Valmet's Financial Statements Review January 1 - December 31, 2024: Orders received increased, but Net sales and Comparable EBITA remained steady in 2024

PR Newswire

Thu, Feb 13, 2025, 12:50 AM 9 min read

Orders received increased to EUR 2,463 (EUR 1,155 million).
- Orders received increased in all three segments.
- Orders received increased in South America, Asia-Pacific and North America, and decreased in China and EMEA (Europe, Middle East and Africa).
- Orders received included a landmark order for a complete pulp mill with full-scope automation and flow control solutions to Brazil from Arauco, valued at over EUR 1 billion.
Net sales remained at the previous year's level and amounted to EUR 1,528 million (EUR 1,499 million).
- Net sales increased in the Automation and Services segments and decreased in the Process Technologies segment.
Comparable earnings before interest, taxes and amortization (Comparable EBITA) increased 5 percent to EUR 192 million (EUR 183 million).
- Comparable EBITA increased in the Services segment, remained at the previous year's level in the Automation segment, and decreased in the Process Technologies segment.
Comparable EBITA margin was 12.6 percent (12.2%).
Earnings per share (EPS) were EUR 0.53 (EUR 0.56). EPS remained at previous year's level. Adjusted EPS was EUR 0.60 (EUR 0.65).
Items affecting comparability amounted to EUR -19 million (EUR -10 million) and were mainly related to Process Technologies and Automation segments.
Cash flow provided by operating activities totaled EUR 178 million (EUR 123 million).

January–December 2024: Orders received increased to EUR 5.8 billion

Orders received increased 18 percent to EUR 5,837 million (EUR 4,955 million).
- Orders received increased in all three segments.
- Orders received increased in South America, North America and Asia-Pacific and decreased in China and EMEA.
Net sales remained at the previous year's level and amounted to EUR 5,359 million (EUR 5,532 million).
- Net sales increased in the Automation and Services segments and decreased in the Process Technologies segment.
Comparable EBITA remained at the previous year's level and amounted to EUR 609 million (EUR 619 million).
- Comparable EBITA increased in the Services segment, remained at the previous year's level in the Automation segment, and decreased in the Process Technologies segment.
Comparable EBITA margin was 11.4 percent (11.2%).
EPS was EUR 1.52 (EUR 1.94). EPS decreased mainly due to lower operating profit and higher net financial expenses. Adjusted EPS was EUR 1.93 (EUR 2.28). Adjusted EPS decreased mainly due to lower operating profit and higher net financial expenses.
Items affecting comparability amounted to EUR -53 million (EUR -14 million) and were mainly related to Process Technologies segment.
Cash flow provided by operating activities totaled EUR 554 million (EUR 352 million).

Dividend proposal

The Board of Directors proposes to the Annual General Meeting, which is planned to be held on March 26, 2025, a dividend of EUR 1.35 per share for 2024. The proposed dividend equals 89 percent of the net result and it would be paid in two installments.

Guidance for 2025

Valmet estimates that net sales in 2025 will remain at the previous year's level in comparison with 2024 (EUR 5,359 million) and Comparable EBITA in 2025 will remain at the previous year's level in comparison with 2024 (EUR 609 million).

Short-term market outlook

The short-term market outlook is given for January–June 2025 compared with October–December 2024. It is Valmet's estimate of the customer activity and should not be interpreted as guidance for Valmet's orders received.

Process Technologies

Valmet estimates that the customer activity will remain stable. It is typical that customers' large investment decisions can have a major impact on the market activity.

Services

Valmet estimates that the customer activity is gradually improving, but the capacity utilization rates and profitability levels of customers cause uncertainty to the short-term market outlook.

Automation

Valmet estimates that the customer activity will remain stable.

President and CEO Thomas Hinnerskov: Navigating challenges and celebrating successes in 2024

"The year 2024 was marked by multiple achievements and key events for Valmet. The main highlights were the successful launch of Valmet DNAe, our next-generation industrial automation system, and the landmark order to supply the world's largest single-phase pulp mill project, valued at over a billion euros, to Arauco in Brazil. In terms of financial results, we were pleased to see Valmet's orders received increase to a new record with a mix of roughly 60 percent stable business and 40 percent capital business. A strong order backlog of close to EUR 4.5 billion gives us a solid starting point going into 2025.

Despite the increase in orders received, Valmet's net sales and Comparable EBITA did not grow in 2024 and we saw a clear decrease both in revenues and profitability in the Process Technologies segment. Going forward, we need to make sure we have an efficient operation that will perform also in the challenging market.

Looking at the fourth quarter, the big order from Arauco meant that we set a record for quarterly order intake for Valmet. I was pleased to see orders growing strongly in all our three segments. When looking at Comparable EBITA, I would like to highlight the strong performance of Services, which ensured a strong finish for the year for Valmet.

Towards the end of the year, we have initiated work to renew our strategy with the aim of defining our future growth areas, accelerating growth, and simplifying our ways of working. I'm excited about this and believe the changes we are planning will enable us to be faster and more focused as an organization. Our legacy, spanning more than 225 years, provides a solid foundation for the next chapter in our story."

