Valmet Reports Higher Q2 2026 Net Sales and Comparable EBITA, Completes Severn Acquisition to Strengthen Process Performance Solutions

Valmet reported higher net sales and comparable EBITA for the second quarter of 2026, while maintaining its full-year guidance. The company also completed the acquisition of Severn on July 1, strengthening its Process Performance Solutions segment and expanding its flow control offering.

During April–June 2026, orders received decreased 10% year-on-year to EUR 1.373 billion from EUR 1.520 billion, primarily due to lower capital project orders in the Biomaterial Solutions and Services segment. Organically, orders declined 9%. Net sales increased 6% to EUR 1.315 billion, while comparable EBITA rose 6% to EUR 152 million. The comparable EBITA margin remained unchanged at 11.5%. Earnings per share increased to EUR 0.40 from EUR 0.15, while adjusted EPS rose to EUR 0.47 from EUR 0.23.

For the first six months of 2026, orders received declined 14% to EUR 2.466 billion, while net sales increased 6% to EUR 2.560 billion. Comparable EBITA remained stable at EUR 266 million, with a margin of 10.4%. EPS improved to EUR 0.59, and adjusted EPS increased to EUR 0.73. Cash flow from operating activities totaled EUR 100 million, compared with EUR 297 million in the corresponding period of 2025.

Valmet reiterated its guidance issued in February, expecting 2026 net sales to remain at the previous year's level of EUR 5.197 billion and comparable EBITA to remain at or exceed the 2025 level of EUR 620 million. The company noted that geopolitical and macroeconomic uncertainty continues to limit short-term market visibility. It expects low year-over-year growth in Process Performance Solutions and market conditions in Biomaterial Solutions and Services to remain broadly similar to the second quarter, although investment decisions for large capital projects remain volatile.

President and CEO Thomas Hinnerskov said the company's operating model renewal continued to deliver cost savings, supporting higher profitability despite cautious market conditions. He added that biomaterial capital project activity showed signs of gradual recovery during the quarter, while Process Performance Solutions recorded organic order growth and notable project wins. The company also reported that comparable SG&A costs over the last twelve months have been reduced by EUR 79 million compared with the 2024 baseline.

Following the reporting period, Valmet completed the acquisition of Severn, a specialist in severe-service flow control solutions. The company said the acquisition strengthens its Process Performance Solutions business, expands its addressable market, increases its installed base and aftermarket opportunities, and raises the segment's annualized net sales to approximately EUR 1.7 billion. Severn generated approximately EUR 205 million in net sales in 2025 with an EBITA margin of around 16%, employs about 950 people, and was acquired for USD 480 million on a cash- and debt-free basis.

By business segment, Process Performance Solutions reported second-quarter orders of EUR 379 million, up 1%, with comparable EBITA increasing to EUR 69 million and the margin improving to 18.7%. Biomaterial Solutions and Services recorded orders of EUR 994 million, down 13%, while net sales increased 9% to EUR 945 million and comparable EBITA rose to EUR 98 million with a margin of 10.4%.

During the quarter, Valmet secured several notable orders, including a board making line with automation and lifecycle support for Sun Paper in China, a flue gas condenser and heat pumps for Gren Tartu's biomass heat and power plant in Estonia, and an automation order for Lenzing AG's gas boiler operations in Austria. Additional first-half orders included tissue machines for Yusen Group in China, automation systems for new RoPax vessels in Finland, waste-to-energy automation solutions in Poland, emissions reduction technology for Mercer Stendal's pulp mill in Germany, and a hard nip sizer delivery for a European customer.