Finnish wood products group Koskisen increased sales sharply in the first half of 2026, helped by substantially higher sawn timber deliveries, but the additional volume translated into much less profit as expensive logs and weaker by-product prices continued to squeeze the sawmill business.<\/p>\n
Group revenue reached \u20ac209.4 million<\/strong> in January-June, up 19% from \u20ac176.0 million a year earlier. Adjusted EBITDA, however, fell 29% to \u20ac14.0 million, reducing the margin from 11.2% to 6.7%. Operating profit dropped 56% to \u20ac5.8 million, while net profit fell from \u20ac9.2 million to \u20ac3.0 million.<\/p>\n The divergence became particularly visible during the second quarter. Revenue rose 16.3% to \u20ac104.4 million, while adjusted EBITDA declined 27.6% to \u20ac7.4 million. Operating profit was \u20ac3.3 million, less than half the \u20ac7.0 million recorded in April-June 2025.<\/p>\n Source:<\/strong> Koskisen Half-Year Report 2026.<\/p>\n Koskisen's Sawn Timber Industry generated \u20ac125.9 million of revenue during the first six months, compared with \u20ac96.2 million in the same period last year, an increase of 30.9%.<\/p>\n Deliveries of sawn timber and processed products climbed 42.6% to 281,200 m\u00b3 from 197,200 m\u00b3. Second-quarter deliveries alone reached 140,700 m\u00b3, up 47.3% year on year. The comparison is affected by the inclusion of Iisveden Mets\u00e4 from June 2025, although Koskisen said organic revenue growth in the segment was 33% during the first half.<\/p>\n The much larger volume base did not produce a corresponding improvement in earnings. Sawn Timber Industry EBITDA fell to \u20ac4.5 million in January-June from \u20ac9.6 million a year earlier, while the EBITDA margin dropped from 10.0% to only 3.6%.<\/p>\n The deterioration was even sharper in the second quarter, when the segment generated EBITDA of \u20ac1.6 million on \u20ac61.3 million of revenue. A year earlier it had earned \u20ac4.2 million on revenue of \u20ac47.5 million. The quarterly EBITDA margin consequently fell from 8.9% to 2.6%.<\/p>\n For a sawmill business selling substantially more timber, that margin compression says a great deal about the present economics of Finnish production.<\/p>\n Raw material remains the central problem. Koskisen said softwood log purchase and delivery prices increased from first-quarter levels and remained high during Q2. More importantly, the company said the price level did not correspond to conditions in the sawn timber market.<\/p>\n Average selling prices for sawn timber were also below last year's levels. Higher logistics costs added another burden, while the uncertain market made it difficult to pass the full increase in production costs on to customers.<\/p>\n The result is a familiar problem for Nordic sawmills in 2026: mills can move timber, but the relationship between log costs and finished-product prices remains difficult.<\/p>\n Koskisen nevertheless reported some improvement in market activity towards the end of Q2, particularly for processed sawn timber products. Overall demand for sawn timber remained around the previous year's level, with weak construction activity continuing to restrict consumption.<\/p>\n The pressure is not limited to sawlogs. Falling prices for sawmill by-products have reduced the contribution normally generated from material outside the main sawn timber output. Koskisen reported that average prices for pulpwood and chips had fallen clearly, while pulpwood prices in the Finnish wood market were substantially below their level a year earlier.<\/p>\n This creates an uncomfortable combination for sawmills: the principal raw material remains expensive while some of the products generated alongside lumber are worth less.<\/p>\n Koskisen specifically identified lower pulpwood and chip selling prices, together with high raw-material and logistics costs, as factors behind the weaker profitability of the Sawn Timber Industry. Log prices stabilised towards the end of the quarter, but remained high. Wood procurement itself was not a problem, with inventories and reserves at planned levels.<\/p>\n Despite the margin pressure, Koskisen is preparing to put more lumber onto the market.