Valmet Oyj’s Interim Review January 1 – March 31, 2026: Strategy execution progressed in the first quarter, while sales mix impacted the results
Valmet Oyj’s Interim Review January 1 – March 31, 2026: Strategy execution progressed in the first quarter, while sales mix impacted the results
Valmet Oyj’s stock exchange release on April 28, 2026 at 9:00 a.m. EEST
January–March 2026
• Orders received decreased 18 percent to EUR 1,092 million (EUR 1,332 million). Organically orders received decreased 15 percent. The decrease was mainly driven by low capital project order intake in the Biomaterial Solutions and Services segment, and further amplified by a single large order in the comparison period.
• Net sales increased 5 percent to EUR 1,244 million (EUR 1,184 million). Sales mix for the period reflected a higher share of revenue from large projects and smaller mill improvement projects.
• Comparable EBITA decreased 6 percent to EUR 114 million (EUR 121 million).
• Comparable EBITA margin decreased to 9.2 percent (10.2%). Despite higher net sales and cost savings from the operating model renewal, profitability decreased due to lower gross profit margin.
• Earnings per share (EPS) decreased to EUR 0.19 (EUR 0.33). The decline was primarily related to costs related to planned strategic footprint measures.
• Items affecting comparability amounted to EUR -32 million (EUR -8 million) and were mainly related to planned strategic footprint measures.
• Adjusted EPS decreased to EUR 0.26 (EUR 0.41).
Key figures1
|
EUR million, or as indicated |
Q1/2026 |
Q1/2025 |
Change |
|
|
Orders received |
1,092 |
1,332 |
-18% |
|
|
Order backlog2 |
4,200 |
4,574 |
-8% |
|
|
Net sales |
1,244 |
1,184 |
5% |
|
|
Comparable EBITA |
114 |
121 |
-6% |
|
|
% of net sales |
9.2% |
10.2% |
-1.1 pp |
|
|
EBITA |
82 |
113 |
-28% |
|
|
Profit for the period |
34 |
61 |
-44% |
|
|
Earnings per share, EUR |
0.19 |
0.33 |
-44% |
|
|
Adjusted earnings per share, EUR |
0.26 |
0.41 |
-36% |
|
|
Cash flow provided by operating activities |
35 |
217 |
-84% |
|
|
Free cash flow |
18 |
193 |
-91% |
|
|
Comparable ROCE (LTM)3 |
13.4% |
13.0% |
0.4 pp |
|
|
ROCE (LTM)3 |
10.6% |
11.7% |
-0.9 pp |
|
|
Net debt to EBITDA4 ratio (LTM) |
1.45 |
1.30 |
11% |
|
|
Gearing2 |
37% |
36% |
0.8 pp |
|
|
1 The calculation of key figures is presented on section ‘Formulas for calculation of indicators’. 2 At end of period. 3 Return on capital employed before taxes. 4 Last twelve months’ EBITDA LTM = Last twelve months |
||||
Guidance for 2026 unchanged
Valmet reiterates its guidance issued on February 6, 2026, in which Valmet estimates that net sales in 2026 will remain at the previous year's level in comparison with 2025 (EUR 5,197 million) and Comparable EBITA in 2026 will remain at the previous year's level or increase in comparison with 2025 (EUR 620 million).
Short-term market outlook
(April–September 2026)
Valmet’s short-term market outlook covers the period April–September 2026, compared with January–March 2026.
It reflects Valmet’s estimate of the expected growth rate of its key markets, based on ongoing discussions with customers and other market information.
The outlook describes underlying market trends, excluding the normal seasonal variation in Valmet’s business. It should not be interpreted as guidance for Valmet’s own orders received.
Process Performance Solutions
Valmet estimates that the market for Process Performance Solutions has returned to low year-over-year growth following the weaker market conditions seen in late 2025.
At the same time, uncertainty related to the geopolitical situation and global economic outlook has increased, which reduces short-term market visibility.
Biomaterial Solutions and Services
Valmet estimates that market conditions in Biomaterial Solutions and Services will improve slightly over the next six months, mainly reflecting a recovery from very low capital project activity in early 2026.
The biomaterial services market is expected to remain soft in the coming quarters.
Uncertainty related to the geopolitical situation and global economic outlook has increased, which reduces short-term market visibility.
