PONSSE PLC, STOCK EXCHANGE RELEASE, 17 FEBRUARY 2026 AT 9.00 EET
October - December:
- Net sales amounted to EUR 219.5 (223.5) million
- Operating profit totalled EUR 11.4 (17.6) million, equalling 5.2 (7.9) per
cent of net sales
January - December:
- Net sales amounted to EUR 749.9 (750.4) million
- Operating profit totalled EUR 41.6 (36.8) million, equalling 5.6 (4.9) per
cent of net sales
- Net result was EUR 30.5 (12.5) million
- Earnings per share were EUR 1.09 (0.45)
- Order books stood at EUR 141.4 (188.6) million at the end of the period under
review
- Cash flow from business operations was EUR 23.3 (85.0) million
- Equity ratio was 59.5 (58.7) per cent at the end of the period under review
- The Board of Directors´ dividend proposal is EUR 0.55 (0.50) per share.
- The company's euro-denominated operating profit in 2026 is estimated to be on
a par with the operating profit 2025 (EUR 41.6 million).
PRESIDENT AND CEO JUHO NUMMELA:
The year 2025 continued to be marked by subdued economic conditions and
persistent uncertainty throughout the period. The weak business cycle in the
forest industry, along with disruptions in international trade, particularly the
United States' unpredictable tariff policy, directly affected our customers'
willingness to invest. Order flows remained at a good level early in the year
but weakened as uncertainty increased following changes in tariff policy. The
market situation remained challenging throughout the year. However, in the last
quarter of the year, the order flow was reasonable in relation to the situation,
and the order intake totalled around EUR 197.7 (213.0) million. At the end of
the period, the company's order books stood at EUR 141.4 (188.6) million.
Difficulties in the key drivers of our operations - the mechanical and chemical
forest industries - were clearly reflected in forest machine sales. Weaker
private consumption and exceptionally low construction activity in Europe slowed
demand. Our customers' investment decisions were pushed back, and the sense of
caution intensified in the third and fourth quarters in particular. Demand was
supported mainly by developments in Sweden, the United States and certain South
American markets, as well as by a modest improvement in the Finnish market
towards the end of the year. The improved market situation in Central Europe
also supported order flows. In contrast, the Canadian and southern Brazilian
markets suffered significantly from the disruption caused by the US tariff
policy.
Ponsse's net sales for the review period amounted to EUR 749.9 (750.4) million.
We ultimately succeeded in reaching a net sales level close to that of the
previous year, despite the exceptionally challenging operating environment. Our
maintenance services performed exceptionally well in a challenging market,
providing our customers worldwide with a strong and reliable level of service.
Among our businesses, Epec emerged on a clear growth path. Ponsse's factory in
Vieremä performed excellently during the year, and production volumes remained
at the previous year's level.
Progress was achieved in Ponsse's Full Service agreement in Brazil. Last year's
provisions have been sufficient, and the agreement is due to conclude in 2026.
The gradual ramp‑down of the operations included in the agreement is scheduled
to start at the beginning of 2026. We will continue to work for the benefit of
our customer and fulfil our role in the project until the agreement ends,
ensuring a smooth transition for the customer.
Our relative profitability was 5.6 (4.9) per cent. We continue to pursue
determined and long‑term development efforts to improve profitability. Our
target remains unchanged: in a normal market environment and with the factory
operating at full capacity, we are aiming for a relative profitability of around
12 per cent.
The company's cash flow was EUR 23.3 (85.0) million. In terms of working
capital, the challenges were mainly related to the high level of used machine
stock. Although sales developed well towards the end of the fourth quarter, this
was not yet sufficient to reduce the used machine stock. The circulation of
materials and supplies remained at a good level, and the service level
experienced by our customers was strong. The company's solvency is good, and its
financial position has remained strong.
Responsibility and sustainable development will be key success factors in our
future and prerequisites for the continuity of our operations. We believe that
our technologies and new business models will increasingly enable the
implementation of sustainable forestry principles. Productive and
environmentally sound harvesting supports forest regeneration and enables the
use of renewable wood raw material for carbon-storing products that replace
fossil materials.
We have a real chance to make a difference, which is why we have set two
important targets for our business operations: a 25 per cent reduction in our
Scope 3 emissions by 2030 and a 15 per cent annual increase measured in tons in
the Reman refurbishment of spare parts. The Scope 3 emissions reduction is
primarily related to improving the energy efficiency of our products, which
meets our customers' need for more energy-efficient forest machines. Expanding
our Reman operations is a clear step forward in our circular economy work: the
increasing supply of refurbished parts reduces the use of raw materials and
improves our customers' access to affordable and reliable spare parts.
In the development of our operational activities, the most significant successes
in 2025 were the clear improvement in collaborative ways of working and the
sharpening of our strategic focus. The prioritisation of product development and
digital services proceeded as planned. The insourcing work carried out within
the same units increased our own expertise and steered our work more effectively
towards long‑term targets while also improving the creation of customer value
and our cost efficiency.
The benefits of our renewed operating model began to materialise during the
year: a clearer organisational structure and consistent operating methods
supported smoother cooperation. The Ponsse culture is strongly evident in our
day‑to‑day work, and collaboration between functions developed impressively.
Investments in our service network, product development and digital solutions
continued in 2025. We strengthened our service network globally by opening new
service centres in Poland, Germany, Argentina, France and Brazil in cooperation
with our dealers. Our network also grew with contractual service partners and
our own field maintenance operations in Sweden, Norway, France and the United
States.
During the year, we launched a significant number of new products and features.
