Valmet OYJ

Latest Results (16.05.2026):

Valmet OYJ — Q1 2026 (January–March 2026): The company reported orders received of EUR 1,092m (‑18% YoY, organic ‑15%), net sales of EUR 1,244m (+5% YoY, organic +9%), and comparable EBITA of EUR 114m (‑6% YoY) with a comparable EBITA margin of 9.2% (‑1.1 pp). Reported profit for the period was EUR 34m (EUR 0.19 EPS), adjusted EPS EUR 0.26. Cash flow from operations and free cash flow were weak (EUR 35m and EUR 18m respectively) mainly due to a working‑capital swing and costs related to planned strategic footprint measures (items affecting comparability: EUR ‑32m). Guidance for 2026 was reiterated (net sales roughly level with 2025; comparable EBITA at or above 2025 level).

Key financials

Orders received: EUR 1,092m (‑18% YoY; organic ‑15%). Net sales: EUR 1,244m (+5% YoY; organic +9%). Comparable EBITA: EUR 114m (‑6% YoY) and margin 9.2% (vs 10.2% a year ago). Reported profit EUR 34m (EPS EUR 0.19), adjusted EPS EUR 0.26.

Profitability drivers

Sales mix shifted toward large projects and smaller mill improvements (lower margin), which alongside lower gross profit margin offset cost savings from the operating‑model renewal. Items affecting comparability (mainly footprint costs) reduced results by EUR 32m in Q1.

Segment performance

Process Performance Solutions: Orders EUR 400m (‑2%), net sales EUR 341m (+1%), comparable EBITA EUR 63m (+15%) and margin 18.5% (up 2.3 pp). Biomaterial Solutions & Services: Orders EUR 693m (‑25%), net sales EUR 904m (+7%), comparable EBITA EUR 64m (‑22%) and margin 7.1% (down 2.6 pp).

Orders backlog and market

Order backlog EUR 4,200m (‑8% YoY). Valmet sees Process Performance Solutions markets returning to low growth; biomaterial capital project activity expected to recover slightly over the next six months, while biomaterial services remain soft. Short‑term visibility is reduced by geopolitical and macro uncertainty.

Cash flow, debt and liquidity

Operating cash flow EUR 35m (vs EUR 217m a year ago); free cash flow EUR 18m. Cash and cash equivalents EUR 579m; committed RCF EUR 450m undrawn and commercial paper program unused. Interest‑bearing liabilities EUR 1,478m, net interest‑bearing liabilities EUR 888m, net debt/EBITDA (LTM) 1.45, gearing 37%.

Capital deployment and cost actions

Q1 capex EUR 17m (1.4% of sales). Valmet has initiated footprint optimizations in Sweden and Poland targeting ~EUR 20m annual run‑rate net savings with full run‑rate by early 2027 (subject to consultation).

Corporate items & governance

CFO Katri Hokkanen has announced her departure; search for successor underway. Valmet announced acquisition of Severn Group (expected to close Q2 2026), and paid the first 2025 dividend installment (EUR 125m) in April with the second scheduled for October 2026.