Valmet (VALMT) Q4 2025 earnings summary

Executive summary

• Achieved record full-year comparable EBITDA/EBITA margin of 11.9%, driven by early operating model changes and the 'Lead the Way' strategy.

• Net sales for 2025 were EUR 5,197 million, stable year-over-year, with strong operating cash flow of EUR 581 million.

• Orders received declined 9–11% year-over-year due to a tough comparison with a landmark pulp mill order in 2024.

• Board proposes a dividend of EUR 1.35 per share for 2025, representing an 89% payout ratio, to be paid in two installments.

• Announced acquisition of Severn Group to strengthen Flow Control/Process Performance Solutions, expected to close in Q2 2026.

Financial highlights

• Q4/2025 net sales were EUR 1,477–1,500 million, down 3% year-over-year, mainly due to negative FX impact.

• Q4/2025 comparable EBITDA/EBITA reached EUR 196 million (13.3% margin), the highest quarterly margin in company history.

• Full-year comparable EBITDA/EBITA was EUR 620 million (11.9% margin), up 2% year-over-year.

• Operating profit (EBIT) for 2025 was EUR 438 million, down 2% year-over-year.

• Net working capital decreased to EUR 29 million from EUR 134 million a year ago.

Outlook and guidance

• Net sales for 2026 expected to remain at 2025 levels (EUR 5,197 million); comparable EBITDA/EBITA expected to remain at or above 2025 levels.

• EUR 30 million in additional net savings and benefits from a new global supply unit expected to support margins.

• Process Performance Solutions market expected to stabilize and improve modestly in H1 2026; Biomaterial Solutions and Services market to remain soft.

• Severn acquisition not included in 2026 guidance; will be added post-closure.