We were the first in the world to introduce harvesting emissions reporting as
part of the PONSSE Manager Pro service package. Emission monitoring supports the
reduction of fuel consumption, compliance with environmental requirements and
the selection of optimally sized equipment for logging sites. The largest
product launches took place in our digital services, but new features were also
introduced in forest machines and maintenance services. The year saw the launch
of PONSSE Greasing System, PONSSE Manager Pro, PONSSE Fleet Monitoring, PONSSE
Active Manual, PONSSE FeedControl and PONSSE Caliper 3+. Under the leadership of
our technology company Epec, we also launched the Cabin Vision concept and a
technological pilot environment where we will explore future cabin solutions.
In 2025, we celebrated Ponsse's 55th anniversary with a tour that began in early
spring in Finland and continued to South America, the Nordic countries, the
United States, Central Europe and Asia. The events attracted large numbers of
customers to celebrate Ponsse with us. In February, we delivered the 21,000th
Ponsse forest machine manufactured in Vieremä to a customer in the United
States. The anniversary year culminated in November when the President of the
Republic of Finland, Alexander Stubb, visited our factory in Vieremä.
NET SALES
Consolidated net sales for the period under review amounted to EUR 749.9 (750.4)
million, which is 0.1 per cent less than in the comparison period. International
business operations accounted for 77.0 (73.8) per cent of net sales.
Net sales were regionally distributed as follows: Nordic countries and the
Baltics 45.9 (46.3) per cent, Central and Southern Europe 25.3 (22.9) per cent,
North America 14.7 (14.5) per cent, South America 11.6 (13.8) per cent and Asia,
Australia and Africa 2.5 (2.5) per cent.
PROFIT PERFORMANCE
The operating profit amounted to EUR 41.6 (36.8) million. The operating profit
equalled 5.6 (4.9) per cent of net sales for the period under review. The impact
of the Brazilian Full Service contract on profit after the change in provision
for the period under review was EUR -2.6 million. There is a provision of EUR
6.3 million on the Group's balance sheet for a loss-making contract. In the
comparison period the operating profit included, taking into account the change
in provision, an expense of EUR 17.2 million related to the Brazilian Full
service contract. The contract is fixed-term and will expire during the year
2026.
Consolidated return on capital employed (ROCE) stood at 10.3 (6.3) per cent.
Staff costs for the period under review totalled EUR 120.4 (110.2) million.
Other operating expenses stood at EUR 85.7 (94.8) million. The cost impact of
the provision of the loss-making Full Service contract of the Brazilian
subsidiary is included in other operating expenses. The net total of financial
income and expenses amounted to EUR -1.4 (-15.4) million. Exchange rate gains
and losses due to currency rate fluctuations were recognised under financial
items, having a net impact of EUR -0.4 (-11.7) million. During the period under
review, EUR 0.4 million of revaluation losses on interest rate swaps were
recognised in the result.
Result for the period under review totalled EUR 30.5 (12.5) million. Diluted and
undiluted earnings per share (EPS) came to EUR 1.09 (0.45).
STATEMENT OF FINANCIAL POSITION AND FINANCING ACTIVITIES
At the end of the period under review, the total consolidated statements of
financial position amounted to EUR 571.4 (563.1) million. Inventories stood at
EUR 240.0 (219.1) million. During the period under review, EUR 9.2 (4.5) million
was recognised as an expense, reducing the book value of the inventories to
reflect their net realisable value. Trade receivables totalled EUR 63.5 (54.1)
million, while cash and cash equivalents stood at EUR 58.1 (83.6) million. The
payment arrangements for the EUR 3 million receivable arising from the sale of
the share capital of Ponsse's Russian subsidiary, OOO Ponsse, are being
clarified in cooperation with the authorities and financial institutions. This
item is presented as a current receivable.
Group shareholders' equity stood at EUR 338.2 (327.2) million and parent company
shareholders' equity (FAS) at EUR 283.6 (284.8) million. The amount of interest
-bearing liabilities was EUR 78.7 (86.9) million. The company has ensured its
liquidity by credit facility limits and commercial paper programs. Group's loans
from financial institutions are non-collateral bank loans without financial
covenants. Consolidated net liabilities totalled EUR 20.5 (3.3) million, and the
debt-equity ratio (net gearing) was 6.1 (1.0) per cent. The equity ratio stood
at 59.5 (58.7) per cent at the end of the period under review.
Cash flow from operating activities amounted to EUR 23.3 (85.0) million. Cash
flow from investment activities came to EUR -22.5 (-21.0) million.
ORDER INTAKE AND ORDER BOOKS
Order intake for the period under review totalled EUR 702.7 (706.9) million,
while period-end order books were valued at EUR 141.4 (188.6) million.
DISTRIBUTION NETWORK
With focus on sales and maintenance, the organisation is divided into five
market areas: 1) Nordic countries and the Baltics; 2) Central and Southern
Europe; 3) South America; 4) North America; and 5) Asia, Australia and Africa.
R&D AND CAPITAL EXPENDITURE
Group's R&D expenses during the period under review totalled EUR 26.9 (24.6)
million, of which EUR 8.8 (9.6) million was capitalised.
Investments during the period under review totalled EUR 22.7 (21.6) million. In
addition to capitalised R&D expenses, they consisted of investments in buildings
and ordinary investments in machinery and equipment.
ANNUAL GENERAL MEETING 2025
Annual General Meeting was held in Vieremä, Finland 8 April 2025. The AGM
approved the parent company financial statements and the consolidated financial
statements, and members of the Board of Directors and the President and CEO were
discharged from liability for the 2024 financial year. The AGM confirmed the
composition and remuneration of the board of directors, elected the auditor and
approved the remuneration report and policy for the company's coverning bodies.
