Welcome to Raute's full year 2025 financial review session. My name is Mika Saariaho, I'm Raute's CEO, and together with our CFO Ville Halttunen, we'll go through the highlights of Raute's performance in 2025 and also some more details on on the last quarter performance in particular.

You have a chance to ask questions at the end of this session. We'll go through the presentation first.

You can post the questions if you are participating online on the chat box, and and also if there's questions from the live audience here, we can use the microphone to ask questions. You can ask the questions both in English and and Finnish.

Very good. Let's get started.

If we look at some of the highlights for Raute Q4 and overall for 2025, I can I think we can say that we had a very strong operational execution in, I would say, challenging market environment. We actually achieved very good financial result.

Our profitability was on a on a very good level. This was true for the whole year, and but also in particular actually for the last quarter of the of the year.

This was very much due to the strong operational execution. We've done quite significant efficiency improvement in our ways of operating.

We have optimized our supply chain, and and of course we keep on focusing on safety as a as a highest priority for us. We've been very successful in in those those areas.

We see that in the net sales there was a drop compared to 2024. This was very much due to the fact that the market environment has been very challenging.

The order intake in the first part of the year '25 was very low, and this actually then had a consequence on the net sales that we realized in in 2025. Despite this declining top line, the profitability was on a very good level.

Comparable EBITDA was €26.1 million, and in fact this is the highest comparable EBITDA ever in in Raute's history. The previous record was from 2024, we've seen actually very good profitability development in Raute over the last couple of years.

The EBITDA margin on a comparable level was 14.9%, which is actually very good profitability for for our type of business. Profitability was very much driven by the Wood Processing, our biggest business unit, which had a very strong year and the last quarter as well.

I would say Services did also well. Analyzers were a little bit more suffering from the low volumes, and and it was a challenging a challenging year for for Analyzers in in '25.

We've also had to do some tough decisions obviously, but necessary decisions to balance our capacity throughout the year, we had some temporary layoffs in various parts of the organization. Obviously, something we have to do in order to secure the profitability of of our our our company when we are operating in this quite volatile project environment.

If we look at Q4 in in in a little bit more details, net sales actually dropped quite a bit. There was a low-ish realization of the net sales from the backlog that we had.

This was some The reason was the timing of the projects. The key big projects that we are working on in our in our daily delivery are progressing very well.

Since they are progressing very well, we were actually able to release some of the cost reservations for those projects, and therefore the profitability actually was on a very high level. I would almost say and I could say that it's a little bit exceptionally high level in in in Q4.

However, this was not exceptional items, it was truly because of the operational work that we've been doing and the savings we realized in the into in the project work. Very good achievement on on in that sense.

We do maintain our longer-term financial objective to have EBITDA margin over 12% average over cycle, so that remains as a as a key target. Then very importantly on this challenging market environment which we have all experienced, which is driven by the facts that we know that are there in the world: the global trade war, geopolitical tensions, downturn in the construction market.

We ever anyway believe that we have now passed the lowest point from our point of view in this cycle, but we should anticipate, we should expect that the volatility will persist still for the for the time being. We know that it's it's very volatile environment overall in the world at the moment.

Some of the key figures here, I think I already mentioned Q4 net sales, EBITDA. If we look at the order intake, €25 million in Q4, which is a bit low-ish number, I should say.

We had more than or close to €40 million in in Q4, which was I I would say quite good quartile already, but I think the volatility between the quarters is also to be expected, so this was the result in Q4, and and we'll see then what happens in the quarters to come. The order intake for the full year, €91 million, is also quite low if we compare to the history, past history.

We had a very strong years couple of years ago. We'll have a look at that in a bit more details in a short while.

Order book, €98 million, which is the starting book now for 2026 as we move forward. Very strong balance sheet and and about 700 people working at at Raute.

Looking at order intake a little bit in more details, here we see the performance during the last 5 years for different quarters also. We see the very high peak we had in '23 when we booked many of these big mill-size orders.

Since that, the fact is that we've had lower in order intake. Also the world has been very turbulent during the last couple of years, and this is the result we can see in our our order order intake.

