Valmet reports mixed Q1 2026 results as sales mix impacts profitability
Valmet reported continued progress in the execution of its strategy in the first quarter of 2026, although profitability was affected by sales mix and lower order intake.
Orders received decreased by 18% to €1,092 million, mainly due to lower capital project activity in the Biomaterial Solutions and Services segment and the comparison with a large order in the previous year. Net sales increased by 5% to €1,244 million, driven by a higher share of revenue from large projects and mill improvement activities.
Comparable EBITA declined by 6% to €114 million, with the margin decreasing to 9.2% from 10.2%. Despite higher net sales and cost savings from the renewed operating model, profitability was impacted by lower gross margins linked to the project-heavy sales mix.
Earnings per share decreased to €0.19, while adjusted EPS reached €0.26. Items affecting comparability amounted to €-32 million, mainly related to planned strategic footprint measures.
Segment performance
The Process Performance Solutions segment remained resilient, with stable order intake and improved profitability, achieving an EBITA margin of 18.5%. In contrast, the Biomaterial Solutions and Services segment recorded a 25% decline in orders and a significant drop in profitability, reflecting weak capital project activity and continued softness in the biomaterial services market.
CEO comment
“In the first quarter of 2026, Valmet continued to execute its strategy in a market environment characterized by cautious customer decision making and uneven demand across our customer industries. While the quarter’s results were impacted by sales mix, we made tangible progress in strengthening Valmet’s long-term competitiveness and earnings quality.
Orders received totaled close to EUR 1.1 billion. Organic order intake declined, primarily due to the timing of large capital projects. This development was expected and reflects current overcapacity in pulp and paper production globally. Our Process Performance Solutions business delivered solid organic order growth and strong margin performance, demonstrating the resilience of our lifecycle driven offering.
Net sales increased organically, supported by a higher share of revenue from large projects and smaller mill improvements. This shift in sales mix affected profitability, and our comparable EBITA margin declined to 9.2%. While projects typically carry lower margins, they are critical ways we deliver value to customers and grow our installed base.
A key positive in the quarter were the benefits from the early and decisive steps taken last year to renew Valmet’s operating model. These actions are delivering cost savings and enabling faster decision-making closer to customers. Over the last twelve months, our comparable SG&A costs are EUR 66 million lower than in 2024.
Looking ahead, geopolitical and macroeconomic uncertainty remains elevated, and customers are likely to remain selective in their investment decisions. However, Valmet is well positioned. Our strong market positions, broad installed base, and clear strategic direction provide a solid foundation for long-term value creation,” said Thomas Hinnerskov, President and CEO of Valmet.
Outlook
Valmet reiterated its 2026 guidance, expecting net sales to remain at the previous year’s level and comparable EBITA to remain stable or increase. For the coming months, the company expects moderate improvement in Biomaterial Solutions and Services from low levels, while Process Performance Solutions is anticipated to return to low growth. However, uncertainty related to the geopolitical situation and global economy continues to limit short-term visibility.
