Ponsse’s operating profit rose to Euro 30 million for the first nine months of 2025, up 58% from Euro 19 million a year earlier, as its international business accounted for over 75% of total sales. Despite this, the company’s third-quarter profit margin halved to 5.6%, with profitability hit by weaker gross margins and higher costs. Order intake for the period reached Euro 505 million, while the order book fell 18% year-on-year to Euro 163 million, according to figures released by Ponsse Plc.
The forest machine market continued to weaken globally, particularly in Finland where reduced timber harvesting volumes impacted demand. CEO Juho Nummela noted “constant uncertainty” due to geopolitical tensions, though signs of recovery appeared in Germany, France, and the United States, supported by a tariff agreement.
Third-quarter net sales held steady at Euro 173 million, up just 2% from last year. Used machine sales saw slight growth, and service business remained stable. However, operating profit for the quarter dropped 48% year-on-year to Euro 9.6 million, reflecting lower margins and ongoing cost pressures.
Cash flow from business operations sharply declined to Euro 4.4 million from Euro 36.5 million, as used machine inventories increased. Despite this, the company’s solvency remained strong with an equity ratio of 58% and net gearing down to 9%.
Ponsse forecasts a slightly higher operating profit in 2025 than the Euro 37 million recorded in 2024. The company cited ongoing economic uncertainty, geopolitical risks, and financing costs as major concerns affecting future demand. It plans to maintain cost discipline while investing selectively in product development, digital services, and network expansion.
Sales were most concentrated in the Nordic and Baltic regions, which accounted for 45% of net sales, followed by Central and Southern Europe at 25%. North and South America contributed 15% and 13%, respectively. Ponsse also highlighted continued growth in sales from its technology subsidiary, Epec.
Return on capital employed improved to 10.1% from 3.7% last year. Staff expenses increased to Euro 89 million due to salary raises and planned personnel additions. Net financial items improved, reducing losses to Euro 0.9 million from Euro 11.1 million last year, aided by currency gains of Euro 1.1 million.
The provision for the loss-making Brazilian Full Service contract was reduced to Euro 8.4 million, down from Euro 13.6 million in January, with the contract set to expire at the end of 2026. The final provision level will be reassessed in the last quarter.
Ponsse ended the quarter with cash reserves of Euro 67 million, down from Euro 84 million at the start of the year. Capital expenditure and R&D spending both totalled Euro 17 million for the period, with sustainability investments continuing across service centres. The new service centre in France now operates on renewable energy and supports circular economy activities.
The company’s share price closed at Euro 26.60 at the end of the period, giving it a market value of Euro 745 million.