The AGM also decided on the distribution of dividends and the payment of the
staff profit bonus. In addition to the above, the AGM adopted the following
resolutions.
The Annual General Meeting resolved to authorize the Board of Directors to
decide on the repurchase of a maximum of 250,000 company's own shares in one or
more tranches, corresponding to approximately 0.89 % of the company's total
shares and votes. The shares shall be acquired through public trading, for which
reason the shares are acquired otherwise than in proportion to the share
ownership of the shareholders and the consideration paid for the shares shall be
the market price of the company's share in public trading at Nasdaq Helsinki Ltd
at the time of the acquisition. Shares may also be acquired outside public
trading for a price which at most corresponds to the market price in public
trading at the time of the acquisition. The Board of Directors was authorized to
decide how the shares are acquired. The Board of Directors may, pursuant to the
authorization, only decide on the repurchase of the company's own shares with
funds from the company's unrestricted shareholders' equity. The Board of
Directors decides how the shares are acquired. The company's own shares may be
repurchased other than in proportion to the shares held by the shareholders
(directed repurchase), if there is a weighty financial reason for the company to
do so as provided for in Chapter 15, Section 6 of the Finnish Companies Act. The
company's own shares may be acquired to develop the company's capital structure,
to be used to finance or execute possible acquisitions or investments supporting
the company's growth strategy or other arrangements related to the company's
business, to be used in the company's incentive schemes or otherwise to be
transferred, held, or cancelled. The decision to repurchase company's own shares
shall not be made so that the shares of the company in the possession of by the
company and its subsidiaries would exceed 10 % of all shares. The authorization
is valid until the closing of the next Annual General Meeting, however, no
longer than until 30 June 2026. The authorization cancels the authorization
given to the Board of Directors by the Annual General Meeting on 9 April 2024.
The Annual General Meeting resolved to authorize the Board of Directors to
decide on the issuance of shares as well as the issuance of options and other
special rights entitling to shares referred to in Chapter 10, Section 1 of the
Finnish Companies Act. The number of shares to be issued based on the
authorization may in total amount to a maximum of 250,000 shares (including
shares issued based on options or special rights), corresponding to
approximately 0.89 % of all the shares in the company. The Board of Directors
decides on the terms and conditions of the issuance of shares. The authorization
concerns both the issuance of new shares as well as the transfer of treasury
shares either against payment or without consideration. The issuance of shares
may be carried out in deviation from the shareholders' pre-emptive right
(directed issue) for a weighty financial reason for the company, such as using
the shares to develop the company's capital structure, to execute possible
acquisitions or investments supporting the company's growth strategy or in other
arrangements related to the company's business or to be used in the company's
incentive schemes. The Board of Directors may also decide on a free share issue
to the company itself. The authorization is valid until the closing of the next
Annual General Meeting, however, no longer than until 30 June 2026. The
authorization cancels the authorization given to the Board of Directors by the
Annual General Meeting on 9 April 2024.
BOARD OF DIRECTORS AND THE COMPANY'S AUDITORS
Jarmo Vidgren acted as Chairman of the Board and Mammu Kaario as Vice Chairman
of the Board. Members of the Board were Terhi Koipijärvi, Matti Kylävainio, Ilpo
Marjamaa, Juha Vanhainen, Jukka Vidgren (until 8 April 2025) and Juha Vidgren
(starting 8 April 2025).
The Board of Directors did not establish any committees or commissions from
among its members.
The Board of Directors convened ten times during the financial year. The
attendance rate was 97.1 percent.
During the financial year, KPMG Oy Ab acted as the company auditor with Ari
Eskelinen, Authorized Public Accountant, as the principal auditor.
PERSONNEL
The Group had an average staff of 2,083 (2,083) during the period under review
and employed 2,117 (2,024) people at the end of the period.
SHARE-BASED INCENTIVE PLANS
The Board of Directors of Ponsse Plc approved two new Ponsse Group's share-based
incentive plans for the Group's CEO and key employees in 2023. A stock exchange
release regarding the incentive plans was published on 3 March 2023. The aim of
the new plans is to align the objectives of the shareholders and plan
participants for increasing the value of the company in the long-term, to retain
the participants at the company and to offer them competitive reward schemes
that are based on earning and accumulating the company's shares. The Board of
Directors of Ponsse Plc decided on new performance periods of share-based
incentive plans in April 2025 and published a stock exchange release about them
on 25 April 2025.
The CEO Performance-Based Share Ownership Plan
The CEO plan consists of five performance periods, calendar years 2023, 2023
-2024, 2023-2025, 2024-2026 and 2025-2027. The matching reward will be paid by
the end of May 2024, 2025 and 2026. The matching shares delivered as a matching
reward cannot be transferred during a restriction period that will end on 31
December 2025, 31 December 2026 and 31 December 2027. The performance-based
reward will be paid by the end of May after the end of each performance period.
In year 2025, a total of 5,301 shares worth EUR 145,155 were paid for the 2024
performance period, with a cost impact of EUR 0.3 million for the company. A
stock exchange release concerning these was issued on 30 June 2025.
During the performance period 2025-2027 of the CEO Performance-Based Share
Ownership Plan, the rewards are based on the group's operating result, revenue,
personnel satisfaction and injury frequency (LTIF). The amount of rewards to be
paid based on the performance period 2025-2027 will correspond to an approximate
maximum total of 50,000 Ponsse Plc shares, including also the portion to be paid
in cash (gross reward). The matching shares delivered as a matching reward
cannot be transferred during a restriction period that will end on 31 December
2027. The performance-based reward will be paid by the end of May 2028.
The payment of rewards under both the conditional and performance-based
shareholding plans requires that the person's employment relationship continues.
