Valmet Oyj Q1 2026: Strategy Advances but Profitability Hit by Sales Mix Shift

Valmet Oyj today announced its interim results for the first quarter of 2026, highlighting continued progress in strategy execution despite profitability pressures driven by sales mix.

Key Highlights (Q1 2026)

• Orders received: EUR 1,092 million (↓18% YoY)

• Net sales: EUR 1,244 million (↑5% YoY)

• Comparable EBITA: EUR 114 million (↓6% YoY)

• Comparable EBITA margin: 9.2% (10.2%)

• Earnings per share (EPS): EUR 0.19 (0.33)

• Adjusted EPS: EUR 0.26 (0.41)

Orders declined mainly due to lower capital project intake in Biomaterial Solutions and Services and a strong comparison period.

Business Performance Overview

• Process Performance Solutions delivered strong performance with improved margins and organic order growth.

• Biomaterial Solutions and Services saw weaker results, with lower order intake and profitability.

• Overall profitability declined due to lower gross margins, driven by a higher share of large projects in the sales mix.

CEO Commentary

President and CEO stated that Valmet continued executing its strategy in a challenging market environment marked by cautious customer decisions and uneven demand.

“While results were impacted by sales mix, we made tangible progress in strengthening long-term competitiveness and earnings quality.”

Key strategic developments include:

• Continued focus on lifecycle-driven business model

• Growth in recurring revenue from installed base

• Benefits from operating model renewal, delivering cost savings

• SG&A costs reduced by EUR 66 million (last twelve months vs. 2024)

Operational Insights

• Net sales grew organically due to large projects and mill improvement work

• These projects, while strategically important, typically carry lower margins, impacting profitability

• EBITA margin declined to 9.2% due to sales mix and margin pressure

Items affecting comparability totaled EUR -32 million, largely related to strategic footprint measures.

Market Outlook

Valmet noted that:

• Geopolitical and macroeconomic uncertainty increased during the quarter

• Customers remain selective in investment decisions

• Market conditions reflect overcapacity in pulp and paper production globally

Despite this, the company emphasized:

• Strong global market position

• Broad installed base

• Clear strategic direction

These factors position Valmet well for long-term growth.

About Valmet

Valmet is a global technology leader serving process industries, offering technologies, automation, and services across the entire lifecycle. The company employs approximately 18,500 professionals in around 40 countries, with 2025 net sales of about EUR 5.2 billion.

Conclusion

Valmet’s Q1 2026 results reflect solid strategic progress and revenue growth, but profitability was impacted by project-heavy sales mix and lower margins. The company remains focused on strengthening its lifecycle business and improving long-term earnings quality.