Ponsse’s third quarter showed better order intake but weaker underlying profitability. Reported operating profit was flattered by a EUR 3.5 million customs refund, while inventories kept building and cash flow turned sharply negative 4.
Ponsse Oyj · Q3 2026 · Reported 20 Oct 2026 · Nordic
Key figures
Q3 2026 | Q3 2025 | Change | |
|---|---|---|---|
Net sales | 159.8 | 172.7 | −7.4% |
Order intake | 170.4 | 143.4 | +18.8% |
Operating profit (EBIT) | 5.9 | 9.6 | −38.6% |
Operating margin | 3.7% | 5.6% | −1.9 pp |
Profit before tax | 5.5 | 9.1 | −40.1% |
Net income | 4.42 | 7.59 | −41.8% |
Net margin | 2.8% | 4.4% | −1.6 pp |
EPS (EUR) | 0.16 | 0.27 | −40.7% |
Operating cash flow | −20.4 | −0.2 | −20.2 |
Order backlog (period-end) | 170.5 | 163.2 | +4.5% |
Figures in EUR, as reported. Margins are computed from the reported lines.
Reported profit was supported by a non-recurring item
Net sales fell to EUR 159.8 million from EUR 172.7 million, while operating profit dropped to EUR 5.9 million from EUR 9.6 million and the operating margin narrowed to 3.7% from 5.6% 2. Management said the quarter’s operating profit was supported by EUR 3.5 million of customs duty refunds recognised in the US organisation, and said that excluding this non-recurring item, operational profitability was at a very weak level 4.
Management attributed the weaker profitability mainly to lower-than-expected invoicing for new machines and maintenance services and to rising cost levels 4. The revenue decline was concentrated in the two largest contract types: machine sales fell 7.9% to EUR 116.1 million and service revenue fell 15.2% to EUR 34.6 million, while systems solutions rose 58.9% to EUR 9.1 million but remained much smaller 15.
Demand is cautious, but order flow improved enough to rebuild the book
Order intake rose 18.8% to EUR 170.4 million in the quarter, and order books stood at EUR 170.5 million at 30 September 2026 versus EUR 163.2 million a year earlier 3. Management linked the stronger order flow to a busy autumn trade fair season, even as it said market uncertainty continued and customers made investment decisions with great caution 4.
The report does not support a simple demand recovery reading. Management said low construction activity and private consumption continued to affect demand in the forest industry, with the Nordic countries and Europe the most active regions but still clearly below normal levels 4. The quarter’s sales mix by geography also looks uneven rather than broad-based: North America revenue fell 19.6% and Central and Southern Europe fell 19.8%, partly offset by South America up 18.6% and Asia, Australia and Africa up 51.5% from smaller bases 5.
Working capital absorbed cash as inventories kept rising
Cash flow from operating activities was EUR -20.4 million in the quarter versus EUR -0.2 million a year earlier, and EUR -1.3 million for the first nine months versus EUR 4.4 million a year earlier 2. Management said used machine sales improved year on year, but not enough to reduce inventories, while inventories of new machines also grew because invoicing fell short of expectations 4.
The balance sheet shows that pressure clearly. Inventories were EUR 275.2 million at 30 September 2026 versus EUR 241.4 million a year earlier, cash and cash equivalents were EUR 51.0 million versus EUR 67.1 million, and net interest-bearing liabilities rose to EUR 54.0 million from EUR 30.8 million 6. The cash flow statement shows the main drag was working capital, with a EUR -31.5 million inventory change in the first nine months 11.
Guidance now leans on a much stronger fourth quarter
Ponsse kept its 2026 guidance unchanged and still expects euro-denominated operating profit to be on a par with 2025 operating profit of EUR 41.6 million 2. Against EUR 18.4 million of operating profit in the first nine months, that leaves a heavy dependence on the remainder of the year delivering materially better earnings than the business has shown so far 2.
Management’s case is that the company has good invoicing potential for the rest of the year and that the outlook is based on realistic assumptions regarding invoicing, production and cost development 8. Even so, it is also adjusting factory capacity to market conditions, tightening cost discipline and prioritising activities more carefully, while the goal for sales is to strengthen order books for 2027 and promote secondhand machine sales 48.
What to watch next
Whether higher order intake converts into invoicing quickly enough to support the unchanged full-year operating profit guidance 238.
Whether inventories and used-machine sales improve enough to relieve working-capital pressure after inventories rose and operating cash flow turned negative 461011.
How much underlying margin improves once the EUR 3.5 million customs refund benefit is absent, especially in new machines and maintenance services 4.
Sources
Produced by Clarifo Research with the Clarifo financial research engine from the company's public filings. AI was used in parts of the analysis and drafting. Figures are checked automatically against the filings they come from. This is not investment advice.