Key Employee Performance-Based Matching Share Plan
The key employees' plan consists of three performance periods, each lasting for
three calendar years: 2023-2025, 2024-2026 and 2025-2027. The prerequisite for
participating in the performance period and receiving the reward is that the key
employee participating in the plan acquires shares in the company at the
beginning of the performance period. Ponsse delivers matching shares for the
performance period in a 2:1 ratio: the key employee receives one (1) additional
share for every two (2) shares they have acquired. The conditional reward will
be paid in 2023, 2024 and 2025 after the acquisition of the investment shares
and confirmation of the reward, as soon as practically possible. Shares received
as conditional rewards may not be transferred during the restriction periods
ending on 31 December 2025, 31 December 2026 and 31 December 2027. The
performance-based reward will be paid by the end of May following the end of
each performance period. The portion of the maximum reward to be paid to a
participant is determined based on the achievement of the targets set for the
earning criteria in relation to the investment made by the participant. The
target group includes key employees, including the members of the Group
Management Team, with the exception of the CEO.
The rewards for the 2023-2025 performance period of the key employees' matching
share plan are based on the Group's operating result, net sales and employee
satisfaction. The accident frequency rate has been added to the terms of the
2024-2026 and 2025-2027 performance periods. The rewards to be paid for the
2025-2027 performance period are estimated to correspond to no more than 60,000
Ponsse Plc shares (net reward). In addition, the company will pay the taxes and
statutory social security contributions incurred by the participants in
connection with the payment of the rewards. During the period under review, the
costs related to the 2023-2025, 2024-2026 and 2025-2027 performance periods of
the share based incentive plans amounted to a total of EUR 0.7 million.
For the performance periods that started in 2023, 2024 and 2025, the total cost
impact of the share-based incentive plans for the CEO and key employees is
estimated to be around EUR 4.9 million for 2023-2027.
SHARE PERFORMANCE
The company's registered share capital consists of 28,000,000 shares. The
trading volume of Ponsse Plc shares for 1 January - 31 December 2025 totalled
879,785, accounting for 3.14 per cent of the total number of shares. Share
turnover amounted to EUR 22.9 million, with the period's lowest and highest
share prices amounting to EUR 19.55 and EUR 32.00, respectively.
At the end of the period, shares closed at EUR 25.90, and market capitalisation
totalled EUR 725.2 million.
At the end of the period under review, the company held 5,046 treasury shares.
SUSTAINABILITY
Ponsse has determined key sustainability targets, the implementation of which is
promoted by means of annual function-specific targets and measures as part of
the company's strategy process. Ponsse works to improve its people's well-being,
create innovative sustainable solutions that respect nature, develop its
operations without burdening nature, and be a reliable partner that values
community.
In 2025, Ponsse's market-based Scope 1 & 2 greenhouse gas emissions were 6% (256
tCO2e) lower than in the 2023 baseline year. However, compared with 2024,
emissions increased by 5% despite the measures taken to reduce them. During the
reporting year, emission reduction measures were advanced by increasing the use
of renewable energy and renewable fuels, as well as by electrifying vehicles.
However, the result turned negative due to the increased fuel use of Ponsse's US
operations and changes related to calculation principles and emission factors.
During the reporting year, Ponsse set a reduction target for emissions from the
value chain, which will have an impact on the energy efficiency of PONSSE forest
machines and their use in particular. The target is to reduce significant Scope
3 emissions by 25% (353,840 tCO₂e) from the 2023 baseline by 2030. In 2025, the
company's significant Scope 3 emissions decreased by 9% (98,384 tCO2e) compared
with the previous year, being 27% (378,968 tCO2e) lower than in the 2023 base
year. The result exceeds the linear emission reduction target. However, the
trend does not reflect a significant structural or operational improvement in
emission efficiency and is mainly based on a reduction in business volumes.
In 2025, Ponsse prepared a transition plan for climate change mitigation for the
first time. Renewable energy and nuclear power accounted for 92% of the
electricity and heat used in the reporting year, and the recycling rate of waste
increased to 62.6% (57.9). In the Carbon Disclosure Project's Climate Change
assessment, Ponsse was rated at level B (C).
The company set a target for increasing its Reman refurbishment operations by
15% annually, measured in tonnes. Achieving this target would reduce the use of
raw materials and improve the availability of affordable and reliable
refurbishment parts.
Ponsse's journey towards zero accidents progressed significantly, and the lost
time injury frequency (LTIF) decreased to 6.9 (11.5). Ponsse introduced a new
safety reporting system that enables better safety management and transparency
in safety work. The chemical management system for managing chemical risks was
also renewed. The results of the eNPS survey, which measures employee
satisfaction, improved from the previous year to a level of 34 (28).
The PONSSE Manager service was launched in the reporting year. Its emissions
reporting feature calculates the greenhouse gas emissions from forest machine
fuel use by machine, logging site and customer. The Manager Pro map tool shows
the volume of timber harvested, the assortments produced and the locations where
the timber has been harvested for collection by the forwarder. This facilitates
operator work planning and optimises local harvesting logistics.
In 2025, product innovations supporting the safety and ergonomics of operator
work were also introduced to the market. OptiFeedControl for the harvester head
enables the felling and processing of wood with one lever so that the tree feed
only works when the control lever is actively being used. The PONSSE Armrest and
eArmrest prevent the risk of neck and shoulder injuries, as well as strain. The
Active Cabin suspension system for the updated PONSSE Wisent and Elk forwarders
further improves the operator's working conditions by reducing strain, vibration
and impacts, thereby enhancing productivity.
