July-September:
– Net sales amounted to EUR 172.7 (169.3) million
– Operating profit totalled EUR 9.6 (18.5) million, equalling 5.6 (11.0) per cent of net sales

January-September:
– Net sales amounted to EUR 530.4 (526.9) million
– Operating profit totalled EUR 30.2 (19.1) million, equalling 5.7 (3.6) per cent of net sales
– Net result was EUR 23.7 (0.3) million
– Earnings per share were EUR 0.85 (0.01)
– Order books stood at EUR 163.2 (199.1) million at the end of the period under review

– Cash flow from business operations was EUR 4.4 (36.5) million
– Equity ratio was 57.7 (55.1) per cent at the end of the period under review

– The company’s euro-denominated operating profit is estimated to be slightly higher in 2025 than in 2024 (EUR 36.8 million)

PRESIDENT AND CEO JUHO NUMMELA:

The forest machine market continued to weaken in the third quarter of the year. Order intake amounted to EUR 143.4 million, and order books at the end of the review period totalled EUR 163.2 (199.1) million.

The current geopolitical situation creates constant uncertainty and is widely reflected in consumer confidence and behaviour. The weakening demand in the forest industry and the decrease in timber harvesting volumes had a negative impact on the demand for forest machines, which was particularly evident in the Finnish market. In certain markets, however, there are signs of a modest recovery, particularly in Germany, France and the United States, where the tariff agreement has helped to stabilise the situation.

Our net sales remained at the previous year's level and were EUR 172.7 (169.3) million in the third quarter. The delivery volumes of new machines remained unchanged, and the sales of used machines increased slightly. The net sales of maintenance services remained at a good level despite the challenging situation. The net sales of Ponsse’s technology company Epec continued to grow in the third quarter.

Our operating profit fell short of the targets, and our relative profitability was 5.6 (11.0) per cent. This was affected by a weaker-than-expected gross margin and the development of costs.

The cash flow from business operations for the review period was EUR 4.4 (36.5) million. Used machine stocks continued to grow as the market situation deteriorated. Despite a slight increase in used machine sales, stock levels remained unchanged. The company’s solvency remained at a very good level, and Ponsse’s self-sufficiency continued to develop favourably.

Ponsse is currently celebrating its 55th anniversary with a tour that began earlier this year in Finland. The celebratory tour continued during the summer and early autumn in the United States, the Nordic countries and Central Europe. In September, we opened new premises in France, and our dealer Wahlers opened a new location in Germany. These events drew a delightfully large number of our customers to celebrate Ponsse’s 55th anniversary with us. We are celebrating the anniversary in about 20 countries around the world this year.

NET SALES

Consolidated net sales for the period under review amounted to EUR 530.4 (526.9) million, which is 0.7 per cent more than in the comparison period. International business operations accounted for 75.8 (74.1) per cent of net sales.

Net sales were regionally distributed as follows: Nordic countries and the Baltics 45.4 (46.1) per cent, Central and Southern Europe 24.9 (22.8) per cent, North America 14.5 (13.4) per cent, South America 12.7 (15.1) per cent and Asia, Australia and Africa 2.4 (2.5) per cent.

PROFIT PERFORMANCE

The operating profit amounted to EUR 30.2 (19.1) million. The operating profit equalled 5.7 (3.6) per cent of net sales for the period under review. The impact of the Brazilian Full Service contract on profit after the change in provision for the period under review was EUR -2.6 million. There is a provision of EUR 8.4 million on the Group's balance sheet for a loss-making contract. In the comparison period the operating profit included, taking into account the change in provision, an expense of EUR 15.9 million related to the Brazilian Full service contract. The contract is fixed-term and will expire at the end of 2026.

Consolidated return on capital employed (ROCE) stood at 10.1 (3.7) per cent.

Staff costs for the period under review totalled EUR 89.1 (81.6) million. The change in staff costs was affected by the planned increase in the number of personnel during the period under review and salary increases. Other operating expenses stood at EUR 61.2 (73.6) million. The cost impact of the loss-making Full Service contract of the Brazilian subsidiary is included in other operating expenses. The net total of financial income and expenses amounted to EUR -0.9 (-11.1) million. Exchange rate gains and losses due to currency rate fluctuations were recognised under financial items, having a net impact of EUR 1.1 (-7.5) million. During the period under review, EUR 0.3 million of revaluation profits on interest rate swaps were recognised in the result.