Segment key figures
|
Orders received, EUR million |
Q1/2026 |
Q1/2025 |
Change |
|
Process Performance Solutions |
400 |
406 |
-2% |
|
Biomaterial Solutions and Services |
693 |
926 |
-25% |
|
of which biomaterial services |
506 |
568 |
-11% |
|
Total |
1,092 |
1,332 |
-18% |
|
Net sales, EUR million |
Q1/2026 |
Q1/2025 |
Change |
|
Process Performance Solutions |
341 |
339 |
1% |
|
Biomaterial Solutions and Services |
904 |
846 |
7% |
|
of which biomaterial services |
414 |
433 |
-4% |
| Total | 1,244 | 1,184 | 5% |
|
Comparable EBITA, EUR million |
Q1/2026 |
Q1/2025 |
Change |
|
Process Performance Solutions |
63 |
55 |
15% |
|
Biomaterial Solutions and Services |
64 |
82 |
-22% |
|
Other |
-13 |
-16 |
-17% |
|
Total |
114 |
121 |
-6% |
|
Comparable EBITA, % of net sales |
Q1/2026 |
Q1/2025 |
Change |
|
Process Performance Solutions |
18.5% |
16.2% |
2.3 pp |
|
Biomaterial Solutions and Services |
7.1% |
9.7% |
-2.6 pp |
|
Total |
9.2% |
10.2% |
-1.1 pp |
|
EBITA, EUR million |
Q1/2026 |
Q1/2025 |
Change |
|
Process Performance Solutions |
63 |
54 |
16% |
|
Biomaterial Solutions and Services |
32 |
80 |
-60% |
|
Other |
-13 |
-21 |
-37% |
|
Total |
82 |
113 |
-28% |
Letter from President and CEO:
Strategy execution progressed in the first quarter, while sales mix impacted the results
“In the first quarter of 2026, Valmet continued to execute its strategy in a market environment characterized by cautious customer decision‑making and uneven demand across our customer industries. While quarter’s results were impacted by sales mix, we made tangible progress in strengthening Valmet’s long‑term competitiveness and earnings quality.
Orders received totaled close to EUR 1.1 billion. Organic order intake declined, primarily due to the timing of large capital projects. This development was expected and reflects current overcapacity in pulp and paper production globally. Our Process Performance Solutions business delivered solid organic order growth and strong margin performance, demonstrating the resilience of our lifecycle‑driven offering and the value it brings to customers even in a more uncertain environment.
Net sales increased 9% organically, supported by a higher share of revenue from large projects and smaller mill improvements. This shift in sales mix affected profitability, and our comparable EBITA margin declined to 9.2%. While projects typically carry lower margins, they are critical ways we deliver value to customers, work closer to their operations, and grow the installed base that supports long-term shareholder value.
A key positive in the quarter were the benefits from the early and decisive steps taken last year to renew Valmet’s operating model. These actions are delivering cost savings and helping us move with more focus and speed as decisions are made closer to customers. On a last‑twelve‑months basis, our comparable SG&A costs are EUR 66 million lower than in the full year 2024, reflecting the impact of these measures. In parallel, we advanced strategic plans related to our production footprint, which are expected to strengthen efficiency, flexibility, and competitiveness over the coming years.
Valmet’s strategy is anchored in improving the performance of industrial assets across their lifecycle. We help our customers operate more reliably, efficiently, and sustainably, while reducing resource use and manual effort. For Valmet, this translates into recurring lifecycle demand from our global installed base and reduced dependence on volatile capital investment cycles. The relevance of this strategy is clearly evident in the current operating environment.
Looking ahead, geopolitical and macroeconomic uncertainty further increased during the first quarter and remains elevated, and customers are likely to remain selective in their investment decisions. However, Valmet is well positioned. Our strong market positions, broad installed base, and clear strategic direction provide a solid foundation. We are confident that the actions we are taking today are building a stronger, more resilient Valmet capable of delivering sustainable value over the long term, and support the achievement of our 2030 financial targets.”
Thomas Hinnerskov
President and CEO
News conference and webcast for analysts, investors and media
Valmet will host a results webcast in English as a live webcast at https://valmet.events.inderes.com/q1-2026 on Tuesday, April 28, 2026, at 11:00 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 at the same address.
Participants may also join the news conference via a conference call by registering at:
https://events.inderes.com/valmet/q1-2026/dial-in
After the registration you will receive dial-in details and a conference ID. To ask a question during the call, please dial #5 on your telephone keypad.
The event is held in English.
Further information:
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 is a global technology leader in serving process industries. We work with our customers throughout the lifecycle, delivering cutting-edge technologies and services, as well as mission-critical automation and flow control solutions. Backed by more than 225 years of industrial experience and a global team of 18,500 professionals close to customers, we are uniquely positioned to transform industries toward a regenerative tomorrow.
In 2025, Valmet’s net sales totaled approximately EUR 5.2 billion. Our head office is in Espoo, Finland, and we have experts in approximately 40 countries around the world. Valmet’s shares are listed on Nasdaq Helsinki.
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