Q1 2026 Nokian Renkaat Oyj Earnings Call Transcript
Key Points
- Sales increased across all regions, with a notable 9% growth in passenger car tires in comparable currency.
- Operating profit improved significantly by more than 50%, driven by volume, price mix improvement, and lower manufacturing and material costs.
- Cash flow improved by over EUR 50 million due to effective working capital management and lower capital expenditures.
- Nokian Tyres PLC (NKRKF) launched new innovative products, including a disruptive tire technology that adapts to temperature changes, enhancing their product portfolio.
- The company reduced its debt by approximately EUR 45 million, indicating strong financial management.
- The market is declining in both Europe and North America, with passenger car tire markets down by 3% in Europe and 8% in North America.
- Heavy tires segment saw a net sales decrease of 1.6% due to lower demand in the forestry segment.
- Vianor segment experienced a disappointing first quarter with a decline in operating profit due to cost inflation and one-off inventory revaluation.
- SG&A expenses increased by EUR 6 million year-over-year, attributed to investments in new product launches and marketing.
- The company anticipates potential raw material cost increases towards the end of the year, which could impact profitability if not offset by price adjustments.
Good afternoon, and welcome to Nokian Tyres first quarter 2026 results audiocast. I am Annukka Angeria from Nokian Tyres Investor Relations. And together with me in this call, I have our President and CEO, Paolo Pompei and our new CFO, Timo Koponen. As usual, Paolo and Timo will run through the presentation. And after that, we will open the line for questions.
But before we start, I would like to ask you Timo a couple of questions. You have been with us only a few days. And first of all, welcome to the company.
Thank you.
It's great to have you here. With the short but intense experience with the company, what are your first impressions?
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