Koskisen Corporation: Pre-silent period call – Q&A on key themes for Q1 2025

On 7 April 2025, Koskisen Corporation held a pre-silent period call for analysts following the company. This press release summarizes the key questions and answers discussed during the call.

The silent period preceding the publication of Koskisen’s Q1/2025 Interim Report begins on April 8, 2025. The Interim Report for January-March 2025 will be published on 9 May 2025 at 8:30 a.m. EEST. A Finnish-language webcast will follow at 10:00 a.m. EEST, with the link to be provided later.

Q1/2025 – Key Questions and Answers

MARKET

Q: Has the demand for panel products met your expectations and the normal seasonality of the industry in Q1? How did order flows for panel products develop during Q1?
A: Yes, the demand for panel products has met expectations, although the market has still been slightly challenging, especially in Central Europe, and followed the normal seasonality of the industry during Q1. Order flows for panel products have remained mostly stable. In the already low-demand segment of chipboard, a slight uptick in demand was observed.

Q: Has the demand for sawn timber met your expectations and the normal seasonality of the industry in Q1? How did order flows for sawn timber develop during Q1?
A: Yes, the demand for sawn timber has met expectations and the normal seasonality of the industry during Q1. Order flows for sawn timber have remained mostly stable.

Q: Are there any significant changes coming or expected in product prices? If so, what are the drivers of change?
A: No significant changes are expected in the price levels of panel industry products, and any potential changes would be market-driven. The price level of panel products remained the same in Q1 compared to the previous quarter. For sawn timber, prices increased slightly in deals agreed for Q2/2025.

Q: Have any new thoughts or perspectives emerged recently regarding expectations for the recovery of the construction industry?
A: Recently, there has been a slight improvement observed in the construction industry. However, recent changes in the operating environment may have a slowing effect on the recovery.

Q: What kind of impact do tariffs and duties have on the markets for sawn timber, plywood and chipboard?
A: Based on current information, tariffs and duties do not apply to sawn timber and panel products exported from the EU. However, general uncertainty is increasing, and this may indirectly affect the demand for these products.

PRODUCTION

Q: Have there been any layoffs or other unusual shutdowns during Q1?
A: Employees in birch plywood production were laid off for one week during Q1. In panel production, there were no shutdowns beyond those that were planned. There have been no layoffs or other unusual shutdowns in sawn timber production.

Q: How has the investment program in the panel industry started off?
A: The investment program has started as planned. Currently, the planning phase is underway for investments scheduled for this year. Equipment deliveries and installations are set for the second half of the year—some during the summer shutdown and the rest between September and December. The 2025 investments will focus, among other things, on automating and modernizing drying, coating, and putty filling processes.

Q: Has visibility into the summer season for sawn timber changed in any way during Q1?
A: Developments in the global sawn timber market during Q1 have been in line with expectations.

Q: What is the status and development of the new sawmill’s production in Q1? How many shifts are in use?
A: We have been able to maintain the previously achieved annual target production level. Recently, we have also seen improvements in production levels across shifts. A key metric we monitor is the average production and operating rate across all shifts. The sawmill is still primarily operating on three shifts.

Q: How is the commissioning of the log yard progressing?
A: The log yard was commissioned as planned in February. The new log yard significantly improves material and cost efficiency in sawmill production and reduces logistics-related costs and emissions.

Q: Is the old log yard now completely out of use, and what benefits have been gained from the new yard?
A: The old log yard remains in use by the Panel Industry, located on the same site. The newly completed log yard adjacent to the sawmill enables us to sort logs into more categories based on log diameter. This improves material efficiency and supports production and sales planning as well as production efficiency: we can run the optimal raw material for each customer order. Receiving logs on the same site as the rest of the Sawn Timber Industry’s operations eliminates the current transportation costs of moving logs between two separate sites.

Q: How is the Kore business expansion progressing in Poland, and how is the unit’s volume development?
A: Equipment installation at the new unit was completed last year, and the ramp-up to industrial-scale production has been finalized. Volumes have developed according to plan.

Q: What is the status of the Iisveden Metsä business acquisition?
A: The general meeting of Iisveden Metsä approved the business acquisition at the end of March. We are currently awaiting approval from the competition authorities in both Finland and Estonia. The business acquisition is expected to be completed by the end of the second quarter.

Q: What benefits do you see in the business acquisition?
A: The acquisition is a key part of Koskisen’s sustainable growth strategy, which aims to grow the Group’s revenue to EUR 500 million by the end of 2027 through both organic and inorganic growth. If realized, this acquisition supports both: it directly increases the Sawmill Industry’s revenue by approximately one third, and on the other hand, it secures raw material availability and enables organic growth in the Panel Industry.

Q: What kind of investment needs does Iisveden Metsä have in its production?
A: We do not foresee a need for major investments in the short to medium term.

WOOD SOURCING

Q: Have there been any surprises in the development of the wood market during Q1 compared to your expectations?
A: There have been no major surprises in the development of the wood market. Supply was reasonable, and prices remained relatively stable, although at a very high level. In the case of birch, the strongest demand pressure has eased, which has been reflected in slightly lower price levels.

Q: Have winter harvesting operations in Southern Finland proceeded normally during Q1?
A: Winter harvesting has been partially carried out as normal. However, due to the mild winter, the weakest-bearing winter sites could not be accessed.

Q: What is the current status of wood reserves and inventories?
A: Wood reserves and inventories are at a good level and in line with targets. Raw material supply has proceeded as planned.

Q: What is the general sentiment among forest owners? Have the capacity closures and change negotiations within the industry caused concern among them?
A: In our view, there have been no major changes in the sentiment of forest owners. The first quarter of the year is traditionally a quiet period in terms of wood supply.

Q: The price of sawlogs appears to be creeping slightly upward. Will less wood be purchased during Q2 than usual?
A: Purchasing activity will continue as normal. However, the good level of reserves and inventories allows for flexible procurement while avoiding price peaks.

Q: How significantly did the mild winter affect energy and by-product sales?
A: Naturally, the mild winter had a dampening effect on the volumes of energy and by-product deliveries, but the price level remained stable. The seasonality of energy product sales was reflected in the first-quarter results of the Sawn Timber Industry segment.

For further information:
Sanna Väisänen, Director, Sustainability and Communication, Koskisen Corporation
sanna.vaisanen@koskisen.com
tel. +358 20 553 4563

A wood-wise pioneer of sustainable wood processing, Koskisen is known for its quality sawmill and panel industry products. We utilise valuable wood raw material down to the last particle of sawdust. We manufacture high-quality and sustainable biocircular products that bind carbon for decades. The Group’s revenue in 2024 was EUR 282 million. Read more: koskisen.fi