On 10 October 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 Q3/2025 Interim Report begins on October 14, 2025. The Interim Report for January-September 2025 will be published on 14 November 2025 at 8:30 a.m. EET. A Finnish-language webcast will follow at 10:00 a.m. EET, with the link to be provided later.

Q3/2025 – Key Questions and Answers

MARKET

Q: Has the market demand for birch plywood met expectations, and have there been any changes?
A: Market demand for birch plywood has been moderate and somewhat weaker than expected. There have been no major changes in demand.

Q: Do you see any price pressure for birch plywood in light of the demand/supply dynamics?
A: No significant changes are expected in birch plywood price levels in either direction.

Q: Are there any signs of recovery in particleboard demand?
A: The recovery of the construction sector is still pending, and therefore no signs of improvement in particleboard demand have been observed so far.

Q: In your view, have the EU’s measures to prevent imports of Russian birch plywood been effective over the summer?
A: Overall, imports of Russian plywood have not had a major impact on Koskisen’s plywood sales. Russian plywood is still being imported into Europe through several different channels. Import volumes have been reduced to some extent, but in parts of the European market, Russian plywood still plays a significant role.

Q: How has the demand for sawn timber developed after the summer season, and has it met expectations? Have you seen any signs of recovery in construction activity in your target markets?
A: Demand for sawn timber has been roughly in line with forecasts. Immediately after the summer season, demand remained moderate, but a slight improvement was seen towards the end of the quarter. Unfortunately, a broader recovery in construction activity is still yet to materialize.

Q: Do you still see any upward potential in sawn timber prices in light of the current demand/supply situation?
A: For the third consecutive year, we have seen the same pattern in sawn timber prices: a slight increase in the spring, followed by a decline in the autumn. The same trend appears to be repeating this year. The market situation for pine and spruce differs somewhat — a shortage of spruce logs caused by pest issues in Central Europe, southern Sweden, and the Baltics is affecting the supply-demand balance for spruce. Overall, no significant changes in sawn timber price levels are expected in either direction.

Q: In your view, have tariffs altered global sawn timber trade flows?
A: The effects of the tariffs are still unclear at this stage, but it appears that European producers are not facing any major competitive disadvantage from the U.S. tariffs.

Q: Have there been any changes in customers’ inventory levels?
A: Customers’ inventory levels remain low across all wood product categories. It is evident that customers are avoiding unnecessary stockpiling and are purchasing largely based on immediate needs in the current uncertain market environment.

Q: There have been strategic reviews launched in the industry, for example concerning plywood production. Do you see attractive expansion opportunities in these developments?
A: Koskisen is pursuing a systematic growth strategy, which includes evaluating various opportunities. We do not comment on individual assessments.

Q: Have the recent wood procurement partnerships established in the industry had any impact on your own wood sourcing?
A: Any potential impacts will become clearer over time. Naturally, various bilateral agreements may alter established raw material flows.

PRODUCTION

Q: How did your order books develop during the quarter, taking normal seasonality into account? Did you observe any variation within the quarter — improvement or weakening toward the end of the period?
A: In the Panel Industry, order books developed moderately but steadily. In the Sawmill Industry, after a slow start following the European holiday season, activity gradually picked up, and the quarter showed some improvement toward its end.

Q: How did the maintenance shutdowns proceed, and how long were the facilities closed?
A: In the Panel Industry, the summer shutdown lasted three weeks, during which normal maintenance work was carried out and equipment installations related to the ongoing investment program were advanced. Some of the installations were delayed from the planned schedule, which affected the third quarter’s volumes and the average price of delivered products. In the Sawmill Industry, the summer shutdown lasted two weeks, during which normal maintenance work was performed. The restart of the Järvelä sawmill went clearly better than in the previous year.

