Koskisen Corporation: pre-silent period call – Q&A on the key themes of the final quarter of 2025

On 12 January 2026, Koskisen Corporation held a pre-silent period call for analysts following the company. This press release summarizes the key questions and answers discussed during the call.

The silent period preceding the publication of Koskisen’s Financial Statements Release 2025 begins on January 13, 2026. The Financial Statements Release for January-December 2025 will be published on 13 February 2026 at 8:30 a.m. EET. A Finnish-language webcast will follow at 10:00 a.m. EET, with the link to be provided later.

Q4/2025 – Key Questions and Answers

Q: Did the demand for sawn timber meet expectations during Q4?
A: Demand for sawn timber was broadly in line with forecasts. There was no major change in demand toward the end of the year compared to earlier periods. Despite moderate demand, the sawmills have been able to operate at full capacity.

Q: How did sawn timber pricing develop during Q4, and did it meet expectations?
A: According to customs statistics, the prices of sawn timber fell slightly in October, depending on the species. Prices declined during Q4 for the fourth consecutive year.

Q: Did demand for birch plywood meet expectations toward the end of the year?
A: Market demand for birch plywood was moderate and picked up slightly toward the end of the year.

Q: How did birch plywood pricing develop during Q4, and did it meet expectations?
A: There were no major changes in the price level of birch plywood.

Q: Are there significant differences in demand between different markets? Have you seen any signs of recovery in any market?
A: No significant differences are visible in demand conditions between markets. What makes the situation exceptional is that construction activity is weak globally. Normally, construction cycles vary by market. In the Sawn Timber Industry, a slight recovery has been observed in the Middle East following the end of the Gaza war.

Q: Have order books developed in line with your expectations?
A: In the Panel Industry business, order books have developed in line with expectations, and in birch plywood a slight positive development was seen in the last quarter. The weak cycle in construction and the vehicle industry is reflected particularly in the sales of chipboard and interior solutions for vehicles manufactured under the Kore brand. In the Sawn Timber Industry, order books have developed as expected and are in line with the planned production.

Q: Were there any significant deviations from normal seasonality in Q4?
A: There were no significant deviations from normal seasonality in the last quarter of the year.

Q: Have there been any new views during Q4 regarding the impact of tariffs or expectations for a recovery in construction sector demand?
A: It still appears that U.S. tariffs will not put European producers at a competitive disadvantage. The recovery of the construction sector still seems to be delayed.

OPERATIONS
Q: How did the year-end production shutdowns proceed at the different units?
A: The year-end production shutdowns were carried out as planned. In the Panel Industry, the shutdown lasted between two and three weeks depending on the product group, during which the planned investments were implemented and finalized. In the Sawn Timber Industry, the shutdown lasted up to two weeks at its longest, depending on the department. During the shutdown, the sorting conveyor at the trimming line was renewed at Järvelä sawmill, and normal maintenance work elsewhere in the process at Iisvesi and Järvelä.

Q: How has the integration of Iisveden Metsä and the optimization of sawn timber production progressed?
A: The integration work has progressed well. The key production control and financial systems have been integrated, and work to harmonize operating practices continues. Production optimization, both in terms of different products and markets, is ongoing.

Q: How did Panel Industry production perform in Q4?
A: Panel Industry production proceeded according to plan.

Q: What is the current status of the EUR 12 million investment in plywood and chipboard production, and when do you expect the benefits to materialize?
A: The first phase of the investment program was completed at the end of December 2025. All investments carried out during 2025 have now been successfully commissioned. The benefits of the investments will begin to materialize gradually as the remaining production bottlenecks are eliminated through upcoming investments and efficiency measures.

Q: Did the installation delays of the Panel Industry investments affect Q4 deliveries or the sales mix?
A: Some of the equipment installations carried out during the July 2025 summer shutdown were delayed from the planned installation schedule, which affected third-quarter volumes and the average price of delivered products. The impact did not extend to Q4 deliveries or the sales mix.

