Timber prices are high, but apparently foresters aren’t buying equipment. Maintenance services could provide a buffer for these types of economic cycles.
Eki’s comment below on the situation of Ponsse and Kesla, and Deere isn’t doing any better either. 
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"Uncertainty in the global market and a low level of investments have continued. Distributors are further reducing their inventory levels towards the end of the year. In addition, labor market measures have caused disruptions in the supply chain. As a result of these factors, Kesla’s year-end deliveries are at a lower level than the company had previously forecast.
Kesla’s Board of Directors has decided to lower its guidance for 2024 revenue and profit.
New guidance: Kesla estimates that 2024 revenue will decrease significantly and operating profit will decrease compared to the previous year.
Old guidance: Kesla estimated that 2024 revenue would decrease significantly and operating profit would decrease slightly compared to the previous year.
Kesla continues to implement its strategy, and long-term targets have not been changed. In line with our strategy, in 2025 we will focus on bold renewal, building a foundation for profitable growth, and succeeding together with our customers, partners, and personnel."
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Eki has made a new company report on Kesla. 
Kesla’s recent 2024 earnings warning reinforced the perception of an anemic demand situation. Our forecast changes for 2024-2026 are downwards, but not significant in euro terms. With our updated forecasts, the stock’s valuation level remains demanding at 2025 multiples.
Quoted from the report:
Our 2026 forecasts are almost unchanged. At that time, we expect Kesla to achieve +10% y/y revenue growth and a 5.2% EBIT margin.
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Here’s a fresh stock exchange release from Kesla.
Kesla Oyj Establishes Kesla Defence Product Line
Forest technology company Kesla Oyj is establishing the Kesla Defence product line with the aim of strengthening its position in the international product and service markets of the defense industry. The decision is strategic and is based on significant future potential and long-term market prospects in the defense equipment industry as NATO countries increase their defense spending. The establishment of the product line will not affect Kesla’s turnover or profit in 2025.
The company will utilize its existing multi-purpose products in defense and security solutions. Kesla Defence is linked to the company’s tractor equipment business, as the planned application areas are strongly based on the previously launched tractor-drawn Kesla Kerberos multi-purpose trailer. Originally developed with the Finnish Defence Forces, the main application of Kerberos is the efficient installation of landmines in pioneer operations. Kerberos multi-purpose trailers have been supplied to the Finnish Defence Forces for 3.4 million euros in 2021-2023.
Pasi Nieminen, CEO of Kesla Oyj: “With the establishment of the Kesla Defence product line, we can focus more effectively on the Finnish and international customer base of the defense industry. However, projects in the defense industry require long-term commitment, and results can typically be expected no earlier than 3-5 years after the initial contact.”
The Kesla Defence product range also includes the HydraX firefighting trailer for managing wildfires in military firing ranges. The same firefighting equipment also serves as a mobile heavy equipment washing solution in military exercises. In addition to its own Kesla Defence products, Kesla is building a partner network to integrate partners’ defense technology into Kesla’s wide range of off-road and on-road capable trailer solutions.
The use of drones in the war in Ukraine has highlighted the increased need for military forces to operate under cover of terrain. Kesla’s trailer platform can be used to develop capital-efficient and logistically versatile comprehensive solutions, where the performance of partners’ military technology can be taken into the cover of the forest for operation. With the trailer platform, performance does not tie to a military vehicle’s chassis solution, but there are clear signals in international markets of various countries’ defense forces’ interest in moving to multi-purpose tractor-based platform solutions, similar to the Finnish Defence Forces.
The development and sales of the Kesla Defence product line are led by Tapio Pirinen, M.Sc. (Econ.), who has strong commercial experience in marketing and organizing industrial products.
On January 16, 2025, Kesla was accepted as a member of the Association of Finnish Defence and Aerospace Industries (PIA ry), which is a domestic industry organization for the defense, aviation, space, and security industries. Companies operating within the PIA community are an integral part of the overall security of Europe and especially Finland.
KESLA OYJ
CEO Pasi Nieminen
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Here are Eki’s comments on Volvo’s results regarding matters that might interest followers of Kesla (and Cargotec).
Volvo Group published its Q4 report this morning and updated its forecast for the 2025 heavy truck market outlook. Volume forecasts for the main markets remain unchanged, meaning a slight decrease from 2024 is expected. Indications for Cargotec/Hiab and Kesla, suppliers of vehicle-mounted cranes, are slightly negative.
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Aapeli has written his preview comment, as Kesla will publish its Q4 report on Friday, i.e., tomorrow.
Following the December profit warning, expectations for Q4 figures are not high. However, we expect the order flow to have picked up from the comparison period. The main focus of interest will be the guidance provided for 2025 and more detailed market comments.
Here are Aapeli Pursimo’s quick comments as Kesla published its Q4 report this morning.
