In This Article:
-
Orders Received: Reached a new record in 2024, driven by a landmark order exceeding EUR 1 billion.
-
Net Sales: Remained flat in 2024, with no growth compared to the previous year.
-
Comparable EBITDA: Did not grow in 2024, totaling EUR 609 million.
-
Margin: Achieved a record high of 11.4%, driven by a favorable sales mix.
-
Cash Flow: Increased to a new record, demonstrating strong cash conversion ability.
-
Return on Capital Employed (ROCE): 12.7%, below the target of at least 15%.
-
Order Backlog: Close to EUR 4.5 billion, the second highest in Valmet's history.
-
Service Orders: Increased to EUR 1.9 billion, an all-time high.
-
Automation Orders: Increased to EUR 1.4 billion, supported by the API acquisition.
-
Net Debt to EBITDA: 1.55%, with net debt at EUR 1 billion.
-
Dividend Proposal: EUR 1.35 per share, representing an 89% payout ratio.
-
Guidance for 2025: Net sales and comparable EBITDA expected to remain flat compared to 2024.
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Valmet Corp (STU:2VO) achieved a record level of orders received in 2024, highlighted by a landmark order worth over EUR 1 billion.
-
The company reported a strong order backlog of close to EUR 4.5 billion, providing a solid foundation for 2025.
-
Cash flow increased to a new record, demonstrating strong cash conversion capabilities.
-
Service orders reached an all-time high of EUR 1.9 billion, indicating robust demand in this segment.
-
Automation systems showed a 7% organic growth, reflecting a strong value proposition outside the pulp and paper industry.
Negative Points
-
Net sales and comparable EBITDA did not grow in 2024, despite the record orders received.
-
The process technology segment faced challenges, with orders excluding the Arauco deal being the lowest in the last decade.
-
Comparable EBITDA growth in recent years has largely been driven by acquisitions rather than organic growth.
-
The company experienced a decrease in net sales and profitability in the process technology segment, impacting overall margins.
-
The market for pulp and paper, particularly in Europe and Asia, remains soft, affecting overall business performance.
Q & A Highlights
Q: What are your comments regarding the tariffs now enforced in Mexico, Canada, and China from the US? A: Thomas Hinnerskov, President and CEO, explained that the tariffs are a significant topic in boardrooms. Mexico and Canada have new tariffs of 25%, while China has an additional 10% on top of the existing 25%. Valmet's services in North America align with the "made in America" approach, and the company is on par with competition in process technology and automation systems. The situation requires constant monitoring and management.