“As their first joint project, Honkarakenne and OnWood will deliver over one hundred turnkey buildings to Western Europe. Honka will act as the building designer and creator of the interior design concept. OnWood will produce the buildings using Honka’s logs and deliver the buildings as fully finished units.”
Sounds like a pretty significant volume, though I wonder what the margins are.
Looking at Honkarakenne as a whole, the “margins” are likely very good, considering this helps fill underutilized capacity. If we were at a different stage of the cycle and demand was high anyway, it probably wouldn’t add much value. The calculated margin for individual deliveries likely leans towards Onwood if they are in a direct relationship with the so-called end customers. But indeed, in the current market situation, this is excellent news for Honkarakenne.
Here are Atte’s comments regarding this massive order. 
Honkarakenne announced on Tuesday that it has signed a strategic cooperation agreement with OnWood Oy and, at the same time, agreed on the delivery of over a hundred turnkey log buildings to Western Europe. We view the news as very positive, as it reinforces the progress of the company’s export strategy and substantiates the objectives for project business and international growth. The company stated that the deal is already included in the previously issued guidance for 2026. We will review our outlook and forecasts in the coming days.
Atte has released a new company report on Honkarakenne regarding this major order.
Honkarakenne announced a partnership with OnWood, which begins with the delivery of over one hundred turnkey log buildings to Europe. We view the order and the broader cooperation as positive for the company’s future as it seeks growth in exports. We did not make significant changes to the forecasts at this stage, as the growth of the order book in the first half of the year was already included in our previous expectations. Following the share price rise, the valuation still appears neutral for next year, considering the uncertainty related to the earnings turnaround. We reiterate our reduce recommendation and target price of 2.7 euros.