Q: Could you summarize the investments carried out in 2025?
A: In the Panel Industry, investments were implemented in line with the investment program. The first phase investments focused on improving log handling and on automating veneer drying, coating and panel handling. In the Sawn Timber Industry, a new log yard was commissioned, a district heating connection pipeline was built between the Järvelä plant areas, and briquette production was started. In addition, the increase of drying capacity in Järvelä, which was initiated last year, is currently ongoing.

Q: What does the investment plan for 2026 look like?
A: In the Panel Industry, we launched the second phase of the investment program at the beginning of the year. In the Sawn Timber Industry, we will continue the investment projects started last year. The increase of drying capacity in Järvelä is currently ongoing, and the new kilns will be completed during the summer of 2026. In Järvelä, the sorting conveyor of the trimming line was renewed at the turn of the year. In 2026, the Sawn Timber Industry intends to carry out a few smaller replacement investments in both Iisvesi and Järvelä.

Q: At what level do you estimate investments in 2026 will be? Are the ongoing investments on schedule and within budget?
A: As a result of the Sawn Timber Industry kiln investment and the ongoing investment program in the Panel Industry, investments in 2026 will still be at higher-than-normal level. Without significant new development projects, the normalized annual investment level in the coming years will approach the level of depreciation. The ongoing investments are on schedule and within budget.

Q: What are the key moving parts and uncertainties related to the earnings guidance for 2026?
A: The key uncertainties relate to changes particularly in construction and logistics, which are significantly influenced by Germany’s recovering economy, the development of demand in the USA, and the situation in Ukraine; the financial situation of customers, including credit worthiness; geopolitical and trade policy developments; and the development of key cost factors, especially the price of wood relative to the prices of finished products.

Q: When do company-specific collective labor agreements expire?
A: The company-specific collective labor agreements are valid until 31 January 2028.

WOOD PROCUREMENT AND FOREST ENERGY
Q: How strong price pressure do you see for energy assortments in the current heating season compared to last year?
A: Prices have come down somewhat from the peaks of the previous heating season, but when viewed over a longer time horizon, they are still at a good level.

Q: What was demand for energy assortments like in Q4?
A: Demand for the assortments was moderate due to the warm end of the year.

Q: Has the current cold spell had an impact on demand and prices for energy wood?
A: As temperatures have fallen below zero, delivery volumes have increased significantly. This has not affected prices, as price periods are negotiated over a longer time horizon.

Q: How do you see the outlook for log prices over the winter and spring in light of the supply and demand situation in the wood market?
A: We do not expect significant changes in stumpage prices in the near term. The outlook for mill-gate prices of raw materials in early 2026 is downward compared to the high cost level seen in the autumn.

Q: How did wood procurement perform toward the end of the year?
A: Raw material procurement proceeded as planned, and sufficient volumes of raw materials were available during Q4, even though the wood market slowed toward the end of the year.

Q: Have the wood procurement partnerships resulting from recent corporate transactions brought any changes to the wood market?
A: Any potential impacts will become clearer later. Naturally, various bilateral agreements may change established raw material flows.

Q: Did the warm end of the year cause problems for harvesting?
A: The warm end of the year naturally made harvesting and transportation more difficult. Despite the challenges, wood supply has been kept running and sufficient raw material has been available for production.

Q: Have the recent storm damages led to any effects in the market?
A: Not so far. Storm damage in the company’s procurement area remained, to our understanding, limited.

For more information, please contact:
Sanna Väisänen, Director, Sustainability and Communications, Koskisen Corporation
sanna.vaisanen@koskisen.com
tel. +358 20 553 4563

Koskisen is an international wood processing specialist and known for its agility and ability to listen to the customer. We utilise our valuable wood raw material as thoroughly as possible, up to the last particle of sawdust. At the same time, we bring the best carbon narrative to life: We manufacture high-quality and sustainable products that store carbon for decades. The Group’s revenue in 2024 was EUR 282 million. Read more: koskisen.com