Finnish retailer Kesko Oyj narrowed its full-year profit forecast on Thursday, citing a persistent slowdown in the construction market that is weighing on its building and technical trade division.
The company now expects its 2025 comparable operating profit to be between 640 million and 690 million euros, lowering the top end of its previous range of 640 million to 700 million euros.
This marks the second time this year Kesko has trimmed its outlook due to a slower-than-anticipated recovery in construction.
"The gradual recovery in the construction cycle has continued, but new housing construction in particular was weaker than anticipated also in the third quarter," President and CEO Jorma Rauhala said in a statement.
The updated guidance came as Kesko reported a 6.6% rise in third-quarter net sales to 3.23 billion euros.
Comparable operating profit for the July-September period rose to 208.1 million euros from 201.5 million euros a year earlier, according to the company.
Strong performance in the company's car trade and grocery divisions helped offset the weakness in its building and technical trade segment, where comparable sales declined.
For 2026, Kesko said it estimates its operating environment and profit will improve across all divisions.
More from this issuer
Related coverage
A group of retailer associations has increased its combined voting power in Finnish retailer Kesko Oyj to just over 20%, the company disclosed in a regulatory filing on Friday.
Finnish retailer Kesko Oyj reported a 6.9% rise in October sales to 1.2 billion euros, with growth across all its business divisions.
Finnish retailer Kesko Oyj said its July sales rose 7.9% to 1.05 billion euros, driven by a boom in its car trade division that offset continued weakness in its construction-related business.
Finnish retailer Kesko Oyj on Tuesday lowered its full-year profit guidance, citing a slower-than-expected recovery in the construction market which is weighing on its building and technical trade division.