Metso Oyj

Q2 group orders increased 18% to EUR 1.462 billion, with 16% growth in constant currencies. Sales increased 6%, adjusted EBITA was EUR 221 million, and the adjusted EBITA margin improved to 16.6%; gross margin improved by almost 200 basis points to 33.3%, EPS from continuing operations rose to EUR 0.15, and operating profit was EUR 185 million versus EUR 178 million a year ago. Operating cash flow improved to EUR 206 million from EUR 147 million a year ago, and rolling 12-month cash flow from operations was EUR 915 million, equal to a 98% cash conversion rate. For segments, Aggregates orders were EUR 333 million with adjusted EBITA of EUR 56 million and a 16.3% margin; Minerals orders were EUR 1.129 billion, sales were EUR 992 million, and adjusted EBITA was EUR 182 million with an 18.3% margin. Net debt to EBITDA was 1.3x, cash and cash equivalents were EUR 383 million, and the EUR 700 million RCF was fully undrawn and extended to 2031. Management kept the outlook unchanged, expecting market activity in both Minerals and Aggregates to remain at the current level over the next 6 months, adjusted for seasonality.

Sami Takaluoma described Q2 as a strong quarter where orders, sales, profitability and cash generation all improved year-over-year, with Minerals showing the strongest momentum. He emphasized that the order growth was broad-based, not tied to one large project, and said the business is seeing the cycle translate more clearly into results. Strategically, he highlighted continued investment in service centers, technology, and customer proximity, plus ongoing work on new products and lithium carbonate process development.

Pasi Kyckling said the order growth came primarily from Minerals Equipment and then Minerals Aftermarket, while Aggregates was stable in orders. He pointed to margin drivers including higher volumes, favorable mix, and improved gross margin, and noted that gross margin rose to 33.3% while adjusted EBITA reached EUR 221 million; he also flagged that last year’s quarter included a EUR 27 million one-off from revaluing STM shares. On the balance sheet, he said net debt/EBITDA was 1.3x versus a 1.5x ceiling, cash was EUR 383 million, the EUR 700 million RCF was undrawn, and the company extended the facility to 2031, supporting continued investment and disciplined capital allocation.

Analysts focused on whether the surge in smaller equipment orders reflects a new run rate, and management said the quarter was strong but the base business is still lumpy, so it should not be extrapolated mechanically. Questions also probed the Minerals backlog, equipment sales timing, and whether the service-center buildout in Argentina and Arizona signals upcoming copper project wins; Sami said such investments would not be made without expecting future utilization, but Pasi said there were no large cancellations and that some backlog timing issues still need review. On margins and aftermarket, management said Minerals margin improvement reflects normal mix, higher volumes, and strong execution, while aftermarket growth is being helped by both pricing and the company’s increased strategic focus on services.