Valmet's Half Year Financial Review January 1 - June 30, 2025: Strong organic
growth in orders received and the new ‘Lead the Way' strategy launched in the
second quarter
Valmet Oyj's stock exchange release onJuly 23, 2025 at 09:00 a.m. EEST
Figures in brackets, unless otherwise stated, refer to the comparison period,
i.e., the same period of the previous year.
April-June 2025: Orders received increased
• Orders received increased to EUR 1,520 million (EUR 1,283 million).
- Orders received increased in all three segments.
- Orders received increased in China, North America and EMEA (Europe,
Middle East and Africa), remained at the previous year's level in South America,
and decreased in Asia-Pacific.
• Net sales decreased 6 percent to EUR 1,241 million (EUR 1,324
million).
- Net sales increased in the Automation segment, remained at the previous
year's level in the Services segment, and decreased in the Process Technologies
segment.
• Comparable earnings before interest, taxes and amortization
(Comparable EBITA) remained at the previous year's level and amounted to EUR143
million (EUR 141 million).
- Comparable EBITA increased in the Automation segment, remained at the
previous year's level in the Services segment, and decreased in the Process
Technologies segment.
• Comparable EBITA margin was 11.5 percent (10.6%).
• Earnings per share (EPS) was EUR 0.15 (EUR 0.31). Adjusted EPS was EUR
0.23 (EUR 0.43). The decrease in both EPS and adjusted EPS was mainly related to
restructuring expenses of the operating model renewal.
• Items affecting comparability amounted to EUR -62 million (EUR -9
million) and were mainly related to restructuring expenses of the operating
model renewal.
• Cash flow provided by operating activities totaled EUR 79 million (EUR
128 million).
January-June 2025: Comparable EBITA margin increased, while net sales remained
at the previous year's level
• Orders received increased 22 percent to EUR 2,852 million (EUR 2,333
million).
- Orders received increased in all three segments.
- Orders received increased in China and North America, remained at the
previous year's level in EMEA and decreased in Asia-Pacific and South America.
• Net sales remained at the previous year's level and amounted to EUR
2,426 million (EUR 2,536 million).
- Net sales increased in the Automation segment, remained at the previous
year's level in the Services segment, and decreased in the Process Technologies
segment.
• Comparable EBITA remained at the previous year's level and amounted to
EUR265 million (EUR 262 million).
- Comparable EBITA increased in the Services and Automation segments and
decreased in the Process Technologies segment.
• Comparable EBITA margin was 10.9 percent (10.3%).
• EPS was EUR 0.48 (EUR 0.62). Adjusted EPS was EUR 0.64 (EUR 0.84). The
decrease in both EPS and adjusted EPS was mainly related to restructuring
expenses of the operating model renewal.
• Items affecting comparability amounted to EUR -70 million (EUR -16
million) and were mainly related to restructuring expenses of the operating
model renewal.
• Cash flow provided by operating activities totaled EUR 297 million
(EUR 267 million).
Guidance for 2025 unchanged
Valmet reiterates its guidance issued on February 13, 2025, in which Valmet
estimates that net sales in 2025 will remain at the previous year's level in
comparison with 2024 (EUR 5,359 million) and Comparable EBITA in 2025 will
remain at the previous year's level in comparison with 2024 (EUR 609 million).
Short-term market outlook
The short-term market outlook is given for July-December 2025 compared with
April-June 2025. It is Valmet's estimate of the customer activity and should not
be interpreted as guidance for Valmet's orders received.
The short-term market outlook is presented in accordance with Valmet's new
financial reporting structure, that came to effect on July 1, 2025. Valmet will
change its financial reporting structure in its January-September 2025 Interim
Review. In the new financial reporting structure, Valmet consists of two
reportable segments: Biomaterial Solutions and Services, and Process Performance
Solutions.
Biomaterial Solutions and Services
Uncertainty related to global economic outlook remains high and may impact
customers' decision making, capacity utilization rates and profitability levels.
Valmet estimates that the customer activity in biomaterial services will
decrease slightly.
It is typical that customers' large investment decisions can have a significant
impact on the overall market activity in the short-term.
Process Performance Solutions
Valmet estimates that the customer activity will remain stable. However,
uncertainty related to global economic outlook remains high.
President and CEO Thomas Hinnerskov: New 'Lead the Way' strategy launched and
strong growth in orders received
"In the second quarter, we made a confident move toward our next phase of growth
by launching our new strategy, ‘Lead the Way', and setting ambitious 2030
financial targets. This strategy is designed to accelerate growth, sharpen our
cost competitiveness, and build a culture of accountability and high
performance. Our new financial targets reflect a clear step change in ambition,
and we now have a focused strategy to reach them.
A major milestone was the implementation of our new operating model on July 1.