Result for the period under review totalled EUR 23.7 (0.3) million. Diluted and undiluted earnings per share (EPS) came to EUR 0.85 (0.01).

STATEMENT OF FINANCIAL POSITION AND FINANCING ACTIVITIES

At the end of the period under review, the total consolidated statements of financial position amounted to EUR 576.0 (564.3) million. Inventories stood at EUR 241.4 (237.8) million. Trade receivables totalled EUR 60.4 (56.0) million, while cash and cash equivalents stood at EUR 67.1 (63.2) million. The EUR 3 million receivable related to sale of all Ponsse’s shares in its Russian subsidiary, OOO Ponsse matured in March 2025. The payment period for the receivable has been extended to December 2025.

Group shareholders’ equity stood at EUR 330.6 (309.9) million and parent company shareholders’ equity (FAS) at EUR 314.3 (303.8) million. The amount of interest-bearing liabilities was EUR 97.9 (106.7) million. The company has ensured its liquidity by credit facility limits and commercial paper programs. Group's loans from financial institutions are non-collateral bank loans without financial covenants. Consolidated net liabilities totalled EUR 30.8 (43.5) million, and the debt-equity ratio (net gearing) was 9.3 (14.0) per cent. The equity ratio stood at 57.7 (55.1) per cent at the end of the period under review.

Cash flow from operating activities amounted to EUR 4.4 (36.5) million. Cash flow from investment activities came to EUR -17.2 (-16.5) million.

ORDER INTAKE AND ORDER BOOKS

Order intake for the period under review totalled EUR 505.0 (493.9) million, while period-end order books were valued at EUR 163.2 (199.1) million.

DISTRIBUTION NETWORK

With focus on sales and maintenance, the organisation is divided into five market areas: 1) Nordic countries and the Baltics; 2) Central and Southern Europe; 3) South America; 4) North America; and 5) Asia, Australia and Africa.

R&D AND CAPITAL EXPENDITURE

Group’s R&D expenses during the period under review totalled EUR 18.2 (17.9) million, of which EUR 5.5 (6.7) million was capitalised.

Investments during the period under review totalled EUR 17.2 (16.9) million. In addition to capitalised R&D expenses, they consisted of investments in buildings and ordinary investments in machinery and equipment.

PERSONNEL

The Group had an average staff of 2,073 (2,103) during the period under review and employed 2,112 (2,057) people at the end of the period.

SHARE-BASED INCENTIVE PLANS

The Board of Directors of Ponsse Plc approved two new Ponsse Group’s share-based incentive plans for the Group’s CEO and key employees in 2023. A stock exchange release regarding the incentive plans was published on 3 March 2023. The aim of the new plans is to align the objectives of the shareholders and plan participants for increasing the value of the company in the long-term, to retain the participants at the company and to offer them competitive reward schemes that are based on earning and accumulating the company’s shares. The Board of Directors of Ponsse Plc decided on new performance periods of share-based incentive plans in April 2025 and published a stock exchange release about them on 25 April 2025.

The CEO Performance-Based Share Ownership Plan

The CEO plan consists of five performance periods, calendar years 2023, 2023-2024, 2023-2025, 2024-2026 and 2025-2027. A restriction period is included in performance periods 2023 and 2023-2024, which begins from the reward payment and ends on 31 December 2025. The matching reward will be paid by the end of May 2024, 2025 and 2026. The matching shares delivered as a matching reward cannot be transferred during a restriction period that will end on 31 December 2025, 31 December 2026 and 31 December 2027. The performance-based reward will be paid by the end of May after the end of each performance period.

In year 2025, a total of 5,301 shares worth EUR 145,155 were paid for the 2024 performance period, with a cost impact of EUR 0.3 million for the company. A stock exchange release concerning these was issued on 30 June 2025.

During the performance period 2025-2027 of the CEO Performance-Based Share Ownership Plan, the rewards are based on the group’s operating result, revenue, personnel satisfaction and injury frequency (LTIF). The amount of rewards to be paid based on the performance period 2025-2027 will correspond to an approximate maximum total of 50,000 Ponsse Plc shares, including also the portion to be paid in cash (gross reward). The matching shares delivered as a matching reward cannot be transferred during a restriction period that will end on 31 December 2027. The performance-based reward will be paid by the end of May 2028.

