Nokian Tyres (TYRES) investor relations material

Executive summary

• Net sales increased across all regions, with Central and Southern Europe and North America outperforming the market.

• Operating profit improved significantly, driven by higher volumes, price/mix improvements, and lower manufacturing and material costs.

• Product innovation included the launch of disruptive technologies like Hakkapeliitta 01 and Snowproof 3P, supporting premium positioning in key markets.

• Cash flow improved due to effective working capital management and lower capital expenditure.

• Fourth consecutive quarter of year-over-year improvement in both sales and operating profit.

Financial highlights

• Net sales rose to EUR 279.6 million, up 4.9% in comparable currencies year-over-year.

• Segments EBITDA increased to EUR 30.2 million (10.8% of net sales), up from EUR 12.5 million (4.6%) a year ago.

• Segments operating profit improved to EUR -4.3 million from EUR -18.5 million, and total operating profit to EUR -17.8 million from EUR -35.9 million.

• Cash flow from operating activities improved to EUR -71.4 million from EUR -121.8 million.

• Capital expenditure dropped to EUR 7.3 million from EUR 52 million year-over-year.

Outlook and guidance

• Net sales expected to grow in 2026, with segments operating profit margin targeted at 8-10%.

• Tire demand anticipated to remain flat; profitability supported by new products, price/mix, and efficiency improvements.

• Long-term targets: EUR 1.8–2 billion net sales, segments EBITDA above 24%, segments operating profit above 15%, and net debt/segments EBITDA below 2 by 2029.

• Global economic and geopolitical uncertainties may cause volatility.