Ponsse’s orders increase, but profitability weakens – factory capacity to be adjusted

Ponsse’s order intake increased in July–September, but net sales and operating profit fell year on year. Profitability was supported by EUR 3.5 million in customs duty refunds, without which earnings would have been significantly weaker. The company will adjust capacity at its Vieremä factory during the remainder of the year while maintaining its full-year earnings guidance.

Ponsse received new orders worth EUR 170.4 million in July–September, compared with EUR 143.4 million a year earlier, representing an increase of approximately 19 per cent. According to President and CEO Juho Nummela, the busy autumn trade fair season supported order intake in a challenging market environment.

At the end of September, the order book stood at EUR 170.5 million, compared with EUR 163.2 million a year earlier. The order book extends partly into next year.

“Production at our Vieremä factory continued at a high level relative to the market situation, but our order book nevertheless grew slightly,” Nummela says in the interim report.

Customers’ profitability under pressure

According to Ponsse, market uncertainty continued, with customers carefully considering their investment decisions. Higher fuel prices weighed on customers’ profitability in almost all markets. Meanwhile, low levels of construction activity and private consumption weakened demand in the forest industry, which in turn affected forestry contractors.

The Nordic countries and Europe were Ponsse’s most active markets, although demand remained well below normal levels in these regions as well.

Net sales decreased by 7.4 per cent in July–September to EUR 159.8 million, compared with EUR 172.7 million a year earlier.

Net sales of new machines and maintenance services declined. In maintenance services, the decline reflected the expiry of the Full Service agreement in Brazil and lower demand caused by weaker market conditions. Net sales of used machines remained at the level of the comparison period. Technology company Epec continued its strong growth.

Customs duty refunds support earnings

Ponsse’s third-quarter operating profit amounted to EUR 5.9 million, compared with EUR 9.6 million a year earlier. The operating profit margin decreased from 5.6 per cent to 3.7 per cent.

The result included EUR 3.5 million in customs duty refunds recognised by the company’s US subsidiary. Without these refunds, operating profit would have been EUR 2.4 million, or approximately 1.5 per cent of net sales.

“Excluding this non-recurring item, operational profitability was very weak. Profitability was particularly affected by lower-than-expected invoicing for new machines and maintenance services, as well as rising costs,” Nummela says.

In January–September, Ponsse’s net sales totalled EUR 513.7 million, down 3.1 per cent year on year. Operating profit decreased from EUR 30.2 million to EUR 18.4 million. Order intake, meanwhile, increased by 7.5 per cent to EUR 542.8 million.

Machine inventories increase

Ponsse’s cash flow from operating activities was negative EUR 1.3 million in January–September, compared with positive EUR 4.4 million in the corresponding period last year.

Used machine sales picked up year on year, but this was not enough to reduce used machine inventories. Inventories of new machines also increased as invoicing fell short of expectations.

Net interest-bearing debt rose from EUR 30.8 million a year earlier to EUR 54.0 million. The equity ratio remained almost unchanged at 57.6 per cent.

Guidance unchanged, capacity to be adjusted

Ponsse continues to expect its operating profit in euros for 2026 to be at the same level as in 2025, when operating profit amounted to EUR 41.6 million. According to the company, there is good invoicing potential for the remainder of the year despite market uncertainty.

Capacity at the Vieremä factory will be adjusted during the remainder of the year to reflect market conditions. The company is also tightening cost control and prioritising its activities.

“The sales objective is to strengthen the order book for 2027 while also promoting used machine sales,” Nummela says.

Ponsse continues to invest in sales, maintenance services, product development and digital solutions. Productivity at the Vieremä factory is being improved through an expansion of the welding shop and increased automation.