In the early part of the year, the forest machine market showed signs of picking up. Market developments continued to be overshadowed by geopolitical uncertainty and trade policy tensions, yet forest machine sales developed strongly during the first quarter. The order flow slightly exceeded the good level of the comparison period, with orders received totalling EUR 193.3 million. At the end of the period, the company’s order books stood at EUR 169.9 (187.7) million.

Sales of Ponsse’s new forest machines developed favourably during the review period, particularly in Sweden, but also in Central Europe and Latin America. The Finnish market, on the other hand, was challenging due to the tight market situation in the forest industry, the exceptionally early spring and the thawing period. In North America, sales developed better than expected given the circumstances, and the Canadian market also showed signs of picking up. However, uncertainty remained significant and caused delays in customers’ investment decisions.

The first quarter was operationally challenging. Due to the weak order books early in the year, the factory operated below capacity for the first nine weeks of the year, which was reflected in the invoicing of new machines. The company’s net sales decreased by around 10% from the previous year and amounted to EUR 166.8 (185.4) million in the review period. Invoicing of both new and used machines was lower than in the comparison period, while net sales from maintenance services remained at the previous year’s level. The net sales of Ponsse’s technology company Epec increased significantly during the review period.

Profitability remained low as a result of the lower net sales. Cost discipline was successfully maintained, and the operating cost structure did not increase during the review period. Relative profitability was 0.9% (7.1).

The cash flow for the review period was EUR 7.7 (15.9) million. The challenging market situation continued to be reflected in used machine sales, and the current sales level was not yet sufficient to reduce inventory levels. The company’s solvency remained very strong, and Ponsse’s equity ratio developed favourably.

The situation in Brazil developed positively. The challenging Full Service agreement will end considerably earlier than expected, during the second quarter. Ponsse has performed its contractual obligations responsibly throughout the contract period, and the termination of the contract is being carried out in agreement with the customer. The provisions made in connection with the agreement proved to be sufficient.

The strong order flow early in the year increased the company’s order books, and the factory moved to two shifts and a five‑day working week after 9 March 2026. The factory’s capacity utilisation is currently at a normal level. Sales have developed exceptionally well given the circumstances, and the overall momentum across the organisation is clearly strong.

We have been serving harvesting professionals since 1970. Last year, we celebrated Ponsse’s 55th anniversary at numerous different events around the world, and this year we are delighted to mark milestone anniversaries in Britain (30 years) and Denmark (20 years). During the current year, we will meet customers widely at international trade fairs and forestry events, where we will also present new solutions and product features. These interactions bring us close to our local customers and allow us to hear their views and feedback, supporting our continued development and manufacture of the world’s best forest machines.