Valmet OYJ

Latest Results (05.04.2026):

Valmet OYJ — October–December (Q4) 2025 (and full-year 2025) results: Valmet reported Q4/2025 net sales of EUR 1,477 million (‑3% vs Q4/2024) and comparable EBITA of EUR 196 million, lifting the Q4 comparable EBITA margin to an all‑time high of 13.3%. For the full year 2025, net sales were EUR 5,197 million (‑3% vs 2024), comparable EBITA was EUR 620 million (flat vs 2024) and the comparable EBITA margin improved to 11.9%. Orders received were weak vs the strong prior comparison (Q4 orders EUR 1,281m, ‑48%; FY orders EUR 5,216m, ‑11%). Cash flow from operations was EUR 189 million in Q4 and EUR 581 million for 2025. The Board proposes a dividend of EUR 1.35 per share for 2025; guidance for 2026 is net sales to remain at 2025 level and comparable EBITA to remain at the same level or improve.

Q4 topline and EPS

Q4/2025 net sales: EUR 1,477m (‑3%). Earnings per share Q4: EUR 0.57 (up from EUR 0.53). Adjusted EPS Q4: EUR 0.64.

Full‑year revenue and earnings

FY 2025 net sales: EUR 5,197m (‑3%). Comparable EBITA: EUR 620m (+2% vs prior year) with a 11.9% comparable EBITA margin (up 0.6 pp). Reported EBITA: EUR 534m; profit for the year: EUR 279m; EPS: EUR 1.52 (unchanged vs 2024); adjusted EPS: EUR 1.82 (down from EUR 1.93).

Profitability highlights

Q4 comparable EBITA hit EUR 196m and a record 13.3% margin (driven by operating model cost savings and Process Performance results). FY comparable EBITA margin improved to 11.9% (from 11.4%), supported by cost savings from the operating model renewal.

Orders and backlog

Q4 orders received: EUR 1,281m (‑48% YoY, organically ‑46%) — drop largely versus an exceptional prior‑year quarter that included a >EUR1bn pulp mill order. FY orders: EUR 5,216m (‑11%, organically ‑9%). Order backlog at 31 Dec 2025: EUR 4,306m, with ~EUR 3.1bn expected to convert to 2026 net sales.

Segment performance

Process Performance Solutions: Q4 comparable EBITA margin 21.9% (Q4 comparable EBITA EUR 90m); FY margin 19.6% (EUR 290m). Biomaterial Solutions & Services: Q4 margin 11.6% (EUR 123m); FY margin 10.3% (EUR 381m). Process segment delivered particularly strong profitability.

Cash flow and balance sheet

Operating cash flow: EUR 189m (Q4) and EUR 581m (FY). Net debt/EBITDA: 1.40 (down from 1.55). Gearing: 35% (down from 39%). Liquidity: cash EUR 535m plus undrawn EUR 450m committed RCF; EUR 375m Schuldschein signed Dec 2025.

Dividend and capital allocation

The Board will propose to the AGM a dividend of EUR 1.35 per share for 2025 (to be paid in two installments). The proposal equals ~89% of net result; past dividends for 2024 were paid in two installments.

Guidance for 2026

Valmet estimates 2026 net sales to remain at the 2025 level (EUR ~5.2bn) and Comparable EBITA to remain at the prior year’s level or increase versus EUR 620m.

Costs, restructuring and run‑rate savings

‘Lead the Way’ operating model renewal targets ~EUR 80m annual gross savings (full run‑rate by early 2026). By year‑end ~EUR 35m of savings were realized (including ~EUR 20m in Q4). Items affecting comparability were reported (EUR ‑6m in Q4; EUR ‑85m in FY, mainly restructuring).

M&A and other items affecting outlook

Valmet announced on 22 Dec 2025 an agreement to acquire Severn Group (industrial valve specialist); closing expected in H1 2026 subject to conditions. The deal expands Flow Control and aftermarket/service exposure and was disclosed alongside the FY results.