Finland · Delayed Price · Currency is EUR Valmet Oyj Earnings Call Transcripts
Fiscal Year 2026
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Net sales grew 6% year-over-year, with stable profitability and a solid order backlog. A strategic review was launched to assess separating the two main business segments, while the Severn acquisition strengthens growth prospects. Market conditions remain uncertain, but guidance for 2026 is reiterated.
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Net sales grew 5% year-over-year, but profitability declined due to sales mix and FX headwinds. Process Performance Solutions delivered strong margins, while Biomaterial Solutions faced margin pressure from project mix. Guidance for 2026 is reiterated, supported by further cost actions.
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The AGM highlighted strong financial performance with a record 11.9% EBITDA margin, approval of a EUR 1.35 per share dividend, and the launch of the Lead the Way strategy. All board, governance, and auditor proposals were approved, and sustainability challenges, especially in steel sourcing, were discussed.
Fiscal Year 2025
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Record Q4 EBITDA margin and resilient full-year results were achieved despite a softer market, supported by early cost-saving actions and strategic wins. The Severn acquisition will further strengthen growth, while 2026 guidance anticipates stable sales and margins.
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Q3 delivered record-high EBITDA and stable sales, driven by strong Process Performance and cost savings, while biomaterial faced margin pressure. Order backlog remains robust, with 2025 guidance unchanged and ongoing strategic investments supporting long-term growth.
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Strong Q2 order growth and a robust backlog offset lower net sales and flat EBITA, as a new strategy and operating model drive transformation. Outlook is stable but cautious, with cost savings and service growth key to future margin improvement.
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A new strategy and operating model aim to drive 5% organic growth, 15% EBITDA margin, and 20% ROCE, with a focus on lifecycle services, cost competitiveness, and digital innovation. Service growth, organizational simplification, and targeted investments are central to achieving these bold, multi-year ambitions.
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Orders and backlog grew, driven by strong Services and Automation, while Process Technologies lagged. EBITDA and EPS were flat year-over-year, with robust cash flow and unchanged guidance for 2025. Cost-saving measures and a strategic renewal are underway.
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A major operating model renewal will simplify structure, reduce 1,150 white-collar roles, and target EUR 80 million in annual cost savings by early 2026. Five new business areas and consolidated global functions aim to boost efficiency and accountability, with updated reporting and financial targets due in June.
Fiscal Year 2024
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Orders reached record highs in 2024, driven by a landmark Arauco deal, but net sales and EBITDA were flat or slightly down amid challenging markets. Cash flow hit a new record, and stable business now forms nearly 60% of orders, supporting resilience. Dividend remains at EUR 1.35 per share.
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Q3 2024 delivered a record 12% EBITDA margin, but order intake and market activity were slower than expected. The Arauco order will boost Q4, while stable business and automation diversification support resilience amid weak European and Asian markets.
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Orders and net sales held steady in Q2, but EBITA and EPS declined due to lower volumes and integration costs. Market outlook improved for pulp, board, and services, supporting guidance for flat sales and higher EBITDA in 2024. All segments show stable or improving activity.