The year 2025 continued to be marked by subdued economic conditions and persistent uncertainty throughout the period. The weak business cycle in the forest industry, along with disruptions in international trade, particularly the United States’ unpredictable tariff policy, directly affected our customers’ willingness to invest. Order flows remained at a good level early in the year but weakened as uncertainty increased following changes in tariff policy. The market situation remained challenging throughout the year. However, in the last quarter of the year, the order flow was reasonable in relation to the situation, and the order intake totalled around EUR 197.7 (213.0) million. At the end of the period, the company’s order books stood at EUR 141.4 (188.6) million.

Difficulties in the key drivers of our operations – the mechanical and chemical forest industries – were clearly reflected in forest machine sales. Weaker private consumption and exceptionally low construction activity in Europe slowed demand. Our customers’ investment decisions were pushed back, and the sense of caution intensified in the third and fourth quarters in particular. Demand was supported mainly by developments in Sweden, the United States and certain South American markets, as well as by a modest improvement in the Finnish market towards the end of the year. The improved market situation in Central Europe also supported order flows. In contrast, the Canadian and southern Brazilian markets suffered significantly from the disruption caused by the US tariff policy.

Ponsse’s net sales for the review period amounted to EUR 749.9 (750.4) million. We ultimately succeeded in reaching a net sales level close to that of the previous year, despite the exceptionally challenging operating environment. Our maintenance services performed exceptionally well in a challenging market, providing our customers worldwide with a strong and reliable level of service. Among our businesses, Epec emerged on a clear growth path. Ponsse’s factory in Vieremä performed excellently during the year, and production volumes remained at the previous year’s level.

Progress was achieved in Ponsse’s Full Service agreement in Brazil. Last year’s provisions have been sufficient, and the agreement is due to conclude in 2026. The gradual ramp‑down of the operations included in the agreement is scheduled to start at the beginning of 2026. We will continue to work for the benefit of our customer and fulfil our role in the project until the agreement ends, ensuring a smooth transition for the customer.

Our relative profitability was 5.6 (4.9) per cent. We continue to pursue determined and long‑term development efforts to improve profitability. Our target remains unchanged: in a normal market environment and with the factory operating at full capacity, we are aiming for a relative profitability of around 12 per cent.

The company’s cash flow was EUR 23.3 (85.0) million. In terms of working capital, the challenges were mainly related to the high level of used machine stock. Although sales developed well towards the end of the fourth quarter, this was not yet sufficient to reduce the used machine stock. The circulation of materials and supplies remained at a good level, and the service level experienced by our customers was strong. The company’s solvency is good, and its financial position has remained strong.

Responsibility and sustainable development will be key success factors in our future and prerequisites for the continuity of our operations. We believe that our technologies and new business models will increasingly enable the implementation of sustainable forestry principles. Productive and environmentally sound harvesting supports forest regeneration and enables the use of renewable wood raw material for carbon-storing products that replace fossil materials.

We have a real chance to make a difference, which is why we have set two important targets for our business operations: a 25 per cent reduction in our Scope 3 emissions by 2030 and a 15 per cent annual increase measured in tons in the Reman refurbishment of spare parts. The Scope 3 emissions reduction is primarily related to improving the energy efficiency of our products, which meets our customers’ need for more energy-efficient forest machines. Expanding our Reman operations is a clear step forward in our circular economy work: the increasing supply of refurbished parts reduces the use of raw materials and improves our customers’ access to affordable and reliable spare parts.

In the development of our operational activities, the most significant successes in 2025 were the clear improvement in collaborative ways of working and the sharpening of our strategic focus. The prioritisation of product development and digital services proceeded as planned. The insourcing work carried out within the same units increased our own expertise and steered our work more effectively towards long‑term targets while also improving the creation of customer value and our cost efficiency.

The benefits of our renewed operating model began to materialise during the year: a clearer organisational structure and consistent operating methods supported smoother cooperation. The Ponsse culture is strongly evident in our day‑to‑day work, and collaboration between functions developed impressively.

Investments in our service network, product development and digital solutions continued in 2025. We strengthened our service network globally by opening new service centres in Poland, Germany, Argentina, France and Brazil in cooperation with our dealers. Our network also grew with contractual service partners and our own field maintenance operations in Sweden, Norway, France and the United States.

During the year, we launched a significant number of new products and features. We were the first in the world to introduce harvesting emissions reporting as part of the PONSSE Manager Pro service package. Emission monitoring supports the reduction of fuel consumption, compliance with environmental requirements and the selection of optimally sized equipment for logging sites. The largest product launches took place in our digital services, but new features were also introduced in forest machines and maintenance services. The year saw the launch of PONSSE Greasing System, PONSSE Manager Pro, PONSSE Fleet Monitoring, PONSSE Active Manual, PONSSE FeedControl and PONSSE Caliper 3+. Under the leadership of our technology company Epec, we also launched the Cabin Vision concept and a technological pilot environment where we will explore future cabin solutions.

In 2025, we celebrated Ponsse’s 55th anniversary with a tour that began in early spring in Finland and continued to South America, the Nordic countries, the United States, Central Europe and Asia. The events attracted large numbers of customers to celebrate Ponsse with us. In February, we delivered the 21,000th Ponsse forest machine manufactured in Vieremä to a customer in the United States. The anniversary year culminated in November when the President of the Republic of Finland, Alexander Stubb, visited our factory in Vieremä.