Financial information

CEO's comments on the Half-Year Financial Report January 1–June 30, 2025, published August 12, 2025

Profitability continued to increase, business environment remained uncertain

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.

Mika Saariaho
President and CEO