Raute Corporation, Stock exchange release, October 30, 2025, at 8:00 a.m. EET
Raute Corporation's Business Review January 1-September 30, 2025: Strong
profitability and increased order intake in Q3 2025
This is a summary of Raute's Business Review January 1-September 30, 2025. 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 1-SEPTEMBER 30, 2025
Figures in brackets refer to the same period a year earlier. Figures are
unaudited and rounded to the nearest whole number.
July−September 2025 in brief
· Order intake was EUR 38 million (15)
· Order book was EUR 108 million (188) at the end of the reporting period
· Net sales were EUR 43.7 million (46.4)
· Comparable EBITDA was EUR 6.5 million (6.3), representing 15.0% (13.5) of
net sales
· Comparable operating profit was EUR 5.4 million (4.9)
· Operating profit was EUR 5.1 million (4.8)
· Comparable earnings per share were EUR 0.69 (0.74)
· Earnings per share were EUR 0.65 (0.73)
· Equity ratio was 64.9% (54.3) at the end of the reporting period
January−September 2025 in brief
· Order intake was EUR 66 million (72)
· Net sales were EUR 139.3 million (148.1)
· Comparable EBITDA was EUR 20.4 million (14.7), representing 14.6% (9.9) of
net sales
· Comparable operating profit was EUR 16.2 million (10.6)
· Items affecting comparability totaled EUR 3.4 million, of which EUR -2.4
million were items impacting EBITDA and EUR 1.0 million were items booked as
impairments impacting operating profit. These were mainly related to the closure
of a factory in China
· Operating profit was EUR 12.9 million (10.2)
· Comparable earnings per share were EUR 2.08 (1.53)
· Earnings per share were EUR 1.53 (1.48)
KEY FIGURES (MEUR) Q3/ Q3/ Change Q1-3/ Q1-3/ Change 2024
2025 2024 % 2025 2024 %
Net sales 43.7 46.4 -5.8 139.3 148.1 -5.9 204.6
Exported portion of net 60.0 85.2 57.4 88,8 84.3
sales, %
Comparable EBITDA 6.5 6.3 4.2 20.4 14.7 39.1 19.8
Comparable EBITDA % 15.0 13.5 14.6 9.9 9.7
EBITDA 6.3 6.2 1.8 18.0 14.3 26.1 19.1
EBITDA % 14.4 13.3 12.9 9.7 9.3
Comparable operating 5.4 4.9 9.0 16.2 10.6 53.4 14.4
profit
Comparable operating 12.3 10.6 11.7 7.1 7.0
profit, %
Operating profit 5.1 4.8 5.9 12.9 10.2 26.1 13.7
Operating profit, % 11.7 10.4 9.3 6.9 6.7
Net result 3.9 4.5 -12.1 9.4 9.2 2.2 12.1
Comparable EPS, EUR 0.69 0.74 -7.5 2.08 1.53 35.6 2.05
EPS, EUR 0.65 0.73 -11.0 1.53 1.48 3.4 1.96
EPS (diluted), EUR 0.62 0.71 -12.7 1.49 1.45 2.8 1.91
Adjusted avg. no. of 5 968 6 027 5 995 6 123 6 027
shares, 1000 pcs
Adjusted avg. no. of 6 244 6 325 6 290 6 333 6 350
shares, diluted, 1000
pcs
Return on investment, 33.9 31.1 30.9
(ROI), %
Return on equity, 24.0 29.2 27.5
(ROE), %
Interest-bearing net -26.9 -49.5 -51.9
liabilities
Equity ratio, % 64.9 54.3 55.2
Gearing, % -49.6 -105.8 -104.4
Gross capital 0.7 0.4 67.0 2.5 1.5 71.2 2.8
expenditure
% of net sales 1.7 1.0 1.8 1.0 1.4
Research and 1.1 1.2 -2.9 3.9 4.0 -1.5 5.3
development costs
% of net sales 2.6 2.5 2.8 2.7 2.6
Order book 108 188* -42.4 184
Order intake 38 15 152.6 66 72 -8.0 121
Personnel, at the end 696 789 -11.8 783
of the period
Personnel, effective, 734 782 -6.1 740
on average
*Q3/2024 order book restated by EUR 2m from earlier reported
Review from Mika Saariaho, President and CEO
Raute delivered another solid quarter, marked by strong profitability and
success in operational execution. Comparable EBITDA reached EUR 6.5 million,
representing a margin of 15.0% of net sales. This strong operational
performance was driven by continued improvements in efficiency and supply chain
optimizations. Net sales experienced a decline, primarily due to typical
fluctuations in revenue recognition and the low order intake during the first
half of the year.
