Overview
Finland's process industry tech leader's Q4 EBITA margin hit record 13.3% due to cost savings
Orders received in Q4 fell 48% due to strong comparison period
Adjusted EPS for Q4 increased, driven by lower SG&A costs
Outlook
Valmet estimates 2026 net sales will remain at 2025 level of EUR 5.2 bln
Comparable EBITA in 2026 expected to remain or increase from EUR 620 mln
Market in Process Performance Solutions expected to stabilize and improve modestly
Result Drivers
OPERATING MODEL RENEWAL - Comparable EBITA margin increased due to cost savings from operating model renewal
PROCESS PERFORMANCE SOLUTIONS - Segment delivered strong performance with a 21.9% margin in Q4
SEVERN ACQUISITION - Acquisition expands market reach and strengthens Flow Control platform
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
EUR 1.48 bln
Q4 EPS
EUR 0.57
Q4 Net Income
EUR 105 mln
Q4 Adjusted EBITA
EUR 196 mln
Q4 EBITA
EUR 191 mln
Q4 Orders
EUR 1.28 bln
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and 2 "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 Oyj is €32.25, about 7.9% above its February 5 closing price of €29.89
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago
Press Release: ID:nWkr4HtRCW
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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.)