Valmet (VALMT) Q1 2026 earnings summary

Executive summary

• Strategy execution advanced amid a demanding market, with operating model renewal and cost savings supporting results, though profitability was pressured by sales mix and cautious customer decision-making.

• Orders received declined 15–18% year-over-year, mainly due to timing of large capital projects and lower intake in Biomaterial Solutions and Services.

• Net sales increased 5% year-over-year (9% organically) to EUR 1.2–1.244 billion, driven by large projects and mill improvements.

• Comparable EBITA/EBITDA declined to EUR 114 million (margin 9.2%) due to sales mix and FX headwinds.

• Cost savings from early operating model actions and strategic footprint measures supported earnings quality.

Financial highlights

• Orders received were EUR 1.1–1.092 billion, down 15–18% organically year-over-year.

• Net sales reached EUR 1.2–1.244 billion, up 5% year-over-year (9% organically).

• Comparable EBITA/EBITDA was EUR 114 million (margin 9.2%, down from 10.2%).

• Cash flow from operating activities decreased to EUR 35 million, mainly due to increased net working capital.

• Order backlog at EUR 4.2 billion, providing good visibility for future deliveries.

Outlook and guidance

• Guidance for 2026 reiterated: net sales and comparable EBITA/EBITDA expected to remain at or above previous year's level (EUR 5,197 million and EUR 620 million, respectively).

• Process Performance Solutions market has returned to low year-on-year growth; Biomaterial Solutions and Services expected to improve slightly from a low Q1 baseline.

• Service market expected to remain soft for the next two quarters; second half of the year anticipated to be stronger.

• Increased geopolitical and macroeconomic uncertainty reduces short-term market visibility.

• Additional EUR 8 million in short-term cost savings announced to support guidance.