It simplifies our structure, reinforces local accountability, and enables faster
decision-making. Going forward, we will operate through two segments - each with
a distinct strategic mission and aligned financial reporting. The segments are
Biomaterial Solutions and Services; and Process Performance Solutions.
I've had the opportunity to meet with customers since the strategy launch, and
the feedback has been encouraging. Our purpose to transform industries towards a
regenerative tomorrow and our lifecycle approach have resonated well.
Operationally, the second quarter was strong in terms of orders received.
Automation segment (Process Performance Solutions) delivered across the board,
with growth in orders, net sales, and profitability. Process Technologies and
Services segments (Biomaterial Solutions and Services) also achieved strong
order growth, including a 10 percent organic increase in Services orders,
although profitability in Process Technologies declined due to lower net sales.
While net sales and Comparable EBITA remained at the previous year's level
during H1/25, we are confident that the actions we are taking - including the
new operating model - will support our performance and competitiveness going
forward. We remain committed to executing our strategy with discipline and
creating long-term value for our customers and shareholders."
New strategy ‘Lead the Way' and 2030 financial targets
On June 4, 2025, in connection with its Capital Markets Day, we announced our
new strategy, ‘Lead the Way', and published our new 2030 financial targets.
The new strategy is designed to create an accountable high-performance culture
and accelerate the growth trajectory towards bolder targets with increased cost
competitiveness. During the strategy renewal we defined our purpose as
‘Transforming industries towards a regenerative tomorrow'. Valmet's new Strategy
‘Lead the Way' is based on four strategic fundamentals: Customer success,
Lifecycle commitment, Global competitiveness, and Accountability.
These strategic fundamentals are being reinforced by Valmet's operating model
renewal, announced on March 31, 2025, and effective since July 1, 2025. The new
operating model allows us to operate with strong business areas close to
customers, providing integrated expertise in services and technology with a
lifecycle approach. A newly formed Global Supply unit for manufacturing and
procurement will centrally drive operational excellence and ensure cost
competitiveness.
Valmet's new 2030 financial targets reflect a step change in ambition. Valmet's
financial targets are the following (previous targets in brackets):
• Organic net sales growth (CAGR) over the cycle of 5% (previously: over
two times the market growth or exceed market growth)
• Comparable EBITA margin of 15% (previously: 12-14%)
• Comparable return on capital employed before taxes (Comparable ROCE)
of 20% (previously: at least 15%)
• Gearing below 50% (new target)
New reporting structure
On June 4, 2025, Valmet announced that to reflect the new strategy and operating
model, Valmet changes its reporting structure, effective since July 1, 2025.
Valmet will change its financial reporting structure to correspond to the new
operating model in its January-September 2025 Interim Review.
In the new financial reporting structure, Valmet consists of two reportable
segments: Biomaterial Solutions and Services, and Process Performance Solutions.
The two segments are comprised of business areas as follows:
Biomaterial Solutions and Services segment consists of three business areas:
• Pulp, Energy and Circularity
• Packaging and Paper
• Tissue
Process Performance Solutions segment consists of two business areas:
• Flow Control
• Automation Solutions
For both reportable segments, Valmet will report orders received, net sales and
profitability (EBITA and comparable EBITA), as well as amortization and items
affecting comparability. Valmet will also report orders received and net sales
for services included in the Biomaterial Solutions and Services segment to
maintain visibility to this strategically important part of the business. For
each business area, Valmet will report orders received, net sales and personnel.
Valmet will continue to report orders received, net sales and personnel for the
five geographical areas: North America, Latin America (previously South
America), EMEA, China and Asia-Pacific.
Key figures1
EUR million, or as Q2/202 Q2/202 Change Q1-Q2/ Q1-Q2/ Change
indicated 5 4
2025 2024
Orders received 1,520 1,283 19% 2,852 2,333 22%
Order backlog2 4,711 3,828 23%
Net sales 1,241 1,324 -6% 2,426 2,536 -4%
Comparable EBITA 143 141 2% 265 262 1%
% of net sales 11.5% 10.6% 10.9% 10.3%
EBITA 81 132 -39% 194 245 -21%
% of net sales 6.5% 9.9% 8.0% 9.7%
Operating profit 57 103 -45% 146 189 -23%
(EBIT)
% of net sales 4.6% 7.8% 6.0% 7.5%
Profit before 41 84 -52% 115 157 -27%
taxes
Profit for the 28 58 -52% 89 114 -22%
period
Earnings per 0.15 0.31 -51% 0.48 0.62 -22%
share, EUR
Adjusted earnings 0.23 0.43 -47% 0.64 0.84 -24%
per share, EUR
Equity per share, 12.87 13.21 -3%
EUR2
Cash flow provided 79 128 -38% 297 267 11%
by operating
activities
Cash flow after 48 -14 243 95 >100%
investing
activities
Comparable return 13.1% 13.6%
on capital
employed
(Comparable ROCE)
before taxes (LTM)
Return on capital 10.4% 12.8%
employed (ROCE)
before taxes (LTM)
Return on equity 10.6% 12.5%
(ROE) (LTM)
Net debt to 1.60 1.63
EBITDA3 ratio
Gearing2 42% 45%
Equity to assets 41% 40%
ratio2
1 The calculation of key figures is presented on section ‘Formulas for
calculation of indicators'.