So €91 million is is low compared to this last 4 4 years. The new orders we got were actually this time coming quite from all all around the world, so normally there has been domination in Europe and North America.

This time there were also orders from from Asia-Pacific Pacific regions. If we look at the order book, €98 million of course has been coming down from the '23 high figures that we had, but still of course on a longer-term horizon, this is totally not not totally unheard of as a as a Raute's order backlog starting the year.

This is what it is, and and after these challenging years, we do believe now that the the lowest point should be should be over, and we we've seen that now in in in Raute's performance as well from the orders point of view. However, the quarterly fluctuations are likely to remain.

Net sales, €176 million is a quite significant drop from last year, from '24, I mean. Still, this is a high level for for Raute, and big part of that coming from Europe.

We know that there are big delivery projects in in Europe in the delivery phase, and those are progressing well and and generating most of the or big part of the the revenue that we we have generated in 2025. Then looking at the results, on the comparable EBITDA level, this is very good performance.

We are very happy with the full-year profitability, comparable EBITDA close to 15%, and and fourth quarter, as I already mentioned, was exceptionally high, 15.8% is a is a very high high number for for us, and we are happy, very happy about that, even more so since it was not coming from exceptional items, not related to operations, but this truly was an operational operational performance of of of Raute. Operating profit, here we see the big change that has taken place in Raute during the last 5, 6 years.

We had this very challenging years, 2021, '22. We experienced inflation, we experienced the war in in Ukraine when we lost half of the business that Raute was active in, and then '23, '24, very nice turnaround.

'24 was all-time record net sales and and profitability, and now we broke the new record in profitability. Net sales came down a little bit.

Personnel, roughly 700 people working at Raute at the end of the year. This has been coming down.

This is partly explained or big part is explained by the closure of our China operations in '25. Those that personnel, which is 50, around 50, 50-plus people are not in the payroll account anymore, and then there has been some other reduction in the personnel as well when we have streamlined and made made the operations more more efficient.

Looking at the different segments, if we start from Wood Processing, this truly has been an excellent performance for Wood Processing business unit in '25. We are very happy about that and proud of that.

The full-year net sales did come down, more than €20 million down, it was €124 million, but the comparable EBITDA for the full year was 14.8%, close to Raute average overall. Of course, as the biggest unit has has a big influence also on the on the average comparable EBITDA that we have.

This is a good margin for for project-based business, and and we've been able to deliver the projects better than actually anticipated in the start of those those projects. Services also came down, and and but I I think Services has been still little bit more stable, and it's it's a good good business for Raute, and I think on the profitability side, I'm happy also, very happy with with the Q4 performance.

It was a high margin for for us, and for the full year also, 17.5% margin is is improvement from '24 figure. It's not yet the peak performance that we can achieve on this business, there's clearly more potential, but this is a good achievement in this these market conditions in particular.

The new concepts that we have on the digital services, performance-type of contracts, those are those are getting traction and important when we move forward in in this business. Then Analyzers, this this was the most difficult year for Analyzers, significant drop on the net sales, 40% down, close to 40% down in Q4, and we see that the profitability actually in Q4 went to negative territory, which is of course not at all ideal and not not sustainable.

However, full year still profitable, 7.2% margin on a sales which was €13 million. This just proves that actually on the Analyzers the volume is now so low that with this volumes, unfortunately, we are not making much much better or much money in or profits in Analyzers business.

However, there's a really significant volume lever in in Analyzers business. When we get more volume up, almost very significant part goes to the bottom line of of that business.

I'm I'm quite optimistic still on the on the potential on this business, and there are very good things coming in the Analyzers. I've also said it earlier that Analyzers plays very important role for the overall success of Raute.

Many investments that we are doing in Analyzers, in the research and development, which are actually then in a in a cost of Analyzers, are actually generating profits for Wood Processing business and then also for Digital Services as an example. We have not really cut any significant money from the research and development in this area.

