Q1 2025 Valmet Oyj Earnings Call Transcript
Key Points
- Valmet Oyj (VOYJF) reported a strong start to the year with orders received increasing to EUR1.3 billion, particularly driven by the Services and Automation segments.
- The order backlog increased to EUR4.6 billion, indicating a positive development compared to the end of Q4.
- Cash flow remained robust, with a strong cash conversion leading to EUR217 million in Q1.
- The company announced a strategic renewal plan aimed at improving customer service, operational efficiency, and simplifying the organizational structure.
- Automation segment showed strong performance with a 12% organic growth in orders, driven by activities in pulp and paper as well as other process industries.
- Net sales were flat year-over-year, with a decrease in the Process Technologies segment due to subdued market conditions.
- Comparable EBITA remained at the same level as last year, indicating no growth in profitability.
- The Process Technologies segment experienced a low comparable EBITA margin of 1.5%, reflecting weak profitability.
- Market activity in Process Technologies remains low, with a book-to-bill ratio below 1, indicating challenges in securing new orders.
- The strategic renewal process will impact up to 1,150 roles globally, indicating potential workforce reductions and associated costs.
Good morning, and welcome to Valmet's first quarter 2025 result publication webcast. Valmet here started strongly in Services and Automation segments, while the market conditions remain subdued in the Process Technologies segment.
I'm Pekka Rouhiainen, I'm from IR, and with me today are Thomas Hinnerskov, President and CEO; as well as Katri Hokkanen, CFO. Today, Thomas will first go through the highlights of the quarter and provide an update on the strategy renewal process. After that, Katri will go through the financial development in more detail also from the segment perspective and Thomas will then conclude on the guidance and short-term market outlook.
But with that, I hand over to the presenters. Thomas, the floor is yours.
Thank you, Pekka. Very happy to be here. Great to start the year in a good way, and let's start looking at Q1. Overall, orders received increased to EUR1.3 billion, particularly pleased with the performance in
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