\\
KPI Target Outcome in Outcome in Change, Outcome
year 2025 2024 % H1/2025
Reducing market 2030 -6%(-256 -10%(-451 n/a -
-based Scope 1 and tCO2e)* tCO2e)*
Scope 2 emissions
by 42% (-1,850
tCO\2\e)
Reducing 2030 -27%( -20%( n/a -
significant Scope -378,968 -280,584
3 tCO2e)* tCO2e)*
emissions by 25%
15% annual 2030 222 218 2% -
increasein the
production
ofcircular-economy
-basedspare parts,
t
Increasing the 2030 62.6% 57.9% n/a -
recycling rate to
70%
Lost time injury 2030 6.9 11.5 -40% 7.4
frequency (LTIF) 0
Employee 2026 34 28 21% 32
engagement (eNPS)
> 40
(on a scale from
-100 to 100)
Voluntary employee 2026 8.9 % 8.3% n/a 9.8%
turnover < 7%
* Scope 1, 2 & 3 results compared with base year 2023
RISK MANAGEMENT
Our risk management is based on the company's values and strategic and financial
goals. The purpose of risk management is to support the company's strategic
objectives and to secure its financial development and the continuity of its
business. Ponsse's management conducts an annual risk assessment that includes
the sustainability risks and opportunities impacting the company's business.
Within them, aspects related to climate change, biodiversity, and resource
efficiency together with digitalisation and technological development are
emphasised.
The purpose of risk management is to identify, assess, and monitor business
-related risks that may impact the realisation of the company's strategic and
financial objectives or the continuity of business. This information is used to
decide what measures will be required to prevent risks and respond to current
risks.
Risk management is part of the company's daily business and has been
incorporated into its management system. Risk management is directed by the risk
management policy approved by the Board of Directors.
A risk is any event that may prevent the company from achieving its objectives
or threatens the continuity of business. A risk may also be a positive event, in
which case the risk is treated as an opportunity. Each risk is assessed on the
basis of its impact and probability. The company's risk management methods
include the avoidance, mitigation, and transfer of risk. Risks may also be
managed by controlling and minimising their impacts.
SHORT-TERM RISK MANAGEMENT
The most significant risks in the near future are related to the geopolitical
situation in the world, the slow economic growth and the uncertainty of
financial markets and interest rates. Geopolitical tensions may be reflected in
trade policy as special tariffs and protectionism, which increases uncertainty
in export markets. In addition, financial market disruptions, sanctions and
growing cybersecurity threats increase the risks in the operating environment.
The volatile global economy and potentially rising financial costs can also
weaken the demand for forest machines, especially in emerging markets with large
exchange rate fluctuations.
In a challenging market situation, Ponsse's strong financial position is a key
strength. The company has taken the necessary measures to ensure continuity and
regularly assesses the financial situation. The objective of financial risk
management is to maintain sufficient liquidity and manage interest rate and
currency risks. The company's financial position and liquidity have remained
strong as a result of credit limits agreed with several financial institutions.
Interest rate risks are reduced by using credits and interest rate swaps tied to
different reference rates, and exchange rate fluctuations are partly managed by
derivative contracts.
The parent company actively monitors the development of the Group's internal and
external accounts receivables and the related impairment risks. Long-term
service agreements also include operational risks, which are managed through
continuous follow-ups and proactive measures.
In export markets, changes in tax and customs legislation may complicate trade
and reduce profitability. In addition, global supply chain disruptions can
affect forest machine manufacturing schedules and increase risks to the supply
chain and working capital management.
Ponsse has continued to actively develop cybersecurity and is taking systematic
steps towards an operating model that meets the requirements of ISO 27001. The
company's capabilities to detect and combat abnormal network traffic have been
improved and digital services are regularly tested for cyber attacks in
cooperation with expert partners. Ponsse monitors the progress of EU data
security legislation and implements the required practices as part of its
continuous development.
ACCOUNTING POLICIES REQUIRING CONSIDERATION BY MANAGEMENT AND CRUCIAL FACTORS OF
UNCERTAINTY ASSOCIATED WITH ESTIMATES
Estimates and assumptions regarding the future have to be made during the
preparation of the financial statements, and the outcome may differ from the
estimates and assumptions. Group management utilizes their best judgement when
making decisions regarding accounting policies and their adoption. Estimates
made when compiling the financial statements are based on the management's best
views on the closing date of the reporting period. The estimates are based on
previous experience and assumptions about the future that are deemed the most
likely on the date of the financial statements.
Trade receivables
On the date of the financial statements, the Group recognizes a credit loss on
receivables for which no payment will probably be received according to its best
judgement. The general model specified in IFRS 9 is applied when recognizing
provision for expected credit losses.
Inventories
On the date of the financial statements, the Group recognizes impairment losses
according to its best judgement. The assessment takes into account the age
structure of the inventory, demand and the likely selling price.
Change in guarantee provision
The guarantee provision is based on realized guarantee expenses and on failure
history recorded in the previous years. In addition, company may prepare
provision for possible individual warranty obligations, if needed.
Change in other provisions
The group has recognized a provision in the item of other provisions based on an
agreement entered into by Ponsse Latin America Ltda, as the fulfilment of the
contractual obligations is estimated to generate expenses that exceed the
expected economic benefits obtained from the agreement. The provision has been
measured based on the best possible estimate of the expenses arising from the
fulfilment of the obligations on the closing date.
Capitalisation of R&D expenditure
On the date of the financial statements, the Group assesses whether the new
product is technically feasible, whether it can be commercially utilized and
whether future economic benefits will be received from the product, which makes
it possible to capitalize development expenditure arising from the design of new
or advanced products on the balance sheet as intangible assets.
