On 9 October 2026, Koskisen Corporation held a pre-silent period call for analysts following the company. The key questions and answers from the call are published in this press release.

The silent period preceding the publication of Koskisen's Interim Report for Q3/2026 begins on 13 October 2026. The Interim Report for January–September 2026 will be published on 12 November 2026 at 8:30 a.m. EET. A Finnish-language webcast will begin at 10:00 a.m. EET on the day of publication. The link to the webcast will be published later.

Q3/2026 – Key Questions and Answers

MARKET AND OPERATING ENVIRONMENT

Q: How have demand for sawn timber and the product mix developed during Q3 relative to your expectations and normal seasonality?
A: Demand for sawn timber has been in line with our forecast and normal seasonality, but remains weak overall.

Q: How has sawn timber pricing developed during Q3, and do you see rising inflationary pressure affecting pricing dynamics in the market?
A: Sawn timber prices declined slightly from the previous quarter. Weak demand continued to make it difficult to pass higher costs on to prices.

Q: How has birch plywood pricing developed during Q3, and do you see pressure for price changes?
A: Birch plywood prices increased slightly from the previous quarter. The uncertain market situation continues to slow the full pass-through of cost increases to market prices.

Q: How has the birch plywood sales mix developed in Q3, and has this affected the average price compared with Q2?
A: There were no significant differences in the birch plywood sales mix between Q2 and Q3. The average price increased slightly from the previous quarter.

Q: Have there been any changes in the demand situation? Are there geographical differences in demand?
A: There have been no significant changes in demand in either direction. In the US, long-term mortgage rates have continued to rise, which has had a significant impact on local demand. The US accounts for a third of the global sawn timber market, so weak demand there is also reflected elsewhere in the world.

Q: Has the rise in market interest rates affected your view on construction sector demand and recovery for the rest of the year and 2027?
A: The downturn in the construction sector has continued, and demand for wood products used in construction has remained moderate. The recovery of the construction sector continues to depend largely on how consumer confidence develops. At present, rising interest rates are delaying the recovery of demand, particularly in residential construction and renovation.

Q: There has recently been extensive news coverage of positive economic expectations for 2027 and beyond. Have you seen signs of optimism in customer behavior, such as more requests for quotation or other inquiries?
A: Positive economic expectations have not yet materialized in our sales channels. On the contrary, recent interest rate increases are delaying the recovery of demand, particularly in residential construction and renovation.

Q: Has the behavior of Central European customers after the summer holidays differed from the situation before the holidays?
A: Before the summer holidays, customers typically build up inventories for the season and for production shutdowns, so demand is normally more moderate after the holidays. This year, post-holiday demand from Central Europe was more moderate than usual. Customers are currently ordering strictly according to need.

Q: Has the rise in market interest rates during Q3 further weakened the already low demand for chipboard?
A: Demand for chipboard has remained steadily weak. A recovery in chipboard demand is waiting for a pickup in domestic construction and renovation activity.

Q: Did the occasional pickup in chipboard demand toward the end of Q2 continue, or was it only inventory buying?
A: Overall, demand for chipboard has remained weak.

Q: Do you see accelerating data center construction opening direct or indirect growth opportunities for Koskisen in either business in the coming years, in Finland or other countries?
A: Data center construction is one of the growth areas in construction and infrastructure, and we follow it as part of our market development. At this stage, we estimate that the impact on Koskisen will be mainly indirect.

Q: How has the escalating situation in the Middle East affected the business, particularly cost development?
A: Higher prices for oil- and gas-based energy have increased energy and freight costs, as well as the prices of oil-derived raw materials such as adhesives. Higher fuel costs have also increased wood harvesting and transport costs. The price increases have in turn created inflationary pressure, to which central banks have responded by raising policy rates. Higher costs have been partly passed through to product prices, but the uncertain market has slowed this.

Q: Can you quantify the oil-driven increase in logistics costs in Q3, on a quarterly and annual basis?
A: Over the past year, wood harvesting and transport costs have increased by around 10%. Part of the increase in freight costs can be passed on through freight clauses in sales contracts, but freight costs have nonetheless risen markedly. The distribution of sales by market area has a significant impact on the development and comparability of freight costs.

