Tornator Oyj

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

Half-year report – stock exchange release, 22 August 2025 at 3.00 pm

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

SUMMARY 1 JAN – 30 JUNE 2025 (1 JAN – 30 JUNE 2024)                   

• Net Sales increased by 22.8% to a record €104.5 million (€85.1). The volume of wood deliveries remained at the same level as the comparison period, but strong demand for wood raised unit prices.
• Operative operating profit also reached a new record of €74.3 million (€60.0). Reported IFRS operating profit was €84.4 million (€60.8).
• The company continued to acquire forest estates in Finland. Nearly 12,000 hectares of new forest were acquired, with total investments amounting to approximately €60 million.
• IFRS profit at fair value for the reporting period was €57.7 million (€40.1). The change in fair value of financial instruments was -€0.5 million (+€1.1) before taxes. The change in fair value of standing timber was +€5.6 million before taxes (-€0.5).
• Comparable return on equity was 4.4% (3.5), and at fair value 5.1% (3.7). The equity ratio was 59.2% (60.1).
• In the updated vision, Tornator’s goal is to grow the company’s forest assets to one million hectares (+25%) by 2035. Annual revenue is expected to double to over €400 million. The vision includes clear targets for increasing dividends, overall sustainability of operations, and maintaining an investment-grade credit rating.
• As part of its 10-year biodiversity programme, the company restored 221 hectares of peatlands and conducted controlled burning on 13 hectares of forest.

Key figures (consolidated) 

Comparable key figures

 In addition to official key figures calculated in accordance with the IFRS, Tornator Group uses key figures that are calculated without changes in fair value. The figures are comparable between years and therefore better describe the success of the company’s operations. The figures are calculated as follows (€ million):

CEO Henrik Nieminen:

New Strategy Period Well Underway

Tornator began its new strategy period from a strong starting point. We aim to build future success by deepening partnerships and sustainable growth-related themes that have previously proven effective. Our updated growth strategy is built on three pillars: quality, added value, and nature. At the heart of the strategy is human well-being, as behind every achievement there is a motivated workforce and a responsibly operating partner network.

In the midst of geopolitical and global economic turbulence, the importance of strategic partnerships in core business operations is emphasized. Collaboration with our main customer, Stora Enso, has been close and diverse already for a long time. This partnership and solution-oriented approach were reflected in strong results in both timber sales and silviculture services during the first half of 2025. Timber market prices continued to rise in Finland due to high demand, and Tornator achieved over €100 million in revenue for the first time during the January–June period. The outlook for demand for renewable and sustainably produced wood raw material remains positive. In silviculture services, system changes by a seedling supplier caused delays in planting, but thanks to hard work, the organization overcame the challenges and increased revenue. We continued forest acquisitions, and Tornator’s forest area in Finland grew by nearly 12,000 hectares.

In wind and solar energy, the market appears to be in a waiting mode; uncertainty stems from legislative changes and questions about the scale of energy use, as industrial-scale investments progress slowly. Nevertheless, Tornator received several inquiries in the spring regarding land lease agreements for renewable energy, battery storage, and data center needs. Time will tell how this development unfolds and what added value opportunities arise for a major landowner.

The path chosen by Tornator in creating and implementing its own climate and biodiversity programs has been the right decision to ensure healthy, well-growing forests. Political fluctuations are particularly unsuitable for long-term forestry that goes on beyond generations. In 2025, the European Commission has continued its active approach to regulate the forestry sector. Although the EU does not have a common forest policy, forestry is influenced particularly through climate, environmental, and biodiversity objectives. The polarized debate on forest legislation seems to continue, and no one can say for sure what kind of EU-level or national regulation we will see in the coming years.

Systematic Development of Contractor Chain Quality

From a social responsibility perspective, it is important to ensure good working conditions throughout the value chain. Therefore, making the contractor chain more responsible is one of our key focus areas. The client must take full responsibility for the sustainable treatment of the workforce, whether domestic or foreign. We train and support contractors in fulfilling their employer obligations and have created multilingual forest management and occupational safety guidelines, as well as online courses for foreign workers. As a client, we actively monitor the supply chain and intervene in any neglect. In spring, we launched intensive monitoring of continuous contracting throughout the work season, with results to be reported later in the autumn.