We believe that the the volume will come back and and when the market recovers. As a one light in the tunnel also for Analyzers, I should say that there was actually quite good order intake for Analyzers in the in the fourth quarter of '25, the overall order intake was 25, but there was relatively speaking quite significant part Analyzers orders this time in in the in the fourth quarter, which is good good sign, of course, for this this business.

This was maybe the overview of the different businesses and overall for Raute, and I hand it over to Ville to go through a little bit more.

Right. Thank you, Mika.

Right, my name is Ville Halttunen, I'm CFO for Raute, and I'll I'll deep-dive a bit into into the financials of Raute in the Q4. I'll start from the earnings per share.

Our strong operational execution was also reflected into EPS, which increased 19% in in in Q4 against last year, and primary driver is the higher operating profit in the quarter. No big events below comparable EBITDA, so finance net and taxes broadly in line with our normal levels.

For the full year, we made comparable EPS of €2.70, which is a significant increase against last year. Regarding cash flow, we ended the year with very strong cash flow, close to €13 million in Q4, clearly higher than the EBITDA of €5.5 million we did.

As reminder, it's quite typical in our business that the cash flow is quite volatile, and now we had a a positive impact coming from net working capital change close to €8 million in the quarter. When we look at the net working capital, we ended the year at -€1 million, which which means now that in the in the fourth quarter there was close to €8 million positive impact coming from the net working capital.

It's quite normal changes that are they they can be quite significant, the the changes in the net working capital in our business. Then for the full year, we have actually now tied close to €30 million of cash into into net working capital as we started from very negative level the year.

This is obviously very much visible in our full-year cash flow statement as well. Historically overall now, the level where we are, it's close to historical average levels, but obviously big volatility is also expected as we move forward from here.

Our balance sheet strengthened further, we we ended now the equity ratio over 65% at the year-end, and liquidity is more than €40 million and and no no liabilities if we exclude the leasing IFRS liabilities, this enables us execution of growth strategy as we have also highlighted earlier. There is also now proposal of increasing dividend and share buyback program that Mika will reflect later on.

Also in the report now we we wrote now that we we have also renewed our financing facilities after the period, we have extended the the credit limits from from previous €5 million to to €15 million, which gives us further flexibility in in our financing as we move forward from here. The investment level for the full year, we we ended the year with €4.6 million of investments in totality, clear increase against last year.

This is very much in line with our our plans. We have renewed some of our equipment in our supply chain globally, and and that done some other targeted investments, which we believe that are improving our efficiency in the future.

Then R&D cost, overall no no big events there, closing the year with close to €5 million of R&D expenses in totality. Overall, very strong financials for Raute, and it's it's very very very solid base to move forward from from financial standpoint from from here.

I'll I'll close it here and leave it back to to Mika to close with the business environment and outlook.

Thank you, Ville. If you look at the outlook for this year, for '26, first of all on the business environment, the business environment has been challenging in '25, and it remains to be very volatile.

Obviously this global economic, geopolitical uncertainties are affecting our customers' investment decisions at the moment. It's not so much about the tariffs, for example, for Raute business, it's really more about whether the customers have the confidence to make the investments in this market environment.

We know that in the fourth quarter, looking at that in a little bit more detail, still this global construction industry recession sustained, I would say, globally. There are variations between different regions, but this is still the main message overall.

Of course construction business is key customer segment for our customers. There are expectations of improvements in the near term, but uncertainties remain.

Nobody really knows. If we look at the market from technology providers' point of view, we also see that the competition is getting more aggressive.

Maybe not a big surprise because of the big volatility in the market and uncertainty, everybody's fighting for these cases. We do have our unique competitive advantages as Raute.

I don't see any changes or worsening of that position from this point of view. Our capabilities to really look at the overall process of the total production, deliver integrated production line and even mill-level projects is a unique in our industry.

Competitors typically focus on specific line or parts of the solution. We believe that in this kind of holistic approach, which is very important for our customers in many cases, we have a unique advantage.

We also see that the growing role of business as service business and also, I would say, Analyzers opportunities there in the market, and especially when the market recovers, I think the Analyzers will be having good opportunities to capture from the market. However, even if this is the case and there's a lot of uncertainties, we do have active discussions with our customers in Europe, in North America.

