Koskisen\u2019s revenue increased by 15.5% to \u20ac300 million in the first nine months of 2026, but adjusted EBITDA fell by 25.6% to \u20ac16.9 million. The adjusted EBITDA margin narrowed to 5.6% from 8.7%. After substantial investment in sawmilling and panel production, the Finnish group is generating more business while retaining less of each euro in sales.<\/p>\n
The immediate commercial challenge is to make that additional activity more profitable. Higher production can spread fixed costs over more cubic metres, but expensive logs, rising logistics costs and limited room to increase selling prices can absorb the gains. Koskisen\u2019s proposed reorganisation follows this difficult transition from installing capacity to securing the returns expected from it.<\/p>\n
The deterioration is particularly pronounced in sawn timber. Deliveries of sawn timber and processed products rose by 31% to 416,700 m\u00b3 in January\u2013September, while divisional EBITDA fell to \u20ac5.5 million from \u20ac12.2 million. The comparison includes a longer contribution from Iisveden Mets\u00e4, acquired in June 2025. However, the third quarter also recorded higher deliveries alongside weaker earnings: volumes increased by 19.1%, while EBITDA declined to \u20ac1 million from \u20ac2.6 million.<\/p>\n
Management\u2019s October update described the pressure on the business. Harvesting and wood transport costs had increased by around 10% over the preceding year, while sawn timber prices slipped slightly from the previous quarter. Customers in Central Europe were ordering according to immediate requirements. Koskisen considered log prices too high relative to finished-product prices, leaving little room for margin recovery through increased sales alone.<\/p>\n
The investment programme was intended to improve the economics of production. Over five years, Koskisen invested nearly \u20ac90 million in the J\u00e4rvel\u00e4 sawmill and closely integrated operations. New channel kilns commissioned in June increased drying capacity by approximately 15%, supporting an increase in annual sawn timber production from around 400,000 m\u00b3 towards 450,000 m\u00b3. Removing that bottleneck should allow the company to use its existing production infrastructure more efficiently and reduce average production costs.<\/p>\n
Those benefits take time to achieve. In October, Koskisen said production per shift at J\u00e4rvel\u00e4 had improved only slightly during the third quarter and remained below target. A further upgrade to the dry-sorting line is scheduled for the year-end shutdown. For 2027, management expects to concentrate on smaller improvements linked to investments already completed.<\/p>\n
Panels provided some relief in the latest quarter, with EBITDA recovering to \u20ac1.8 million from \u20ac0.2 million a year earlier. The division is also absorbing a substantial investment programme. Koskisen\u2019s 2025\u20132027 plan aims to raise plywood capacity from 65,000 m\u00b3 to 85,000 m\u00b3. A first phase costing approximately \u20ac12 million was completed in December 2025, followed by a second phase of around \u20ac7 million focused on veneer processing, quality and productivity. Automation is central to the programme, making changes to working practices and organisation part of the investment\u2019s implementation.<\/p>\n
The employee negotiations announced on 10 November extend that adjustment across the Finnish organisation. Approximately 800 employees are covered by discussions that could result in up to 40 positions being eliminated or materially and permanently changed. Temporary layoffs are also under consideration. The proposed measures cover functions in both the panel and sawn timber businesses, with negotiations expected to conclude by the end of 2026.<\/p>\n
The proposed changes put more of the responsibility for earnings recovery on measures management can control: production efficiency, staffing and the organisation of work around newer equipment. These measures can improve the return on existing assets, although their effect will depend on how much of the saving survives high wood costs and customers\u2019 resistance to higher prices. Koskisen has expanded its ability to produce. The next test is whether it can earn an adequate margin on that production.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":100628,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-100627","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n