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ER - Raute Corporation's Half-Year Financial Report January 1-June 30, 2025: Profitability continued to increase, business environment remained uncertain

Company: Raute Oyj Date: 2025-08-12 Language: English Register to download
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 Raute Corporation's Half-Year Financial Report January 1-June 30, 2025: Profitability continued to increase, business environment remained uncertain

# Raute Corporation's Half-Year Financial Report January 1-June 30, 2025: Profitability continued to increase, business environment remained uncertain

Raute Corporation, Stock exchange release, August 12, 2025, at 8:30 a.m. EEST

Raute Corporation's Half-Year Financial Report January 1-June 30, 2025:
Profitability continued to increase, business environment remained uncertain

This is a summary of Raute's Half-Year Financial Report January-June 2025. The
full report is attached as a PDF file with this release and is also available on
the company's website at www.raute.com.

RAUTE CORPORATION - HALF-YEAR FINANCIAL REPORT JANUARY-JUNE 2025

Figures in brackets refer to the same period a year earlier. Figures are
unaudited and rounded to the nearest whole number.

April−June 2025 in brief

  · Order intake was EUR 12 million (20)
  · Order book was EUR 115 million (223) at the end of the reporting period
  · Net sales were EUR 43.8 million (57.1)
  · Comparable EBITDA was EUR 6.5 million (5.4), representing 14.7% (9.4%) of
net sales
  · Comparable operating profit was EUR 4.9 million (4.1)
  · Items affecting comparability totaled EUR 3.0 million, of which EUR 2.0
million were items impacting EBITDA and EUR 1.0 million were items booked as
impairments below EBITDA impacting operating profit. These were mainly related
to the closure of a factory in China
  · Operating profit was EUR 1.9 million (3.9)
  · Comparable earnings per share were EUR 0.68 (0.57)
  · Earnings per share were EUR 0.19 (0.56)
  · Equity ratio was 60.0% (48.5) at the end of the reporting period

January−June 2025 in brief

  · Order intake was EUR 27 million (56)
  · Net sales were EUR 95.7 million (101.7)
  · Comparable EBITDA was EUR 13.9 million (8.4), representing 14.5% (8.2%) of
net sales
  · Comparable operating profit was EUR 10.9 million (5.7)
  · Operating profit was EUR 7.8 million (5.4)
  · Comparable earnings per share were EUR 1.39 (0.79)
  · Earnings per share were EUR 0.88 (0.76)

KEY FIGURES (MEUR)       Q2/    Q2/    Change  H1/    H1/    Change  2024
                         2025   2024   -%      2025   2024   -%
Net sales                43.8   57.1   -23.3   95.7   101.7  -6.0    204.6
Exported portion of net  54.9   85.2           56.1   88.8           84.3
sales, %
Comparable EBITDA        6.5    5.4    20.0    13.9   8.4    65.3    19.8
Comparable EBITDA %      14.7   9.4            14.5   8.2            9.7
EBITDA                   4.5    5.3    -15.1   11.7   8.1    44.6    19.1
EBITDA %                 10.2   9.2            12.3   8.0            9.3
Comparable operating     4.9    4.1    20.2    10.9   5.7    91.9    14.4
profit
Comparable operating     11.2   7.1            11.4   5.6            7.0
profit, %
Operating profit         1.9    3.9    -51.2   7.8    5.4    44.0    13.7
Operating profit, %      4.4    6.9            8.1    5.3            6.7
Net result               1.2    3.4    -65.1   5.4    4.7    15.8    12.1
Comparable EPS, EUR      0.68   0.57   19.3    1.39   0.79   75.9    2.05
EPS, EUR                 0.19   0.56   -66.1   0.88   0.76   15.8    1.96
EPS (diluted), EUR       0.19   0.54   -64.8   0.86   0.74   16.2    1.91
Adjusted avg. no. of     5 995  6 028          6 009  6 028          6 027
shares, 1000 pcs
Adjusted avg. no. of     6 023  6 325          6 313  6 327          6 350
shares, diluted, 1000
pcs

Return on investment,                          32.6   25.1           30.9
(ROI), %
Return on equity,                              21.8   23.2           27.5
(ROE), %
Interest-bearing net                           -28.6  -31.1          -51.9
liabilities
Equity ratio, %                                60,0   48.5           55.2
Gearing, %                                     -57.0  -73.1          -104.4

Gross capital            1.0    0.6    70.6    1.7    1.0    68.0    2.8
expenditure
% of net sales           2.3    1.0            1.8    1.0            1.4