The payment of rewards under both the conditional and performance-based shareholding plans requires that the person’s employment relationship continues.

Key Employee Performance-Based Matching Share Plan

The key employees’ plan consists of three performance periods, each lasting for three calendar years: 2023–2025, 2024–2026 and 2025–2027. The prerequisite for participating in the performance period and receiving the reward is that the key employee participating in the plan acquires shares in the company at the beginning of the performance period. Ponsse delivers matching shares for the performance period in a 2:1 ratio: the key employee receives one (1) additional share for every two (2) shares they have acquired. The conditional reward will be paid in 2023, 2024 and 2025 after the acquisition of the investment shares and confirmation of the reward, as soon as practically possible. Shares received as conditional rewards may not be transferred during the restriction periods ending on 31 December 2025, 31 December 2026 and 31 December 2027. The performance-based reward will be paid by the end of May following the end of each performance period. The portion of the maximum reward to be paid to a participant is determined based on the achievement of the targets set for the earning criteria in relation to the investment made by the participant. The target group includes key employees, including the members of the Group Management Team, with the exception of the CEO.

The rewards for the 2023–2025 performance period of the key employees’ matching share plan are based on the Group’s operating result, net sales and employee satisfaction. The accident frequency rate has been added to the terms of the 2024–2026 and 2025–2027 performance periods. The rewards to be paid for the 2025–2027 performance period are estimated to correspond to no more than 60,000 Ponsse Plc shares (net reward). In addition, the company will pay the taxes and statutory social security contributions incurred by the participants in connection with the payment of the rewards. During the period under review, the costs related to the 2023–2025, 2024–2026 and 2025–2027 performance periods of the share based incentive plans amounted to a total of EUR 0.6 million.

For the performance periods that started in 2023, 2024 and 2025, the total cost impact of the share-based incentive plans for the CEO and key employees is estimated to be around EUR 4.9 million for 2023–2027.

SHARE PERFORMANCE

The company’s registered share capital consists of 28,000,000 shares. The trading volume of Ponsse Plc shares for 1 January – 30 September 2025 totalled 616,300, accounting for 2.20 per cent of the total number of shares. Share turnover amounted to EUR 16.2 million, with the period’s lowest and highest share prices amounting to EUR 19.55 and EUR 32.00, respectively.

At the end of the period, shares closed at EUR 26.60, and market capitalisation totalled EUR 744.8 million.

At the end of the period under review, the company held 4,812 treasury shares.

ANNUAL GENERAL MEETING

A separate release was issued on 8 April 2025 regarding the authorizations given to the Board of Directors and other resolutions at the AGM.

SUSTAINABILITY

Ponsse has determined key sustainability targets for its business operations. Their implementation is promoted through annual function-specific targets and measures as part of the company’s strategy process. Ponsse works to improve its people’s well-being, create innovative sustainable solutions that respect nature, develop its operations without burdening nature, and be a reliable partner that values community.

During the third quarter, the company’s Board of Directors reviewed and approved the double materiality assessment as part of the company’s annual strategy process. This assessment forms the basis for Ponsse’s sustainability reporting and guides the company’s operations, as well as the sustainability weightings of resources.

During the review period, environmental auditing was integrated into the ESW (Effective and Safe Workshop) audit program of the Ponsse service network. The program assesses the performance of service centers in terms of customer service, competence, safety and environmental aspects. At the same time, the company's waste guidelines were extended to country organisations to support the goal of reducing waste volumes by 40% and increasing the recycling rate to 70% by 2030. During the review period, the company introduced a vehicle procurement policy as part of its emissions reduction roadmap. Vehicles represent the largest category of emissions from Ponsse's own operations (Scope 1 and 2), and the company aims to reduce these emissions by 42% by 2030.

During the review period, the company's management participated in diversity training, which aims to develop a culture of equality and non-discrimination that is in line with the company’s values. The company continued to communicate actively about safety.

