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Valmet's Q3 2025 Interim Review: Overview and Highlights

Valmet Oyj has announced its Interim Review for the period from January 1 to September 30, 2025. Despite facing a challenging economic environment, Valmet demonstrated resilience with improvements in key performance metrics and strategic achievements. This report sheds light on Valmet's financial standings, highlights significant growth areas, and outlines their strategic initiatives for future growth.

Financial Performance Overview

Q3 Financials

For the third quarter of 2025, Valmet reported that orders received remained steady at EUR 1,083 million, which shows a solid 4% increase compared to the previous year’s figures of EUR 1,041 million. Notably, when adjusted for organic growth, orders received jumped 7%. The net sales for the same quarter mirrored the previous year, standing at EUR 1,295 million. The comparable EBITA (Earnings Before Interest, Taxes, and Amortization) for this period also remained stable at EUR 159 million, resulting in a comparable EBITA margin of 12.3%, an increase from 12.0% in the prior year.

Earnings per share (EPS) showed a notable increase to EUR 0.46, up from EUR 0.37, primarily driven by reduced selling, general, and administrative expenses (SGA). The adjusted EPS rose to EUR 0.54, signifying a robust performance. However, the cash flow from operating activities saw a decrease, totaling EUR 94 million, down from EUR 110 million from the previous year.

YTD Financials

From January to September 2025, Valmet reported a 17% increase in orders received totaling EUR 3,936 million, compared to EUR 3,374 million a year earlier, indicating strong market demand. The net sales for the year-to-date totaled EUR 3,720 million, a slight decrease compared to EUR 3,831 million from the previous year. The comparable EBITA for this period stood at EUR 423 million, maintaining similar levels to the last year’s EUR 417 million.

Strategic Highlights

Valmet continues to implement its 'Lead the Way' strategy, focusing on enhancing cost competitiveness, accelerating growth, and streamlining operations. This initiative aims to sharpen the company’s priorities and improve performance metrics across all business segments. During the third quarter, the company realized approximately EUR 15 million in operational cost reductions earlier than expected, aligning with Valmet's goal of achieving EUR 80 million in annual savings by early 2026.

The increase in orders received was mainly driven by the Process Performance Solutions segment, which saw a 7% rise in orders received compared to the previous year. Valmet secured significant projects, such as a large tissue order in the United States, which reflects strong market demand and execution quality.

Segment Performance Insights

Expounding further on the segment performances, the Process Performance Solutions segment reported organic order growth of 11%, highlighting its critical role in Valmet’s overall strategy. In contrast, the Biomaterial Solutions and Services segment faced some challenges with a 12% dip in comparable EBITA margin, necessitating a renewed focus on cost control.

While market conditions remain uncertain, Valmet is committed to enhancing operational efficiencies within the Biomaterials sector, focusing on becoming more competitive amid a fluctuating market.

Looking Forward

Valmet maintains its guidance for the full year 2025, projecting net sales and comparable EBITA to stabilize at levels similar to those reported in 2024. The outlook for the upcoming quarters remains vigilant, with expectations of stable market conditions in the Process Performance Solutions segment, while careful management is warranted in the Biomaterials market due to potential challenges.

Future efforts are concentrated on navigating near-term volatility through a commitment to operational excellence and customer satisfaction. The leadership team, under President and CEO Thomas Hinnerskov, emphasizes the need for a proactive approach to maintain market positioning and foster long-term value creation.

With a promising order backlog of EUR 4.5 billion signaling solid visibility into upcoming quarters, Valmet is well-poised to continue its trajectory of growth and transformation. As it strives to change industries toward a more regenerative future, Valmet stands firm in its commitment to delivering innovative solutions and exceptional service to its customer base worldwide.

Conclusion

In conclusion, Valmet's Q3 2025 results highlight the company's admirable resilience in a tumultuous economic landscape, securing substantial orders and maintaining critical financial metrics. Through strategic planning and structural adjustments, Valmet not only aims to navigate the evolving market environment but also aspires to lead the industry toward sustainable progress.