<\/p>\n New channel kilns at the J\u00e4rvel\u00e4 sawmill were completed in June and are now being ramped up. Together with additional energy capacity, the investment is intended to allow the mill to move towards annual sawn timber production of 450,000 m\u00b3<\/strong>.<\/p>\n Reaching that level will require higher average production per shift. Modernisation of the dry sorting plant is also still under way, with another stage planned during the production shutdown around the turn of the year.<\/p>\n The investment is significant in the present market because Koskisen is increasing its production capability at a time when its sawmill margin has already narrowed to only 3.6% for the first half. The company is effectively relying on higher throughput and, eventually, a better relationship between lumber prices and raw-material costs rather than responding to the current squeeze by restricting production.<\/p>\n The picture is less severe in Koskisen's Panel Industry.<\/p>\n First-half revenue increased 4.6% to \u20ac83.4 million, while EBITDA declined 15% to \u20ac9.5 million. The segment's EBITDA margin remained at 11.4%, compared with 14.1% a year earlier.<\/p>\n During Q2, panel revenue was \u20ac43.0 million and EBITDA \u20ac5.6 million, giving a margin of 12.9%. Birch plywood demand strengthened and selling prices increased slightly, while chipboard remained affected by weak construction demand.<\/p>\n Birch log availability was sufficient for planned production, leaving Koskisen in a relatively comfortable procurement position entering the second half.<\/p>\n Koskisen enters H2 with plenty of wood, substantially higher sawmill deliveries and additional J\u00e4rvel\u00e4 capacity coming on stream. What it does not yet have is a sawn timber price level capable of comfortably absorbing current softwood log costs.<\/p>\n That distinction is visible in the numbers. Sawn timber and processed-product deliveries rose more than 40% during the first half, while sawmill EBITDA fell by more than half.<\/p>\n Koskisen still expects full-year 2026 revenue to exceed the 2025 level of \u20ac354.9 million. It also expects the adjusted EBITDA margin to remain below the 8.1% achieved last year.<\/p>\n For the Nordic lumber market, the more interesting question for the second half is therefore not whether Koskisen can produce and sell more timber. Its first-half figures show that it already can. The question is whether softwood lumber prices can improve enough \u2014 or log costs ease sufficiently \u2014 for those additional cubic metres to generate acceptable margins.<\/p>","protected":false},"excerpt":{"rendered":" Finnish wood products group Koskisen increased sales sharply in the first half of 2026, helped by substantially higher sawn timber deliveries, but the additional volume translated into much less profit as expensive logs and weaker by-product prices continued to squeeze … Continue reading \n\n
\n \nKoskisen \u2013 key figures<\/th>\n H1 2026<\/th>\n H1 2025<\/th>\n Change<\/th>\n<\/tr>\n<\/thead>\n \n Group revenue<\/strong><\/td>\n \u20ac209.4m<\/td>\n \u20ac176.0m<\/td>\n +19.0%<\/strong><\/td>\n<\/tr>\n \n Adjusted EBITDA<\/strong><\/td>\n \u20ac14.0m<\/td>\n \u20ac19.8m<\/td>\n \u221229.1%<\/strong><\/td>\n<\/tr>\n \n Operating profit<\/strong><\/td>\n \u20ac5.8m<\/td>\n \u20ac13.2m<\/td>\n \u221256.3%<\/strong><\/td>\n<\/tr>\n \n Sawn Timber revenue<\/strong><\/td>\n \u20ac125.9m<\/td>\n \u20ac96.2m<\/td>\n +30.9%<\/strong><\/td>\n<\/tr>\n \n Sawn timber & processed product deliveries<\/strong><\/td>\n 281,200 m\u00b3<\/td>\n 197,200 m\u00b3<\/td>\n +42.6%<\/strong><\/td>\n<\/tr>\n \n Sawn Timber EBITDA<\/strong><\/td>\n \u20ac4.5m<\/td>\n \u20ac9.6m<\/td>\n \u221252.7%<\/strong><\/td>\n<\/tr>\n \n Sawn Timber EBITDA margin<\/strong><\/td>\n 3.6%<\/td>\n 10.0%<\/td>\n \u22126.4 pp<\/strong><\/td>\n<\/tr>\n \n Panel Industry revenue<\/strong><\/td>\n \u20ac83.4m<\/td>\n \u20ac79.7m<\/td>\n +4.6%<\/strong><\/td>\n<\/tr>\n \n Panel Industry EBITDA<\/strong><\/td>\n \u20ac9.5m<\/td>\n \u20ac11.2m<\/td>\n \u221215.0%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Sawn timber deliveries rise above 280,000 m\u00b3<\/h2>\n
Log prices remain disconnected from the sawn timber market<\/h2>\n
Lower pulpwood and chip prices remove another source of margin<\/h2>\n
J\u00e4rvel\u00e4 moves towards 450,000 m\u00b3<\/h2>\n
Birch plywood holds up better<\/h2>\n
Higher volume is not yet solving the margin problem<\/h2>\n