Valmet’s ‘Lead the Way’ Strategy Drives Record Profitability Amidst Strategic Transformation in 2025
Valmet has released its 2025 annual reports and financial statements, highlighting a year defined by the launch of a new long-term strategy and a restructured operating model designed to accelerate the transition to a "regenerative tomorrow."
Despite a 3% decrease in net sales, the company achieved its highest-ever profitability margins in the final quarter, driven by the new "Lead the Way" strategy. Valmet President and CEO Henri Neesam stated: "The record performance reflects the early and bold choices we made under our 'Lead the Way' strategy to renew our operating model, ahead of the market slowdown in the second half of the year."
Key Full-Year Financial Figures (2025 vs. 2024)
Valmet reported net sales of EUR 5,197 million for 2025, compared to EUR 5,359 million in 2024. Comparable EBITA increased to EUR 620 million (up 2%), boosting the margin to 11.9% from 11.4%.
|
Metric |
2025 |
2024 |
Change |
|
Orders Received |
EUR 5,216M |
EUR 5,837M |
-11% |
|
Net Sales |
EUR 5,197M |
EUR 5,359M |
-3% |
|
Comparable EBITA |
EUR 620M |
EUR 609M |
+2% |
|
Comparable EBITA Margin |
11.9% |
11.4% |
+0.5 pp |
|
Order Backlog |
EUR 4,306M |
EUR 4,452M |
-3% |
|
Operating Cash Flow |
EUR 581M |
EUR 554M |
+5% |
Profitability & EBITA Performance
-
Record Margins: The full-year comparable EBITA margin rose to 11.9%. The final quarter (Q4) reached an all-time high margin of 13.3%.
-
Cost Efficiency: Profitability was supported by approximately EUR 80 million in annual savings from the operating model renewal, streamlining the organization into two primary segments.
-
Segment Strength:
-
Process Performance Solutions: EUR 1,481 million in net sales (up 3%) with a 19.6% EBITA margin (up from 17.7%).
-
Biomaterial Solutions and Services: EUR 3,716 million in net sales (down 5%), with services at EUR 1,856 million (down 2%) and a stable 10.3% margin.
Order Intake and Backlog
-
Strategic Wins: Orders decreased by 11% due to an exceptionally strong comparison in 2024, which included a pulp mill order exceeding EUR 1 billion. In 2025, Valmet secured major projects, including its largest-ever energy order for a biomass power plant in Berlin.
-
Backlog Visibility: The company ended the year with a EUR 4.3 billion order backlog, providing strong revenue visibility for 2026.
Dividends and Future Outlook
-
Dividend Proposal: EUR 1.35 per share, consistent with the previous year.
-
2026 Guidance: Net sales and comparable EBITA are expected to remain at or above 2025 levels.
-
Strategic Growth: The announced acquisition of Severn Group (approx. EUR 410M) is expected to strengthen Valmet’s position in the high-margin flow control market, with closing anticipated in mid-2026.