Kesla published its Q4 report this morning. The company’s Q4 result slightly exceeded our expectations, driven by revenue. However, order intake remained at the comparison period’s level, despite us having expected a small increase in orders. Considering the company’s year-end development, we estimate that the guidance provided for the current year is reasonably well aligned with our current forecasts.
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And here is Aapeli’s company report after Q4.
Kesla’s Q4 result slightly exceeded our expectations, driven by revenue. However, order intake remained at the comparison period’s level, and the order book at the start of the year remained low. Correspondingly, the guidance given for the current year was somewhat in line with our expectations, but it partly relies on a pick-up in demand, of which there are no concrete signs yet. Reflecting the overall picture, our revenue forecasts for the coming years are practically unchanged, while our earnings forecasts decreased reflecting the negative revisions we made to our cost forecasts.
Quoted from the report:
We also kept our growth forecasts for the coming years practically unchanged, but reflecting the actual development, we made negative revisions to our cost forecasts for the coming years. However, we still expect the company to achieve clear earnings growth in the coming years through operational leverage brought by volume growth and the implementation of strategic measures (e.g., increased automation level)
Stock Exchange Release March 3, 2025 at 4:30 p.m.
Forest technology company Kesla Oyj is renewing its operating model and management team as part of the determined implementation of its growth strategy. The changes will take effect on March 17, 2025. The changes do not affect the structure of Kesla’s financial reporting.
To achieve the goals set for the strategy period 2024–2028, Kesla has defined three themes: bold renewal, profitable growth, and succeeding together. The renewal of the operating model and the management team ties these themes together.
In the new organization, the previous business division will be abolished, and tractor equipment, forest harvesting equipment, vehicle and industrial cranes, and defence products will henceforth be referred to as product groups. Customer interface functions – sales, product management, marketing, and after-sales – will be combined into a new sales and after-sales organization. The new sales and after-sales organization will be led by a Sales and After-Sales Director, for whom recruitment is underway. CEO Pasi Nieminen will temporarily handle the position in addition to his own duties.
The sales and product management of the Kesla Defence product group, established in January 2025, will remain a separate product group due to the specific characteristics of the defense industry markets. Tapio Pirinen will continue to lead the sales of this product group and, with the organizational restructuring, will also take responsibility for the company’s PMO functions (Project Management Office).
Kesla’s CEO Pasi Nieminen comments: “At the core of our strategy is improving the customer experience. By reorganizing our customer interface functions, we develop customer processes and are able to offer better service and faster response to market needs. By combining sales and after-sales organizations, we can distribute resources in selected market areas more evenly, flexibly, and efficiently to support growth. Strong product management, in turn, plays a key role in building a product strategy that supports our strategic goals for key markets. All these measures support the most important goal of our strategy: profitable growth.”
The implemented change is an essential step in the organization’s development, where the R&D and production responsibilities of the business units have already been dismantled. Product development, product management, digitalization, as well as Kesla Defence and PMO are elevated to the management team, as they are key functions in achieving Kesla’s strategic goals. Jukka Sadinmäki continues as Product Development Manager, and Mika Tahvanainen, who previously served as Business Director for forest harvesting, has been appointed Director of Product Management and Digitalization. Ari Pirhonen, who previously led the vehicle and industrial cranes business as a member of the management team, has been appointed Sales Director for the important Finnish market for Kesla.
The reorganization was carried out as a change negotiation, which did not result in staff reductions.
The company’s management team will consist of the following from March 17, 2025:
- Pasi Nieminen, CEO and Sales and After-Sales Director (ad interim)
- Ilkka Miettinen, CFO (Finance, Administration, ICT, and HR)
- Mika Tahvanainen, Director – Product Management and Digitalization
- Jukka Sadinmäki, Product Development Manager
- Jari Jormanainen, Supply Chain Director (Manufacturing, Quality, and Procurement)
- Tapio Pirinen, Director – PMO and Kesla Defence
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Here are Aapeli Pursimo’s comments on Kesla’s recent plans.
The goal of the reforms planned by the company is to support the implementation of the current ambitious growth strategy. In our opinion, the announced measures seem quite logical. However, we do not estimate that the changes will have an impact on the company’s short-term development, and any potential benefits will only be realized in the longer term.
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Here are Aapeli’s preliminary comments as Kesla publishes its Q1 business review on Tuesday, i.e., tomorrow.
Reflecting the low order book at the end of the year, our expectations for the first quarter’s realized figures are not high. Against this backdrop, our particular interest lies in the development of the order flow, which we expect to have picked up from the comparison period. We will also be monitoring more detailed market comments and the potential effects of increased uncertainty on customer decision-making.
