Nokian Tyres plc Half Year Financial Report January-June 2025, July 18, 2025 at
1:00 p.m. EEST
This release is a summary of Nokian Tyres' Half Year Financial Report
January-June 2025. The complete report is attached to this release. It is also
available on the company's website at company.nokiantyres.com/investors.
April-June 2025
· Net sales were EUR 343.7 million (April-June 2024: 324.6). With comparable
currencies, net sales increased by 6.9%. Sales growth outperformed the market in
all regions.
· Segments operating profit was EUR 26.3 million (20.1), an improvement of
30.6%. The increase was driven by higher passenger car tire sales, price
increases implemented in the first quarter, and lower manufacturing and supply
chain costs. Operating profit was EUR 14.8 million (8.4). EUR -11.5 million (
-11.7) was booked as non-IFRS exclusions.
· Earnings per share were EUR 0.00 (0.01).
· Cash flow from operating activities was EUR 16.5 million (-57.9).
January-June 2025
· Net sales were EUR 613.2 million (January-June 2024: 561.2). With comparable
currencies, net sales increased by 10.0%. Sales growth outperformed the market
in all regions.
· Segments operating profit was EUR 7.8 million (5.0), an improvement of
56.5%. The increase was driven by higher passenger car tire sales, price
increases implemented in the first quarter, and lower manufacturing and supply
chain costs. Operating profit was EUR
-21.1 million (-17.8). EUR -28.9 million (-22.8) was booked as non-IFRS
exclusions.
· Earnings per share were EUR -0.27 (-0.18).
· Cash flow from operating activities was EUR -105.3 million (-145.2).
· Paolo Pompei started as President and CEO of Nokian Tyres on January 1,
2025.
Guidance for 2025 (unchanged)
In 2025, Nokian Tyres' net sales are expected to grow and segments operating
profit as a percentage of net sales to improve compared to the previous year.
Assumptions for 2025
Tire demand in Nokian Tyres' markets is expected to remain at the previous
year's level in 2025. Development of global economy as well as geopolitical,
trade and tariff uncertainties may cause volatility to the company's business
environment.
Nokian Tyres' sales growth is based on increasing capacity in the Romanian and
US factories as well as good availability of finished goods inventories.
Paolo Pompei, President and CEO:
“Nokian Tyres' business developed favorably in the second quarter. Net sales
increased by 7%, supported by positive contributions from all business units.
Our Passenger Car Tyres segment outperformed the market, and we strengthened our
position across all regions. The Group's segments operating profit improved
significantly.
As outlined in our Q1 report, we have accelerated our efforts to enhance
financial performance. It is encouraging to see early positive results from
these actions. We introduced price and product mix adjustments to offset
increased raw material costs and to gradually strengthen our position in Central
Europe and North America.
Since the beginning of the year, we have implemented several operational
initiatives aimed at improving efficiency, increasing productivity, and
strengthening cash management across the organization. We expect these measures
to continue delivering results throughout the rest of 2025 and into 2026.
In Romania, the ramp-up of our operations is proceeding according to plan.
During the quarter, we began commercial deliveries of our new Nokian Tyres
Seasonproof 2, manufactured at our new facility and engineered to provide
premium performance in the all-season tire segment.
In the second quarter, we once again received recognition for our long-term
sustainability efforts, as TIME magazine included Nokian Tyres among the world's
500 most sustainable companies. We were ranked 98th on the list, reflecting our
strong performance in environmental and social responsibility
While geopolitical tensions and evolving tariff dynamics continue to create
short-term uncertainty, we remain focused on the factors within our control. In
2025, our goal is to grow net sales and improve segments operating profit as a
percentage of net sales compared to the previous year.
This year marks the conclusion of a three-year investment phase, during which we
have invested approximately EUR 800 million in expanding our production
capacity. While these investments have temporarily impacted profitability and
cash flow, they were essential for securing our long-term success.
Building a new foundation requires significant effort. I would like to sincerely
thank all Nokian Tyres employees for embracing our ongoing transformation with
competence, enthusiasm, and strong commitment.”
Key figures
EUR million 4-6/2025 4-6/2024 1-6/2025 1-6/2024 2024
Net sales 343.7 324.6 613.2 561.2 1,289.8
Net sales change, % 5.9% 10.7% 9.3% 6.0% 9.9%
Net sales change in 6.9% 11.2% 10.0% 6.8% 10.6%
comparable currencies,
%
Operating profit 14.8 8.4 -21.1 -17.8 1.8
Operating profit, % 4.3% 2.6% -3.4% -3.2% 0.1%
Result before tax 2.4 1.3 -44.9 -30.3 -31.5
Result for the period 0.6 0.8 -37.2 -24.6 -22.8
EPS, EUR 0.00 0.01 -0.27 -0.18 -0.17
Segments EBITDA 57.2 46.8 69.7 59.3 185.2
Segments EBITDA, % 16.7% 14.4% 11.4% 10.6% 14.4%
Segments operating 26.3 20.1 7.8 5.0 71.4
profit
Segments operating 30.6% 32.6% 56.5% 370.5% 9.6%
profit change, %
Segments operating 7.7% 6.2% 1.3% 0.9% 5.5%
profit, %
Segments ROCE, %* 3.7% 3.6% 3.9%
Equity ratio, % 46.6% 55.0% 52.5%
Gearing, % 75.9% 46.8% 48.2%
Interest-bearing net 863.9 600.4 613.1
debt
Capital expenditure 37.7 89.2 89.7 158.9 350.1
Cash flow from 16.5 -57.9 -105.3 -145.2 77.4
operating activities
* Rolling 12 months
In addition to IFRS figures, Nokian Tyres publishes alternative non-IFRS
segments figures, which exclude the ramp-up of the US and Romanian factories and
other possible items that are not indicative of the Group's underlying business
performance.
