Q2 2026 Valmet Corp Earnings Call Transcript
Key Points
- Valmet Oyj (VOYJF) reported a strong second quarter with a 6% increase in net sales and a stable comparable EBITA margin of 11.5%.
- The recent acquisition of Severn is expected to strengthen Valmet's Process Performance Solutions segment, expanding its market reach and installed base.
- Valmet's strategic review could potentially unlock additional shareholder value by separating its two business segments into stand-alone publicly listed companies.
- The company has successfully reduced SG&A expenses by EUR79 million compared to 2024, improving operational efficiency.
- Valmet maintains a strong balance sheet with a net debt-to-EBITDA ratio of 1.42, providing financial flexibility for future growth opportunities.
- Order intake decreased by 9% year-on-year, primarily due to a decline in capital project orders in the Biomaterials Solutions and Services segment.
- The market for Biomaterial Solutions and Services remains soft, with uncertainty in customer investment decisions impacting quarterly activity.
- Cash flow from operating activities decreased to EUR65 million from EUR79 million in the comparison period, driven by higher net working capital.
- The effective tax rate was unusually high at 34.7% for the second quarter, above the long-term average of approximately 25%.
- The strategic review process introduces uncertainty, as no decision has been made regarding the potential separation of business segments.
Good morning, everyone, and welcome to Valmet's Second Quarter 2026 Results Webcast. I'm Pekka Rouhiainen from Investor Relations. And with me today are Valmet's President and CEO, Thomas Hinnerskov; and our CFO, Katri Hokkanen. Before we begin, I would like to briefly mention the separate stock exchange release we published this morning. Valmet's Board of Directors has initiated a strategic review regarding a potential separation of the company's two business segments; Biomaterials Solutions and Services and Process Performance Solutions into two stand-alone publicly listed companies.
We are pleased to be able to share this important strategic step with you today.
Next, Thomas will start by discussing the continued strategic development of Valmet, including the recently completed Severn acquisition and the strengthening of our Process Performance Solutions business. He'll explain how these developments have led to the strategic review we announced today. He will then move on to review the key highlights and operational
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