Koskisen Oyj: Koskisen's revenue increased - the positive development of the Sawn Timber Industry segment continued

Koskisen Corporation stock exchange release, August 18, 2025, at 08:30 a.m. EEST

Koskisen's revenue increased - the positive development of the Sawn Timber Industry segment continued

This release is a summary of Koskisen Corporation's January-June 2025 Half-Year report. The complete Half-Year Report is attached, and also available on the company's website at koskisen.com/investors.

April-June 2025 in brief

• Revenue increased and amounted to EUR 89.7 (77.8) million.
• EBITDA increased and amounted to EUR 10.5 (9.4) million.
• The EBITDA margin was 11.7 per cent (12.0).
• Adjusted EBITDA amounted to EUR 10.3 (9.3) million.
• The adjusted EBITDA margin was 11.5 per cent (12.0).
• Operating profit amounted to EUR 7.0 (6.9) million and was 7.8 per cent (8.9) of revenue.
• The profit for the financial period amounted to EUR 5.0 (4.9) million.
• Basic earnings per share were EUR 0.21 (0.21).

January-June 2025 in brief

• Revenue increased and amounted to EUR 176.0 (141.5) million.
• EBITDA increased and amounted to EUR 19.9 (14.9) million.
• The EBITDA margin was 11.3 per cent (10.5).
• Adjusted EBITDA amounted to EUR 19.8 (14.9) million.
• The adjusted EBITDA margin was 11.2 per cent (10.5).
• Operating profit amounted to EUR 13.2(10.0) million and was 7.5 per cent (7.1) of revenue.
• The profit for the financial period amounted to EUR 9.2 (7.2) million.
• Basic earnings per share were EUR 0.40 (0.31).

The figures in brackets refer to the comparison period, i.e. the corresponding period in the previous year, unless specified otherwise. The acquisition of the business operations of Iisveden Metsä was completed on 1 June 2025. The business operations of Iisveden Metsä are included in the figures in this half-year report starting from 1 June 2025.

Profit guidance for 2025 unchanged (published on 17 February 2025)

Koskisen Group's revenue for 2025 is expected to grow from the level of 2024. The adjusted EBITDA margin is expected to be 7-11 per cent.

Key figures

EUR million	4-6 2025	4-6 2024	Change, %	1-6 2025	1-6 2024	Change, %	1-12 2024
Revenue	89.7	77.8	15.3	176.0	141.5	24.3	282.3
EBITDA	10.5	9.4	11.8	19.9	14.9	33.4	24.2
EBITDA margin, %	11.7	12.0		11.3	10.5		8.6
Adjusted EBITDA	10.3	9.3	10.3	19.8	14.9	33.2	24.3
Adjusted EBITDA margin, %	11.5	12.0		11.2	10.5		8.6
Operating profit (EBIT)	7.0	6.9	1.2	13.2	10.0	31.8	13.0
Operating profit (EBIT) margin, %	7.8	8.9		7.5	7.1		4.6
Profit for the period	5.0	4.9	1.7	9.2	7.2	27.9	8.3
Basic earnings per share, EUR	0.21	0.21		0.40	0.31		0.36
Diluted earnings per share, EUR	0.21	0.21		0.39	0.31		0.36
Gross investments	22.8	5.4		26.4	9.9		22.2
Equity per share, EUR				7.0	6.4		6.5
Return on capital employed (ROCE), %				7.4	5.8		6.1
Working capital, end of period				65.5	44.4		45.9
Net cash flow from operating activities				7.9	8.6		14.0
Equity ratio, %				55.6	53.3		54.0
Gearing, %				23.7	8.8		15.4

CEO Jukka Pahta:

Koskisen Group's second-quarter EBITDA increased year-on-year, with adjusted EBITDA amounting to EUR 10.3 (9.3) million. The adjusted EBITDA margin was 11.5 per cent (12.0). This means that our profitable and sustainable growth is continuing, as our revenue for the second quarter showed an increase from the preceding quarter and from the corresponding period last year.

The operating environment remains unstable. The erratic trade and customs policy of the United States is reflected in uncertainty, especially in consumer-driven demand, which remains weak in spite of lower interest rates. Koskisen has little trade with the US market, so the direct impacts of customs and trade policy are minor. The recovery of the construction sector has also yet to materialise. Although decisions that stimulate demand have been made in Europe, their impact remains small.

