS is our anaerobic batch fermentation platform for feedstock analysis within biomethane and biogas; biomethane potential (BMP) is the best-known application, while the platform also provides real-time data for both plant operations and research.

BPC Blue automates aerobic and anaerobic biodegradability testing of materials such as polymers, plastics and natural fibres. Although we entered this market more recently, we have quickly established BPC as one of the top two leading international providers in the segment.

BPC Go is a novel gas volume and flow measurement device used either as a standalone solution or integrated through BPC DAQ into a complete laboratory multi-variable measurement solution.

Complementing the hardware, our software provides instrument control, remote monitoring, and data normalisation, reducing manual work and improving data quality. A key competitive differentiator is the complete solution comprising instruments, software, methodology, and support, backed by more than a thousand scientific citations.

You’ve invested in R&D, a broader platform and the new premises in Hasslanda while sales softened in the first half of 2026. When do you expect these investments to start paying off, and how should investors think about the path back to your historical profitability?

As a technology leader in our specialist markets, we need to continue investing in order to maintain our position, while retaining disciplined cost control and balancing short-, medium-, and long-term priorities.

The first half was below our expectations, particularly Q1, although Q2 showed promising signs of an operational recovery. We had anticipated stronger growth in 2026, but economic and policy uncertainty in our sectors has made biogas customers in Europe and North America more cautious about capital spending. At the same time, biodegradability continues to grow, which reinforces the value of serving several application areas. Customer interest remains broad, although decisions are taking longer and order timing has become less predictable. We see this primarily as delayed investment rather than a weakening of BPC’s competitive position.

The new Hasslanda facility gives us the capacity to improve production, customer service and future growth. With the relocation completed and further recruitment paused, our focus is to make better use of the organisation and capacity already in place. The timing of individual orders means that quarterly performance is likely to remain uneven, and the return to our historical profitability levels will not necessarily be linear. Investors should view the recent spending as an investment in capacity ahead of the next growth phase, with returns materialising as opportunities turn into orders and the new capacity is used more fully.

Your platform is expanding well beyond biogas into biodegradability, animal nutrition and more. What’s driving that diversification, and which of these new verticals do you see as most important going forward?

We operate in emerging markets that develop at different rates and are influenced by policy decisions in different regions. We therefore do not want BPC’s growth to depend on a single application or market. Our ambition is to build leading positions in several specialist markets that share the same underlying technology and expertise.

We view diversification as a disciplined extension of the same technology platform into adjacent applications. At the core, our solution monitors the biological respiration of bacteria and other living organisms, and the same principle applies across wastewater, biogas, animal nutrition, and human nutrition – distinct sectors built on the same underlying measurement technology.

Each application requires a degree of methodological adaptation, while the core technology remains unchanged, enabling us to replicate previous success. Biodegradability is currently the clearest example of this strategy. We have successfully transferred technology and expertise developed in biogas into a different and rapidly developing market. Our progress in this area gives us confidence that the model can be repeated.. Rather than prioritising a single vertical, we are deliberately diversifying across several.

How do you view BPC Instruments’ competitive position today, and what do you see as your most important moat against other players addressing similar markets?

The dynamics vary by sector. Biogas is more complex and requires a complete operational chain, whereas biodegradability and animal nutrition are more straightforward, allowing us to focus primarily on the measurement technology.

Across all applications, innovation remains the key driving force. Our core competitive advantage is a premium product offering with superior quality and functionality, differentiating us from competitors that primarily compete on price. Competitors may replicate approximately 30–50 % of the hardware, but the true value lies in how the system is applied, with a significant share of the underlying know-how embedded in processes that are not visible and remain difficult to replicate.

By deliberately targeting high-margin products, we retain the capacity to reinvest in development and maintain our technological lead. This combination of integrated expertise and continuous reinvestment, rather than any individual feature, protects our competitive position.

Where do you see BPC Instruments in one year, and what are the most important steps to get there?

In one year, I expect BPC to be a more efficient, commercially focused and scalable business. The new facility should be fully operational, and we expect to convert opportunities into sales more consistently. This would put us in a strong position to deliver higher profitable growth. We also have several products in development and plan to broaden the portfolio during the next twelve months.

Getting there will primarily depend on stronger commercial execution. Our focus is to convert the sales pipeline more consistently, deepen our distributor relationships and make better use of the current organisation.

Biogas will remain the foundation of the business, while biodegradability should become an increasingly important growth driver. A broader sales mix across applications and geographical markets would make BPC less dependent on conditions in any single market and create a more resilient business.

Could you name three reasons why BPC Instruments is an attractive investment today?

A well-established market position

20 years of experience, customers in more than 90 countries, and broad recognition across both industry and academia through more than 1,000 scientific citations.

Significant growth potential

A scalable technology platform that addresses climate and environmental challenges across biogas, biomethane, biodegradability, animal nutrition and wastewater treatment, with scope to expand into further applications.

A strong financial and operational foundation

At the end of Q2, BPC had total liquidity of SEK 64.3 million, no interest-bearing debt and an equity-to-assets ratio of 91.9 percent. Together with our new facility and ISO 9001 certification, this provides a strong operational platform for future growth.