Koskisen

Koskisen published its Q2 report this morning, revealing earnings that were more modest than anticipated.

High wood prices and a weak construction cycle have led to a decline in EBITDA despite strong revenue growth.

Demand for birch plywood exceeded expectations in Q2, but the high price of logs and weak construction demand are still holding back margins in both units.

We cut our estimates, especially for the current year, in the wake of the profit warning issued by the company before the earnings release.

Revenue exceeded the 100 MEUR mark, but profitability disappointed in both businesses.

Management lowered the margin guidance below last year's 8% level. Koskisen's Q1 performance was also clearly below expectations.

We estimate the company's Q1 adjusted EBITDA to have decreased by some 7%, pressured by challenges in the construction sector and elevated costs.