Valmet (VALMT) CMD 2025 summary

Strategic direction and transformation

• Launched the 'Lead the Way' strategy to transform industries toward a regenerative future, emphasizing lifecycle commitment, customer-centric operations, and digitalization.

• Introduced a new operating model, effective July 1, 2025, to simplify structure, empower employees, and drive faster execution.

• Shifted from continuous improvement to bold, multi-year ambitions, targeting fewer, high-impact strategic initiatives and fostering a high-performance, accountable culture.

• Strategy anchored on customer success, lifecycle commitment, global competitiveness, and accountability.

• Emphasizes seamless lifecycle services, cost competitiveness, and continuous innovation to advance circularity and resource efficiency.

Financial targets and performance

• Set 2030 financial targets: 5% organic net sales CAGR, 15% comparable EBITA/EBITDA margin, 20% ROCE, and gearing below 50%.

• Biomaterial Solutions and Services targets 8% organic service growth and 14% EBITA margin by 2030; Process Performance Solutions targets 20% EBITA margin and organic growth over double the market rate.

• EUR 100 million in cost savings targeted by 2030 through global supply consolidation and procurement optimization.

• Operating model changes expected to deliver EUR 80 million in annual savings starting next year.

• Dividend payout policy set at a minimum of 50% of profit, with additional share buybacks based on capital needs.

Business segment developments

• Biomaterial Solutions and Services reorganized into three business areas with full lifecycle accountability, focusing on pulp, energy, packaging, and tissue.

• Service share in biomaterials segment at 50%, with plans to grow market share from 21% to 25% organically by 2030.

• Process Performance Solutions aims to accelerate growth in diversified industries, leveraging digitalization, mission-critical solutions, and recent technology releases and acquisitions.

• Unique competitive advantage in full tissue lifecycle delivery, enhanced by recent acquisitions such as Körber, FactoryPal, and gas chromatography.

• R&D focus shifting to customer co-creation, longer-term investments, and targeted innovation in resource efficiency.