Valmet Oyj

Q2 net sales increased 6% year-on-year to EUR 1.3 billion, and organic growth was 6%. Comparable EBITA rose to EUR 152 million from EUR 143 million, with the margin unchanged at 11.5%. Adjusted EPS increased to EUR 0.47 from EUR 0.23, while items affecting comparability were minus EUR 1 million versus minus EUR 62 million a year ago. Orders received were close to EUR 1.4 billion, down 9% organically. For segments, PPS comparable EBITA was EUR 69 million with an 18.7% margin, and Biomaterial Solutions and Services comparable EBITA was EUR 98 million with a 10.4% margin. Full-year 2026 guidance was reiterated: net sales are expected to remain at the previous year's level, and comparable EBITA is expected to remain at the previous year's level or increase versus 2025.

Thomas Hinnerskov framed the quarter as evidence that Valmet's strategic actions are working, saying competitiveness remains strong and the company is being strengthened for the long term. He emphasized that both businesses have evolved into large, profitable platforms with distinct growth paths, which is why the Board is reviewing whether a separation could create more shareholder value. His tone was confident but measured: the review is only a review, and customer operations are said to continue as normal.

Katri Hokkanen highlighted 6% organic sales growth to EUR 1.3 billion and comparable EBITA of EUR 152 million, up EUR 9 million year over year, supported by higher sales and continued cost savings. She said SG&A on a last-12-month basis fell to EUR 905 million, or EUR 79 million below the 2024 baseline, with SG&A at 17% of sales versus 18.4% before. Cash flow from operating activities was EUR 65 million, cash and cash equivalents were EUR 584 million, net debt was EUR 965 million, gearing was 39%, and net debt-to-EBITDA improved to 1.42 from 1.60; she also noted the Severn acquisition would add about a 15 percentage point impact to gearing. She said comparable cash conversion was 62% and should improve during the year, and she flagged a 34.7% effective tax rate in Q2 as above normal.

Analysts pressed management on why PPS margins might decline later in the year despite Q1/Q2 strength; Thomas said the business is performing well, but Valmet still wants to keep investing into organic growth, and some of those growth investments were delayed by geopolitical tensions. Questions on the breakup centered on whether the trigger was low valuation multiples or shareholder pressure; Thomas said the timing was driven by the natural evolution of the two segments after the CMD and the Severn deal, not by external pressure. Analysts also asked about synergies and possible dis-synergies between the businesses, with management saying PPS benefits from customer overlap between automation and flow control, while any separation would need to preserve the automation value proposition in Biomaterial Solutions and Services.