Q: How have the prices of raw materials other than wood developed toward the autumn?
A: The most significant increase has been in Panel Industry adhesives and coatings. Their prices rose early in the year and leveled off over the summer, but remain higher than at the same time last year.

OPERATIONS

Q: How did the production ramp-up go at the Sawn Timber Industry units after the summer shutdowns?
A: The production ramp-up in the Sawn Timber Industry went as planned.

Q: How did the ramp-up of birch plywood production go after the summer shutdown?
A: The ramp-up of birch plywood production went as planned. As planned, the birch log ice storage was opened only after the summer shutdown, as there was sufficient raw material for production during the first half of the year.

Q: How did the installations under the Panel Industry's investment program go during the shutdown, and how has the ramp-up progressed? Has this had a negative impact on profitability?
A: The ramp-up of the new veneer handling equipment installed during the summer shutdown went well. The ramp-up of the new technology commissioned earlier continued to have some negative impact on production volumes and production costs.

Q: How did shift production develop at the Järvelä sawmill in Q3?
A: Shift production developed slightly positively but remained behind target.

Q: How has the ramp-up of the new channel kilns at the Järvelä sawmill progressed?
A: The ramp-up of the channel kilns went as planned and on schedule. The channel kilns have been in production use since mid-June.

Q: How long were the maintenance shutdowns in Q3?
A: Maintenance shutdowns in the Sawn Timber Industry and the Panel Industry take place in July and around the turn of the year. In the Panel Industry, the summer shutdown typically lasts three to four weeks. In the Sawn Timber Industry, it lasts around two weeks, depending on the department and site. Around the turn of the year, the shutdown typically lasts two to three weeks in the Panel Industry and around one week in the Sawn Timber Industry.

Q: What production shutdowns are you planning across the different units around Christmas and the turn of the year?
A: In the Sawn Timber Industry, the shutdown is planned to last from one to three weeks. At the Järvelä sawmill, the second phase of the green sorting plant renewal will be carried out, which will extend the shutdown. In the Panel Industry, the shutdown will last around one to three weeks, depending on the product group.

Q: Have new investment targets been identified for 2027, or are any being planned?
A: In 2027, the plan is to carry out smaller development projects related to the major investments already made, rather than large new investments. The most active investment phase is behind us for now. Our focus is on realizing the full benefit of the investments to improve productivity and efficiency.

Q: How do you see the company’s cash flow developing in Q3 and beyond?
A: We have seen a slight decrease in working capital. Liquidity is currently at a good level, and the company’s investment level is expected to decline in the near future.

Q: Can you explain the reasons behind the change of Director of the Panel Industry? Who is currently leading the Panel Industry?
A: The change of Director of the Panel Industry is related to the ongoing productivity and efficiency measures. At the same time, the Panel Industry management team has been streamlined to create a clearer structure for implementing the measures and managing the business. Recruitment of a new director is underway, and Koskisen's CEO Jukka Pahta is acting as interim Director of the Panel Industry.

WOOD PROCUREMENT AND FOREST ENERGY

Q: How did wood procurement go in Q3, and how would you describe the general situation in the wood market? Is wood available, and how has trading activity developed?
A: Wood supply proceeded as planned in Q3. Wood trading volumes were lower than normal for the season. Wood inventory is nevertheless more or less at the target level.

Q: The seasonal decline in log prices has so far been limited. What do you see as the reasons for this, and do you expect the situation to change during the rest of the year?
A: In general, wood supply has been low, which in our view has kept price development in the wood market stable. We do not expect significant changes in the price level for the rest of the year. The price of logs remains too high relative to end-product prices and the current cost level.

Q: How have by-product prices developed, and have you already negotiated energy wood fraction prices for the winter season?
A: Prices for by-products and forest energy have remained stable. For forest energy, prices for the upcoming heating season have mostly been locked in.

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 2025 was EUR 355 million. Read more: koskisen.com