Some customers are preparing for market to recover, they are considering new capacity, and then improvements in their process efficiencies, and those discussions are taking place. I would say, repeating what I said in the beginning, we believe in 2026 the market already has passed the lowest point, but the volatility will be there.

For Raute, this means that I would say even on a quarterly basis, even a quarter is a quite short period to look at the volatility. There still can be from one quarter to other quarter quite big volatility when it comes to our orders or also, of course, then to realize the net sales from the backlog.

This probably will remain. Uncertainties there.

We are also very well positioned, of course, as a company as Ville was explaining now in this quite turbulent or volatile environment. We have a exceptionally strong balance sheet at the moment, and over the last couple of years we have quite significantly improved the internal operations, the delivery capabilities, our commercial capabilities, our supply chain management capabilities.

I'm very confident that we are able to weather the storm in this environment also quite nicely. This is leading to the financial guidance for 2026.

We are expecting to have net sales which is in the range of €135 to €170 million. As a reminder, in '25 it was now €175.5 million, we are expecting decline in the net sales.

Not very big surprise if we look at the starting backlog, which is €98 million, and year ago it was close to €200 million, there's a significant drop, of course, in the starting order backlog. We still have, of course, significant part coming from the new orders that are coming and are expected in 2026.

That is true especially for Services business, so that is a big variance there. For Analyzers, the new orders can still come even towards the end of the year, and they will still contribute to 2025 numbers.

Then Wood Processing also, I would say, especially the first half of the year still can significantly contribute to 2025 sorry, 2026 numbers. Not sure what year I said, but the first half '26 still will have a big impact on the full year '26 net sales outcome.

This is the guidance on net sales, and then on comparable EBITDA, also quite wide range, I admit that, from €10 to €19 million of comparable EBITDA when in 2025 it was 26.1. This is the guidance.

We believe that we will hit somewhere within that range, and hopefully during the year we are able to narrow this range then when we move forward. That was the intent for last year as well, and this is the approach we try to follow.

Then one more comment on dividend. Of course our policy is that we aim to pay stable and sustainable dividend over different market conditions.

Our board of directors is proposing to the AGM that the dividend of €0.65 per share would be paid. This is the proposal.

You can see here in the chart the dividend payouts from the previous years. '24 it was 55 cents, and now the proposal is 65 5 cents.

Then I would say importantly, the board has decided, and that's something the board can decide, it's not going to the AGM, but the board has decided that we will initiate the share buyback program. This is similar program to what we actually started in '24 as well.

Maximum 100,000 shares, maximum euro value €1.5 million. That is starting now very very soon, and we'll take some time of course to be completed, but that is realizing now.

It's also one way to payback to our shareholders some value, we believe. Very good.

Those were the highlights of '25. If I still summarize in one or let's say two sentences, I'm very happy on what we accomplished in 2025.

Financial results were, I dare to say, excellent in terms of financial result. Top line, we see pressure there obviously, and it went down, but we were able through our own efficiency and good work to weather the storm in that sense, the change in the top line.

We are also now very very well positioned for 2026. We believe we have seen that, but the uncertainty and volatility in the market is likely to continue, and that's the environment where we are operating.

Thank you very much. Now we actually have time for some questions if there are anything online and there is also here in the audience.

Let's start from the audience here, go ahead.

Hi, it's Antti Viljakainen from Inderes. Starting from Analyzers business and maybe also Modernization segment in Services, do you think that the recently weak revenue performances driven only by external market conditions, or have you any kind of internal issues or, well, losing market share or anything like that?

There were two businesses. If we look at the Services, actually the answer is true for both.

I don't think there's significant or change in the market in terms of our competitiveness or opportunity to offer solutions. I would rather say that we are coming up with new ideas which are actually in this environment like this performance-type of contracts, subscription-type of models for us and our customers, which in this market environment we've learned take a little bit longer time that we would hope.