BUSINESS UNIT REVIEWS
Passenger Car Tyres
+----------------------+--------+--------+--------+--------+-----+
|EUR million |4-6/2025|4-6/2024|1-6/2025|1-6/2024|2024 |
+----------------------+--------+--------+--------+--------+-----+
|Net sales |206.2 |188.8 |380.4 |331.9 |779.9|
+----------------------+--------+--------+--------+--------+-----+
|Net sales change, % |9.3% |23.7% |14.6% |16.1% |19.4%|
+----------------------+--------+--------+--------+--------+-----+
|Net sales change in |11.3% |24.3% |16.0% |17.0% |20.2%|
|comparable currencies,| | | | | |
|% | | | | | |
+----------------------+--------+--------+--------+--------+-----+
|Operating profit |4.7 |-3.8 |-18.6 |-17.3 |-15.6|
+----------------------+--------+--------+--------+--------+-----+
|Operating profit, % |2.3% |-2.0% |-4.9% |-5.2% |-2.0%|
+----------------------+--------+--------+--------+--------+-----+
|Segment operating |15.9 |7.1 |9.7 |4.2 |52.2 |
|profit | | | | | |
+----------------------+--------+--------+--------+--------+-----+
|Segment operating |7.7% |3.7% |2.6% |1.3% |6.7% |
|profit, % | | | | | |
+----------------------+--------+--------+--------+--------+-----+
Heavy Tyres
+----------------------+--------+--------+--------+--------+-----+
|EUR million |4-6/2025|4-6/2024|1-6/2025|1-6/2024|2024 |
+----------------------+--------+--------+--------+--------+-----+
|Net sales |60.8 |60.2 |116.6 |115.3 |235.1|
+----------------------+--------+--------+--------+--------+-----+
|Net sales change, % |1.0% |-10.7% |1.2% |-15.0% |-8.6%|
+----------------------+--------+--------+--------+--------+-----+
|Net sales change in |1.3% |-10.3% |1.3% |-14.4% |-8.0%|
|comparable currencies,| | | | | |
|% | | | | | |
+----------------------+--------+--------+--------+--------+-----+
|Operating profit |6.0 |7.6 |13.3 |14.0 |30.0 |
+----------------------+--------+--------+--------+--------+-----+
|Operating profit, % |9.9% |12.7% |11.4% |12.1% |12.8%|
+----------------------+--------+--------+--------+--------+-----+
|Segment operating |6.0 |7.6 |13.3 |14.0 |30.0 |
|profit | | | | | |
+----------------------+--------+--------+--------+--------+-----+
|Segment operating |9.9% |12.7% |11.4% |12.1% |12.8%|
|profit, % | | | | | |
+----------------------+--------+--------+--------+--------+-----+
Vianor, own operations
+----------------------+--------+--------+--------+--------+-----+
|EUR million |4-6/2025|4-6/2024|1-6/2025|1-6/2024|2024 |
+----------------------+--------+--------+--------+--------+-----+
|Net sales |97.7 |95.5 |156.5 |151.4 |354.9|
+----------------------+--------+--------+--------+--------+-----+
|Net sales change, % |2.3% |1.2% |3.4% |1.0% |3.2% |
+----------------------+--------+--------+--------+--------+-----+
|Net sales change in |1.2% |1.3% |2.9% |1.7% |3.6% |
|comparable currencies,| | | | | |
|% | | | | | |
+----------------------+--------+--------+--------+--------+-----+
|Operating profit |7.1 |7.5 |-8.3 |-8.4 |-3.8 |
+----------------------+--------+--------+--------+--------+-----+
|Operating profit, % |7.2% |7.8% |-5.3% |-5.6% |-1.1%|
+----------------------+--------+--------+--------+--------+-----+
|Segment operating |7.1 |7.5 |-8.3 |-8.4 |-3.8 |
|profit | | | | | |
+----------------------+--------+--------+--------+--------+-----+
|Segment operating |7.2% |7.8% |-5.3% |-5.6% |-1.1%|
|profit, % | | | | | |
+----------------------+--------+--------+--------+--------+-----+
|Number of own service |171 |175 | | |174 |
|centers at period end | | | | | |
+----------------------+--------+--------+--------+--------+-----+
WEBCAST & CONFERENCE CALL
A combined webcast and teleconference for investors, analysts and media will be
held on July 18, 2025 at 2:00 p.m. EEST. Nokian Tyres' President and CEO Paolo
Pompei and interim CFO Jari Huuhtanen will present the results. Participants can
follow the webcast via https://nokiantyres.events.inderes.com/q2-2025/register.
To ask questions, please join the teleconference by registering at
https://events.inderes.com/nokiantyres/q2-2025/dial-in. Phone numbers and a
conference ID to access the conference will be provided upon registration.
A recording of the webcast will be available on the company's website for 12
months after the event.
FINANCIAL REPORTING
Interim Report January-September 2025 will be published on October 28, 2025.
Releases and company information are available at
company.nokiantyres.com/investors.
Further information:
Paolo Pompei, President and CEO, tel: +358 10 401 7000
Annukka Angeria, Senior Manager, IR and Strategic Project Communications, tel:
+358 10 401 7581