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Valmet's Financial Overview for 2024

In its recent financial statement review, Valmet Oyj shared a detailed analysis of its performance for the fiscal year ending December 31, 2024. The company's report indicated a noteworthy rise in orders, achieving a significant record of nearly EUR 2.5 billion in the last quarter alone. This increase was driven by robust demand across all segments, marking a dramatic growth of over 100% compared to the previous year’s figures.

Despite this surge in orders, Valmet's net sales reflected a slight decrease, remaining almost unchanged at EUR 5.36 billion compared to EUR 5.53 billion in 2023. The stability in sales is attributed largely to mixed performances in different segments; while Automation and Services areas witnessed growth, the Process Technologies segment faced certain challenges, leading to overall revenue stalling.

The company reported a Comparable EBITA (Earnings Before Interest, Taxes, and Amortization) of EUR 609 million, a modest decrease from EUR 619 million in the previous year, showcasing a slight contraction in profitability. Notably, the Comparable EBITA margin improved to 11.4% from 11.2%, reflecting greater efficiency in operations despite the volatile economic conditions.

Key Highlights from 2024

• - Orders Received: Totaled EUR 5.83 billion, an 18% increase over 2023.
• - Net Sales: Stood at EUR 5.36 billion, slightly below the EUR 5.53 billion reported in the previous year.
• - Comparable EBITA: Totaled EUR 609 million, with a margin of 11.4%.
• - Earnings Per Share (EPS): Decreased to EUR 1.52 from EUR 1.94, primarily due to reduced profitability. Adjusted EPS measured EUR 1.93, down from EUR 2.28.
• - Cash Flow from Operations: Increased markedly to EUR 554 million, reflecting solid underlying performance.

Segment Performance and Future Outlook

Valmet's order intake demonstrated strength in various regions, particularly in South America, Asia-Pacific, and North America, while experiencing a decline in China and EMEA regions. A landmark order included a comprehensive pulp mill automation project in Brazil worth over EUR 1 billion, cementing Valmet's leading position in the industry.

Moving into 2025, Valmet's guidance suggests that net sales will remain stable, alongside maintaining the Comparable EBITA at levels similar to those in 2024. President and CEO Thomas Hinnerskov noted significant achievements throughout 2024, including the launch of the Valmet DNAe industrial automation system, showcasing the company's commitment to innovation and improvement.

As Valmet gears up for the new fiscal year, its strong order backlog of nearly EUR 4.5 billion sets a promising stage for 2025 operations. Valmet’s leadership is focusing on strategic initiatives aimed at fostering efficient operations and enhancing organizational focus on key growth areas. This includes addressing performance variances across different segments, particularly the stabilization of the Process Technologies segment.

Looking ahead, Valmet aims to navigate the challenges of the market while capitalizing on its rich legacy and expertise spanning over 225 years in the industry. With a commitment to continuous improvement and sustainability, Valmet is poised to progress and adapt to the evolving needs of its global customer base.

For more insights, stakeholders and interested parties are invited to participate in Valmet's upcoming news conference scheduled for February 13, 2025, where executive management will discuss these results in detail.

Conclusion

Valmet is currently in a unique position with its significant order growth and strategic outlook despite the steady performance in net sales and profitability metrics. The commitment to innovation and operational efficiency will be crucial as the company aims to sustain its growth trajectory in challenging market environments.