Raute Corporation, Inside information, October 30, 2026, at 8:15 a.m. EET
Inside information: Raute launches a Profitability and Competitiveness Program and plans to simplify its operating model and reporting structure
Raute launches a group-wide Profitability and Competitiveness Program to strengthen profitability, competitiveness and operational efficiency and to support the execution of its long-term growth strategy.
The program aims to ensure that Raute's operating model, organization and cost structure support profitable growth and resilience across market cycles. Raute's long-term financial target is an average comparable EBITDA margin of 12 percent over a cycle.
Profitability and Competitiveness Program
The program targets annual cost savings of approximately EUR 4 million.
The measures under evaluation include organizational structures and management layers, business and support processes, resource allocation, procurement and external spending, operational effectiveness, systems and automation, and the elimination of overlapping activities.
Planned operating model and reporting structure
As part of the program, Raute plans to simplify its operating model and transition from three reportable segments to two from 1 January 2027:
Lifecycle Solutions would combine the current Services and Analyzers businesses.
The planned structure would bring together services, analyzers, data and analytics to create a stronger lifecycle offering for Raute's installed base. The aim is to increase customer value, strengthen recurring revenue streams and reduce dependence on capital investment cycles.
The new structure is also intended to simplify management and reporting and support the continued growth of service- and analytics-related businesses.
The future organizational structure, reporting relationships and related personnel changes will be evaluated and implemented through applicable consultation and decision-making processes in each operating country.
Estimated personnel impacts
Based on preliminary estimates, the program may result in a reduction of up to 50 positions globally. Part of the targeted savings is expected to be achieved through retirements, natural attrition and internal role arrangements.
In Finland, Raute will initiate change negotiations covering all employees, approximately 522 people. The negotiations concern planned organizational and operational changes and may result in permanent or temporary layoffs, changes to employment terms, or part-time employment. The preliminary estimate is a reduction of up to 40 positions in Finland.
Potential personnel impacts in other countries will be assessed in accordance with local legislation and consultation requirements.
All estimates are preliminary. No final decisions regarding personnel impacts have been made and any decisions will be considered only after the applicable consultation processes have been completed.
Schedule
Raute aims to complete the planning and required personnel processes during 2026. Implementation of approved measures is expected to begin in the fourth quarter of 2026, with organizational changes implemented in phases during the first quarter of 2027.
The new reporting structure is planned to take effect on 1 January 2027.
Savings are expected to begin materializing during 2027, with the full annual run-rate achieved by the end of 2027.
Raute will communicate the outcome of the program and related personnel processes in accordance with applicable regulations.
CEO comment
"Raute continues to execute its profitability and growth strategy. At the same time, the changing market environment requires us to continuously improve our competitiveness, efficiency and resilience.
Through this program, we aim to build a simpler and more efficient organization that supports profitable growth across market cycles. Bringing Services and Analyzers together would also strengthen our lifecycle offering and create a stronger platform for future growth.
Our objective is a more agile and customer-focused Raute, with a cost structure and operating model that support sustainable profitability and growth," says Mika Saariaho, CEO of Raute Corporation.
FURTHER INFORMATION:
Mika Saariaho, President and CEO, tel. +358 40 154 9393
DISTRIBUTION:
Nasdaq Helsinki Ltd, Main media, www.raute.com
RAUTE IN BRIEF - Making Wood Matter
Raute acts as a partner for a sustainable future for the wood products industry. Our technologies cover various production processes as well as supporting digital and analyzer solutions for industrially manufactured wood products. In addition, we offer comprehensive service concepts from spare parts to regular maintenance and production modernizations. Our innovative technologies, software and service concepts are designed to support the efficient use of natural resources in our customers' production. Raute is the only turnkey supplier in the world that offers mill-wide technology solutions for veneer, plywood and LVL production. Raute's head office and largest production plant is located in Lahti. The company's other production plants are located in Kajaani, Finland, the Vancouver area of Canada, and in Pullman, WA, USA. Raute's net sales in 2025 were EUR 175.5 million. The Group's headcount at the end of 2025 was 698. More about Raute: www.raute.com.