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Latest result publication:

Interim Review January–September 2025

President and CEO Thomas Hinnerskov: Improving performance and landmark wins in a challenging market
 

"Valmet’s orders received grew organically by seven percent to approximately EUR 1.1 billion in Q3, marking our fourth consecutive quarter of organic growth despite a subdued environment in parts of our end markets. Growth was led by Process Performance Solutions, where orders increased organically by 11% on the back of healthy demand and solid commercial execution. We also secured a large tissue order in the United States, setting a new benchmark and creating attractive lifecycle opportunities.

Net sales were stable at EUR 1.3 billion, and we delivered our best Q3 ever in Comparable EBITA and margin, which were EUR 159 million and 12.3%, respectively. Performance reflected continued strength in Process Performance Solutions and cost benefits from the operating model change. In Biomaterial Solutions and Services, the margin was lower across the project portfolio. This highlights the need for even tighter cost control. We are addressing this through our new Global Supply unit, which is a key part of our broader strategy to strengthen cost competitiveness in the segment.

The quality of our earnings and balance sheet remains robust. Cash flow from operating activities was EUR 94 million in Q3. Comparable Cash conversion ratio over the last twelve months was 92%, in line with our long‑term average. Our order backlog stood at EUR 4.5 billion at the end of the quarter, up from year‑end 2024 and providing good visibility into Q4/2025 and 2026.

Our ‘Lead the Way’ strategy, launched earlier this year, is sharpening our priorities to accelerate growth, improve cost competitiveness, and reinforce accountability, speed, and high performance through a simpler operating model. The strategy is already delivering tangible results. In the third quarter, we began realizing savings from our renewed operating model, with approximately EUR 15 million already achieved, which was earlier than initially anticipated. This puts us well ahead of our original expectations and firmly on track to reach our EUR 80 million annual savings target by early 2026. To support delivery, we strengthened the leadership team with the new EVP for Tissue and made other key hires. Customer feedback remains positive, underscoring confidence in our lifecycle approach and purpose to transform industries toward a regenerative tomorrow.

Our 2025 guidance remains unchanged. We expect net sales and Comparable EBITA to remain at the previous year’s level. Our guidance is supported by the healthy order backlog and cost savings from the operating model renewal. Going forward, the short‑term market conditions remain mixed. While we expect the environment in Process Performance Solutions to remain favorable, the biomaterials market overall remains challenging. I’m confident that our simplified operating model and focused strategy position us to navigate near‑term volatility and create long‑term value for our customers and shareholders."