Let's put it that way. We think that these are win-win concepts, and for example in the Analyzers on the subscription side, we already have some subscription-type of businesses.

When this comes big enough of volume, of course, will be good for Raute. It is also good for customers because they then have always the latest and greatest AI software, for example, in their machines.

I think those concepts are taking a little bit more time to realize, and that has been part of the reason why the volumes have been down, but mainly it's just because market has been difficult. Nobody has really been winning much cases last year.

Then

about price competition, what's your strategy regarding that? Are you looking for similar kind of margins you made with these five big orders that yielded excellent financial results, or are you willing to give up something to drive the top line and growth?

On those big projects, I would say that we've been operationally very successful, and that's why the margin is very good. We had this statement that we are not changing the overall longer-term financial goal, which is 12% over cycle.

Obviously one could say that this was a little bit the over-cycle moment now in Raute in '25, but that 12% should be very, very realistically achievable, let's put it that way. That's what we also expect to get.

On the sales margin side, we've been always doing strategic and tactical pricing. In some areas where really the advantage we bring to the case is so significant, the value pricing also works much better, and it makes sense for us and our customers.

We are also very tactical in some cases where the competition is then having something or the customer needs something different. That will continue, and that's been normal practice.

I would expect, as we said, the competition at the moment is tougher, I would maybe say that there is a some percentage-point kind of pressure in the margins at the moment. However, I would also need to continue, market can also change quite fast.

Normally what has happened is that then when really the recovery starts, it's so fast that technology providers are also running out of capacity. That will also then quite fast reflect in the pricing and the pricing position of technology providers.

Not one answer, but everything is open and we'll play accordingly.

Yeah. Running out of capacity would be very positive problem.

Then finally on demand and order prospects, do you see any difference between plywood and LVL segment regarding demand and order outlook?

I would say that it seems like LVL is doing overall very strong almost everywhere, LVL, so that's very strong. Then on the plywood side, it seems like birch plywood is actually doing very well, many of our customers are making good profits also in birch plywood area.

On the plywood, I would say then the softwood plywood is really the one which is most suffering in this environment. LVL very strong, birch plywood because of the special applications that the birch plywood also has a quite good prospects.

I would say that those are good trends for us because those are the most advanced or should I say most difficult engineered wood products materials to manufacture, and they require really the most advanced technology as well, where we are very strong in our offering.

Thank you.

Okay.

Joonas Ilvonen from Evli. You already touched on this, but if I may come back to it.

Obviously you have been very successful in managing and delivering these wood-processing projects. Now you did 16% EBITDA margin even with a relatively low sales volume, but if I annualize this €36 million sales volume, I get €145 million, which is actually quite close to your 2026 revenue guidance midpoint.

Then your guidance basically suggests only 9.5% EBITDA margin. I was just wondering, does this reflect that when it comes to these wood-processing projects, you have not only been very successful with the project execution and cost management, but also with higher pricing, you booked these large mill-scales projects almost 3 years ago, did you also have a nice pricing tailwind back then because I think historically these larger projects haven't maybe been that attractive from a margin perspective.

Was there a major difference there compared to historical Raute, and you talk about this new pricing environment, how do you see the attractiveness of larger and smaller equipment orders from sales margin perspective? Are there any differences?

Yeah. Big questions.

If I start from this project margin, as I said, maybe the one way to think about that is that we expect some result obviously as sold margin for the project. Now it's been more successful.

Maybe we cannot really assume that we will be more successful for the next phase of the project than what we normally have been. This is not the proof enough for us to start really using the percentage of completion with the higher margin.

We have that cautiousness there. Of course, if it then happens that we are equally successful that we were in 2025, maybe there's some upside.

Of course normally there's then always downside from what we are anticipating, so that's why the estimate is what it is. Then on the commercial development, I think maybe I talked also earlier that when I joined 3, 3.5 years ago, we did actually put quite a bit effort on the commercial development.

It's really not about prices only or necessarily on prices, it's about terms and conditions on what we are delivering to our customers, having also better open discussion with the customer, what is the expectation, because all this kind of unclarities then normally realize during the project as a cost. When unclarities are minimized, that also then enables better business for us, but also actually also better business for our customers because they are then able to plan their ramp-up volumes better without the same kind of uncertainty.