Key figures¹

EUR million, or as indicated	Q4/2024	Q4/2023	Change	2024	2023	Change
Orders received	2,463	1,155	>100%	5,837	4,955	18 %
Order backlog²	4,452	3,973	12 %	4,452	3,973	12 %
Net sales	1,528	1,499	2 %	5,359	5,532	-3 %
Comparable EBITA	192	183	5 %	609	619	-2 %
% of net sales	12.6 %	12.2 %		11.4 %	11.2 %
EBITA	173	172	0 %	557	605	-8 %
% of net sales	11.3 %	11.5 %		10.4 %	10.9 %
Operating profit (EBIT)	150	148	1 %	449	507	-11 %
% of net sales	9.8 %	9.9 %		8.4 %	9.2 %
Profit before taxes	134	133	1 %	383	473	-19 %
Profit for the period	98	103	-4 %	281	359	-22 %
Earnings per share, EUR	0.53	0.56	-4 %	1.52	1.94	-22 %
Adjusted earnings per share, EUR	0.60	0.65	-8 %	1.93	2.28	-15 %
Equity per share, EUR²	14.15	13.93	2 %	14.15	13.93	2 %
Cash flow provided by operating activities	178	123	44 %	554	352	57 %
Cash flow after investing activities	151	-316		316	-181
Comparable return on capital employed (Comparable ROCE) before taxes				12.7 %	14.5 %
Return on capital employed (ROCE) before taxes				11.4 %	14.2 %
Return on equity (ROE)				10.8 %	14.1 %
Net debt to EBITDA ratio				1.55	1.46
Gearing²				39 %	40 %
Equity to assets ratio²				44 %	43 %

¹ The calculation of key figures is presented on section 'Formulas for calculation of indicators'.

² At end of period.

Segment key figures

Orders received, EUR million	Q4/2024	Q4/2023	Change	2024	2023	Change
Services	479	404	19 %	1,915	1,760	9 %
Automation	443	319	39 %	1,446	1,340	8 %
Flow Control	185	176	5 %	763	789	-3 %
Automation Systems	258	143	80 %	683	551	24 %
Process Technologies	1,541	432	>100%	2,477	1,856	33 %
Pulp and Energy	1,165	227	>100%	1,581	854	85 %
Paper	376	204	84 %	897	1,002	-11 %
Total	2,463	1,155	>100%	5,837	4,955	18 %

Net sales, EUR million	Q4/2024	Q4/2023	Change	2024	2023	Change
Services	567	508	12 %	1,900	1,784	7 %
Automation	424	375	13 %	1,437	1,328	8 %
Flow Control	206	196	5 %	791	777	2 %
Automation Systems	217	180	21 %	646	551	17 %
Process Technologies	537	615	-13 %	2,023	2,420	-16 %
Pulp and Energy	221	268	-18 %	870	1,067	-18 %
Paper	317	347	-9 %	1,152	1,353	-15 %
Total	1,528	1,499	2 %	5,359	5,532	-3 %

Comparable EBITA, EUR million	Q4/2024	Q4/2023	Change	2024	2023	Change
Services	112	91	24 %	331	312	6 %
Automation	81	79	2 %	255	248	3 %
Process Technologies	15	25	-40 %	73	110	-34 %
Other	-17	-13	31 %	-49	-50	-2 %
Total	192	183	5 %	609	619	-2 %

Comparable EBITA, % of net sales	Q4/2024	Q4/2023	2024	2023
Services	19.8 %	17.9 %	17.4 %	17.5 %
Automation	19.1 %	21.1 %	17.7 %	18.6 %
Process Technologies	2.8 %	4.1 %	3.6 %	4.5 %
Total	12.6 %	12.2 %	11.4 %	11.2 %

EBITA, EUR million	Q4/2024	Q4/2023	Change	2024	2023	Change
Services	113	80	41 %	322	302	7 %
Automation	76	80	-5 %	248	245	1 %
Process Technologies	3	29	-90 %	42	116	-64 %
Other	-19	-18	10 %	-56	-58	-4 %
Total	173	172	0 %	557	605	-8 %

News conference and webcast for analysts, investors and media

Valmet will arrange a news conference in English as a live webcast at https://valmet.videosync.fi/q 4 -2024 on Thursday, February 13, 2025, at 11:00 a.m. Finnish time (EET). President and CEO Thomas Hinnerskov and CFO Katri Hokkanen will be presenting the results.

Recording of the webcast will be available shortly after the event on website.

It is possible to take part in the news conference through a conference call by registering through the link below:

https://player.videosync.fi/valmet/q4-2024/dial-in

After the registration you will be provided phone numbers and a conference ID to access the conference. If you wish to ask a question during the conference, please dial *5 to enter the question queue.

The event is held in English.

The event can also be followed on social media platform X at www.x.com/valmetir.

Further information, please contact:
Pekka Rouhiainen, VP, Investor Relations, Valmet, tel. +358 10 672 0020
VALMET
Katri Hokkanen
CFO

Pekka Rouhiainen
VP, Investor Relations

DISTRIBUTION:
Nasdaq Helsinki
Major media

www.valmet.com

Valmet has a global customer base across various process industries. We are a leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries, and with our automation and flow control solutions we serve an even wider base of process industries. Our more than 19,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward – every day.

The company has more than 225 years of industrial history and a strong track record in continuous improvement, sustainability and renewal. Valmet's net sales in 2024 were approximately EUR 5.4 billion.

Valmet's shares are listed on the Nasdaq Helsinki and the head office is in Espoo, Finland.