Key Highlights
- Shares of Valmet climbed as high as 28.9% to reach €28.42 during Friday trading, marking the stock’s strongest intraday performance since late February
- Second-quarter revenue increased 6% year-over-year to €1.32 billion, surpassing the top analyst projection of €1.27 billion
- Comparable EBITA grew 6% to €152 million, exceeding the analyst consensus of €140 million and beating the upper estimate of €150 million
- Management initiated a comprehensive strategic assessment to explore splitting Biomaterial Solutions and Services from Process Performance Solutions, potentially creating two independent publicly-traded entities on Nasdaq Helsinki
- The company maintained its 2026 financial outlook, projecting revenue around €5.2 billion with Comparable EBITA reaching or exceeding €620 million
Shares of Valmet experienced a dramatic rally on Friday, climbing as much as 28.9% to €28.42 and reaching the highest point since February 27. The sharp uptick followed the release of second-quarter financial results from the Finnish process technology specialist that significantly exceeded Wall Street expectations.
Revenue for the three months ending June increased 6% to €1.32 billion, compared to €1.24 billion in the same quarter last year. The figure not only surpassed the average analyst projection of €1.24 billion but also exceeded the most optimistic forecast of €1.27 billion tracked by Vara Research.
The company’s Comparable EBITA reached €152 million, representing a 6% improvement over the prior-year figure of €143 million. This performance exceeded the analyst consensus of €140 million and outpaced even the highest projection of €150 million.
Valmet maintained its Comparable EBITA margin at 11.5%, matching the previous year’s level and surpassing the consensus forecast of 11.3%.
Management attributed the strong performance to increased sales volume and efficiency gains achieved through the company’s operational restructuring initiatives.
New orders declined 10% to €1.37 billion from €1.52 billion in the year-ago period. Despite the drop, the figure exceeded the consensus estimate of €1.28 billion and remained within analyst projections.
The reduction in orders was primarily attributed to lower capital project activity within the Biomaterial Solutions and Services division. However, Valmet emphasized that order intake showed sequential improvement compared to the previous quarter.
Basic earnings per share stood at €0.40, marginally below the consensus of €0.42 but still within the expected range. On an adjusted basis, EPS reached €0.47, beating the consensus estimate of €0.45.
Net income for the quarter totaled €75 million, slightly under the analyst consensus of €76.5 million but comfortably within the projected range of €66 million to €93.2 million.
Potential Corporate Separation Under Evaluation
Perhaps more significant than the quarterly results was the board’s disclosure that it has commenced a strategic evaluation to assess the feasibility of separating the company’s Biomaterial Solutions and Services division from its Process Performance Solutions business, potentially creating two independent companies trading on Nasdaq Helsinki.
Board Chair Pekka Vauramo emphasized that “we will only proceed with a separation if we conclude after detailed analysis that separation is clearly in the best interests of our shareholders.”
The company clarified that no final decision has been made regarding the potential transaction. Valmet committed to providing a comprehensive update no later than the release of its 2026 full-year financial results.
Management reaffirmed its guidance for fiscal 2026, projecting revenue to remain consistent with 2025 levels at approximately €5.2 billion, while targeting Comparable EBITA at or above the €620 million achieved in the prior year.
Leadership Transition Announced
In addition to financial results, Valmet disclosed an upcoming change in executive leadership. The company named Pia Aaltonen-Forsell as its new Chief Financial Officer, succeeding Katri Hokkanen, who is scheduled to depart by September 2026.
Aaltonen-Forsell, currently with Finnair, is expected to assume her new position no later than the end of January 2027.
Prior to Friday’s rally, the stock had settled at €22.04 on Thursday. While Friday’s peak of €28.42 represents a substantial gain, shares still trade below the 52-week high of €32.15.
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