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’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 on July 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 EUR 143 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 EUR 265 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 indicated |
Q2/2025 |
Q2/2024 |
Change |
Q1–Q2/ |
Q1–Q2/ |
Change |
|
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 (EBIT) |
57 |
103 |
-45 % |
146 |
189 |
-23 % |
|
% of net sales |
4.6 % |
7.8% |
|
6.0 % |
7.5 % |
|
|
Profit before taxes |
41 |
84 |
-52 % |
115 |
157 |
-27 % |
|
Profit for the period |
28 |
58 |
-52 % |
89 |
114 |
-22 % |
|
Earnings per share, EUR |
0.15 |
0.31 |
-51 % |
0.48 |
0.62 |
-22 % |
|
Adjusted earnings per share, EUR |
0.23 |
0.43 |
-47 % |
0.64 |
0.84 |
-24 % |
|
Equity per share, EUR2 |
|
|
|
12.87 |
13.21 |
-3 % |
|
Cash flow provided by operating activities |
79 |
128 |
-38 % |
297 |
267 |
11 % |
|
Cash flow after investing activities |
48 |
-14 |
|
243 |
95 |
>100% |
|
Comparable return on capital employed (Comparable ROCE) before taxes (LTM) |
|
|
|
13.1 % |
13.6 % |
|
|
Return on capital employed (ROCE) before taxes (LTM) |
|
|
|
10.4 % |
12.8 % |
|
|
Return on equity (ROE) (LTM) |
|
|
|
10.6 % |
12.5 % |
|
|
Net debt to EBITDA3 ratio |
|
|
|
1.60 |
1.63 |
|
|
Gearing2 |
|
|
|
42 % |
45 % |
|
|
Equity to assets ratio2 |
|
|
|
41 % |
40 % |
|
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 |
|
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 |
|
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 |
|
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/ |
|
|
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 |
|
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/q2-2025 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/q2-2025/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
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.
Follow us on valmet.com | X | X (IR) | LinkedIn | Facebook | YouTube | Instagram |