Ponsse’s Interim Financial Report for 1 January – 30 September 2025, sales increased and profits improved but the market remains challenging

Ponsse’s Interim Financial Report from president and CEO Juho Nummela;

The forest machine market continued to weaken in the third quarter of the year. Order intake amounted to EUR 143.4 million, and order books at the end of the review period totalled EUR 163.2 (199.1) million.

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

Timber hauliers need to encourage young blood in, and also look after the hauliers we have, we need make the sector a safe and positive place to work.

FIND US ON

July-September:
– Net sales amounted to EUR 172.7 (169.3) million
– Operating profit totalled EUR 9.6 (18.5) million, equalling 5.6 (11.0) per cent of net sales

January-September:
– Net sales amounted to EUR 530.4 (526.9) million
– Operating profit totalled EUR 30.2 (19.1) million, equalling 5.7 (3.6) per cent of net sales
– Net result was EUR 23.7 (0.3) million
– Earnings per share were EUR 0.85 (0.01)
– Order books stood at EUR 163.2 (199.1) million at the end of the period under review

– Cash flow from business operations was EUR 4.4 (36.5) million
– Equity ratio was 57.7 (55.1) per cent at the end of the period under review

– The company’s euro-denominated operating profit is estimated to be slightly higher in 2025 than in 2024 (EUR 36.8 million)

The current geopolitical situation creates constant uncertainty and is widely reflected in consumer confidence and behaviour. The weakening demand in the forest industry and the decrease in timber harvesting volumes had a negative impact on the demand for forest machines, which was particularly evident in the Finnish market. In certain markets, however, there are signs of a modest recovery, particularly in Germany, France and the United States, where the tariff agreement has helped to stabilise the situation.

Our net sales remained at the previous year’s level and were EUR 172.7 (169.3) million in the third quarter. The delivery volumes of new machines remained unchanged, and the sales of used machines increased slightly. The net sales of maintenance services remained at a good level despite the challenging situation. The net sales of Ponsse’s technology company Epec continued to grow in the third quarter.

Our operating profit fell short of the targets, and our relative profitability was 5.6 (11.0) per cent. This was affected by a weaker-than-expected gross margin and the development of costs.

The cash flow from business operations for the review period was EUR 4.4 (36.5) million. Used machine stocks continued to grow as the market situation deteriorated. Despite a slight increase in used machine sales, stock levels remained unchanged. The company’s solvency remained at a very good level, and Ponsse’s self-sufficiency continued to develop favourably.

Ponsse is currently celebrating its 55th anniversary with a tour that began earlier this year in Finland. The celebratory tour continued during the summer and early autumn in the United States, the Nordic countries and Central Europe. In September, we opened new premises in France, and our dealer Wahlers opened a new location in Germany. These events drew a delightfully large number of our customers to celebrate Ponsse’s 55th anniversary with us. We are celebrating the anniversary in about 20 countries around the world this year.

NET SALES

Consolidated net sales for the period under review amounted to EUR 530.4 (526.9) million, which is 0.7 per cent more than in the comparison period. International business operations accounted for 75.8 (74.1) per cent of net sales.

Net sales were regionally distributed as follows: Nordic countries and the Baltics 45.4 (46.1) per cent, Central and Southern Europe 24.9 (22.8) per cent, North America 14.5 (13.4) per cent, South America 12.7 (15.1) per cent and Asia, Australia and Africa 2.4 (2.5) per cent.

PROFIT PERFORMANCE

The operating profit amounted to EUR 30.2 (19.1) million. The operating profit equalled 5.7 (3.6) 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 8.4 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 15.9 million related to the Brazilian Full service contract. The contract is fixed-term and will expire at the end of 2026.

Consolidated return on capital employed (ROCE) stood at 10.1 (3.7) per cent.

Staff costs for the period under review totalled EUR 89.1 (81.6) million. The change in staff costs was affected by the planned increase in the number of personnel during the period under review and salary increases. Other operating expenses stood at EUR 61.2 (73.6) million. The cost impact 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 -0.9 (-11.1) million. Exchange rate gains and losses due to currency rate fluctuations were recognised under financial items, having a net impact of EUR 1.1 (-7.5) million. During the period under review, EUR 0.3 million of revaluation profits on interest rate swaps were recognised in the result.

Result for the period under review totalled EUR 23.7 (0.3) million. Diluted and undiluted earnings per share (EPS) came to EUR 0.85 (0.01).

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 576.0 (564.3) million. Inventories stood at EUR 241.4 (237.8) million. Trade receivables totalled EUR 60.4 (56.0) million, while cash and cash equivalents stood at EUR 67.1 (63.2) million. The EUR 3 million receivable related to sale of all Ponsse’s shares in its Russian subsidiary, OOO Ponsse matured in March 2025. The payment period for the receivable has been extended to December 2025.

Group shareholders’ equity stood at EUR 330.6 (309.9) million and parent company shareholders’ equity (FAS) at EUR 314.3 (303.8) million. The amount of interest-bearing liabilities was EUR 97.9 (106.7) 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 30.8 (43.5) million, and the debt-equity ratio (net gearing) was 9.3 (14.0) per cent. The equity ratio stood at 57.7 (55.1) per cent at the end of the period under review.

Cash flow from operating activities amounted to EUR 4.4 (36.5) million. Cash flow from investment activities came to EUR -17.2 (-16.5) million.

ORDER INTAKE AND ORDER BOOKS

Order intake for the period under review totalled EUR 505.0 (493.9) million, while period-end order books were valued at EUR 163.2 (199.1) 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 18.2 (17.9) million, of which EUR 5.5 (6.7) million was capitalised.

Investments during the period under review totalled EUR 17.2 (16.9) million. In addition to capitalised R&D expenses, they consisted of investments in buildings and ordinary investments in machinery and equipment.

PERSONNEL

The Group had an average staff of 2,073 (2,103) during the period under review and employed 2,112 (2,057) people at the end of the period.