The profitability of the Sawn Timber Industry segment improved substantially during the second quarter year-on-year, with EBITDA amounting to EUR 4.2 (1.6) million. Shift-specific production in Järvelä developed in line with expectations, and other operational indicators also developed in the right direction. Considering the operating environment and the general situation in the industry, the segment's profit performance remained strong: revenue grew substantially and EBITDA was at a moderate level of approximately 9 per cent in spite of summer-related demand being more subdued than expected. The outlook for the autumn remains broadly uncertain in several markets.

The acquisition of the business operations of Iisveden Metsä was completed at the beginning of June. The harmonisation of processes and systems is progressing according to plan: the financial systems have already been integrated, and the integration of production control and wood procurement systems is expected to be completed during the second half of the year. The business acquisition enables us to deliver even greater value to our customers, for example through market-specific product concepts and by centralizing them to the most suitable production facility. The expanded wood procurement area resulting from the acquisition ensures the availability of raw materials and enables organic growth also in the Panel Industry. The acquisition did not yet have a significant impact on revenue or profitability for the quarter under review.

We continue to increase the production volume of the new sawmill towards the target of 450,000 m³, and we started construction work on the district heating connection pipe between the production plants in Järvelä. The pipe will optimise the operating rate of the power plant situated adjacent to the plywood and chipboard plants, which is currently underutilised. This will enable the continuous production of electricity in the existing power plant and improve the efficiency of heat production. The construction of the connection pipe will allow us to completely avoid a new additional heat investment related to sawmill production, which would otherwise be required at this time to increase drying capacity, which is a bottleneck in production.

Wood procurement was carried out according to plan, and wood reserves remained at a good level. The price of wood raw material in the reserve is still at a high level but, towards the end of the quarter under review, it appeared that the peak in price had passed and the purchase price of raw material began to decrease slightly. In the energy wood market, the mild winter was reflected in demand and thus in the revenue and profit performance of the Sawn Timber Industry segment: demand among operators using energy wood was lower than expected, and inventories were higher than in previous years. This will be reflected in slightly lower prices during the coming contract period.

The profitability of the Panel Industry segment decreased year-on-year, with EBITDA amounting to EUR 6.7 (8.1) million. Profitability was negatively affected by the increase in wood raw material costs and general production costs. However, in terms of EBITDA, the profitability of the Panel Industry segment was still at a fair level at nearly 16 per cent. The demand for plywood was moderate and picked up towards the end of the quarter, while prices remained stable. The demand for chipboard still reflects the low level of new construction and renovation activity. Chipboard prices have remained somewhat stable, but the profitability of the product category is negatively affected by the high price of wood raw material in particular.

The first stage of the investment programme in the Panel Industry segment progressed according to plan, and the first equipment installations were carried out during the summer shutdown in July. The remaining installations will be carried out in stages in September-December, and the equipment will be in production use by the end of the year. The key objective of the investment programme is to improve productivity, quality and yield. The investments made in the first stage of the programme are focused on the automation and modernisation of drying, coating and puttying, among other things.

We are continuing to systematically reduce the climate and environmental impacts of our products. In May, we launched Zero ThinPly, a new thin plywood product that is made entirely from bio-based materials. We have also piloted the use of decommissioned wood packaging material from retail and wholesale supply chains - such as pallets - as a raw material for chipboard. Thanks to the recycled wood cleaning process developed during the pilot, wood that was previously directed to incineration can be used as raw material for chipboard, and the end product is as clean and high in quality as products made from virgin wood raw material.

Webcast

A webcast (in Finnish) in relation to January-June 2025 Half-Year report will be held today on 18 August 2025 at 10:00 a.m. EEST. The webcast can be followed at koskisen.com/videos. The presentation material and a recording of the webcast will be available on the company's website afterwards.

For further information, please contact:

Jukka Pahta, CEO, Koskisen Corporation
[e-mail]
puh. [phone]

Media enquires:

Sanna Väisänen, Director, Sustainability and Communications, Koskisen Corporation
[e-mail]
puh. [phone]

Koskisen is an international wood processing specialist and 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. We manufacture high-quality and sustainable circular bioeconomy products that store carbon for decades. The Group's revenue in 2024 was EUR 282 million. Read more: koskisen.com