Published: 2026-02-06 09:00:41 EET
Valmet Corporation - Financial Statement Release

Valmet's Financial Statements Review January 1 - December 31, 2025: ‘Lead the Way' strategy delivered first results: Comparable EBITA margin increased to 11.9 percent in 2025

Valmet's Financial Statements Review January 1 - December 31, 2025: ‘Lead the
Way' strategy delivered first results: Comparable EBITA margin increased to 11.9
percent in 2025
Valmet Oyj's stock exchange release on February 6, 2026 at 9:00 a.m. EET

October-December 2025: Comparable EBITA margin reached an all-time high: 13.3
percent

•   Orders received decreased 48 percent to EUR 1,281 million (EUR 2,463
million). Organically orders received decreased 46 percent. The decrease mainly
reflects the comparison period during which a landmark pulp mill order valued at
over EUR 1 billion was recorded.

•   Net sales remained at the previous year's level at EUR 1,477 million (EUR
1,528 million).

•   Comparable EBITA remained at the previous year's level at EUR 196 million
(EUR 192 million).

•   Comparable EBITA margin increased to 13.3 percent (12.6%) due to cost
savings related to the operating model renewal.

•   Earnings per share (EPS) increased to EUR 0.57 (EUR 0.53). The increase in
EPS is mainly related to lower SG&A costs.

•   Adjusted EPS increased to EUR 0.64 (EUR 0.60).

January-December 2025: Comparable EBITA margin increased to 11.9 percent

•   Orders received decreased 11 percent to EUR 5,216 million (EUR 5,837
million). Organically orders received decreased 9 percent.

•   Net sales remained at the previous year's level at EUR 5,197 million (EUR
5,359 million).

•   Comparable EBITA remained at the previous year's level at EUR620 million
(EUR 609 million).

•   Comparable EBITA margin was 11.9 percent (11.4%). The margin increased due
to cost savings related to the operating model renewal.

•   EPS was EUR 1.52 (EUR 1.52). Adjusted EPS was EUR 1.82 (EUR 1.93).

•   Cash flow provided by operating activities totaled EUR 581 million (EUR 554
million).

Figures in brackets, unless otherwise stated, refer to the comparison period,
i.e., the same period of the previous year.

Key figures1

EUR million, or as     Q4/202  Q4/202  Change  2025   2024   Change
indicated              5       4
Orders received        1,281   2,463   -48%    5,216  5,837  -11%
Order backlog2                                 4,306  4,452  -3%
Net sales              1,477   1,528   -3%     5,197  5,359  -3%
Comparable EBITA       196     192     2%      620    609    2%
% of net sales         13.3%   12.6%   0.7 pp  11.9%  11.4%  0.6 pp
EBITA                  191     173     10%     534    557    -4%
Profit for the period  105     98      6%      279    281    0%
Earnings per share,    0.57    0.53    7%      1.52   1.52   0%
EUR
Adjusted earnings per  0.64    0.60    8%      1.82   1.93   -6%
share, EUR
Cash flow provided by  189     178     7%      581    554    5%
operating activities
Comparable ROCE3                               13.0%  12.7%  0.2 pp
ROCE3                                          10.9%  11.4%  -0.5 pp
Net debt to EBITDA                             1.40   1.55   -10%
ratio
Gearing2                                       35%    39%    -4.6 pp
1   The calculation
of key figures is
presented on section
‘Formulas for
calculation of
indicators'.

2   At end of period.

3   Return on capital
employed before
taxes.

Dividend proposal

The Board of Directors proposes to the Annual General Meeting, which is planned
to be held on March 25, 2026, a dividend of EUR 1.35 per share for 2025. The
proposed dividend equals 89 percent of the net result and it would be paid in
two installments.

Guidance for 2026

Valmet estimates that net sales in 2026 will remain at the previous year's level
in comparison with 2025 (EUR 5,197 million) and Comparable EBITA in 2026 will
remain at the previous year's level or increase in comparison with 2025 (EUR 620
million).

Short-term market outlook
(January-June 2026)

Valmet's short-term market outlook covers the period January-June 2026, compared
with October-December 2025.

It reflects Valmet's estimate of the expected growth rate of its key markets,
based on ongoing discussions with customers and other market information.

The outlook describes underlying market trends, excluding the normal seasonal
variation in Valmet's business. It should not be interpreted as guidance for
Valmet's own orders received.

Process Performance Solutions

Valmet notes that the market environment in Process Performance Solutions
softened in October-December. Valmet does not expect further softening from this
level and anticipates the market to stabilize and improve modestly from the
weaker Q4 level during the first half of 2026.

Biomaterial Solutions and Services

Uncertainty on global economic outlook remains high and continues to impact
customers' decision making, capacity utilization rates and profitability levels.

Valmet expects the biomaterial services market to remain soft in the coming
quarters.

It is typical that large individual investment decisions by customers can
influence the overall market significantly within a single quarter.

