Raute (RAUTE) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered strong profitability, with net sales up 36.2% year-over-year and a record comparable EBITDA margin of 13.5%, surpassing long-term targets for the first time since the new strategy launch.

• Growth was driven by successful execution of a high order backlog, especially in Wood Processing and Services, despite a challenging market environment and modest order intake.

• Service business continued its growth trajectory, contributing positively to overall results.

• Operational efficiency and project delivery progress contributed to seasonally strong results.

• Strategic focus remains on growth, digitalization, and sustainability in engineered wood products.

Financial highlights

• Q3 2024 net sales were EUR 46.4 million, up 36.2% year-over-year; comparable EBITDA was EUR 6.3 million (13.5% margin).

• Q3 operating profit reached EUR 4.8 million; EPS was EUR 0.73, up 356% year-over-year.

• Operating cash flow in Q3 was EUR 18.8 million, supported by a positive change in net working capital.

• Order intake for Q3 was EUR 15 million, with Services as the main contributor.

• Order book at period end was EUR 186 million, providing a buffer for next year.

Outlook and guidance

• Updated 2024 guidance: net sales expected between EUR 190–210 million and comparable EBITDA between EUR 17–21 million, raised due to strong order backlog and better-than-anticipated project deliveries and services.

• Market recovery in construction-related end-user products is now expected to be postponed into 2025.

• EU sanctions on Russian birch plywood support European market demand.