Valmet delivered a stronger second quarter of 2026, with net sales and Comparable EBITA both increasing 6% year-on-year. Growth was supported by higher sales and cost savings from the company’s operating model renewal, while order intake remained under pressure against a strong comparison period.
At the same time, Valmet saw early signs of recovery in biomaterial capital project activity and maintained its full-year 2026 guidance.
Q2 performance improves despite softer order intake
Valmet’s orders received decreased 10% year-on-year to €1.373 billion in Q2, with organic order intake down 9%. The decline was mainly driven by lower capital project orders in the Biomaterial Solutions and Services segment compared with the previous year, although activity increased sequentially from Q1.
Net sales increased 6% to €1.315 billion, while Comparable EBITA rose 6% to €152 million. The Comparable EBITA margin remained stable at 11.5%.
Earnings also improved significantly, with earnings per share increasing to €0.40 from €0.15 in Q2 2025. Adjusted EPS rose to €0.47 from €0.23.
For the first half of 2026, Valmet reported net sales of €2.560 billion, up 6% year-on-year. Comparable EBITA was €266 million, broadly unchanged from €265 million in the first half of 2025, while the Comparable EBITA margin stood at 10.4%.
Operating cash flow totaled €100 million in H1, compared with €297 million a year earlier, while free cash flow was €68 million, down from €240 million.
Process Performance Solutions maintains momentum
Process Performance Solutions delivered a stable quarter, with orders received increasing 1% to €379 million. Net sales remained unchanged at €370 million, while Comparable EBITA increased 4% to €69 million.
The segment’s Comparable EBITA margin improved to 18.7%, compared with 17.8% in Q2 2025.
Valmet noted that the segment benefited from a low-growth market environment, including notable wins in the marine segment.
Biomaterial Solutions and Services sees signs of recovery
Orders received in Biomaterial Solutions and Services declined 13% to €994 million, reflecting the softer capital project market compared with the previous year. However, biomaterial capital orders reached €501 million, representing a clear improvement from Q1.
Net sales increased 9% to €945 million, while Comparable EBITA rose 12% to €98 million. The segment’s Comparable EBITA margin increased slightly to 10.4%.
Biomaterial services remained softer, with orders received down 8% to €493 million, while net sales increased 3% to €475 million.
Valmet expects the Biomaterial Solutions and Services market to remain broadly at the Q2 level in the coming months. The company also expects the biomaterial services market to remain soft, although it sees the market stabilizing.
Thomas Hinnerskov: actions to strengthen competitiveness are delivering
Thomas Hinnerskov, President and CEO of Valmet, highlighted the continued impact of measures taken to strengthen the company’s competitiveness and improve its operating model.
According to Hinnerskov, the actions taken last year are now translating into tangible results, with organic sales growth and improved Comparable EBITA despite a cautious market environment.
He also pointed to improving capital project activity in the biomaterial businesses, noting that Q2 biomaterial capital orders of €501 million represented a clear step up from Q1.
“Net sales grew 6 percent organically. Comparable EBITA increased by EUR 9 million year-on-year, supported by higher net sales and cost savings,” Hinnerskov said, adding that the 11.5% Comparable EBITA margin was flat year-on-year.
Cost discipline is also delivering measurable benefits. On a last-twelve-month basis, Comparable SG&A costs are now €79 million lower than in full-year 2024.
Looking ahead, Hinnerskov acknowledged that geopolitical and macroeconomic uncertainty remains elevated, with customers likely to remain selective in their investment decisions. However, with Severn now part of Valmet and continued focus on cost efficiency, he said the company is well positioned to build a stronger and more resilient Valmet over the long term.
Severn acquisition strengthens growth platform
Valmet completed the acquisition of Severn on 1 July, welcoming approximately 950 new employees to the Group.
The acquisition is expected to strengthen the Process Performance Solutions business, expand its addressable market and increase the segment’s annualized net sales to approximately €1.7 billion.
Valmet considers Severn’s offering a natural complement to its existing portfolio and sees strong cultural alignment between the two organizations.
The acquisition forms part of Valmet’s broader strategy to systematically develop its portfolio and strengthen Process Performance Solutions as an important driver of Group growth and profitability.
2026 guidance unchanged
Valmet reiterated its full-year 2026 guidance.
The company expects net sales to remain at the previous year’s level compared with 2025, when net sales were €5.197 billion. Comparable EBITA is expected to remain at the previous year’s level or increase from the 2025 figure of €620 million.
Valmet said that while geopolitical and global economic uncertainty continues to weigh on market visibility, the company remains focused on improving competitiveness, maintaining cost discipline and building long-term profitable growth.