Nature Values Considered in Daily Operations and Special Programs

The cooperation agreement signed in January 2025 with WWF Finland demonstrates Tornator’s commitment to improving the environmental sustainability of forestry. The three-year partnership includes a unique project in Finland to improve the water impact of forestry at the catchment area level. Alongside long-term development work, we also achieved concrete results in our biodiversity program, with annual reports available on our website. We also announced our intention to apply for our own PEFC certificate to replace the group certificate. This will allow us to better develop our operations and contractor quality through direct cooperation with the auditor. Our own certificate will increase both internal and external PEFC audits annually.

Strong Relationships with Financial Markets

To secure growth financing, Tornator has built and maintained strong and diverse relationships with financiers. The company ensures timely communication of information and insights to credit banks and debt investors. Tornator prepares well in advance for significant loan refinancing, reducing market risk related to maturity dates. During the second half of the year, refinancing of loans maturing in 2026 will be announced. Thanks to interest rate hedging, changes in market rates do not fully affect the company’s loan interest costs.

New Vision 2035: “One Million Hectares”

Over the next decade, Tornator aims to make growth investments that will result in owning and managing one million hectares of forest by 2035—an increase of approximately 25% in area. We expect revenue to double to over €400 million. The main focus of growth is in Finland and timber sales, but we also anticipate other value creation opportunities, such as silviculture services and property development. The vision includes a clear commitment to increasing dividends, ensuring overall sustainability, and maintaining an investment-grade credit rating. Tornator’s vision means more job opportunities and tax revenue in Eastern Finland, which is struggling with economic challenges. The company’s forests will continue to play a major role as a source of renewable raw material and in securing Finland’s security of supply. New forest estates will also be included in dual certification, and there will be more opportunities for biodiversity-enhancing actions such as peatland restoration and controlled burning, carried out by professionals.

Tornator is one of the few companies in Europe capable of sustainably acquiring and managing forest assets of this scale. Under one roof, we have expertise in forest resource analysis, forest property acquisition and financing, forestry planning and operations, timber sales and silviculture services, environmental matters, advanced digital development, and high-quality support functions. Realizing the vision requires significant investment in system development and leveraging AI opportunities. Alongside operational efficiency, strong leadership and employee well-being will play a major role. We firmly believe Tornator has all the tools to move towards its new vision while fulfilling its mission: to generate sustainable well-being from forests.

Impact of the War in Ukraine

Russia’s war of aggression in Ukraine and the resulting general economic uncertainty have not had significant negative effects on Tornator’s earnings, balance sheet, or cash flows. Revenue and operating profit were at historically high levels during the reporting period. Operating cash flow was also strong. The company has not experienced increased credit losses, heightened financial risks, or asset devaluation. Contractors have found replacement labor for Ukrainian seasonal workers, so silviculture activities have not been compromised. Through our Romanian subsidiary, we have facilitated aid transports for Ukrainians affected by the war, and we will continue this support as long as needed.

Key Events During the Reporting Period

Timber deliveries were successful, totaling approximately 1.6 million cubic meters (1.5) and €95.5 million (€76.7). Investments in new production capacity by the forest industry, raw material needs in the energy sector, and reduced imports of timber increased demand and prices for renewable wood raw material. Thanks to strong customer cooperation, timber harvesting went smoothly, and silviculture services continued to grow. 

Revenue from silviculture services rose to €8.1 million (€6.6). Land sales generated €0.9 million in revenue for the Group (€1.9). Other income totaled €4.2 million (€3.3).

The impact of changes in the fair value of interest instruments on profit was -€0.5 million (+€1.1) since the beginning of the year. At the end of June, the fair value of interest derivatives was €29.0 million positive (31 Dec 2024: +€29.5). The fair value of forests at the end of June was €3,664.3 million (31 Dec 2024: €3,594.9).

Operating Environment

In their June 2025 economic reviews, the Natural Resources Institute Finland (Luke) and Pellervo Economic Research (PTT) estimated that the situation in the forest sector is improving moderately. Although global economic growth remains slow, easing inflation and falling interest rates support a recovery in demand. The outlook for the forest industry is cautiously positive, but no major growth leap is expected. According to forecasts, competition for raw wood in the domestic timber market will remain tight, keeping prices above long-term averages.

Industrial wood harvesting in Finland totaled approximately 31.5 million cubic meters during January–June, slightly higher than the same period in 2024 (29.4 million m³).

The removal of Russian imported wood from the market has clearly impacted wood price trends, and market prices have continued to rise. In the January–June average prices, the price of sawlogs was nearly 10% higher than the previous year, and the price of pulpwood was more than 10% higher than the previous year.

