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 versus 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 net sales were up 13.7% in comparable currencies, with segment operating profit margin at 15.1%; Heavy Tyres net sales were up 10.1% and segment operating profit was EUR 10.1 million, or 15.0%. Year to date, net sales were up 7.6%, segment EBITDA up 54%, and operating profit turned positive from a loss a year ago. Full-year 2026 guidance was reaffirmed for segment operating profit at 8%-10% of net sales. Management said full-year CapEx should be significantly below last year and likely below EUR 100 million; Q2 CapEx was EUR 24 million versus EUR 19 million last year, and H1 CapEx was EUR 24.5 million versus EUR 90 million a year earlier.

Paolo Pompei framed the quarter as evidence that the strategy is working: premium positioning, new products, stronger pricing, and a more efficient manufacturing footprint are translating into better sales and profitability. He emphasized that growth was broad-based across regions and categories, with particularly strong momentum in all-season tires, winter tires, and Central Europe. His tone was upbeat but measured, especially on the back half, where he said market visibility is limited and management is cautious on sales trends.

Timo Koponen highlighted that Passenger Car Tyres and Heavy Tyres were the main profit drivers, with Passenger Car Tyres benefiting from volume growth, positive price mix, and lower material costs. He said free cash flow improved by roughly EUR 97 million, helped by higher EBITDA and much lower CapEx, and that net debt decreased by EUR 49 million in the quarter. He also noted working capital rose because of stronger sales and higher receivables, but said payment terms had not been loosened 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 like Hakkapeliitta 01 were already boosting profitability, how much raw material inflation could be offset by pricing, and whether anti-dumping duties on Chinese tires would help margins. Management said new products are positioned better than prior lines and are already supporting profitability, while raw materials are expected to move higher into late Q3 and Q4, with the company aiming to compensate through pricing and product positioning. On tariffs, management said the EU duties are redirecting flows but noted much Asian production is now outside China; they also said they do not see risk to existing contract manufacturing activities. Questions on Romania, receivables, and cash flow were answered by saying the Romanian plant is ramping above plan and will produce more than 2 million pieces this year, receivables are purely growth-driven, and no deterioration in payment terms or customer risk was taken.