Nokian Renkaat Oyj

Q2 net sales increased 10.6% year over year, or 9.7% in comparable currencies. Segment EBITDA rose 34% to EUR 76.8 million, representing 20.2% of net sales. Segment operating profit increased 71% to over EUR 45 million from EUR 26.3 million in Q2 2025, and operating profit more than doubled to EUR 34.8 million from EUR 14.8 million. Passenger Car Tyres sales grew 13.7% in comparable currencies and its segment operating margin was 15.1%; Heavy Tyres sales grew 10.1% and segment operating profit was EUR 10.1 million with a 15.0% margin. Year-to-date, net sales were up 7.6%, segment EBITDA was up 54%, and operating profit turned positive from last year’s negative level. For the full year 2026, management reiterated guidance for segment operating profit margin of net sales at 8%-10% and said CapEx should be lower than previously expected, now around or below EUR 100 million.

Paolo Pompei framed the quarter as a strong execution story: higher sales volumes, better pricing, and lower manufacturing and raw material costs all contributed to a significant profit step-up. He emphasized that the company is seeing traction from new products such as Hakkapeliitta 01 and Seasonproof 2, and said these products are positioned better than prior versions and are helping profitability. His tone was confident but measured, repeatedly stressing focus on premium positioning, brand strength, and continuous improvement while noting that market development remains the main variable outside the company’s control.

Timo Koponen highlighted that Passenger Car Tyres continued to drive performance, with comparable-currency sales up 13.7% and H1 segment operating profit of EUR 45.77 million. He said volume contributed EUR 22 million, or 10.5%, to Passenger Car Tyres net sales growth, while positive price mix added EUR 6 million, or 3.1%, and lower material costs were the biggest profit lever at about EUR 10 million. He also said free cash flow improved by roughly EUR 97 million, net debt fell by EUR 49 million in the quarter, working capital rose mainly because of receivables tied to stronger June sales, and liquidity remained healthy; the company also extended a EUR 100 million revolving cash facility and a EUR 300 million bilateral term loan facility.

Analysts focused on whether new products were already boosting Q2 margins or would show more in Q3, and management said the higher-priced new products are already supporting profitability. Questions also centered on raw materials, tariff impacts, and whether pricing can offset higher input costs; management said raw material costs are expected to rise again into Q4, but the company aims to compensate through pricing and product positioning, while tariffs are redirecting market flows rather than creating a direct new risk to its own contract manufacturing. The cash flow discussion drew questions about CapEx and receivables: Timo said CapEx is now expected to be below EUR 100 million, and receivables were described as sales-growth driven rather than a change in payment terms. Management also said the Romanian plant is ramping faster than planned and will produce more than 2 million pieces this year, up from more than 1 million last year.