Nokian Renkaat Oyj

Q2 net sales increased 10.6% year over year, or 9.7% in comparable currency. Segment EBITDA rose 34% to EUR 76.8 million, equal to 20.2% of net sales. Segment operating profit increased 71% to over EUR 45 million from EUR 26.3 million in Q2 2025, while operating profit more than doubled to EUR 34.8 million from EUR 14.8 million. Passenger Car Tyres net sales rose 13.7% in comparable currencies and its segment operating profit margin was 15.1%; Heavy Tyres sales rose 10.1% and segment operating profit reached EUR 10.1 million, or 15.0%. Year to date, net sales were up 7.6% and segment EBITDA was up 54%, with operating profit turning positive from a loss in the prior year period. For 2026, management reiterated guidance for segment operating profit as a percentage of net sales of 8%-10%. They said second-half passenger car replacement demand should stay roughly stable within ±2%, truck tires should be +5% to +10%, and agricultural/forestry tires 0% to +5%. CapEx is now expected to be below EUR 100 million for the full year; H1 CapEx was EUR 24.5 million versus EUR 90 million at the same point last year.

Paolo Pompei framed the quarter as proof that Nokian Tyres’ strategy is working: premium positioning, new products, pricing discipline, and operational efficiency were all said to be contributing to improved profitability. He emphasized strong performance from new launches such as Hakkapeliitta 01, Snowproof 3P, and Seasonproof 2, and said the company is gaining share as it rebuilds after the loss of Russia-related volume. His tone was confident but still cautious on the second half, especially around market demand and raw materials.

Timo Koponen highlighted the financial bridge: higher EBITDA, materially lower CapEx, and strong free cash flow were the main drivers of the quarter. He said free cash flow improved by roughly EUR 97 million and net debt decreased by EUR 49 million in the quarter, while liquidity remained at a healthy, stable level. He also noted that receivables rose because of sales growth, not weaker payment terms, and that the company extended a EUR 100 million revolving cash facility and a EUR 300 million bilateral term loan facility.

Analysts pressed management on whether new products were already lifting margins, and Paolo said the products are positioned better than prior versions and are indeed supporting profitability, with more benefit expected to continue. Questions on raw materials focused on timing, price/cost pass-through, and tariff effects; management said raw materials should rise into Q4 with a lag in P&L, but the company aims to offset costs through pricing and has also benefited from supplier resourcing and homologation. Analysts also asked about the jump in receivables and the larger 'other' line; CFO said receivables were purely sales-growth driven and Paolo said the 'other' item mainly reflects Vianor sell-in/sell-out eliminations. On Romania, management said production is now expected to be more than 2 million pieces this year, above plan, and that the factory is helping growth in Central Europe.