Valmet (VALMT) CMD 2025 summary

Strategic direction and transformation

• Launched the 'Lead the Way' strategy to transform industries toward a regenerative future, focusing on lifecycle, customer-centric operations, and digitalization.

• Introduced a new operating model effective July 1, 2025, to simplify the organization, empower employees, and drive faster execution, with two focused missions: Biomaterial Solutions and Services, and Process Performance Solutions.

• Shifted from continuous improvement to bold, multi-year ambitions, targeting fewer, high-impact strategic initiatives and a renewed culture of accountability and empowerment.

• Emphasized seamless lifecycle commitment, integrating equipment and services to deliver value throughout the customer journey and advancing circularity.

• Aims to double service growth and increase market share by leveraging installed base, digital solutions, and targeted investments.

Financial targets and performance

• Set 2030 financial targets: 5% organic net sales growth CAGR, 15% comparable EBITDA/EBITA margin, and 20% ROCE, with Q1 2025 LTM margins at 11.4% and ROCE at 13.0%.

• Biomaterial Solutions and Services targets 8% service growth CAGR, 14% EBITDA/EBITA margin, and market share increase to 25% by 2030.

• Process Performance Solutions targets a 20% EBITDA/EBITA margin by 2030, with organic growth over double the market rate.

• EUR 100 million in cost savings targeted by 2030 through global supply consolidation and procurement optimization.

• Dividend payout policy set at a minimum of 50% of profit, with additional share buybacks based on capital needs, and gearing target below 50%.

Business segment developments

• Biomaterial Solutions and Services reorganized into three business areas with full lifecycle accountability, focusing on pulp, energy, packaging, and tissue.

• Service share in biomaterials segment at 50%, with plans to grow market share from 21% to 25% organically by 2030.

• Process Performance Solutions aims to accelerate growth in diversified industries, leveraging digitalization, mission-critical solutions, and recent technology releases.

• Recent acquisitions, such as gas chromatography, Körber, and FactoryPal, enhance technology, digital capabilities, and geographic reach.

• Global presence includes 115 service centers, 76 production units, and 34 R&D centers supporting both segments.