Raute expects customer investment activity to remain difficult to predict after economic and geopolitical uncertainty continued to delay spending on wood-processing equipment in the second quarter. Customers focused on cost savings and production efficiency instead of new investments, keeping order intake low and pushing some orders into coming quarters, according to Raute Corporation.
The company narrowed its 2026 net sales forecast to Euro 125 million–Euro 145 million from its previous range of Euro 125 million–Euro 160 million. Comparable EBITDA is expected at Euro 11 million–Euro 18 million, compared with the previous forecast of Euro 10 million–Euro 19 million. In 2025, net sales were Euro 176 million and comparable EBITDA was Euro 26 million.
Market weakness reduced Raute’s business volumes in the second quarter. Net sales fell 25% to Euro 33 million from Euro 44 million a year earlier. Comparable EBITDA declined 39% to Euro 4 million, with the comparable EBITDA margin falling to 12% from 15%. The order book stood at Euro 66 million at the end of June, down 43% from Euro 115 million a year earlier, although quarterly order intake increased to Euro 18 million from Euro 12 million.
Operational execution and cost control partly offset the effect of lower volumes. Progress in customer delivery projects and the release of some project-related cost provisions also supported profitability. Operating profit increased to Euro 2.5 million from Euro 1.9 million in the second quarter, while comparable operating profit fell to Euro 2.7 million from Euro 4.9 million. The equity ratio was 65% at the end of June, compared with 60% a year earlier, while interest-bearing net liabilities were Euro -14.9 million.
European engineered wood markets developed unevenly during the first half. Hardwood plywood demand increased, and exports from Nordic and Baltic producers approached some of their highest levels in recent years. Softwood plywood demand was weaker, requiring producers to continue adjusting their operations.
North American construction remained constrained by high interest rates and housing affordability. Demand for structural wood panels is expected to remain below the 2025 level, although parts of the commodity market showed initial signs of price stabilization. Construction is a primary end market for engineered wood products, alongside furniture and transportation, linking demand for Raute’s equipment to activity in those industries.
The weaker investment environment affected Raute’s Wood Processing business, where second-quarter sales fell 31% to Euro 21 million. Low order intake in previous quarters reduced project delivery volumes. Comparable EBITDA declined 35% to Euro 2.7 million from Euro 4.2 million, while operational efficiency, cost control and the reversal of some project-related cost provisions limited the effect of lower sales.
Customers’ efforts to reduce operating costs also affected Raute’s Services business. Some customers postponed maintenance work, reducing second-quarter Services sales by 18% to Euro 8 million. Comparable EBITDA fell 67% to Euro 0.6 million from Euro 1.9 million as lower sales combined with stable operating expenses.
Analyzers moved in the opposite direction during the quarter. Sales increased 11% to Euro 3.9 million from Euro 3.5 million as customer projects progressed. Comparable EBITDA increased 63% to Euro 0.6 million from Euro 0.4 million, supported by higher sales and cost management. For the full first half, however, Analyzers sales remained 14% below the previous year because of low first-quarter order intake.
Raute recorded some improvement in customer sentiment during the second quarter, but this had not developed into a broader recovery in orders. The timing of a sustained improvement in customer investment activity remains difficult to predict. Customers in Europe, North America, Asia and Oceania continued preparations for possible investments, particularly projects intended to improve production efficiency and competitiveness.
Longer term, investments are expected to be supported by sustainability requirements, technological development and demand for more efficient production processes. Expectations for global construction point to a gradual recovery, but geopolitical tensions, inflation and weak construction activity in several markets continue to create uncertainty.