Neste (NESTE) Q1 2025 earnings summary

Executive summary

• Q1 2025 began with solid operational performance and the successful launch of a performance improvement program, while Rotterdam SAF expansion became operational and organizational restructuring was completed.

• Comparable EBITDA for Q1 2025 was EUR 210 million, down from EUR 551 million in Q1 2024, reflecting pressured margins and high feedstock costs.

• Revenue increased to EUR 5,017 million, up from EUR 4,801 million year-over-year, but net profit was negative at EUR -40 million.

• SAF sales increased, supported by new EU mandates, and Rotterdam SAF production capacity rose to 1.5 million tons per annum.

• Performance improvement program delivered EUR 52 million annualized run rate savings in Q1, targeting EUR 350 million by end of 2026.

Financial highlights

• Comparable EBITDA was EUR 210 million (Q1 2024: EUR 551 million); operating profit was EUR -25 million (Q1 2024: EUR 200 million).

• Revenue reached EUR 5,017 million, and cash flow before financing activities was EUR -225 million, impacted by inventory and capex.

• Oil Products contributed EUR 120 million, Renewable Products EUR 72 million, and Marketing & Services EUR 17 million to EBITDA.

• Dividend of EUR 0.20 per share paid for 2024.

• Leverage ratio at 38.0% (Dec 2024: 36.1%); interest-bearing net debt increased to EUR 4,447 million.

Outlook and guidance

• Renewable and Oil Products sales volumes in 2025 expected to be higher than in 2024.

• Market for renewable fuels expected to remain oversupplied in 2025 amid global volatility and high feedstock prices.

• Scheduled maintenance turnarounds in Rotterdam (Q4 2025) and Singapore (late Q4 into Q1 2026); no planned turnarounds in Porvoo.

• Full-year 2025 capex (excluding M&A) estimated at EUR 1.1–1.3 billion.

• Group's comparable fixed costs in 2025 expected below 2024 level, excluding one-off costs.