Segment key figures

Orders received,  Q4/2025  Q4/2024  Change  2025   2024   Change
EUR million
Process           372      443      -16%    1,500  1,446  4%
Performance
Solutions
Biomaterial       908      2,020    -55%    3,716  4,392  -15%
Solutions and
Services
of which          439      479      -8%     1,948  1,915  2%
biomaterial
services
Total             1,281    2,463    -48%    5,216  5,837  -11%

Net sales, EUR  Q4/2025  Q4/2024  Change  2025   2024   Change
million
Process         410      424      -3%     1,481  1,437  3%
Performance
Solutions
Biomaterial     1,067    1,104    -3%     3,716  3,922  -5%
Solutions and
Services
of which        511      567      -10%    1,856  1,900  -2%
biomaterial
services
Total           1,477    1,528    -3%     5,197  5,359  -3%

Comparable EBITA, EUR million       Q4/2025  Q4/2024  Change  2025  2024  Change
Process Performance Solutions       90       81       11%     290   255   14%
Biomaterial Solutions and Services  123      128      -3%     381   403   -5%
Other                               -16      -17      -2%     -51   -49   4%
Total                               196      192      2%      620   609   2%

Comparable EBITA,  Q4/2025  Q4/2024  Change  2025   2024   Change
% of net sales
Process            21.9%    19.1%    2.8 pp  19.6%  17.7%  1.8 pp
Performance
Solutions
Biomaterial        11.6%    11.6%    0.0 pp  10.3%  10.3%  0.0 pp
Solutions and
Services
Total              13.3%    12.6%    0.7 pp  11.9%  11.4%  0.6 pp

EBITA, EUR million                  Q4/2025  Q4/2024  Change  2025  2024  Change
Process Performance Solutions       92       76       21%     279   248   13%
Biomaterial Solutions and Services  118      116      1%      323   364   -11%
Other                               -18      -19      -6%     -68   -56   22%
Total                               191      173      10%     534   557   -4%

Letter from President and CEO

Valmet closed the year with record profitability in the fourth quarter, as the
Comparable EBITA margin reached an all‑time high of 13.3 percent. For the full
year, Comparable EBITA margin improved to 11.9 percent, with net sales and
profitability in line with our guidance despite a subdued environment. The
record performance reflects the early and bold choices we made under our ‘Lead
the Way' strategy to renew our operating model, ahead of the market slowdown in
the second half of the year.

Process Performance Solutions delivered another very strong year with a 21.9
percent margin in the fourth quarter and 19.6 percent for the full year.
Biomaterial Solutions and Services maintained stable margins at 11.6 percent in
the fourth quarter and 10.3 percent for the full year and secured important wins
despite overcapacity and a weak global economy. As communicated at our Capital
Markets Day, 2026 will include targeted investments to support the next phase of
growth, and margins in Process Performance Solutions may ease slightly from
these record levels but will remain solid.

Orders in the fourth quarter were lower year‑on‑year due to the exceptionally
strong comparison period, but we continued to win strategically important
projects, including our largest‑ever energy order in Berlin. These strengthen
our installed base and long‑term service opportunities. Our EUR 4.3 billion
order backlog provides good visibility for 2026, with EUR 3.1 billion expected
to convert into net sales.

Cash flow remained strong with EUR 581 million for the year, and our balance
sheet is solid with gearing at 35 percent. The Board will propose a dividend of
EUR 1.35 which is consistent with our policy and unchanged from last year.

A key strategic milestone was the announced acquisition of Severn Group in the
fourth quarter. Severn brings leading severe‑service valve technologies, a
high‑quality installed base, and strong customer relationships. This combination
expands our addressable market, strengthens our Flow Control platform and
supports growth beyond our traditional biomaterials core.

Looking ahead, market environment in the Process Performance Solutions market is
expected to stabilize and improve modestly in the first half of 2026, after
softening in the fourth quarter. In Biomaterial Solutions and Services,
persistent macro‑economic uncertainty continues to weigh on customers'
utilization rates and investment decisions, and we expect the market to remain
soft in the coming quarters. Against this market backdrop, our guidance for 2026
is for net sales to remain at the 2025 level, while Comparable EBITA is expected
to remain at the same level or improve.

‘Lead the Way' is now being embedded across Valmet: our more focused strategy,
simpler operating model, lifecycle approach and the creation of Global Supply
unit - targeting EUR 100 million of structural savings by 2030 - are
fundamentally improving how we execute. Together with the Severn acquisition,
these actions strengthen Valmet's position in creating long‑lasting value for
customers and shareholders.”

Thomas Hinnerskov

President and CEO


News conference and webcast for analysts, investors and media

Valmet will host a results webcast in English as a live webcast at
https://valmet.events.inderes.com/q4-2025 on Friday, February 6, 2026, at 10:00
a.m. Finnish time (EET). President and CEO Thomas Hinnerskov and CFO Katri
Hokkanen will be presenting the results.

Recording of the webcast will be available shortly after the event on the same
address.

Participants may also join the news conference via a conference call by
registering at:
https://events.inderes.com/valmet/q4-2025/dial-in

After the registration you will receive dial-in details and a conference ID. To
ask a question during the call, please dial #5 on your telephone keypad.

The event is held in English.

VALMET
Corporate Communications

Further information:
Pekka Rouhiainen, VP, Investor Relations, Valmet, tel. +358 10 672 0020

Katri Hokkanen
CFO

Pekka Rouhiainen
VP, Investor Relations

DISTRIBUTION:
Nasdaq Helsinki
Major media
www.valmet.com

Valmet is a global technology leader in serving process industries. We work with
our customers throughout the lifecycle, delivering cutting-edge technologies and
services, as well as mission-critical automation and flow control solutions.
Backed by more than 225 years of industrial experience and a global team of
18,500 professionals close to customers, we are uniquely positioned to transform
industries toward a regenerative tomorrow.

In 2025, Valmet's net sales totaled approximately EUR 5.2 billion. Our head
office is in Espoo, Finland, and we have experts in approximately 40 countries
around the world. Valmet's shares are listed on Nasdaq Helsinki.

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Attachments:
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