Raute Corporation, Stock Exchange Release, 7 May 2026 at 8:00 a.m. EEST
Raute's Business Review January-March 2026: Operational performance continued strong, but market uncertainty did not ease
This is a summary of Raute Corporation's Business Review January-March 2026. The full review is as a PDF file attachment in this release and is also available on the company's website at www.raute.com.
RAUTE CORPORATION - BUSINESS REVIEW JANUARY-MARCH 2026
Figures in brackets refer to the same period a year earlier. Figures are unaudited and rounded to the nearest whole number.
January-March 2026 in brief
- Order intake was EUR 17 million (15)
- Order book was EUR 81 million (146) at the end of the reporting period
- Net sales were EUR 33.5 million (51.9)
- Comparable EBITDA was EUR 4.2 million (7.4), representing 12.6% (14.3%) of net sales
- Comparable operating profit was EUR 3.0 million (6.0)
- Operating profit was EUR 2.8 million (5.9)
- Comparable earnings per share were EUR 0.40 (0.71)
- Earnings per share were EUR 0.37 (0.69)
- Equity ratio was 65.2% (53.7%) at the end of the reporting period
KEY FIGURES (MEUR) | Q1/2026 | Q1/2025 | Change-% | 2025 |
Net sales | 33.5 | 51.9 | -35.5 | 175.5 |
Exported portion of net sales, % | 70.2 | 57.2 | 60.2 | |
Comparable EBITDA | 4.2 | 7.4 | -43.0 | 26.1 |
Comparable EBITDA % | 12.6 | 14.3 | 14.9 | |
EBITDA | 4.0 | 7.3 | -44.7 | 23.6 |
EBITDA % | 12.0 | 14.0 | 13.4 | |
Comparable operating profit | 3.0 | 6.0 | -50.6 | 20.8 |
Comparable operating profit, % | 8.9 | 11.6 | 11.8 | |
Operating profit | 2.8 | 5.9 | -52.9 | 17.3 |
Operating profit, % | 8.3 | 11.3 | 9.8 | |
Net result | 2.2 | 4.2 | -47.1 | 12.9 |
Comparable EPS, EUR | 0.40 | 0.71 | -44.3 | 2.70 |
EPS, EUR | 0.37 | 0.69 | -46.4 | 2.12 |
EPS (diluted), EUR | 0.36 | 0.66 | -45.5 | 2.06 |
Adjusted avg. no. of shares, 1000 pcs | 5,974 | 6,023 | 5,988 | |
Adjusted avg. no. of shares, diluted, 1000 pcs | 6,221 | 6,345 | 6,279 | |
Return on investment, (ROI), % | 19.8 | 43.9 | 32.5 | |
Return on equity, (ROE), % | 15.3 | 32.9 | 24.0 | |
Interest-bearing net liabilities | -31.8 | -53.5 | -38.0 | |
Equity ratio, % | 65.2 | 53.7 | 65.7 | |
Gearing, % | -53.8 | -100.1 | -65.5 | |
Gross capital expenditure | 0.6 | 0.7 | -17.5 | 4.6 |
% of net sales | 1.7 | 1.3 | 2.6 | |
Research and development costs | 1.2 | 1.3 | -5.8 | 4.8 |
% of net sales | 3.7 | 2.6 | 2.8 | |
Order book | 81 | 146 | -44.5 | 98 |
Order intake | 17 | 15 | 13.3 | 91 |
Personnel, at the end of the period | 692 | 770 | -10.1 | 698 |
Personnel, effective, on average | 655 | 760 | -13.8 | 710 |
Review from Mika Saariaho, President and CEO
In the first quarter of 2026, Raute continued its disciplined operational execution and delivered solid profitability despite a very challenging market environment. Global economic and geopolitical uncertainty further intensified during the quarter, leading to continued postponement of customers' investment decisions and delaying the recovery of Raute's order intake.
Raute's order intake for the quarter amounted to EUR 17 (15) million, while net sales were EUR 33.5 (51.9) million. Net sales declined across all business units, primarily reflecting the low order intake in 2025 as well as reduced activity levels in our customers' operations.
Comparable EBITDA decreased from a record-high comparison period and amounted to EUR 4.2 (7.4) million, corresponding to 12.6% of net sales. Profitability in the Wood Processing business unit remained at an exceptionally strong level, supported in part by the reversal of certain project-related cost provisions. In contrast, profitability in Services and Analyzers did not fully meet our expectations, as lower sales volumes negatively affected performance.
Despite the heightened uncertainty in the global economy, Raute remains firmly committed to its strategic priorities. These include growing our modernization business, developing new performance- and subscription-based business models, capturing opportunities enabled by artificial intelligence, and further strengthening our local presence and capabilities in Services.
