Koskisen Corporation press release on July 9, 2025 at 11:00 a.m. EEST
On 9 July 2025, Koskisen Corporation held a pre-silent period call for analysts following the company. This press release summarizes the key questions and answers discussed during the call.
The silent period preceding the publication of Koskisen's Q2/2025 Half Year Report begins on July 18, 2025. The Half Year Report for January-June 2025 will be published on 18 August 2025 at 8:30 a.m. EEST. A Finnish-language webcast will follow at 10:00 a.m. EEST, with the link to be provided later.
Q2/2025 - Key Questions and Answers
MARKET
Q: Has the cautiously positive development in birch plywood order flows continued throughout Q2?
A: Birch plywood order flows have remained mostly stable.
Q: Have China tariffs and tightened sanctions allowed for stronger pricing of birch plywood in Q2, and what does the pricing outlook for the rest of the year look like?
A: The tariffs and sanctions came into effect towards the end of the period, so they did not yet have a major impact on Q2 pricing. No significant changes are expected in prices for the rest of the year. General market uncertainty continues to affect product demand and, consequently, pricing.
Q: Has the demand for sawn timber and your own sales performance met your expectations and the typical seasonality of the industry in Q2?
A: The demand for sawn timber and our sales performance have met the forecast. The seasonally increasing demand toward summer remained somewhat more moderate than expected. The delayed recovery in construction naturally impacts the demand for sawn timber.
Q: Pricing outlook for sawn timber in Q2 and Q3?
A: Due to the continued uncertainty, prices are expected to remain roughly at the same level. Also, the delayed recovery in construction naturally affects sawn timber price levels.
Q: Have any new ideas or perspectives emerged recently regarding expectations for the recovery of the construction industry?
A: The outlook for a recovery in construction remains uncertain due to the decreased predictability of global political developments.
Q: Any new thoughts on the impact of the trade policy situation (including possible changes at the beginning of July) on global sawn timber flows?
A: The sawn timber trade in the markets relevant to Koskisen has been particularly affected by the situation in the Middle East. The impact of the tariff and customs policies pursued by the U.S. on trade flows, particularly in the sawmill industry, is currently difficult to assess.
Q: What is the inventory situation and ordering willingness among customers, especially foreign ones? Has global instability affected orders?
A: The uncertain market situation has for some time been reflected in increased customer caution regarding inventory build-up and orders. This caution remains evident and is expected to continue. Some sawn timber deliveries have been postponed, mainly due to the situation in the Middle East.
Q: The U.S. dollar has recently weakened significantly against the euro. What are the impacts of this on the markets and on Koskisen?
A: The weakening of the dollar has some impact on markets in the Middle East, North Africa, and parts of the Far East. On the other hand, a weaker dollar tends to reduce freight costs. The overall impact on Koskisen is not significant. We have also aimed to take the weakening of the dollar into account within the limits of our hedging policy.
PRODUCTION
Q: Have there been any layoffs or unplanned shutdowns during Q2?
A: There have been no layoffs or unplanned shutdowns during Q2.
Q: How has the realization of the remaining efficiency gains from the Sawmill Industry's investments progressed during Q2, and are you satisfied with the development?
A: The efficiency gains from the investments have progressed according to plan toward the targeted level.
Q: Have the number of shifts and shift-specific production volumes at the new sawmill been at the planned level, and has the pace remained strong as it was at the end of Q1?
A: The shift efficiencies at the new sawmill continued to improve during Q2. We are preparing to increase drying capacity at the end of the production line, which will enable further growth in sawing volumes. This is also linked to the district heating pipeline project currently underway, which is expected to be completed by the end of the year.
Q: How has the integration of Iisveden Metsä started?
A: The integration process of Iisveden Metsä has progressed as planned. In the initial phase, the focus has been particularly on aligning production and sales, as well as implementing shared practices and processes.
Q: Are you integrating, for example, logistics, wood procurement, or ERP systems?
A: Koskisen and Iisveden Metsä use the same ERP system for sawmilling and wood procurement, which will ease the final system integration planned for later this autumn. The overall objective is to integrate Iisveden Metsä's entire business operations and related systems into Koskisen's existing operations and systems. Wood procurement has been integrated into Koskisen's wood procurement organization and management. Going forward, logistics planning and execution will also be carried out centrally and jointly.
Q: How long is the integration of Iisveden Metsä into Koskisen expected to take? What kind of synergy benefits do you expect to achieve?
A: The integration of business-critical functions into Koskisen will be completed during the autumn. By consolidating Koskisen's and Iisveden Metsä's sawing businesses, we will be able to create even more value for our customers: we will be able to better allocate market-specific product concepts and centralise them to the most suitable production plant. We are also developing Iisveden Metsä's wood procurement organization as part of Koskisen's wood procurement operations.
Q: Does the seasonality of Iisveden Metsä match that of Koskisen's Sawmill Industry and sawmilling operations?
A: The seasonality is the same in both production units.
Q: What kind of summer shutdowns will you have in both business units?
A: In the Panel Industry, the summer shutdown will take place in July and will last for three weeks. During this time, regular maintenance will be carried out, and preparations for investments in line with the investment program will be made. In the Sawmill Industry, the summer shutdown will last for two weeks and also take place in July.
WOOD PROCUREMENT
Q: What is the overall situation in the wood market? Prices appear to be at record levels again - is this level still sustainable, and how are you addressing it?
A: The supply of wood has been steady, and prices remain high. Due to the elevated price level, the ratio between wood costs and end product prices is not at a sustainable level. Koskisen's wood reserves and inventories are at a good level and in line with targets, which currently provides flexibility in wood procurement.
Q: What is the current status of wood reserves and inventories?
A: Wood reserves and inventories are at a good level and in line with targets. Reserves and inventories also increased following the business acquisition of Iisveden Metsä as of the beginning of June. Overall, raw material supply has proceeded as planned.
Q: Do you believe wood prices peaked again this spring?
A: The price of wood has been at a high level but, in our view, began a moderate decline toward the end of the quarter.
For more information, please contact:
Sanna Väisänen, Director, Sustainability and Communications, Koskisen Corporation
sanna.vaisanen@koskisen.com
Tel. +358 20 553 4563
Koskisen is an international wood processing specialist known for its agility and ability to listen to the customer. We utilise our valuable wood raw material as thoroughly as possible, up to the last particle of sawdust. At the same time, we bring the best carbon narrative to life: We manufacture high-quality and sustainable products that store carbon for decades. The Group's revenue in 2024 was EUR 282 million. Read more: koskisen.com
