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Introduction & Market Context
Koskisen Ltd (HEL:KOSKI) shares jumped 6.84% to €7.02 on May 9, 2025, after the Finnish wood products company reported strong first-quarter results showing significant revenue growth and improved profitability. The company highlighted record-high sawmill production levels and progress on its strategic acquisition plans during its Q1 2025 interim report presentation.
CEO Jukka Pahta delivered the presentation, emphasizing the company’s improved profitability despite ongoing challenges from high raw material costs. The results demonstrate Koskisen’s progress toward its 2027 strategic targets while navigating industry-specific headwinds.
Quarterly Performance Highlights
Koskisen reported impressive financial results for Q1 2025, with revenue increasing 35.4% year-over-year to €86.3 million. Adjusted EBITDA surged 71.6% to €9.5 million, with the EBITDA margin expanding to 11.0% from 8.7% in Q1 2024. Operating profit nearly doubled, rising 99.2% to €6.2 million, while profit for the period increased 85.4% to €4.2 million. Basic earnings per share rose to €0.18 from €0.10 in the comparable period.
As shown in the following financial summary chart:
The company’s strong financial position was detailed in a comprehensive table showing improvements across most metrics:
Performance varied significantly between business segments. The Sawn Timber Industry was the standout performer, with revenue increasing 67.9% to €48.7 million and EBITDA jumping to €5.4 million from €0.7 million in Q1 2024. This dramatic improvement was attributed to higher sawn timber prices, increased delivery volumes, and efficiencies from the new sawmill.
The record quarter in sawmill production is illustrated in this chart:
The company’s new sawmill has already achieved approximately 65% of its targeted €8 million EBITDA improvement. Key contributors to this improvement include increased utilization rates and decreased transportation costs of €1.4 million.
As shown in the following progress chart:
Meanwhile, the Panel Industry segment faced more challenging conditions. While revenue increased modestly to €37.5 million from €34.7 million in Q1 2024, EBITDA declined to €4.5 million from €5.3 million. The company attributed this decline to high raw material costs and increased general production costs, while noting that demand for birch plywood products remained moderate.
The contrasting performance between segments is illustrated here:
Strategic Initiatives
A central element of Koskisen’s growth strategy is the acquisition of Iisveden Metsä’s business operations, which was approved by both the Annual General Meeting and competition authorities. The transaction is expected to be completed during the first half of 2025.
This acquisition will significantly expand Koskisen’s capacity, increasing annual wood procurement volume to approximately 1,900,000 m³ (with Iisveden Metsä contributing about 400,000 m³) and sawing capacity to approximately 540,000 m³ (with Iisveden Metsä adding roughly 140,000 m³).
The strategic rationale and expected impact of the acquisition are shown here:
The company emphasized that this acquisition supports its strategic target of increasing group revenue to €500 million by the end of 2027. The transaction will directly increase Sawn Timber Industry revenue by about one-third while ensuring raw material availability for the Panel Industry segment.
Koskisen also highlighted progress on other growth investments. The new production plant for the Kore business in Skwierzyna, Poland, was completed as planned, and the investment program for domestic plywood and chipboard production is proceeding on schedule. The total value of investments planned for 2025 is approximately €12 million.
The company’s synergistic business model was presented as a key source of value creation:
Forward-Looking Statements
Koskisen reaffirmed its strategic targets for 2027, including reaching €500 million in revenue (compared to €282.3 million in 2024) and achieving an adjusted EBITDA margin averaging 15% (compared to 8.6% in 2024). The company also emphasized its commitment to maintaining a strong balance sheet and an attractive dividend policy of distributing at least one-third of net profit annually.
The company’s progress toward these objectives is summarized in this chart:
Regarding raw material procurement, Koskisen noted that while procurement proceeded as planned during Q1, raw material purchase prices remained high. Wood raw material reserves and stocks were at a higher level at the end of the quarter compared to the same period last year. Pulpwood and energy wood prices remained stable, though the warm winter slightly reduced energy wood delivery volumes.
Competitive Industry Position
Koskisen highlighted its integrated business model as a competitive advantage. The company’s strategy leverages synergies between its Wood Procurement, Sawn Timber Industry, and Panel Industry segments. Scaling up sawmill operations increases wood procurement volumes, which in turn produces raw materials for the Panel Industry as a side stream. This integration is designed to improve overall competitiveness through volume efficiency and optimized resource utilization.
The acquisition of Iisveden Metsä is expected to bring significant synergy benefits by complementing Koskisen’s customer base and target markets. The consolidation of sawmill operations should enable greater value creation for customers, while the expanded wood procurement area is well-suited for birch sourcing, supporting growth in the Panel Industry segment.
Despite these positive developments, Koskisen continues to face challenges from high raw material costs, particularly in the Panel Industry segment. The company’s ability to manage these cost pressures while executing its growth strategy will be crucial for achieving its 2027 targets.
Full presentation:
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