In the third quarter, Ponsse opened a new service center in Peyrat-le-Château, France. The property investment improves the local service level and working conditions, and it also takes environmental aspects into account. The service center is powered by a rooftop solar plant, while rainwater collected through a harvesting system is used for washing machinery and in sanitary facilities. The premises operate on renewable electricity. The new premises also support the development of the circular economy in the region. In France, Ponsse is centralising the storage and refurbishment of used machines in Peyrat-le-Château.

According to the Trust & Reputation 2025 survey conducted by Reputation and Trust Analytics, Ponsse is the second most reputable company in Finland. The study assessed companies from the perspective of eight reputation dimensions. Ponsse ranked as the best company in the areas of products and services, sustainability, and management. Private investors ranked Ponsse as the most reputable company in Finland. These recognitions strengthen Ponsse’s position as a reliable and respected operator.

In the EthiFinance sustainability assessment, Ponsse’s overall score rose to 61/100 (53/100) points. Governance and environmental responsibility emerged as the company’s strongest sustainability areas in the assessment.

RISK MANAGEMENT

Our risk management is based on the company’s values and strategic and financial goals. The purpose of risk management is to support the company’s strategic objectives and to secure its financial development and the continuity of its business. Ponsse’s management conducts an annual risk assessment that includes the sustainability risks and opportunities impacting the company’s business. Within them, aspects related to climate change, biodiversity, and resource efficiency together with digitalisation and technological development are emphasised.

The purpose of risk management is to identify, assess, and monitor business-related risks that may impact the realisation of the company’s strategic and financial objectives or the continuity of business. This information is used to decide what measures will be required to prevent risks and respond to current risks.

Risk management is part of the company’s daily business and has been incorporated into its management system. Risk management is directed by the risk management policy approved by the Board of Directors.

A risk is any event that may prevent the company from achieving its objectives or threatens the continuity of business. A risk may also be a positive event, in which case the risk is treated as an opportunity. Each risk is assessed on the basis of its impact and probability. The company’s risk management methods include the avoidance, mitigation, and transfer of risk. Risks may also be managed by controlling and minimising their impacts.

SHORT-TERM RISK MANAGEMENT

The most significant short-term risks are related to the global geopolitical situation, relatively weak economic development and uncertainty about the development of the interest rates on financing. The geopolitical situation is also reflected in trade policy through possible special tariffs and protectionism. Financial market disruptions, sanctions and growing cybersecurity threats are adding to the uncertainty. The risks in the financial market may increase fluctuations in developing countries’ foreign exchange markets, and continued instability of the global economy and growing financial costs may also reduce the demand for forest machines.

In this challenging situation, Ponsse’s strong financial position is important. In terms of financing, Ponsse has carried out all measures necessary to ensure business continuity, and its financing situation is regularly assessed. The key objective of the company’s financial risk management is to ensure liquidity and manage interest rate and currency risks. The company’s financial position and liquidity have remained strong as a result of binding credit limit facilities agreed with several financial institutions. The impact of interest rate risks is reduced by means of credit linked to different reference rates, as well as interest rate swaps. The risk of currency rate fluctuations is partly mitigated through derivative contracts.

The parent company monitors the changes in the Group’s internal and external trade receivables and the associated risk of impairment. The company has long-term and extensive service contracts, which may involve operational risks.

Changes taking place in the fiscal and customs legislation in countries to which Ponsse exports may hamper the company’s export trade or reduce its profitability. Global supply chain disruptions can make it more difficult to manage PONSSE forest machine production schedules, in addition to tying up more capital in the company’s supply chain and increasing the risks related to working capital management.

Ponsse has strengthened cybersecurity by further specifying its software and hardware update policy and user manuals. The ability to detect and respond to abnormal activity in data networks has been improved, and the company’s digital services are regularly tested for cyberattacks in cooperation with an expert partner. The implementation of the NIS2 Directive on cybersecurity has proceeded on schedule.

OUTLOOK FOR THE FUTURE

The company’s euro-denominated operating profit is estimated to be slightly higher in 2025 than in 2024 (EUR 36.8 million).

Economic uncertainty is expected to continue and affect demand for both forest industry end products and forest machinery. Trade policy, the geopolitical situation and economic uncertainty create a challenging operating environment where cost discipline and appropriate investment planning are in the focus.

