Neste Oyj

Q2 comparable EBITDA was EUR 1.2 billion, a record for Neste. Renewable Products sold over 1 million tons and achieved a record sales margin of $1,200 per ton; Oil Products posted a refining margin of $25.8 per barrel; Marketing & Services contributed EUR 23 million. Renewable Products volumes were slightly down year over year but up sequentially, and Oil Products utilization was 90% while Renewable Products utilization was 75%, which management called unsatisfactory. Cash flow before financing activities was EUR 164 million, and the company said its net debt to capital ratio fell below 30% after tendering EUR 500 million of notes. For guidance, Neste narrowed 2026 cash out CapEx to approximately EUR 1.2 billion, expects 2026 Renewable Products sales volumes to be approximately at the same level as 2025, and expects 2026 Oil Products sales volumes to be lower than 2025 because of the planned Porvoo maintenance turnaround.

Heikki Malinen said the quarter was the strongest financial quarter in Neste’s history and emphasized that the company is benefiting from a more favorable market and clearer regulation. He repeatedly pointed to RED III implementation in Europe and the U.S. RVO decision as positive signals for future demand, and said the outlook for renewable diesel and SAF looks more favorable than a year ago. On strategy, he stressed that the near-term priority is to maximize returns from the existing asset base, improve utilization, deleverage, and complete the major investment and turnaround work already underway.

Eeva Sipila highlighted the record EUR 1.2 billion comparable EBITDA, with almost 3/4 coming from Renewable Products. She said the quarterly result reflected strong margins, a stronger U.S. RIN environment, and the exceptionally wide diesel cracks in Oil Products, but also noted that 75% utilization in Renewable Products was not satisfactory and that broader upgrade work will be bundled with upcoming shutdowns. She said the company tendered EUR 500 million of notes, brought net debt to capital below 30%, confirmed Moody’s A3 rating with Stable Outlook, and guided 2026 cash out CapEx to approximately EUR 1.2 billion; she also warned that higher inventories and market prices weighed on working capital and cash flow, though Q4 should ease that pressure as inventories come down.

Analysts focused heavily on whether Q2’s record RP margin can continue, what July trading has looked like, and how turnarounds will affect utilization and sales volumes. Management was cautious, saying feedstock costs are expected to rise in the second half and that margin moves are hard to forecast, while also noting that Q4 will be constrained by turnarounds and that some production is being built into inventory to support deliveries later. Questions also centered on future growth, buybacks/dividends, and Rotterdam; management said it is too early to outline the next major strategic phase, that deleveraging remains the priority, and that Rotterdam remains on track with the EUR 2.5 billion budget still in place.