Deferred taxes
Preparing the consolidated financial statements requires the Group to estimate
its income taxes separately for each subsidiary. The estimates take into account
the tax position and the effect of temporary differences due to different tax
and accounting practices, such as allocation of income and provisions for
expenses. Deferred tax assets and liabilities are recognized as the result of
the differences. The possibilities of utilizing a deferred tax asset are
estimated and adjusted to the extent that the possibility of utilization is
unlikely.
Goodwill
The Group carries out annual impairment testing of goodwill and unfinished
intangible assets, and evidence of impairment is evaluated as presented above in
the accounting policies. Recoverable amounts from cash-generating units are
determined as calculations based on value in use. The preparation of these
calculations requires the use of estimates
LEGAL MATTERS
A number of legal proceedings and claims related to product liability are
pending against Ponsse in Canada and France. In Brazil, a settlement process is
under way with the tax authorities concerning the tax treatment of intra‑group
trade payables written down in previous years. Ponsse received a favourable
first‑instance decision in the matter, which the tax authorities have appealed,
and have submitted a related claim. A liability of EUR 4.8 million has been
recognised in connection with the case. According to the assessment of the
company's management, the outcome of these legal processes and claims is not
expected to have a material impact on Ponsse's financial position, taking into
account the entries made, the insurance cover and the arguments presented.
OUTLOOK FOR THE FUTURE
The company's euro-denominated operating profit in 2026 is estimated to be on
par with the operating profit in 2025 (EUR 41.6 million).
Economic uncertainty is expected to continue and affect the demand for both
forest industry end products and forest machines. Trade tensions, the
geopolitical situation and fluctuations in the financial markets create a
challenging operating environment in which financial discipline and correct
investment sizing are central.
The production workload at the beginning of the year is lower than usual due to
a low order backlog. This is reflected in profitability in the first half of the
year. The outlook will be revised according to the development of the order
intake as the year progresses.
We invest in customer relationships and high-quality service, and we will
continue to enhance our operations with uniform and cost-effective practices in
accordance with our new operating model. Investments are made deliberately: we
develop new products and digital services and strengthen our sales and after
-sales service network according to the needs of the business. Other investments
are assessed on a case-by-case basis. We closely monitor the development of
costs and react as required by the market situation.
The gradual ramp-down of the functions under the Brazilian Full Service
agreement started at the beginning of 2026 as planned. We will continue to
support the customer throughout the project and ensure a smooth transition until
the end of the contract.
EVENTS AFTER THE PERIOD
There are no other known events after the end of the reporting period that would
require either adjustments to the information presented for the period under
review or disclosure of additional information.
In February 2026, we delivered the 22,000th Ponsse forest machine manufactured
in Vieremä to a customer in the Ireland.
ANNUAL GENERAL MEETING 2026
Ponsse Plc's Annual General Meeting will be held on 8 April 2026, starting at
11:00 a.m. at a place and in a way that are to be announced.
BOARD OF DIRECTORS' PROPOSAL FOR THE DISPOSAL OF PROFIT
The parent company Ponsse Plc had 247,041,678.72 euros of distributable funds on
31 December 2025.
The company's Board of Directors proposes to the Annual General Meeting that a
dividend of EUR 0.55 per share shall be paid for the year 2025. The company's
Board of Directors proposes to the Annual General Meeting that a profit bonus of
at most EUR 100 per person per working month shall be paid for 2025 to the
personnel employed by the Group.
PONSSE GROUP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (EUR 1,000)
1-12/25 1-12/24
NET SALES 749,874 750,427
Increase (+)/decrease (-) in 16,190 -4,782
inventories of finished goods and work
in progress
Other operating income 7,591 7,689
Raw materials and services -490,804 -475,554
Expenditure on employment-related -120,355 -110,199
benefits
Depreciation and amortisation -35,200 -36,033
Other operating expenses -85,664 -94,793
OPERATING PROFIT 41,632 36,755
Share of results of associated -282 135
companies
Financial income and expenses -1,356 -15,420
RESULT BEFORE TAXES 39,994 21,470
Income taxes -9,504 -8,964
NET RESULT FOR THE PERIOD 30,490 12,506
OTHER ITEMS INCLUDED IN TOTAL
COMPREHENSIVE RESULT
Translation differences related to -6,183 7,792
foreign units
TOTAL COMPREHENSIVE RESULT FOR THE 24,307 20,298
PERIOD
Diluted and undiluted earnings per 1.09 0.45
share
10-12/25 10-12/24
NET SALES 219,466 223,500
Increase (+)/decrease (-) in -7,274 -17,072
inventories of finished goods and work
in progress
Other operating income 1,245 3,165
Raw materials and services -137,529 -132,834
Expenditure on employment-related -31,219 -28,586
benefits
Depreciation and amortisation -8,830 -9,356
Other operating expenses -24,436 -21,202
OPERATING PROFIT 11,423 17,615
Share of results of associated -73 -29
companies
Financial income and expenses -492 -4,302
RESULT BEFORE TAXES 10,858 13,284
Income taxes -4,096 -1,100
NET RESULT FOR THE PERIOD 6,762 12,184
OTHER ITEMS INCLUDED IN TOTAL
COMPREHENSIVE RESULT
Translation differences related to 742 4,620
foreign units
TOTAL COMPREHENSIVE RESULT FOR THE 7,504 16,804
