Tornator grows and creates value sustainably – Group revenue increased by 23%. Tornator’s vision is to continue balanced growth also in the coming years

Core Viewpoint - Tornator reported a significant growth in revenue and profit for the first half of 2025, with a focus on sustainable growth and strategic partnerships, particularly in the timber market [1][6][9]. Financial Performance - Net sales increased by 23% to €104.5 million compared to €85.1 million in H1 2024 [2][5]. - Operating profit (IFRS) rose by 39% to €84.4 million from €60.8 million [2][5]. - Profit for the period (IFRS) increased by 44% to €57.7 million from €40.1 million [2][5]. - Return on equity improved to 5.1% from 3.7%, while return on capital employed rose to 5.5% from 4.2% [2][5]. Operational Highlights - The volume of wood deliveries remained stable, but strong demand led to increased unit prices [6]. - Tornator acquired nearly 12,000 hectares of new forest, with investments totaling approximately €60 million [6][9]. - Timber deliveries reached approximately 1.6 million cubic meters, generating €95.5 million in revenue [18]. Strategic Vision - Tornator aims to grow its forest assets to one million hectares by 2035, representing a 25% increase, with projected annual revenue exceeding €400 million [6][15]. - The updated growth strategy focuses on quality, added value, and sustainability, emphasizing human well-being and responsible partnerships [8][15]. Market Environment - The demand for renewable and sustainably produced wood remains positive, with timber market prices in Finland continuing to rise due to high demand [9][21]. - The forest industry is experiencing moderate improvement, with competition for raw wood expected to remain tight [20][26]. Sustainability Initiatives - Tornator is committed to biodiversity and climate programs, including the restoration of peatlands and partnerships with organizations like WWF Finland [11][13]. - The company emphasizes responsible treatment of the workforce throughout its contractor chain, ensuring good working conditions [12]. Financial Position - The financial position remains strong, with cash flow from operations before financial items and taxes at €42.0 million, up from €34.8 million [23]. - Interest-bearing debt totaled €1,043.6 million, with a significant portion being long-term [23][24]. Future Outlook - Tornator expects strong and stable cash flow and debt servicing capacity for the remainder of the year, with continued positive demand for wood [25][26]. - The company plans to advance wind and solar power projects where feasible, despite current market uncertainties [10][26].