Valmet (VALMT) Q1 2025 earnings summary

Executive summary

• Orders received rose 27% year-over-year to EUR 1.3 billion, with strong growth in Services and Automation and record performance in stable business segments.

• Net sales remained stable at EUR 1.2 billion, with increases in Services and Automation offset by a 17% decline in Process Technologies.

• Comparable EBITDA/EBITA held steady at EUR 121 million, with a margin of 10.2%.

• Cash flow from operating activities increased 57% to EUR 217 million.

• Announced major operating model renewal, targeting EUR 80 million in annual cost savings by 2026 and impacting up to 1,150 white-collar roles globally.

Financial highlights

• Orders received: EUR 1.3 billion (+27% year-over-year); order backlog at EUR 4.6 billion (+21%).

• Net sales: EUR 1.2 billion, flat year-over-year; stable business (Services & Automation) accounted for 65% of sales.

• Comparable EBITDA/EBITA: EUR 121 million, margin 10.2%, unchanged from last year.

• Adjusted EPS: EUR 0.41, reported EPS: EUR 0.33 (+9%).

• Cash flow: EUR 217 million in Q1; last 12 months cash flow EUR 633 million.

• CapEx: EUR 24 million in Q1.

• Net debt: EUR 875 million; net debt/EBITDA 1.3; gearing 36%.

• Dividend: EUR 1.35/share, paid in two installments.

Outlook and guidance

• 2025 net sales and comparable EBITDA/EBITA expected to remain at 2024 levels; guidance unchanged.

• Order backlog for 2024 to be recognized is EUR 2.9 billion, matching last year.

• Short-term market outlook: customer activity expected to remain stable across all segments, with some uncertainty in Services due to customer utilization and profitability.

• Process Technologies market activity remains subdued; timing of large orders uncertain.

• Tariff and global economic uncertainties may delay investment decisions, but no major impact seen yet.