PERIOD
Diluted and undiluted earnings per 0.24 0.44
share
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (EUR 1,000)
31 Dec 25 31 Dec 24
ASSETS
NON-CURRENT ASSETS
Intangible assets 42,917 48,177
Goodwill 6,627 6,535
Property, plant and equipment 112,475 116,183
Financial assets 377 378
Investments in associated companies 639 1,007
Non-current receivables 328 297
Deferred tax assets 9,178 8,759
TOTAL NON-CURRENT ASSETS 172,541 181,336
CURRENT ASSETS
Inventories 240,019 219,123
Trade receivables 63,472 54,107
Income tax receivables 8,519 1,042
Other current receivables 28,674 23,868
Cash and cash equivalents 58,149 83,590
TOTAL CURRENT ASSETS 398,833 381,730
TOTAL ASSETS 571,374 563,066
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share capital 7,000 7,000
Other reserves 4,462 3,824
Translation differences 17,311 23,494
Treasury shares -135 -47
Retained earnings 309,555 292,922
EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS 338,193 327,193
NON-CURRENT LIABILITIES
Interest-bearing liabilities 61,221 63,914
Deferred tax liabilities 969 1,167
Other non-current liabilities 5,232 5,147
TOTAL NON-CURRENT LIABILITIES 67,422 70,228
CURRENT LIABILITIES
Interest-bearing liabilities 17,477 23,017
Provisions 12,552 19,238
Tax liabilities for the period 633 1,569
Trade creditors and other current liabilities 135,097 121,821
TOTAL CURRENT LIABILITIES 165,759 165,645
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 571,374 563,066
CONSOLIDATED STATEMENT OF CASH FLOWS (EUR 1,000)
1-12/25 1-12/24
CASH FLOWS FROM OPERATING ACTIVITIES
Net result for the period 30,490 12,506
Adjustments:
Financial income and expenses 1,356 15,420
Change in provisions -6,817 6,746
Share of the result of associated companies 282 -135
Depreciation and amortisation 35,200 36,033
Income taxes 9,504 8,964
Other adjustments 2,429 -1,749
Cash flow before changes in working capital 72,444 77,785
Change in working capital:
Change in trade receivables and other receivables -15,385 16,945
Change in inventories -26,549 22,741
Change in trade creditors and other liabilities 15,026 -17,181
Interest received 1,214 1,705
Interest paid -2,052 -4,922
Other financial items -2,731 -3,292
Income taxes paid -18,691 -8,780
NET CASH FLOWS FROM OPERATING ACTIVITIES (A) 23,276 85,001
CASH FLOWS USED IN INVESTING ACTIVITIES
Investments in tangible and intangible assets -22,678 -21,591
Proceeds from sale of tangible and intangible assets 199 562
NET CASH FLOWS USED IN INVESTMENT ACTIVITIES (B) -22,479 -21,029
CASH FLOWS FROM FINANCING ACTIVITIES
Withdrawal of current loans 40,000 35,000
Repayment of current loans -48,107 -68,745
Lease repayments -5,213 -5,712
Dividends paid -13,990 -15,400
NET CASH FLOWS FROM FINANCING ACTIVITIES (C) -27,310 -54,857
Change in cash and cash equivalents (A+B+C) -26,513 9,115
Cash and cash equivalents on 1 Jan 83,590 74,002
Impact of exchange rate changes 1,072 473
Cash and cash equivalents on 31 Dec 58,149 83,590
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (EUR 1,000)
A = Share capital
B = Other reserves
C = Translation
differences
D = Treasury shares
E = Retained earnings
F = Total shareholders'
equity
EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS
A B C D E F
SHAREHOLDERS' EQUITY 7,000 3,824 23,494 -47 292,922 327,193
1 JAN 2025
Comprehensive result:
Net result for the 30,490 30,490
period
Other items included in
total comprehensive
result:
Translation differences -6,183 -6,183
Total comprehensive result -6,183 30,490 24,307
for the period
Direct entries to retained 133 133
earnings
Transactions with
shareholders
Share Plan 638 638
Dividend distribution -13,990 -13,990
Treasury shares, change* -88 -88
Transactions with 638 -88 -13,990 -13,440
shareholders in total
SHAREHOLDERS' EQUITY 7,000 4,462 17,311 -135 309,555 338,193
31 DEC 2025
SHAREHOLDERS' 7,000 3,460 15,702 -463 296,101 321,799
EQUITY 1 JAN 2024
Comprehensive result:
Net result for the 12,506 12,506
period
Other items included in
total comprehensive
result:
Translation differences 7,792 7,792
Total comprehensive result 7,792 12,506 20,298
for the period
Direct entries to retained
earnings
Transactions with
shareholders
Share Plan 364 364
Dividend distribution -15,400 -15,400
Treasury shares, change* 416 -285 132
Transactions with 364 416 -15,685 -14,904
shareholders in total
SHAREHOLDERS' 7,000 3,824 23,494 -47 292,922 327,193
EQUITY 31 DEC 2024
*) Treasury shares procured for incentive schemes
NOTES TO THE RELEASE FOR THE ANNUAL FINANCIAL STATEMENTS
The stock exchange release for the financial statements has been prepared in
accordance with the recognition and valuation principles of IFRS and the
requirements of IAS 34 have been followed in its preparation. The financial
statements have been prepared applying the same accounting principles as for the
annual financial statements dated 31 December 2024, except for the IAS/IFRS
standard and interpretation modifications that came into effect on 1 January
2025. These interpretation and standard modifications haven't had a material
impact on the financial statements.
The figures presented in the stock release have not been audited.
The figures presented in the stock release have been rounded and may therefore
differ from those given in the official financial statements.
This communication includes future-oriented statements that are based on the
assumptions currently made by the company's management and its current decisions
and plans. Although the management believes that the future expectations are
well founded, there is no certainty that these expectations will prove to be
correct. This is why the results may significantly deviate from the assumptions
included in the future-oriented statements as a result of, among other things,
changes in the economy, markets, competitive conditions, legislation or currency
exchange rates.