Q: Have the benefits of the investments materialized as planned on the sawmill side?
A: The benefits of the investments have materialized as planned. The gradually improving operating rate at the Järvelä sawmill is generating higher sales volumes and by-products, as well as increasing the average sales price. It also enhances the efficiency of raw material use, resources, and maintenance. The log yard built alongside the sawmill further improves raw material yield and directly reduces logistics costs significantly. The annual logistics cost savings began to materialize immediately after the log yard was commissioned earlier this year. The existing drying capacity at the Järvelä sawmill currently limits sawing volumes. Work continues to further improve shift-specific production efficiency and several other key performance indicators.

Q: How is the investment to increase drying capacity at the final stage of production progressing?
A: The investment is proceeding as planned: foundation work is currently underway, and equipment installations will begin after the turn of the year. The new capacity is scheduled to be commissioned during Q3/2026.

Q: How has the investment program in the Panel Industry progressed?
A: The final equipment installations scheduled for this year will be completed in December, and part of the implemented investments has already been taken into production use.

Q: How is the district heating pipeline project progressing, and when do you expect it to be operational?
A: Construction of the district heating pipeline connecting the production facilities in Järvelä is progressing as planned. The pipeline is expected to be fully operational in early spring 2026. The integration of the district heating networks will enable synergies in heat generation at both mill sites. Increasing heat energy capacity, together with the drying investment, will also make it possible to raise sawmill production volumes beyond the current level of 400,000 m³ in the future.

Q: How has the integration of Iisveden Metsä progressed, and have you already been able to coordinate market-specific production between the mills?
A: The integration work has progressed well and according to plan. Key production control and financial systems were successfully integrated during Q3. Work to harmonize operating practices continues, as does the optimization of production across different products and markets.

Q: Have you identified efficiency improvement opportunities as the integration of Iisveden Metsä has advanced?
A: Yes, efficiency opportunities have been identified, for example in the harmonization of operating practices in sales and production. One key improvement area relates to enhancing delivery reliability at the Iisvesi sawmill.

WOOD PROCUREMENT

Q: How does the energy wood market look for the remainder of the year? Are inventories of energy fractions still significantly elevated in the value chain following last winter?
A: Demand in the energy wood market has been more moderate due to somewhat higher-than-normal inventory levels at heating plants that use forest-based energy. Weather conditions during the upcoming heating season will influence demand development over the next six months.

Q: How strong do you expect price pressure on energy fractions to be during the heating season compared with last year?
A: Prices have declined somewhat from the peaks of the previous heating season but remain at a good level when viewed over a longer time horizon.

Q: There has been a clear decrease in wood prices, especially for pulpwood. How has the situation looked in your own sourcing (availability, prices), and what are your expectations for the rest of the year?
A: Yes, we have seen a decline in wood prices. We expect the price level to continue decreasing from the current level towards the end of the year. Lower raw material costs are reflected in our operations gradually, as inventory is typically rotated starting from the oldest stock.

Q: What are the main drivers behind potential price pressure on sawlogs?
A: The reduced wood consumption by the industry is also reflected in the price of wood raw material.

Q: According to recent reports, timber trading activity in Finland has slowed down in recent months. Have you noticed any changes in your own wood procurement operations in this respect?
A: Raw material sourcing has proceeded according to plan, and sufficient volumes have been available during Q3, even though the wood market has been quieter than in the spring period.

Q: What is the current situation regarding your wood reserves and inventories?
A: Wood reserves and inventories are at a good level and in line with targets, providing flexibility in wood purchasing when needed.

For more information, please contact:
Sanna Väisänen, Director, Sustainability and Communications, Koskisen Corporation
sanna.vaisanen@koskisen.com
tel. +358 20 553 4563

Koskisen is an international wood processing specialist and known for its agility and ability to listen to the customer. We utilise our valuable wood raw material as thoroughly as possible, up to the last particle of sawdust. At the same time, we bring the best carbon narrative to life: We manufacture high-quality and sustainable products that store carbon for decades. The Group’s revenue in 2024 was EUR 282 million. Read more: koskisen.com