A busy autumn trade fair season supported the order flow in the third quarter. Despite the challenging market conditions, the order intake increased from the comparison period to EUR 170.4 (143.4) million. Production at our Vieremä factory remained at a high level given the market environment, yet our order books grew slightly, standing at EUR 170.5 (163.2) million at the end of the review period. The order books extend partly into next year.

Market uncertainty continued, and customers made their investment decisions with great caution. Rising fuel prices also weighed on our customers’ profitability in almost every market. Low levels of construction and private consumption continued to affect demand in the forest industry, and consequently impacted Ponsse’s customers. Among our market areas, the Nordic countries and Europe were the most active, although demand remained clearly below normal levels.

The company’s net sales decreased by 7.4 per cent year-on-year in the third quarter to EUR 159.8 (172.7) million. The net sales of new machines and maintenance services fell from the comparison period. The change in the net sales of maintenance services was driven by the expiry of the Full Service agreement in Brazil and weaker demand caused by deteriorating market conditions. The net sales of used machines remained at the level of the comparison period. Epec continued on its strong growth path.

Our relative profitability was weak in the third quarter, standing at 3.7 (5.6) per cent. The operating profit was supported by customs duty refunds of EUR 3.5 million recognised in the US country organisation’s result. Excluding this non-recurring item, operational profitability stood at a very weak level. Profitability was weighed down in particular by lower-than-expected invoicing for new machines and maintenance services, as well as rising cost levels. The reported operating profit was EUR 5.9 (9.6) million.

The cash flow for the review period was EUR -1.3 (4.4) million. Used machine sales picked up year-on-year, but the level of sales was not sufficient to turn inventories downwards. Inventories of new machines also grew, as invoicing fell short of expectations. However, the company’s solvency remained very strong, and the equity ratio at an excellent level.

Despite the challenging situation, we will continue our determined investments in sales and maintenance services, as well as in product development and digital solutions. There is strong momentum across our organisation, and our strategic development projects are progressing according to plan. At the same time, we are tightening cost discipline and prioritising our activities even more carefully. Factory capacity will be adjusted during the remainder of the year to match market conditions, and the goal for sales is to strengthen the order books for 2027 and at the same time promote the secondhand machine sales.