Valmet Oyj's stock exchange release on April 23, 2025 at 9:00 a.m. EEST
HELSINKI, April 23, 2025 /PRNewswire/ -- Figures in brackets, unless otherwise stated, refer to the comparison period, i.e., the same period of the previous year.
January–March 2025: Orders received, profitability and cash flow increased
Orders received increased to EUR 1,332 (EUR 1,050 million).
Orders received increased in all three segments.
Orders received increased in North America, Asia-Pacific and China, remained at the previous year's level in EMEA (Europe, Middle East and Africa), and decreased in South America.
Net sales remained at the previous year's level and amounted to EUR 1,184 million (EUR 1,212 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) remained at the previous year's level and amounted to EUR 121 million (EUR 121 million).
Comparable EBITA increased in the Services and Automation segments and decreased in the Process Technologies segment.
Comparable EBITA margin was 10.2 percent (10.0%).
Earnings per share (EPS) was EUR 0.33(EUR 0.30). Adjusted EPS was EUR 0.41(EUR 0.41).
Items affecting comparability amounted to EUR -8 million (EUR -7 million)
Cash flow provided by operating activities totaled EUR 217 million (EUR 138 million).
Guidance for 2025 unchanged
Valmet reiterates its guidance issued on February 13, 2025, in which 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 April–September 2025 compared with January–March 2025. 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 will remain stable, 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: Strong start for the year in Services and Automation segments, strategy renewal under wa
"Valmet's first quarter performance was strong in our two most profitable segments, Services and Automation. We saw organic growth of 12% in Automation and 8% in Services orders received. Comparable EBITA in both segments increased, with Services starting the year with the best ever Q1 margin of 17.6%.
The highlight of the quarter in Process Technologies was a large recovery boiler order, which our Pulp and Energy team successfully secured. However, the market activity in Process Technologies overall remained subdued, with orders received falling below our earlier expectations.
Despite the strong performance in the stable business, Valmet's first quarter net sales and Comparable EBITA remained at the previous year's level. This was due to a decrease in Process Technologies' net sales, which negatively impacted the segment's Comparable EBITA.
This highlights the importance of our strategic renewal. During the quarter, we announced plans to change our operating model as the first concrete action to support the planned strategy. The proposed operating model is designed to deliver more value to our customers throughout the lifecycle and to empower our employees with clear accountability leading to faster decision-making, clearer responsibilities and an improved way-to-operate. Furthermore, as the market activity in Process Technologies remains low, we need to make sure we have the right efficient set-up to perform also in a challenging market.
We are closely monitoring the impact and development of the U.S. tariffs and potential retaliatory tariffs from other countries. We are taking proactive measures to mitigate any potential disruptions to our supply chain and cost structure, ensuring we remain competitive in a dynamic market environment. Valmet has global operations and a large footprint also in the USA, which partly mitigates any potential direct impacts from tariffs. Going forward, our Global Supply unit would play a key role in optimizing procurement and production to maintain our competitiveness.
As we move forward, we remain confident in our ability to navigate the current dynamic market conditions and drive sustainable growth in the long term. Our renewed strategy and operating model will position us better for the future, ensuring we continue to create value for our customers and shareholders.
We look forward to sharing more details about our strategy and the next steps on our journey at our Capital Markets Day on June 5. The event will provide further insights into how we plan to achieve our long-term goals and enhance shareholder value."
Plans to renew the operating model
Valmet announced on March 31, 2025, that as part of the ongoing strategy renewal, Valmet plans to change its operating model to better serve customers with a lifecycle approach and to increase efficiency. The planned model would introduce five strong business areas: Automation Solutions; Flow Control; Pulp, Energy and Circularity; Packaging and Paper; and Tissue. Valmet also plans to establish a Global Supply unit and renew its corporate functions. These changes aim to speed up decision making, clarify responsibilities, and enhance cost competitiveness. Subject to country-specific processes, the changes could lead to a global reduction of up to 1,150 white-collar roles and annual cost savings of approximately EUR 80 million, with full run-rate achieved by the beginning of 2026. The new operating model is planned to take effect on July 1, 2025.
Key figures1
EUR million, or as indicated
Q1/2025
Q1/2024
Change
2024
Orders received
1,332
1,050
27 %
5,837
Order backlog2
4,574
3,790
21 %
4,452
Net sales
1,184
1,212
-2 %
5,359
Comparable EBITA
121
121
0 %
609
% of net sales
10.2 %
10.0 %
11.4 %
EBITA
113
114
0 %
557
% of net sales
9.6 %
9.4 %
10.4 %
Operating profit (EBIT)
89
87
3 %
449
% of net sales
7.5 %
7.2 %
8.4 %
Profit before taxes
74
73
1 %
383
Profit for the period
61
56
8 %
281
Earnings per share, EUR
0.33
0.30
9 %
1.52
Adjusted earnings per share, EUR
0.41
0.41
0 %
1.93
Equity per share, EUR2
13.14
12.93
2 %
14.15
Cash flow provided by operating activities
217
138
57 %
554
Cash flow after investing activities
195
109
79 %
316
Comparable return on capital employed (Comparable ROCE) before taxes (LTM)
13.0 %
14.9 %
12.7 %
Return on capital employed (ROCE) before taxes (LTM)
11.7 %
14.3 %
11.4 %
Return on equity (ROE) (LTM)
11.8 %
14.6 %
10.8 %
Net debt to EBITDA3 ratio
1.30
1.36
1.55
Gearing2
36 %
39 %
39 %
Equity to assets ratio2
41 %
39 %
44 %
1 The calculation of key figures is presented on section 'Formulas for calculation of indicators'.
2 At end of period.
3 Last twelve months' EBITDA
LTM = Last twelve months.
Segment key figures
Orders received, EUR million
Q1/2025
Q1/2024
Change
2024
Services
568
527
8 %
1,915
Automation
406
328
24 %
1,446
Flow Control
215
194
11 %
763
Automation Systems
191
134
42 %
683
Process Technologies
358
195
84 %
2,477
Pulp and Energy
235
57
>100%
1,581
Paper
123
138
-11 %
897
Total
1,332
1,050
27 %
5,837
Net sales, EUR million
Q1/2025
Q1/2024
Change
2024
Services
433
406
7 %
1,900
Automation
339
309
10 %
1,437
Flow Control
192
188
2 %
791
Automation Systems
147
121
22 %
646
Process Technologies
413
497
-17 %
2,023
Pulp and Energy
178
225
-21 %
870
Paper
235
272
-13 %
1,152
Total
1,184
1,212
-2 %
5,359
Comparable EBITA, EUR million
Q1/2025
Q1/2024
Change
2024
Services
76
60
28 %
331
Automation
55
51
7 %
255
Process Technologies
6
21
-71 %
73
Other
-16
-11
47 %
-49
Total
121
121
0 %
609
Comparable EBITA, % of net sales
Q1/2025
Q1/2024
2024
Services
17.6 %
14.6 %
17.4 %
Automation
16.2 %
16.5 %
17.7 %
Process Technologies
1.5 %
4.2 %
3.6 %
Total
10.2 %
10.0 %
11.4 %
EBITA, EUR million
Q1/2025
Q1/2024
Change
2024
Services
76
56
36 %
322
Automation
54
50
8 %
248
Process Technologies
4
21
-80 %
42
Other
-21
-14
51 %
-56
Total
113
114
0 %
557
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/q1-2025 on Wednesday, April 23, 2025, at 10:00 a.m. Finnish time (EEST). 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 the same website.
It is possible to take part in the news conference through a conference call by registering through the link below:
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.
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. 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.
