In This Article:
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Orders Received: Increased to EUR 1.3 billion.
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Order Backlog: Amounted to EUR 4.6 billion.
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Net Sales: Flat year-over-year.
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Comparable EBITA: EUR 121 million with a margin of 10.2%.
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Cash Flow: EUR 217 million for Q1.
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Comparable ROCE: Increased to 13%.
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Services Orders: Grew 8% organically.
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Automation Orders: Increased by 24%, with 12% organic growth.
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Process Technologies Net Sales: Decreased by 17%.
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Services EBITA Margin: 17.6%, best ever Q1 margin.
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Automation EBITA Margin: 16.2%.
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Net Debt: Decreased to EUR 875 million.
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Gearing: 36%.
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Net Debt to EBITDA: 1.3.
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Adjusted EPS: EUR 0.33.
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Dividend: EUR 1.35 per share, paid in two installments.
Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Valmet Oyj (VOYJF) reported a strong start to the year with orders received increasing to EUR1.3 billion, particularly driven by the Services and Automation segments.
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The order backlog increased to EUR4.6 billion, indicating a positive development compared to the end of Q4.
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Cash flow remained robust, with a strong cash conversion leading to EUR217 million in Q1.
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The company announced a strategic renewal plan aimed at improving customer service, operational efficiency, and simplifying the organizational structure.
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Automation segment showed strong performance with a 12% organic growth in orders, driven by activities in pulp and paper as well as other process industries.
Negative Points
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Net sales were flat year-over-year, with a decrease in the Process Technologies segment due to subdued market conditions.
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Comparable EBITA remained at the same level as last year, indicating no growth in profitability.
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The Process Technologies segment experienced a low comparable EBITA margin of 1.5%, reflecting weak profitability.
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Market activity in Process Technologies remains low, with a book-to-bill ratio below 1, indicating challenges in securing new orders.
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The strategic renewal process will impact up to 1,150 roles globally, indicating potential workforce reductions and associated costs.
Q & A Highlights
Q: Can you provide more details on the strong Q1 margin in the Services business and whether this is expected to continue? A: The Q1 margin was strong due to effective pricing strategies and increased volumes. The team has been proactive with pricing, which has positively impacted margins. There were no extraordinary factors affecting the margin, and we expect normal seasonality moving forward. - Thomas Hinnerskov, President and CEO