Valmet (VALMT) Q2 2026 earnings summary

Executive summary

• Net sales increased 6% year-over-year in Q2 2026 to EUR 1,315 million, with comparable EBITA up 6% to EUR 152 million and margin stable at 11.5%.

• Orders received declined 9% year-over-year in Q2 and 14% in H1, mainly due to lower capital project intake in Biomaterial Solutions and Services, though sequential improvement was noted.

• Strategic review initiated to evaluate separating Biomaterial Solutions and Services and Process Performance Solutions into two standalone listed companies.

• Severn acquisition completed, adding EUR 205 million in net sales and strengthening Process Performance Solutions.

• Cost savings from operating model renewal and strategic initiatives supported profitability and reduced SG&A costs by EUR 79 million over the last twelve months.

Financial highlights

• Comparable EBITA margin remained at 11.5% in Q2 2026.

• Operating profit (EBIT) more than doubled to EUR 127 million from EUR 57 million year-over-year.

• Adjusted EPS increased to EUR 0.47 from EUR 0.23 year-over-year.

• Cash flow from operating activities was EUR 65 million in Q2 and EUR 100 million in H1, impacted by higher net working capital.

• Order backlog at quarter-end was EUR 4,259 million, providing good visibility for 2026.

Outlook and guidance

• Guidance for 2026 reiterated: net sales expected to remain at 2025 levels (EUR 5,197 million), with comparable EBITA stable or increasing.

• Process Performance Solutions market expected to see low year-on-year growth; Biomaterial Solutions and Services market activity to remain similar to Q2, with continued softness in services.

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