#Finland #Espoo #Valmet #financial review #Lead the Way

Valmet's Half Year Financial Review for 2025

Valmet Oyj, based in Espon, Finland, has recently published its financial review for the first half of 2025, revealing notable advancements and the implementation of a new strategic framework called 'Lead the Way.' This report focuses on its financial performance from January 1 to June 30, 2025, indicating strong organic growth in orders received across various segments.

Overview of Financial Performance

Orders Received

In the second quarter (April-June) of 2025, Valmet witnessed an increase in orders received, amounting to EUR 1,520 million compared to EUR 1,283 million during the same period in the previous year. This growth is encouraging as it was recorded across all three segments of Valmet's business operations. Notably, the orders surged in key regions including China and North America, while maintaining levels in EMEA (Europe, Middle East, and Africa) and showing a decline in the Asia-Pacific and South American markets.

Net Sales

While orders received grew, the net sales did experience a slight contraction, dipping by 6 percent to reach EUR 1,241 million, down from EUR 1,324 million in 2024. Despite the overall decrease, Valmet's Automation segment displayed resilience with an increase in net sales, while the Process Technologies segment faced a downturn.

Earnings Performance

The company reported comparable earnings before interest, taxes, and amortization (EBITA) remaining stable at EUR 143 million, reflecting an increase in the Automation sector. However, earnings per share (EPS) registered a decline, moving from EUR 0.31 in Q2 2024 to EUR 0.15 in Q2 2025, primarily due to restructuring costs associated with the renewal of its operational model. Furthermore, the cash flow from operating activities also noted a decline, providing EUR 79 million compared to EUR 128 million.

Mid-Year Insights and Future Guidance

Looking at the first half of the year (January-June), Valmet reported a 22 percent increase in orders received, totaling EUR 2,852 million against EUR 2,333 million in 2024. The company anticipates that net sales will remain steady compared to the previous year, projecting figures of EUR 5,359 million for 2025, alongside maintaining similar EBITA levels.

Strategic Direction: 'Lead the Way'

On June 4, 2025, Valmet unveiled its 'Lead the Way' strategy during its Capital Markets Day. This strategy aims not only to expand Valmet's operational capacity but also to establish an accountability-driven, high-performance culture within the company. The strategic fundamentals focus on increasing customer success, lifecycle commitments, global competitiveness, and a strong accountability framework.

Following the restructuring, Valmet will now operate under two main segments: Biomaterial Solutions and Services and Process Performance Solutions. The new operating model, effective from July 1, 2025, intends to simplify the company’s structure, enhance local accountability, and accelerate decision-making processes.

Market Outlook

Valmet’s short-term market outlook remains cautiously positive, although uncertainties in the global economic landscape may influence customer decision-making and investment patterns. The company predicts a slight decrease in customer activity regarding biomaterial services but expects stable activity in process performance solutions. The leadership emphasizes an ongoing commitment to adapting to market conditions and implementing changes that foster long-term growth and shareholder value.

Conclusion

Valmet's first-half results, combined with their new strategic direction, suggest a promising future for the company. The ambitious targets set for 2030 alongside a consistent growth trajectory in orders received showcase Valmet's resilience and proactive approach in a competitive industry landscape. As they navigate through the challenges ahead, their focus on customer engagement and operational efficiency will be crucial in securing ongoing success and profitability.