Research and             1.4    1.4    1.4     2.8    2.8    -0.9    5.3
development costs
% of net sales           3.2    2.5            2.9    2.7            2.6

Order book                                     115    223    -48.5   184
Order intake             12     20     -41.3   27     56     -51.3   121

Personnel, at the end                          766    798    -4.0    783
of the period
Personnel, effective,    748    741    0.9     754    745    1.2     740
on average

Review from Mika Saariaho, President and CEO

We continued our strong operational execution in the second quarter of 2025,
further demonstrating our enhanced capabilities to operate successfully in a
challenging business environment. Raute's comparable EBITDA reached EUR 6.5
million, representing a margin of 14.7% on net sales of EUR 44 million. This is
also a significant milestone, marking the first time we have exceeded on a
rolling 12-month basis our long-term target of a 12% comparable EBITDA margin.
All three business segments are making positive contributions to Raute's
financial performance.

While net sales were below the comparison period, primarily due to typical
revenue recognition fluctuations, I am particularly pleased with our ability to
achieve strong profitability even with reduced volumes. We have continued to
deliver projects successfully and on schedule. This strong execution, coupled
with the significant efficiency improvements and supply chain optimizations we
have implemented, is clearly bearing fruit.

Raute's business environment remained challenging in the reporting period, with
customers deferring investment decisions amidst heightened global trade and
tariff uncertainties. Consequently, our order intake was very low, and it was
primarily related to the Services business, which has remained relatively
resilient even in the current market environment. While commercial discussions
in the Wood Processing and Analyzers businesses were reactivated towards the end
of the quarter, this was not yet realized as new orders. However, we believe
that demand will improve in the second half of 2025 and during 2026.

Regardless of the market environment, we are determined to proactively safeguard
our margins and enhance our global competitiveness, both in the short and longer
term. Accordingly, we introduced short-term measures to adjust our production
capacity, as well as long-term decision to close our production unit in China
during the quarter. The closure of the China production unit is a strategic step
in the broader restructuring of our global manufacturing network, designed to
cluster production resources more cost-effectively and increase flexibility.

During the first half of the year we have also reviewed our strategy launched in
early 2023 and concluded that the overall strategy and targets for 2028 remain
valid. Looking ahead, I am particularly pleased with the significant
improvements in our operational and commercial capabilities. This gives me
confidence in our ability to navigate through different business cycles.

BUSINESS ENVIRONMENT

The global business environment was very turbulent in the first half of the year
due to many different reasons in various market areas. We estimate that this
general turbulence has affected the demand for our customers' end products.

The prolonged recession in the construction industry, which is the main user of
veneer-based end products, continued globally. However, signs of an improvement
in construction activity were observed in the second quarter of the year, for
example, in Europe (Eurostat, June 2025). In North America, housing construction
starts increased significantly in Canada during the second quarter after a
sluggish start to the year (Canada Mortgage and Housing Corporation). In the
United States, on the other hand, housing start-ups continued to decline
moderately compared to the previous year. (U.S. Census Bureau).

After a prolonged recession, a slight pick-up in end-product demand was visible,
especially in Europe. Demand for birch plywood and LVL remained stable. The
increase in prices caused by the low availability of logs affected the
profitability of some of our customers, although this was at least partially
compensated by price increases in the end products.

Uncertainty related to U.S. import tariffs paralyzed our customers' investment
decisions in the first half of the year in North and South America, as well as
for those 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 uncertainty of our customers in the
first half of the year. The ongoing war in Ukraine in Europe, combined with the
uncertain customs policy of the United States, has also slowed down decision
-making, although we estimate that some of our European customers are already
preparing for the market to become more active.

GUIDANCE STATEMENT FOR 2025

Raute's 2025 net sales are expected to be between EUR 190-220 million and
comparable EBITDA between EUR 20-27 million.

RAUTE CORPORATION
Board of Directors

BRIEFING

A results briefing for analysts, investors and the media will be organized at
Eliel studio in Sanomatalo, Töölönlahdenkatu 2, Helsinki on the same day August
12, 2025, at 2:00 p.m. The half-year financial report will be presented by
President and CEO Mika Saariaho and CFO Ville Halttunen. The presentation
material will be available after the briefing at www.raute.com > Investors >
Financial information.

The event will be held in English, and it can also be followed by a live webcast
at https://raute.videosync.fi/q2-2025. After the presentation, it is possible to
ask questions via chat. The recording of the event will be available on the
company's website after the event.

NEXT REPORT:
Raute Corporation's Business Review January-September 2025 will be published on
Thursday, October 30, 2025.

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