Valmet (VALMT) Q3 2025 earnings summary

Executive summary

• Orders received grew organically by 7% in Q3 2025 to EUR 1.1 billion, with a record tissue order from the U.S. and strong Process Performance segment growth; for the first nine months, orders reached EUR 3,936 million, up 17% year-over-year.

• Net sales remained stable at EUR 1.3 billion in Q3 and EUR 3,720 million for the nine months, with 2% organic growth year-over-year despite EUR 31 million in currency headwinds.

• Comparable EBITDA/EBITA reached a record EUR 159 million in Q3 (12.3% margin), with last 12 months at 11.7%; nine-month comparable EBITA was EUR 423 million (11.4% margin).

• The 'Lead the Way' strategy delivered EUR 15 million in Q3 cost savings, with a full EUR 80 million annual run rate expected by early 2026.

• Order backlog reached EUR 4.5 billion at quarter end, up 28% year-over-year, providing strong visibility into future quarters.

Financial highlights

• Net sales stable at EUR 1.3 billion in Q3 and EUR 3,720 million for the nine months, with 2% organic growth year-over-year.

• Comparable EBITDA/EBITA margin reached 12.3% in Q3 and 11.4% for the nine months.

• Cash flow from operations was EUR 94 million in Q3 and EUR 391 million for the nine months; cash conversion ratio at 92%.

• Net debt at EUR 945 million, gearing reduced to 38%, and net debt-to-EBITDA at 1.5.

• Adjusted EPS for Q3 was EUR 0.54, up 11% year-over-year; reported EPS at EUR 0.46.

Outlook and guidance

• 2025 guidance unchanged: net sales and comparable EBITDA/EBITA expected to remain at previous year's level, supported by a EUR 4.5 billion order backlog.

• Short-term market outlook remains mixed: Process Performance favorable and stable, biomaterial segment faces high uncertainty and risk of further softening.

• Timing of large CapEx projects and mega projects remains uncertain.