Valmet (VALMT) Q1 2025 earnings summary

Executive summary

• Orders received rose 27% year-over-year to EUR 1.332 billion, with strong growth in Services and Automation, while Process Technologies remained subdued except for a large order.

• Net sales remained stable at EUR 1.184 billion, with increases in Services and Automation offset by a 17% decline in Process Technologies.

• Comparable EBITDA/EBITA was EUR 121 million, with a margin of 10.2%, flat year-over-year.

• Cash flow from operating activities was robust at EUR 217 million, up 57% year-over-year.

• Strategic renewal and operating model changes underway, targeting EUR 80 million in annual cost savings by 2026 and impacting up to 1,150 roles.

Financial highlights

• Order backlog reached EUR 4.6 billion, up 21% year-over-year, supported by large project wins.

• Adjusted EPS was EUR 0.41 (flat), reported EPS EUR 0.33 (+9%).

• Net debt to EBITDA improved to 1.30; gearing at 36%; equity-to-assets at 41%.

• Comparable ROCE (LTM) was 13.0%, down from 14.9%.

• CapEx was EUR 24 million in Q1; net working capital at EUR -193 million, including EUR 249 million dividend liability.

Outlook and guidance

• 2025 guidance unchanged: net sales and comparable EBITDA/EBITA expected to remain at 2024 levels (EUR 5,359 million and EUR 609 million, respectively).

• Short-term market outlook: customer activity expected to remain stable across all segments, with some uncertainty in Services due to customer utilization and profitability.

• Process Technologies market activity is stable but low, with delayed decision-making for large projects.

• Order backlog for 2025 is EUR 2.9 billion, supporting flat net sales guidance.