1. SEGMENT INFORMATION (EUR 1,000)
The operating segments are based on a geographical division of market areas, and
they are defined based on the reporting used by the Group's top operational
decision-maker. As a result of the new operating model, the Group has changed
its segmentation and the change in reporting structure has affected Ponsse's
financial reporting from the second quarter of 2024 onwards.
OPERATING
SEGMENTS
1-12/2025 Nordic Central North South Asia, Total
countries and America America Australia and
and the Southern Africa
Baltics Europe
Net sales of 492,211 194,685 113,232 87,687 19,002 906,816
the
segment
Revenues -147,768 -4,803 -2,930 -990 -451 -156,942
between
segments
NET SALES 344,443 189,882 110,301 86,697 18,551 749,874
FROM
EXTERNAL
CUSTOMERS
Operating 8,443 18,319 7,191 6,893 840 41,686
result of
the segment
Unallocated -53
items
OPERATING 8,443 18,319 7,191 6,893 840 41,632
RESULT
DEPRECIATION 28,956 1,249 1,176 3,725 95 35,200
AND
AMORTISATION
EXPENDITURE 90,150 7,019 8,044 14,648 495 120,355
ON
EMPLOYMENT
-RELATED
BENEFITS
1-12/2024 Nordic Central North South Asia, Total
countries and America America Australia and
and the Southern Africa
Baltics Europe
Net sales of 485,515 175,683 112,157 103,902 19,206 896,463
the
segment
Revenues -138,044 -4,130 -3,103 -520 -239 -146,036
between
segments
NET SALES 347,470 171,552 109,054 103,382 18,968 750,427
FROM
EXTERNAL
CUSTOMERS
Operating 14,823 19,827 7,370 -6,191 970 36,798
result of
the segment
Unallocated -43
items
OPERATING 14,823 19,827 7,370 -6,191 970 36,755
RESULT
DEPRECIATION 29,641 1,025 1,108 4,105 154 36,033
AND
AMORTISATION
EXPENDITURE 80,231 6,018 7,136 16,101 712 110,199
ON
EMPLOYMENT
-RELATED
BENEFITS
31 Dec 25 31 Dec 24
2. LEASING COMMITMENTS (EUR 1,000) 1,941 1,977
3. CONTINGENT LIABILITIES (EUR 1,000) 31 Dec 25 31 Dec 24
Guarantees given on behalf of others 274 2
Responsibility of checking the VAT 7,760 8,419
deductions made on real property
investments
Other commitments 237 193
TOTAL 8,272 8,615
4. PROVISIONS (EUR 1,000) Guarantee provision Other provisions Total
1 January 2025 5,620 13,618 19,238
Provisions added 1,548 2,735 4,282
Provisions cancelled -1,042 -9,997 -11,039
Exchange rate difference 0 71 71
31 December 2025 6,125 6,427 12,552
The Group has recognized a provision in the item of other provisions based on a
Full Service contract entered into by the Brazilian subsidiary as the fulfilment
of the contractual obligations is estimated to generate expenses that exceed the
expected economic benefits obtained from the agreement. The provision has been
measured based on the best possible estimate of the expenses arising from the
fulfilment of the obligations on the closing date.
KEY FIGURES AND RATIOS 31 Dec 25 31 Dec 24
R&D expenditure, MEUR 26.9 24.6
Capital expenditure, MEUR 22.7 21.6
as % of net sales 3.0 2.9
Average number of employees 2,083 2,083
Order books, MEUR 141.4 188.6
Equity ratio, % 59.5 58.7
Diluted and undiluted earnings per share (EUR) 1.09 0.45
Equity per share (EUR) 12.08 11.69
Order intake, MEUR 702.7 706.9
FORMULAE FOR FINANCIAL INDICATORS
Return on capital employed, %:
Result before taxes + financial expenses
--------------------------------------------------------------------------------
-------------------------------------
Shareholder´s equity + interest-bearing financial liabilities (average during
the year) * 100
Average number of employees:
Average of the number of personnel at the end of each month. The calculation has
been adjusted for part-time employees.
Net gearing, %:
Interest-bearing financial liabilities - cash and cash equivalents
--------------------------------------------------------------------------------
---
Shareholders' equity * 100
Equity ratio, %:
Shareholders' equity + Non-controlling interests
------------------------------------------------------------------------
Balance sheet total - advance payments received * 100
Earnings per share:
Net result for the period - Non-controlling interests
--------------------------------------------------------------------------------
---------------------------
Average number of shares during the accounting period, adjusted for share issues
Equity per share:
Shareholders' equity
--------------------------------------------------------------------------------
-------------
Number of shares on the balance sheet date, adjusted for share issues
Order intake:
Net sales for the period + Change in order books during the period
Vieremä, 17 February 2026
PONSSE PLC
Juho Nummela
President and CEO
FURTHER INFORMATION
Juho Nummela, President and CEO, tel. +358 400 495 690
Petri Härkönen, CFO, tel. +358 50 409 8362
DISTRIBUTION
Nasdaq Helsinki Oy
Principal media
www.ponsse.com
Ponsse Plc is a company specialising in the sales, manufacture, servicing and
technology of cut-to-length method forest machines and is driven by genuine
interest in its customers and their business. Ponsse develops and manufactures
sustainable and innovative harvesting solutions based on customers' needs.
The company was established by forest machine entrepreneur Einari Vidgren in
1970, and it has been a leader in timber harvesting solutions based on the cut
-to-length method ever since. Ponsse is headquartered in Vieremä, Finland. The
company's shares are quoted on the Nasdaq Nordic list.