Q4 2024 Valmet Oyj Earnings Call Transcript
Key Points
- Valmet Corp (STU:2VO) achieved a record level of orders received in 2024, highlighted by a landmark order worth over EUR 1 billion.
- The company reported a strong order backlog of close to EUR 4.5 billion, providing a solid foundation for 2025.
- Cash flow increased to a new record, demonstrating strong cash conversion capabilities.
- Service orders reached an all-time high of EUR 1.9 billion, indicating robust demand in this segment.
- Automation systems showed a 7% organic growth, reflecting a strong value proposition outside the pulp and paper industry.
- Net sales and comparable EBITDA did not grow in 2024, despite the record orders received.
- The process technology segment faced challenges, with orders excluding the Arauco deal being the lowest in the last decade.
- Comparable EBITDA growth in recent years has largely been driven by acquisitions rather than organic growth.
- The company experienced a decrease in net sales and profitability in the process technology segment, impacting overall margins.
- The market for pulp and paper, particularly in Europe and Asia, remains soft, affecting overall business performance.
Good morning, and welcome to Valmet's fourth quarter and financial year 2024 publication webcast.
My name is Pekka Roheinen, I'm the Head of Investor Relations here at Valmet. And with me today are the presenters, President and CEO, Thomas Hinnerskov; and CFO, Katri Hokkanen.
The year can be summarized so that Valmet's orders received in 2024 increased to a new record, but net sales and comparable EBITDA did not grow. The market was challenging, especially for capital equipment, but we were, of course, very pleased to win a landmark order which was booked to the fourth quarter.
Today's agenda follows the usual routine. Thomas will first go through the year in brief and walk us through the development of the segments and business lines. And Katri will then discuss the financial development, especially from the fourth quarter perspective. And after that, Thomas will wrap up with the dividend proposal guidance and short-term market outlook. But with that, Thomas, I'll hand it to you.
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