Raute (RAUTE) Q1 2026 earnings summary

Executive summary

• Operational performance remained strong despite intensified global economic and geopolitical uncertainty, leading to continued postponement of customer investments and delayed order intake recovery, which totaled EUR 17 million compared to EUR 15 million in Q1 2025.

• Net sales declined 35.5% year-over-year to EUR 33.5 million, reflecting low order intake in 2025 and reduced customer activity.

• Profitability in the Wood Processing unit stayed strong, aided by reversal of project-related cost provisions, while Services and Analyzers underperformed due to lower sales volumes.

• Temporary layoffs in Finland were expanded to manage costs proactively, with similar measures available globally.

Financial highlights

• Net sales for Q1 were EUR 33.5 million, down 35.5% year-over-year due to a lower starting order backlog.

• Comparable EBITDA reached EUR 4.2 million (12.6% margin), down from EUR 7.4 million (14.3%) in Q1 2025, considered exceptional given the low sales volume, mainly due to operational efficiencies and project cost releases.

• Operating profit was EUR 2.8 million (8.3% margin), compared to EUR 5.9 million (11.3%) last year.

• Order book at quarter-end was EUR 81 million, down from EUR 146 million a year ago.

• Operating cash flow was EUR -5.3 million, compared to EUR 2.8 million in Q1 2025, with cash tied into net working capital, now at EUR 7 million.

Outlook and guidance

• Net sales guidance for 2026 narrowed to EUR 125–160 million (previously EUR 135–170 million) due to low Q1 order intake and intensified global uncertainty.

• Comparable EBITDA guidance for 2026 remains at EUR 10–19 million, supported by strong Q1 profitability and planned cost management actions.

• Management remains cautious about market recovery timing but expects eventual improvement based on historical cycles.

• 2028 targets require both organic recovery and inorganic growth (M&A), with profitability targets on track.