Kesla’s rocket didn’t quite impress now: Kesla Oyj: KESLA OYJ LIIKETOIMINTAKATSAUS 1.1.-31.3.2025 | Kauppalehti
January–March 2025 in brief
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Net sales decreased by 22.5% and were EUR 8.3 million (10.7).
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Operating profit decreased and was EUR -778 thousand (85).
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Cash flow from operations was EUR -229 thousand (1,663).
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Earnings per share were EUR -0.28 (-0.02) for both A and B shares.
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Orders received increased by 26.1% and were EUR 11.5 million (9.2).
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Order book decreased by 30.0% from the comparison period and was EUR 10.3 million (14.6), but improved by EUR 3.0 million from the turn of the year.
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Aapeli has given his quick comment on Kesla’s Q1 results.
Kesla published its Q1 report this morning. The company’s result fell short of our expectations, reflecting lower revenue. However, the company’s order intake exceeded our forecasts, but due to the low level of demand and order backlog, the company’s adjustment measures will continue. In connection with the report, the company also revised its guidance downwards by one notch, and we see slight downward pressure on current year forecasts.
Aapeli has written about Kesla after the company’s Q1 report was published.
Kesla’s Q1 result slightly missed our expectations, driven by revenue. Instead, the highlight of the report was the order intake, which reached a double-digit level for the first time in a while. Despite this, the company lowered its guidance for the current year by one notch, which we believe was mainly due to rapidly increasing uncertainty related to the global economy. Reflecting this, we also slightly lowered our forecasts for the current year, while our forecasts for the coming years remain practically unchanged.
Quoted from the report:
Orders quite clearly above expectations
The highlight of the report, however, was the Q1 order intake, which rose to EUR 11.5 million (+26% y/y), exceeding our EUR 10.0 million forecast by a somewhat clear margin. According to the company, general uncertainty continued in the markets, but long-pent-up investment demand was already partially reflected in order flows. On the other hand, in certain markets, distributors continued to reduce inventory levels without new factory orders. In line with the early-year order flow and Q1 deliveries, the group’s order book (EUR 10.3 million) was clearly lower than in the comparable period (EUR 14.6 million), but showed a clear increase compared to Q4 (EUR 7.2 million). Thus, the starting points for Q2 have slightly improved, but the situation is still far from optimal (the structure of the order book is quite short), and the company stated that adjustment measures to regulate capacity will continue (layoffs of up to 90 days until the end of June 2025).
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Here are Aapeli’s comments on Kesla’s recent order, which it announced in a press release.
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Weak demand: Sisäpiiritieto, tulosvaroitus: Kesla Oyj muuttaa ohjeistustaan | Kauppalehti
As uncertainty continues in the markets due to, among other things, the threat of a trade war and the geopolitical situation, the demand for Kesla’s products has remained weak. Consequently, Kesla Oyj changes its guidance as follows:
Kesla estimates for 2025 that net sales will decrease significantly and operating profit will decrease and remain negative.
Previous guidance
Kesla estimated for 2025 that net sales would decrease and operating profit would remain at the same level compared to the previous year.
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Aapeli commented on Kesla’s second negative guidance of the year.
Yesterday, Kesla lowered its guidance for the current year for the second time and expects its net sales to clearly decrease from last year (2024: EUR 44.3 million) and its operating profit to also decrease (2024: EUR 0.0 million) and remain negative. Previously, the company expected net sales to decrease but operating profit to remain at the same level as the previous year. In our current forecasts, we had expected the company’s net sales to decrease by just under 4% in the current year and operating profit to remain barely positive (EUR 0.1 million). Thus, there is downward pressure on our current year’s forecasts, and we will review our forecasts in the coming days.
So that not all news is just gloom and doom, the product development side is at least pushing ahead. 
"Kesla expands its product range with two new whole-tree cranes
18.06.2025 Press Releases
Kesla launches two new crane models: KESLA 2225 and KESLA 2228, which are specifically designed for demanding loading of long logs. The new models will be officially presented at the Forexpo 2025 exhibition in France from June 18–20. They represent a significant step forward in performance, durability, and driver-centric design. The products replace the 2124L, 2024, and 2028 series. KESLA 2225 (24 tnm) and 2228 (28 tnm) are designed for demanding loading applications and are suitable for semi-trailers and articulated trucks. Thanks to optimized hydraulics, strong boom structures, and advanced control systems, these cranes meet the needs of modern forestry.
Power and Precision
The KESLA 2225 is a 24 tnm crane operating at 26 MPa pressure. With the ProC i electric control system, a 28 MPa power mode can be activated, allowing for a heavy lift for 5 minutes, ideal for loading semi-trailers.
The KESLA 2228 is a powerful 28 tnm crane operating at 26 MPa pressure, offering increased lifting power due to larger cylinders. Standard equipment includes Parker K130 valves with a dual-circuit system, and Parker L90LS valves are optionally available."
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