Q2 2026 Metso Oyj Earnings Call Transcript
Key Points
- Metso Corp (OUKPF) reported strong order growth in the second quarter, with an 18% increase in orders year-on-year, driven by both equipment and aftermarket in the Minerals segment.
- The company's adjusted EBITA margin improved to 16.6%, reflecting higher volumes and improved gross margins.
- Operating cash flow was robust at EUR206 million, contributing to a rolling 12-month cash flow from operations of EUR915 million, with a 98% cash conversion rate.
- Metso Corp (OUKPF) has expanded its service capabilities with new centers in Argentina and Arizona, enhancing its proximity to customers and supporting future growth.
- The company maintained a strong balance sheet with a net debt to EBITDA ratio of 1.3 times, below the target ceiling, and an investment-grade credit rating from Moody's with a positive outlook.
- The Aggregates segment experienced stable order intake, with some softness in Europe due to increased diesel costs and geopolitical tensions impacting demand.
- Minerals equipment sales were lower year-on-year due to the timing of customer projects, indicating potential volatility in revenue recognition.
- Despite strong order growth, there are concerns about the sustainability of the high equipment order levels, as future quarters may not replicate the same performance.
- Inventory days have increased, raising questions about potential overproduction and its impact on margins.
- The company continues to face challenges from cost inflation, particularly in logistics and energy, which could affect future profitability.
Good afternoon and good morning, everyone. This is Juha from Metso's Investor Relations, and it's my pleasure to welcome you to this conference call where we review our second-quarter '26 results.
We'll begin with the presentation given by our CEO, Sami Takaluoma and CFO, Pasi Kyckling. After which we'll be taking your questions.
And as a reminder, the length of this call is 60 minutes, and we will be making some forward-looking statements, and that's why we have the disclaimer in the presentation deck.
But with these short remarks, let's kick off, and I'll be handing over to Sami. Please go ahead.
Thank you, Juha. Good afternoon, good morning also from my behalf.
The key message today is that the second quarter was a strong quarter for Metso. Orders, sales, profitability; all improved year-on-year, and our cash generation also strengthened. The strongest momentum was
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