Demand for holiday plots remained modest. In terms of forest estates, supply continued to be lower than demand, but the increase in price levels was moderate.

In Estonia, the price level of wood declined slightly compared to the reference year. The forest estate market maintained a high price level.

In Romania, the price level of wood remained at the same level as the reference year. The forest estate market was quiet.

Finance

The Group’s financial position remained strong, and cash flow from operations before financial items and taxes was EUR 42.0 million (EUR 34.8 million).

The Group’s net financial expenses for January–June amounted to EUR -13.3 million (EUR -11.9 million). Tornator’s interest-bearing debt totaled EUR 1,043.6 million (31 Dec 2024: EUR 1,008.3 million), of which long-term debt was EUR 897.7 million (31 Dec 2024: EUR 946.8 million) and short-term debt EUR 145.9 million (31 Dec 2024: EUR 61.6 million).

During the reporting period, the net cash from investing activities was EUR -60.9 million (EUR -21.3 million). Cash flow from financing activities was EUR -35.3 million (EUR -28.2 million). Liquid financial assets and cash as of 30 June 2025 amounted to EUR 14.0 million (31 Dec 2024: EUR 86.6 million). The company has a EUR 10 million bank account overdraft and a EUR 200 million committed revolving credit facility, which was fully available on the reporting date. Of Tornator’s EUR 300 million commercial paper program, EUR 97 million was in use on the reporting date.

Outlook for Future Development

Tornator expects its cash flow and debt servicing capacity to remain strong and stable throughout the remainder of the year. The annual update of the fair value of forests will be carried out in the fourth quarter.

The performance of the forest industry and demand for wood are expected to remain positive. Market prices for wood are assumed to stay at current levels, at least in the short term. Silviculture activities in the company’s own forests will continue in line with a normal operating year, and the fertilization program will be implemented as planned. In addition, Tornator will carry out silviculture service work nationwide for Stora Enso’s silviculture service customers. The forest estate market is expected to remain similar to the reference year. Wind and solar power projects will be advanced where possible.

In the long term, global megatrends such as climate change and population growth are expected to continue strengthening demand for sustainably produced renewable wood raw materials. However, temporary pressures on wood demand and harvesting may arise if, for example, international political tensions escalate. Weaker-than-expected global economic development could lead to reduced production in the forest industry and potentially negatively impact wood sales volumes and the company’s revenue.

Decisions of the Annual General Meeting

At Tornator Oyj’s Annual General Meeting on 6 March 2025, it was decided to distribute a dividend of EUR 14.0 per share, totaling EUR 70 million, in accordance with the Board’s proposal. The AGM approved the financial statements for the 2024 financial year and granted discharge from liability to the Board of Directors and the CEO. It was also decided to appoint PricewaterhouseCoopers as the auditor. The AGM elected the following members and deputy members to the new Board of Directors:

Organisation of the Board of Directors

On 6 March 2025, the new board elected Esko Torsti as the chairperson and Hanna Kaskela as the deputy chairperson. Tuomas Virtala was elected as a member of the Remuneration Committee in addition to the aforementioned two persons. The committee reports to the board. Hanna Kaskela was elected as the chairperson of the Oversight Committee, while Esko Torsti and Tuomas Virtala were elected as members and Pauli Torikka as a deputy member.

The minutes of the Annual General Meeting are available in full on the company’s website at https://www.tornator.fi/en/investors-3/

Notable events after the end of the reporting period

No notable events took place after the end of the reporting period.  

Major shareholders, 30 June 2025

For further information, please contact: 

Chief Executive Officer (CEO) Henrik Nieminen, tel. +358 40 869 7613

Chief Financial Officer (CFO) Antti Siirtola, tel. +358 40 773 0975

www.tornator.fi/en

Tornator is a leader in sustainable forestry in Europe. It owns forests in Finland, Estonia and Romania. In 2024, the group’s turnover was approximately €213 million, and the balance sheet value was about €3.8 billion. The group has around 190 employees. Tornator’s own employees, and other companies and their employees working on its forestland, add up to around 1,600 person-years of employment. The owners of the parent company are Finnish, mainly institutional investors. Tornator’s mission is to generate sustainable wellbeing from forests.

Tables – Condensed half-year financial statements and notes

Condensed Consolidated Income Statement

Statement of changes in equity

Attachment

• Tornator Oyj Half-year Report 30 June 2025