Raute (RAUTE) Q3 2025 earnings summary

Executive summary

• Achieved strong profitability in Q3 2025, with a comparable EBITDA margin of 15.0% (EUR 6.5 million), continuing a positive trend in operational execution.

• Order intake rebounded to EUR 38 million in Q3, but the order book at period-end was EUR 108 million, down from EUR 188 million a year earlier.

• All business units were profitable, with wood processing delivering exceptional results and record-high EBITDA margin.

• Strategic restructuring, including closure of the China factory, improved efficiency and cost-effectiveness.

• Guidance for 2025 was updated: net sales guidance lowered due to delayed order realization, but EBITDA guidance raised on strong profitability.

Financial highlights

• Q3 2025 net sales were EUR 43.7 million, down 5.8% year-over-year, with 73% from Europe.

• Comparable EBITDA for Q3 was EUR 6.5 million (up 4.2%), margin 15.0% (up from 13.5%).

• Operating profit for Q1–Q3 2025 was EUR 12.9 million, including China exit costs; adjusted operating profit would exceed EUR 16 million.

• Q3 EPS was EUR 0.69 (down from 0.74), with a higher effective tax rate; Q1–Q3 EPS was EUR 1.53 (up 3.4%).

• Operating cash flow for Q3 was negative, impacted by net working capital changes; cash and cash equivalents at period-end were EUR 29.6 million.

Outlook and guidance

• 2025 net sales now expected at EUR 175–190 million (previously EUR 190–220 million); comparable EBITDA guidance raised to EUR 22–27 million.

• Guidance revised due to successful project deliveries but delayed revenue recognition into 2026.

• Market expected to gradually normalize and improve towards 2026, though volatility in order intake is anticipated.

• New change negotiations in Finland announced post-Q3, targeting proactive cost management.