Valmet Launches Share Buy-back Initiative for Incentive Plans to Enhance Shareholder Value

Valmet Launches Share Buy-back Initiative for Incentive Plans

Valmet, a prominent player in process automation and technologies, has officially announced the commencement of its share buy-back program, as authorized by its Board of Directors. The decision, made public on February 14, 2025, allows the company to procure its own shares in order to fulfill obligations linked to its share-based long-term incentive plans (LTI Plans) and the Restricted Share Pool incentive.

The buy-back will run from February 14 until at least March 7, 2025. During this period, the company is set to acquire a maximum of 115,000 shares at the prevailing market rates through Nasdaq Helsinki Ltd. As of the announcement, Valmet's treasury stock stood at 364,258 shares, representing roughly 0.20% of its total outstanding shares.

The strategic introduction of the share buy-back program aims to reinforce Valmet's dedication to creating long-term value for its shareholders.

Background of the Initiative

The authorization for this move was first granted during the Annual General Meeting on March 21, 2024. This forthcoming buy-back demonstrates Valmet’s ongoing commitment to its shareholders, particularly in satisfying equity-linked compensation commitments that incentivize employees and align their interests with those of shareholders. By buying back shares, Valmet not only recognizes shareholder value but also supports its employees under the respective incentive frameworks.

Valmet has established itself as a leading provider of technologies, automation solutions, and services tailored for various process industries, including pulp, paper, and energy sectors. The company boasts a workforce of over 19,000 professionals globally who are steadfastly focused on enhancing client performance and operational excellence.

Financial Impact and Market Response

In the backdrop of this announcement, Valmet reported net sales of approximately EUR 5.4 billion for the year 2024, highlighting a strong business foundation from which this buy-back program is being initiated. The share buy-back initiative is a calculated move that often results in an increase in the company's share price, as it reduces the number of outstanding shares, thereby potentially increasing earnings per share and conveying a positive signal to the market.

As a well-established entity with a rich industrial history spanning over 225 years, Valmet has continually emphasized continuous improvement and sustainability, which are at the core of its operating philosophy.

Valmet’s shares, listed on Nasdaq Helsinki, have seen a noteworthy level of trading activity, raising investor interest not only around the buy-back initiative but also regarding the company's overall growth and development trajectory within the highly competitive landscape of process industries.

Future Directions

Looking forward, Valmet’s share buy-back initiative reflects its robust positioning in a dynamic marketplace and the ability to leverage its financial resources effectively. The completion of this purchase will likely reinforce investor confidence in Valmet's strategy and forward-looking plans.

In conclusion, as Valmet embarks on this new journey with its share buy-back program, it aligns itself with the broader goal of enhancing shareholder value and demonstrating financial prudence within a rapidly evolving market landscape.

For further details or questions regarding this announcement, Valmet’s Vice President of Treasury, Reetta Antila, and Vice President of Investor Relations, Pekka Rouhiainen, are available for contact.

Follow updates on this initiative at Valmet's website or on their social media platforms.