Finland's Neste tops core profit forecast as biofuel regulations boost demand (updated)

Neste Oyj

05/02/2026 07:14

Recasts with outlook below expectations, adds share move and analyst comments in paragraphs 3, 4, and 10

Feb 5 (Reuters) - Neste NESTE.HE sees little change in 2026 biofuel sales despite supportive regulatory environment in Europe, it said on Thursday, after the Finnish group topped quarterly core profit expectations.

The biofuel maker and oil refiner said it expected renewable fuel volumes in 2026 to remain at last year's levels, while planned maintenance breaks would lead to falling sales in the oil products division.

"The volume outlook may weigh on sentiment today," analysts from RBC wrote in their take on the quarterly report.

Shares of Neste fell 4% in early Helsinki trading, as RBC said the renewables outlook in particular looked soft against a market consensus that was expecting growth of 9% this year.

European regulations aimed at reducing fuel emissions and subsidies for companies using biofuel have been boosting sales in Neste's renewables arm. Europe made up 73% of all fourth-quarter sales in the business area, it said.

Neste posted comparable earnings before interest, taxes, depreciation and amortisation of 601 million euros ($709 million) for the final quarter of 2025, more than tripling the year-ago figure of 168 million euros.

Analysts in a company-provided poll had expected comparable EBITDA of 526 million euros on average.

The European Union has required at least 2% of fuel made available at EU airports to be sustainable aviation fuel (SAF) since last year, with the proportion scheduled to rise to at least 6% in 2030.

Sales volumes of SAF increased to a record 253,000 metric tons in the quarter, Neste said.

However, RBC noted that the volume was largely flat compared to the 251,000 tons booked for the previous three months, while some analysts had expected an increase.

Neste will propose a dividend of 0.20 euros per share for 2025, unchanged from the 2024 payout.

($1 = 0.8475 euros)

(Reporting by Boleslaw Lasocki in Gdansk, editing by Milla Nissi-Prussak)

((boleslaw.lasocki@thomsonreuters.com; +48 58 769 66 00;))