Neste (NESTE) Q1 2026 earnings summary

Executive summary

• Delivered strong financial performance in Q1 2026 amid significant market volatility driven by geopolitical tensions, including the Middle East conflict and Strait of Hormuz closure, with robust operational reliability and cash flow improvement.

• Achieved high sales margins in Renewable and Oil Products, despite lower utilization due to planned turnarounds and equipment delays.

• Continued solid execution of the performance improvement program, delivering EUR 100 million EBITDA improvement in Q1 and a cumulative run rate of EUR 476 million, surpassing original targets.

• Advanced major strategic investments, notably the Rotterdam refinery expansion targeting the world’s largest renewable fuels refinery, with production start expected in 2027.

• Maintained focus on operational reliability, safety, and cost competitiveness, with ongoing performance improvement initiatives.

Financial highlights

• Group revenue reached EUR 5,163 million in Q1 2026, up from EUR 5,017 million year-over-year.

• Comparable EBITDA surged to EUR 861 million from EUR 210 million in Q1 2025; reported EBITDA was EUR 903 million.

• Operating profit rose to EUR 685 million from EUR 294 million in Q4 2025.

• Net profit reached EUR 533 million, compared to a loss of EUR 40 million in Q1 2025.

• Free cash flow was EUR 286 million before financing activities.

Outlook and guidance

• Outlook remains unchanged, with continued focus on operational reliability and performance improvement.

• Renewable Products sales volumes for 2026 expected to be similar to 2025; Oil Products volumes projected to decrease due to planned maintenance.

• Q2 refining margins expected to be lower due to higher crude costs following the March conflict.

• Full-year 2026 capital expenditure (excluding M&A) estimated at EUR 1.0–1.2 billion.

• Anticipates strong demand for Renewable Products, supported by regulatory developments in the US and Europe.