Valmet (VALMT) Q4 2024 earnings summary

Executive summary

• Orders received reached a record EUR 5.8 billion in 2024, up 18% year-over-year, driven by a landmark EUR 1 billion Arauco order in Q4 and growth in all segments, despite challenging market conditions.

• Net sales remained stable at EUR 5.36 billion, with increases in Automation and Services offset by a 16% decline in Process Technologies; 2024 marked the first time both net sales and comparable EBITDA declined.

• Comparable EBITDA/EBITA was EUR 609 million, with a margin of 11.4%, the highest ever, mainly due to a favorable sales mix.

• Cash flow from operating activities hit a new record at EUR 554 million, reflecting improved earnings quality and strong operational execution.

• Strategic renewal was initiated to define future growth areas, simplify operations, and enhance efficiency.

Financial highlights

• Orders received increased 18% year-over-year to EUR 5,837 million; order backlog at year-end was EUR 4.45 billion, up 12% from 2023.

• Net sales decreased by 3% to EUR 5,359 million, while Q4 net sales were EUR 1.53 billion, the highest quarterly figure for the year.

• Comparable EBITDA/EBITA for 2024 was EUR 609 million, margin 11.4%; Q4 comparable EBITDA/EBITA was EUR 192 million, margin 12.6%.

• Adjusted EPS for 2024 was EUR 1.93 (down 15%), reported EPS EUR 1.52 (down 22%) due to lower operating profit and higher net financial expenses.

• Cash flow from operations grew 57% to EUR 554 million, with Q4 contributing EUR 178 million.

Outlook and guidance

• Guidance for 2025 is for flat net sales and comparable EBITDA/EBITA compared to 2024, reflecting a challenging market, especially in pulp and paper.

• Order backlog for 2025 sales recognition is EUR 200 million lower than a year ago, but overall backlog is up 12% year-over-year.

• Dividend proposal of EUR 1.35 per share, unchanged from last year, representing an 89% payout ratio, to be paid in two installments.

• Short-term market outlook: customer activity expected to remain stable but at low levels in Process Technologies and board/paper, with gradual improvement in Services.