I think it's a win-win. Yes, we have put quite a lot of effort into commercial side and now also then, of course, on the operational side, but commercial side is important consideration.

Now, as I said, there is some pressure overall on the price, but I said this is not only the only argument anyway, it's about terms and conditions and what we are delivering and what way. Those all matter to our customers as well.

Okay. Your competitive edge is in delivering these larger mill-scale projects, but these smaller equipment orders, even though there's more price competition, you have not lost competitiveness?

I don't think so. There's always been areas where we are more competitive and less competitive.

If you think about just specific areas of the process. Also, it varies a little bit geographically because many times competitors are such that they operate only in certain geographical area.

Also the competitive situation is different in different areas. I don't see any major changes here this or that way.

We are winning a little bit more in some areas and a little bit less in some areas, but that's I would say within the very normal variation of our type of business.

Okay. You already discussed the decision-making processes of your European and American, I mean US customers.

What about Latin America? That can sometimes also be a pretty significant market for you.

How is Latin America looking at the moment?

Yeah. At the moment, I would say Latin America, they they they are a little bit struggling at the moment, our customers.

There are some very big producers there who are not only active in engineered wood products, but they are active in pulp and paper and other areas. Their business model in in plywood is typically based on the assumption of exporting that into US USA.

They are actually suffering a little bit at the moment, so I think that area is having maybe relatively speaking more difficulties than maybe the Europe or or North America customers at the moment. Also Asian customers then have a little bit different dynamics because they they have also as a target market maybe Australia or Japan, they might have this kind of an other region, not just the USA as a as a market.

This USA has an and that's why it's so important what whatever happens there because it impacts the whole global picture quite quite immediately.

Okay. Thanks, that's all from me.

Very good.

All right,

any questions online?

Yes, we have a few questions here, Raute has guided a wide range of net sales this year. Is the lower end of guidance estimated to be without any mill-wide orders?

That's one question.

I think I should maybe say that it depends on at which date this mill project comes, because in any scenario, for example, if it happens that we get a mill-size order during the Q4, end of Q4 2026, it will not contribute to net sales much at all, I think that's a little bit difficult to say. Then again, if we would get something very soon, then of course it would have an impact on 2025 volume as well.

That's that consideration. Of course the low end then assumes many of the not-so-nice things happen, and the high end assumes that some of the nice things happen, it's something in between then.

Right, then there's a question on our history. Is this now longest period without new mill-wide orders in Raute's history?

Do you remember?

That I can't remember, because we have 118 years of history, maybe our CFO is able to...

Not that I remember now the full history of Raute either, but I think it's already quite long, last time that we announced was the Amberbirch that happened in

'24

in Q1, so that it's already now

2 years.

So... Yes.

Yeah. Typically I would say

typically we have this rule of thumb that normally we get one or 1.5 mill-size orders every year on average over a longer time, now it's been 2 years without. Of course, just before that we got one four, and we had €315 million of orders, and it all happened almost during the 12 months, anything can happen.

It's quite volatile.

Yeah. Then it's a bit of follow-up on this same topic.

Do you expect potential new mill-wide orders to provide same profitability as current still ongoing large orders, or has the, for example, competition changed?

Competition has a little bit changed, as I explained. Competition is tougher.

If there's a customer who is considering a full new mill-size order, there is not many providers of that kind of thing if customer wants it from one source, which is the fully optimized, automated and the most modern plant, there's basically Raute. The option for customer is then to start having a piecemeal on that, so that does have an impact, of course, on how we negotiate, how we discuss about the value of this investment with our customers.

I think we are having a strong position in those cases if those are about to realize.

All right, that's all from the chat, no more questions.

Very good. Thank you very much for all the questions.

Thank you for participating, and thank you for following us through 2025. Of course '26 has already started, we will meet you soon when we talk about the Q1 outcome then later in the spring.

Thank you very much. Goodbye.

Thank you.