Q1 2026 Valmet Corp Earnings Call Transcript
Key Points
- Valmet Oyj (VLMTY) reported a 9% organic increase in net sales, driven by a higher share of capital projects revenue.
- The Process Performance Solutions segment showed strong performance with a 4% organic increase in orders and a comparable EBITA margin improvement to 18.5%.
- Cost savings from the operating model renewal resulted in a EUR66 million reduction in comparable SG&A expenses compared to 2024.
- The Arauco project is proceeding on schedule and budget, with 50% of the project's net sales already booked.
- Valmet Oyj (VLMTY) maintains a strong balance sheet with a gearing of 37% and a net debt-to-EBITDA ratio of 1.45, indicating financial stability.
- Orders received decreased by 15% organically, mainly due to the timing of large capital project orders and overcapacity in the global pulp and paper markets.
- The Biomaterials business was impacted by project phasing and mix, leading to a decrease in orders by 7% organically.
- Comparable EBITDA declined to EUR114 million with a margin of 9.2%, affected by a negative FX impact and a shift in sales mix towards capital projects.
- Cash flow from operating activities decreased to EUR35 million, primarily due to an increase in net working capital.
- The market for Biomaterial Services is expected to remain soft in the next two quarters, with customers likely to remain selective in their investment decisions.
Good morning, everyone, and welcome to Valmet's Q1 results webcast. Before we start, a short practical note, today's webcast is audio only due to a flu in the team. Thanks for your understanding.
I'm Pekka Rouhiainen from Investor Relations, and with me today are Valmet's President and CEO, Thomas Hinnerskov; as well as CFO, Katri Hokkanen. Today, Thomas will start with an overview of Valmet from the customer and investor viewpoint and go through the first quarter performance. Katri will then discuss the financials in more detail. After that, Thomas will return to cover the guidance and short-term market outlook before we open the lines for the questions. And as usual, you can submit written questions through the webcast platform at any time.
But with that, let's get started. Thomas, the floor is yours.
Thank you, Pekka, and good morning, everyone, from me as well. The headline
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