2 At end of period.
3 Last twelve months' EBITDA
LTM = Last twelve months.
Segment key figures
Orders received, EUR million Q2/2025 Q2/2024 Change Q1-Q2/ Q1-Q2/ Change
2025 2024
Services 534 497 7% 1,102 1,024 8%
Automation 376 352 7% 782 681 15%
Flow Control 206 195 5% 421 389 8%
Automation Systems 170 157 9% 362 291 24%
Process Technologies 611 434 41% 968 628 54%
Pulp and Energy 240 187 28% 475 243 95%
Paper 371 247 50% 493 385 28%
Total 1,520 1,283 19% 2,852 2,333 22%
Net sales, EUR million Q2/2025 Q2/2024 Change Q1-Q2/ Q1-Q2/ Change
2025 2024
Services 460 473 -3% 893 880 1%
Automation 372 351 6% 711 659 8%
Flow Control 196 201 -2% 388 389 0%
Automation Systems 176 150 17% 323 271 19%
Process Technologies 409 500 -18% 822 997 -18%
Pulp and Energy 228 221 3% 406 447 -9%
Paper 181 279 -35% 416 550 -24%
Total 1,241 1,324 -6% 2,426 2,536 -4%
Comparable EBITA, EUR million Q2/2025 Q2/2024 Change Q1-Q2/ Q1-Q2/ Change
2025 2024
Services 83 80 4% 159 140 14%
Automation 66 58 15% 121 109 11%
Process Technologies 4 15 -74% 10 36 -72%
Other -10 -12 -17% -26 -23 13%
Total 143 141 2% 265 262 1%
Comparable EBITA, % of net sales Q2/2025 Q2/2024 Q1-Q2/ Q1-Q2/
2025 2024
Services 18.1% 16.9% 17.8% 15.9%
Automation 17.8% 16.5% 17.0% 16.5%
Process Technologies 1.0% 3.0% 1.2% 3.6%
Total 11.5% 10.6% 10.9% 10.3%
EBITA, EUR million Q2/2025 Q2/2024 Change Q1-Q2/ Q1-Q2/ Change
2025 2024
Services 63 78 -19% 139 134 4%
Automation 53 58 -8% 107 107 -1%
Process Technologies -13 9 -8 31
Other -22 -13 69% -43 -27 60%
Total 81 132 -39% 194 245 -21%
News conference and webcast for analysts, investors and media
Valmet will arrange a news conference in English as a live webcast at
https://valmet.videosync.fi/q (https://valmet.videosync.fi/q1
-2025)2 (https://valmet.videosync.fi/q1-2025)
-2025 (https://valmet.videosync.fi/q1-2025) on Wednesday, July 23, 2025, at
10:00 a.m. Finnish time (EEST). President and CEO Thomas Hinnerskov and CFO
Katri Hokkanen will be presenting the results.
Recording of the webcast will be available shortly after the event on the same
website.
It is possible to take part in the news conference through a conference call by
registering through the link below:
https://player.videosync.fi/valmet/q (https://player.videosync.fi/valmet/q1
-2025/dial-in)2 (https://player.videosync.fi/valmet/q1-2025/dial-in)-2025/dial
-in (https://player.videosync.fi/valmet/q1-2025/dial-in)
After the registration you will be provided phone numbers and a conference ID to
access the conference. If you wish to ask a question during the conference,
please dial *5 to enter the question queue.
The event is held in English.
Further information, please contact:
Pekka Rouhiainen, VP, Investor Relations, Valmet, tel. +358 10 672 0020
VALMET
Katri Hokkanen
CFO
Pekka Rouhiainen
VP, Investor Relations
DISTRIBUTION:
Nasdaq Helsinki
Major media
www.valmet.com
Valmet has a global customer base across various process industries. We are a
leading global developer and supplier of process technologies, automation, and
services for the pulp, paper, and energy industries. With our automation and
flow control solutions, we serve an even wider base of process industries. Our
more than 19,000 professionals around the world work close to our customers and
are committed to moving our customers' performance forward - every day.
The company has more than 225 years of industrial history and a strong track
record in continuous improvement, sustainability, and renewal. Valmet's net
sales in 2024 were approximately EUR 5.4 billion.
Valmet's shares are listed on the Nasdaq Helsinki, and the head office is in
Espoo, Finland.
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