Finland finds itself navigating a complex economic and geopolitical landscape in 2025. The twin pressures of a war in Europe and a global energy transition have tested this Nordic nation’s resilience. In response, Finland is “shifting gears” – accelerating investments in strategic sectors to manage risk and secure its future. Below, we first look at the sectors where Finland is investing heavily, and then highlight listed companies that represent these trends.
Key Sectors Driving Finland’s Future
Green Transition and Energy Security
Finland is making an ambitious push toward the green transition and energy security as it strives to achieve carbon neutrality by 2035, one of the most aggressive climate goals worldwide. This vision is already reshaping the energy landscape. The Olkiluoto-3 nuclear reactor, which finally began operating in 2023 after long delays, now supplies 30–40% of Finland’s electricity and has significantly cut reliance on Russian imports. Nuclear overall accounts for about 40% of Finland’s generation, delivering both low-emission power and energy independence. At the same time, renewables are rapidly expanding. Wind power capacity surged 75% in 2022 alone, and more large-scale projects are being launched. Today, more than €8.5 billion in green investments, including wind, battery materials, and hydrogen facilities, are underway. A notable milestone came when P2X Solutions opened Finland’s first industrial-scale hydrogen plant, considered a game-changer for clean energy. These projects illustrate Finland’s determination to safeguard its power supply while leading in the global energy transition.
Digital Innovation and Technology Leadership
On the technology front, Finland is steadily building a reputation as a digital innovation leader. In 2025, the country unveiled Europe’s first 50-qubit quantum computer, developed by state research body VTT in partnership with startup IQM, a leap forward for fields such as logistics, drug discovery, and materials science. The LUMI supercomputer, one of the world’s fastest, has been paired with an AI Factory to help industries sharpen efficiency. Meanwhile, Finland’s ecosystem has caught international attention: AMD acquired the country’s largest AI company, Silo AI, underscoring its global relevance. Infrastructure investments are also significant. Britain’s XTX Markets is building five data centers in Finland, while another €1 billion project combining a data center and power plant is underway. These steps reflect Finland’s commitment to digital resilience and sovereignty at a time when secure, advanced tech is central to future competitiveness.
Defense and Security Investments
Defense and security have also become central pillars of Finland’s strategy, especially since joining NATO in 2023. The government is increasing defense spending from $6.8 billion in 2025 to $11.5 billion by 2032, which will represent about 3.3% of GDP – well above NATO’s 2% benchmark. Already in 2024, defense spending was around 2.4% of GDP, a sharp rise from 1.4% in 2021. Key investments include the $9 billion procurement of 64 F-35 fighter jets, as well as strengthening domestic industry capacity. Patria, the state-owned defense company, is investing €40 million to expand armored vehicle production, while Saab has increased operations in Finland to manufacture advanced electronic warfare sensors. At the same time, Finland is rolling out a new cyber defense doctrine to protect critical infrastructure, complemented by a 2,600 km secure undersea data cable to Germany. Together, these steps underscore Finland’s readiness to secure itself against geopolitical uncertainty while leveraging defense as a strategic industrial growth engine.
Bioeconomy and Sustainable Materials
Finally, Finland is reinventing its forestry-based industries into a modern bioeconomy and sustainable materials hub. Long known for paper and pulp, the sector is being transformed by innovation into renewable fuels, biomaterials, and green construction products. Government roadmaps emphasize circular economy initiatives, from replacing plastics with wood-based alternatives to producing biofuels and advanced fibers. While challenges such as slowed forest growth and heavier logging have temporarily turned land-use into a carbon source, this has only strengthened the resolve to innovate. Finnish firms are now investing heavily in biorefineries and new products that help reduce reliance on fossil imports and carbon-heavy industries. With strong support at the EU level, the Finnish bioeconomy is becoming a cornerstone of long-term sustainability.
Stocks to Watchout For
- Fortum Oyj: One of the most significant players in Finland’s energy shift is Fortum Oyj, the country’s largest utility and 51% state-owned. Fortum focuses on CO₂-free power generation, with hydro and nuclear contributing about 90% of its EBITDA through around 45 TWh of annual production. The Olkiluoto-3 reactor and Fortum’s portfolio together have allowed Finland to reduce imports and even become a net power exporter at times. Fortum is not stopping there: it has extended licenses on its Loviisa reactors to 2050 and entered a partnership with Westinghouse to explore deploying small modular reactors (SMRs) in Finland and Sweden.
- Nokia Corporation: In digital infrastructure, Nokia Corporation remains Finland’s flagship technology company, generating over €24 billion in annual revenue in 2024. Globally, Nokia is a leader in 5G and is already investing in 6G and private wireless networks. Recent geopolitical shifts have given Nokia a competitive edge as European operators move away from Chinese suppliers. In Germany, it secured a major contract with Deutsche Telekom to replace Huawei gear at 3,000 sites, while Telefónica in Spain chose Nokia for its 5G core network in 2025.
- Bittium Corporation: The defense sector’s momentum is embodied by Bittium Corporation, a smaller but highly specialized firm in secure communications and cybersecurity. Bittium supplies the Finnish Defence Forces with its NATO-interoperable Tough SDR tactical radios, which enable encrypted broadband communication on the battlefield. In 2024, the military placed a €3.5 million order to expand its fleet of Bittium radios, part of a long-term framework agreement. These radios are critical in providing real-time situational awareness and seamless interoperability with NATO allies. With 2024 revenues of €85 million, up 13% year-over-year, Bittium has shown solid growth fueled by defense contracts.
- UPM-Kymmene Oyj: The transformation of Finland’s forestry industry is exemplified by UPM-Kymmene Oyj, which has pivoted from paper production to bioeconomy leadership. UPM’s strategy focuses on creating renewable fuels, materials, and biochemicals under its “Biofore – Beyond fossils” vision. Its €1.18 billion biorefinery in Leuna, Germany, which started commissioning in 2024, will produce renewable glycols, plastics, and sugars from wood, replacing petroleum-based inputs. UPM also operates a renewable diesel refinery in Lappeenranta that has converted forestry byproducts into advanced biofuels for a decade. By 2023, 75% of UPM’s revenue was tied to decarbonization and renewable solutions, signaling its rapid shift into future-proof industries.
Conclusion
Finland’s current trajectory illustrates a nation proactively adapting to uncertainty. By investing in clean energy, digital tech, defense, and sustainable industries, Finland is building buffers against geopolitical shocks and global market swings. The four companies highlighted – Fortum, Nokia, Bittium, and UPM – each exemplify a facet of this resilience, from keeping the lights on with carbon-free power to securing networks and reinventing resource use. Backed by factual developments and strategic vision, these firms are not just weathering the present storms; they are positioning Finland to thrive in the long term.
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