Kesla Oyj reported a notably weaker performance for the period of January to September 2025 compared to the previous year. Specifically, the demand downturn observed during the summer season significantly impacted both revenue and profitability.

Kesla Oyj reported a 14.6 percent decrease in net sales during the first nine months, totaling EUR 26.6 million, down from EUR 31.1 million the previous year. The operating result also declined, reaching EUR -2.6 million compared to EUR -0.3 million.

In the third quarter, net sales were EUR 7.3 million, slightly down from EUR 7.5 million in the same period last year. The operating result in this quarter was EUR -1.3 million, compared to EUR -0.7 million a year earlier. The number of orders received fell significantly by 36.8 percent, amounting to EUR 5.8 million. As of the end of September, the order backlog was EUR 7.9 million, a decrease from EUR 12.6 million a year prior.e number of orders received decreased by 36.8 per cent to EUR 5.8 million. The order backlog at the end of September was EUR 7.9 million, compared to EUR 12.6 million a year earlier.

80,000 Hours

That’s a remarkable amount of work hours for a single machine, the Norcar 600 owned by Erkki Rinne is taken well care of, it even has the original Diesel engine.
Kieran Anders Forestry

Kieran Anders is a forestry contractor working in the lake district. His work involves hand cutting and extracting timber using a skidder and tractor-trailer forwarder.
Promoting safety in the workplace

It is not possible to eliminate chain shot, but there are simple steps that can be taken to reduce the risk.
Glasfryn Fencing and Sawmill

Arwel takes great pride in the fact that the mill has no waste whatsoever, “the peelings are used for children’s playgrounds, gardens and for farm animals in barns in the winter and the sawdust has multiple uses in gardens and farms as well.
Keeping Timber Hauliers Safe

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FIND US ON

Kesla’s CEO Pasi Nieminen describes the third quarter as challenging and the market uncertain.
“The low net sales were directly reflected in the utilization rate of our production facilities, which had a negative impact on profitability. Customers’ investment decisions are delayed, and order intake has not been at the expected level,” Nieminen says.

The challenging market environment continues

According to Kesla, the uncertainty of the global economy, the decline in demand in the forest industry and the weakening availability of financing have kept demand low in all civilian product categories. Stabilised inflation and falling interest rates have not yet brought significant relief to the market situation.

The company estimates that the market will continue to be difficult for the rest of the year, and at the beginning of October, it launched an investigation into additional measures to prepare for the prolonged weak demand.
“We have already implemented adjustment measures and focused on cost control, but we will also have to assess possible structural changes,” Nieminen says.

Strategy and new priorities

Kesla will persist in executing its long-term strategy, which prioritizes profitable growth and significant renewal initiatives. At the outset of the year, the company established the Kesla Defence product group to enhance its position within the defense sector and restructured its management team to facilitate further growth.

Despite the prevailing uncertainties in the operating environment, Kesla reaffirms its commitment to its strategy for 2028 and anticipates the continuation of efficiency improvement measures in the final quarter of the year, Kesla says that it remains committed to its strategy for 2028 and estimates that it will continue efficiency improvement measures in the last quarter of the year.

Financial indicators 1–9/2025

Turnover: EUR 26.6 million € (31,1)
Operating result: EUR -2.6 million € (-0,3)
Orders received: EUR 27.3 million € (27,6)
Order backlog: EUR 7.9 million € (12,6)
Cash flow from operating activities: EUR 0.3 million € (1,6)
Average number of employees: 203 (235)

Outlook for 2025

Kesla lowered its guidance at the beginning of October: the company estimates that its revenue and operating result for 2025 will decrease clearly compared to the previous year and that the operating result will remain negative.

The company’s financial position has remained reasonable thanks to the enhancement of working capital, but Kesla is currently negotiating additional financing to ensure the financing of adjustment measures and working capital.