Finland's Valmet Q2 orders fall 10% on soft biomaterial services demand

Valmet

24/07/2026 07:12

    

    Overview
  
Finland process industries tech firm's Q2 net sales rose 6% yr/yr
Adjusted EPS for Q2 more than doubled from prior year due to restructuring costs last year
Q2 orders received fell 10%, mainly on lower capital project order intake in Biomaterial Solutions and Services

    

    Outlook
  
Valmet reiterates 2026 guidance for net sales to remain at 2025 level of EUR 5,197 mln
Company expects 2026 comparable EBITA to remain at or increase from 2025 level of EUR 620 mln
Valmet says short-term market visibility remains low due to geopolitical and economic uncertainty

    

    Result Drivers
  
HIGHER NET SALES - Co said Q2 comparable EBITA increase was supported by higher net sales
COST SAVINGS - Cost savings from operating model renewal contributed to improved profitability
CAUTIOUS MARKET - Co said market environment remained cautious, with soft biomaterial services demand and selective customer investments

    
Company press release: ID:nWkr64SC0m

    

    Key Details
  

            Metric
          

            Beat/Miss
          

            Actual
          

            Consensus Estimate
          
Q2 Sales
 
EUR 1.32 bln
 
Q2 EPS
 
EUR 0.40
 
Q2 Net Income
 
EUR 75 mln
 
Q2 Adjusted EBITA
 
EUR 152 mln
 
Q2 EBITA
 
EUR 150 mln
 
Q2 Orders
 
EUR 1.37 bln
 

    

    Analyst Coverage
  
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for Valmet Corp is €29.00, about 31.6% above its July 23 closing price of €22.04
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

    

    Reuters Recommended Reads
  
July 23 - Forestry firm UPM expects higher costs weighing on second-half performance
July 21 - Finland's Wartsila tops estimates for quarterly orders as electricity demand grows
July 23 - Stora Enso lags Q2 profit expectations, shares drop

    
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)