There were some signs of improving customer activity in the market, as we had
predicted earlier. Consequently, our order intake for the third quarter rose to
EUR 38 million, which represents a reasonable level considering no mill-sized
orders were realized. While it is still difficult to estimate the extent of the
market recovery due to ongoing global uncertainties, we expect market demand to
improve going into 2026.
We remain committed to safeguarding our margins and enhancing competitiveness,
both in the short and longer term. This is especially important because the low
order intake in the first half of the year is likely to have an impact on our
near-term revenue recognition and may require continuing capacity adjustments.
For the longer term, we initiated a strategic restructuring of Raute's global
manufacturing network earlier this year, aimed at increasing cost-effectiveness
and flexibility.
Based on the strong profitability development achieved year-to-date, we have
revised upwards the lower bound of our comparable EBITDA guidance. At the same
time, we have lowered our net sales guidance, primarily due to the low order
intake in the first half of the year and the deferral of some project deliveries
into next year.
Looking ahead, I am confident that our significantly enhanced efficiency,
agility, and commercial capabilities position us well to continue successful
business execution and navigate through different business cycles.
BUSINESS ENVIRONMENT JANUARY−SEPTEMBER 2025
The turbulence in the global business environment continued during the third
quarter in Raute's main market areas. We estimate that this general turbulence
has affected the demand for end-use products of Raute's customers.
The prolonged recession in the construction industry, which is the primary user
of veneer-based end-use products, continued globally. However, signs of an
improvement in construction activity were observed in the second quarter of the
year, for example, in Europe, and this positive development has continued during
the third quarter (Source: Eurostat, September 2025). In North America, housing
construction started to fluctuate during the third quarter after a relatively
good second quarter. (Source: Canada Mortgage and Housing Corporation and U.S.
Census Bureau)
A slight pick-up in the demand for end-use products was visible during the third
quarter, especially in Europe. Demand for birch plywood and LVL remained stable.
The increase in costs caused by the low availability of logs affected the
profitability of some of Raute's customers, although this was at least partially
compensated by price increases in the end-use products. (Source: Plywood this
week)
The uncertainty related to U.S. import tariffs has continued during the third
quarter, postponing some investment decisions by Raute's customers in North and
South America. This has also impacted manufacturers in Asia that have
traditionally relied on the U.S. as an export market. In addition, the
increasing geopolitical tensions in the Asia-Pacific region were also reflected
in the market uncertainty. In Europe, the ongoing war in Ukraine, combined with
the uncertain customs policy of the U.S., has also slowed down decision-making.
Despite the uncertainty, some of Raute's European and North American customers
are preparing for the market to become more active and are actively promoting
their investment plans for process efficiency and additional capacity.
GUIDANCE STATEMENT FOR 2025 (updated October 20, 2025)
Raute's 2025 net sales are expected to be between EUR 175-190 million, and
comparable EBITDA to be between EUR 22-27 million.
Rationale for the new guidance:
Raute's project deliveries have continued successfully, but a larger part of the
order backlog is expected to be recognized as net sales only in the following
year. The order intake improved during the third quarter compared to the first
half of the year, but this is not expected to compensate for the impact caused
by the shift in net sales. At the same time Raute's continued strong operational
execution enables an upward revision of the lower bound of the comparable EBITDA
guidance.
Previous guidance for 2025 (published April 25, 2025):
Raute's 2025 net sales are expected to be between EUR 190-220 million, and
comparable EBITDA to be between EUR 20-27 million.
RAUTE CORPORATION
Board of Directors
BRIEFING
A result briefing for analysts, investors and the media will be organized at
Eliel studio in Sanomatalo, Töölönlahdenkatu 2, Helsinki on the same day October
30, 2025, 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 > Financial information > Result center
after the briefing.
The event will be held in English, and it can also be followed by a live webcast
at https://raute.videosync.fi/q3-2025. After the presentation, it is possible to
ask questions via chat. The recording of the event will be available on the
company's website later the same day.
FURTHER INFORMATION:
Mr. Mika Saariaho, President and CEO, tel. +358 40 154 9393
Mr. Ville Halttunen, CFO, mobile phone +358 50 3460868
DISTRIBUTION:
Nasdaq Helsinki Ltd, Main media, www.raute.com
RAUTE IN BRIEF - Making Wood Matter
Raute is the partner to future-proof the wood industry. Our technologies cover
different production processes with supporting digital and analytics solutions
for engineered wood products. Additionally, we offer a full-scale service
concept ranging from spare parts to regular maintenance and modernizations. Our
innovative hardware and software solutions are designed to support our
customers' efficient consumption of natural resources. In mill-scale projects,
Raute is a global market leader both in the plywood and LVL industries. Raute's
head office and main production plant are located in Lahti, Finland. 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 2024 were EUR
204.6 million. The Group's headcount at the end of 2024 was 783. More
information about the company can be found at www.raute.com