We invest in customer relations and strong customer service and improve our efficiency by introducing unified and cost-effective practices in line with new operating model. Investments will continue to be prudent: we will develop new products and digital services and strengthen our sales and service network appropriately. Other investments will be assessed on a case-by-case basis. We monitor cost development closely and will respond as required by the situation.

The status of Ponsse Brazil’s Full Service contract, which is expiring at the end of 2026, is under close scrutiny, and we will be able to specify the adequacy of the provision in the last quarter of the year until the end of the contract period.

EVENTS AFTER THE PERIOD

There are no other known events after the end of the reporting period that would require either adjustments to the information presented for the period under review or disclosure of additional information.

PONSSE GROUP

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (EUR 1,000)
 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (EUR 1,000)
 

CONSOLIDATED STATEMENT OF CASH FLOWS (EUR 1,000)
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (EUR 1,000)
 

*) Treasury shares procured for incentive schemes

NOTES TO THE RELEASE FOR THE INTERIM REPORT

The stock exchange release for the interim report has been prepared observing the recognition and valuation principles of IFRS, but some of the IAS 34 requirements have not been complied with. The interim report has been prepared applying the same accounting principles as for the annual financial statements dated 31 December 2024, except for the IAS/IFRS standard and interpretation changes that entered into force on 1 January 2025. These standard and interpretation changes did not have a material impact on the interim report.

The figures presented in the stock release have not been audited.

The figures presented in the stock release have been rounded and may therefore differ from those given in the official financial statements.

The company monitors changes in US customs policy and continues to analyse the impact of import duties. Sales in the United States accounted for approximately 10 percent of the Group’s net sales during the period under review. Import duties will not have a significant impact on the Group’s profitability in 2025, as the company has mainly delivered and invoiced customers for machines that were already in the country and in stock.

This communication includes future-oriented statements that are based on the assumptions currently made by the company’s management and its current decisions and plans. Although the management believes that the future expectations are well founded, there is no certainty that these expectations will prove to be correct. This is why the results may significantly deviate from the assumptions included in the future-oriented statements as a result of, among other things, changes in the economy, markets, competitive conditions, legislation or currency exchange rates.

 

The Group has recognized a provision in the item of other provisions based on a Full Service contract entered into by the Brazilian subsidiary as the fulfilment of the contractual obligations is estimated to generate expenses that exceed the expected economic benefits obtained from the agreement. The provision has been measured based on the best possible estimate of the expenses arising from the fulfilment of the obligations on the closing date.


 

FORMULAE FOR FINANCIAL INDICATORS

Return on capital employed, %:
Result before taxes + financial expenses
---------------------------------------------------------------------------------------------------------------------
Shareholder´s equity + interest-bearing financial liabilities (average during the year) * 100

Average number of employees:
Average of the number of personnel at the end of each month. The calculation has been adjusted for part-time employees.

Net gearing, %:
Interest-bearing financial liabilities – cash and cash equivalents
-----------------------------------------------------------------------------------
Shareholders’ equity * 100

Equity ratio, %:
Shareholders’ equity + Non-controlling interests
------------------------------------------------------------------------
Balance sheet total - advance payments received * 100

Earnings per share:
Net result for the period - Non-controlling interests
-----------------------------------------------------------------------------------------------------------
Average number of shares during the accounting period, adjusted for share issues

Equity per share:
Shareholders’ equity
---------------------------------------------------------------------------------------------
Number of shares on the balance sheet date, adjusted for share issues

Order intake:
Net sales for the period + Change in order books during the period


Vieremä, 21 October 2025

PONSSE PLC

Juho Nummela
President and CEO

FURTHER INFORMATION
Juho Nummela, President and CEO, tel. +358 400 495 690
Petri Härkönen, CFO, tel. +358 50 409 8362

DISTRIBUTION
Nasdaq Helsinki Oy
Principal media
www.ponsse.com

Ponsse Plc is a company specialising in the sales, manufacture, servicing and technology of cut-to-length method forest machines and is driven by genuine interest in its customers and their business. Ponsse develops and manufactures sustainable and innovative harvesting solutions based on customers’ needs.

The company was established by forest machine entrepreneur Einari Vidgren in 1970, and it has been a leader in timber harvesting solutions based on the cut-to-length method ever since. Ponsse is headquartered in Vieremä, Finland. The company’s shares are quoted on the Nasdaq Nordic list.