Given the exceptionally volatile market conditions, the timing of a sustained recovery in our customers' investment activity remains difficult to predict. Reflecting on the cyclical nature of our project-based business and the inherent quarterly volatility of order intake, we continue to focus on proactive margin management and disciplined execution across varying market conditions.
BUSINESS ENVIRONMENT
During the first quarter of 2026, Raute continued to operate in a challenging operating environment, characterized by global economic and geopolitical uncertainty, which negatively affected customers' investment decisions. Political developments in the United States contributed to increased uncertainty in the global trading environment, particularly with respect to tariffs and their potential impact on companies exporting to the U.S. market. The anticipated consequences of the ongoing war in Ukraine and the war in Iran have led to further cautiousness when Raute's customers are planning for their investments. As a result, the new order intake from Raute's customers remained at low level during the first quarter of the year.
Although the market expectations in the global construction industry point to a gradual recovery, uncertainty remains elevated. In Europe, the market sentiment in the construction sector was cautiously optimistic before the outbreak of the war in Iran in March, but the crisis has since dampened sentiment. The remainder of the year will depend largely on consumer confidence and its impact on demand for wood products. In North America, interest rates, affordability pressures, and geopolitical-driven cost inflation are limiting housing-led demand growth in the near term.
Engineered wood products are primarily used in construction, with the furniture and transportation industries also representing significant end markets. Consequently, market demand is closely linked to the development of these industries. Raute's competitive position is based on its global operations and its ability to deliver technologically advanced, integrated production lines and mill-level projects, whereas many competitors are focused on individual process stages and operate on a more local scale. In addition, the Services business provides stability, mitigating the cyclical fluctuations in capital equipment demand.
Despite the prevailing uncertainty, some European and North American customers have continued preparatory work for future investments, with a particular focus on process efficiency improvements and capacity expansion. Over the long term, technological development as well as increasing sustainability requirements are expected to support investment activity. Raute's market position is supported by its broad product portfolio, its ability to respond to sustainability-related requirements, and its technological capabilities in digitalization and data analytics. Furthermore, Raute's comprehensive service offering across the product life cycle supports customer relationships and creates opportunities for recurring business.
GUIDANCE STATEMENT FOR 2026 (updated April 30, 2026)
Raute's 2026 net sales are expected to be between EUR 125-160 million (EUR 175.5 million in 2025) and comparable EBITDA is expected to be between EUR 10-19 million (EUR 26.1 million in 2025).
Rationale for the new guidance:
Global economic and geopolitical uncertainty has further intensified during the first quarter, leading to continued postponement of customers' investment decisions and delayed recovery of Raute's order intake. At the same time Raute's continued strong operational execution and cost savings support maintaining the comparable EBITDA guidance.
Earlier guidance for 2026 (published 12 February 2026):
Raute's 2026 net sales are expected to be between EUR 135-170 million (EUR 175.5 million in 2025) and comparable EBITDA is expected to be between EUR 10-19 million (EUR 26.1 million in 2025).
RAUTE CORPORATION
Board of Directors
BRIEFING AND INVITATION TO THE WEBCAST
A result briefing for analysts and the media will be organized at Eero studio in Sanomatalo, Töölönlahdenkatu 2, Helsinki on May 7, 2026, at 2:00 p.m. The Business Review will be presented by President and CEO Mika Saariaho and CFO Ville Halttunen.
The presentation material will be available at www.raute.com > Investors > Reports and publications > Presentations and publications after the briefing.
The event will be held in English, and it can be followed by a live webcast at https://raute.events.inderes.com/q1-2026. After the presentation, it will be possible to ask questions via chat. The recording of the event will be available on the company's website later the same day.
NEXT REPORT:
Raute Corporation's Half-year financial report January-June 2026, will be published on Wednesday, August 12, 2026.
FURTHER INFORMATION:
Mika Saariaho, President and CEO, tel. +358 40 154 9393
Ville Halttunen, CFO, mobile phone +358 50 3460868
DISTRIBUTION:
Nasdaq Helsinki Ltd, Main media, www.raute.com
RAUTE IN BRIEF - Making Wood Matter
Raute acts as a partner for a sustainable future for the wood products industry. Our technologies cover various production processes as well as supporting digital and analyzer solutions for industrially manufactured wood products. In addition, we offer comprehensive service concepts from spare parts to regular maintenance and production modernizations. Our innovative technologies, software and service concepts are designed to support the efficient use of natural resources in our customers' production. Raute is the only turnkey supplier in the world that offers mill-wide technology solutions for veneer, plywood and LVL production. Raute's head office and largest production plant is located in Lahti. The company's other production plants are located in Kajaani, Finland, the Vancouver area of Canada, and in Pullman, WA, USA. Raute's net sales in 2025 were EUR 175.5 million. The Group's headcount at the end of 2025 was 698. More about Raute: www.raute.com.
