Download PDF

1. Company Snapshot

1.a. Company Description

Valmet Oyj develops and supplies process technologies, automation, and services for the pulp, paper, and energy industries.The company offers solutions and services for the pulping industry, including chemical pulping, wood handling, cooking and fiber line, pulp drying, chemical recovery, air emission control, other value-adding processes, dissolving pulping, mechanical pulping, recycled fiber, and automation for pulp.It also provides technologies, automation products, and services for board and paper production, such as recycled fiber, stock preparation, board and paper machines, services for board and paper, and automation for board and paper; and technologies, automation products, and services for tissue production.


In addition, the company offers energy solutions, BFB and CFB boilers, gasifiers, power and heating plants, air emission control, industrial internet solutions, and services and automation for energy.It serves alternative fuels, biofuels and biomaterials, chemical, fiberboard, filtration, food, laundry, marine, minerals and metals, nonwovens, paper converting, petrochemical, and pharmaceuticals industries.Valmet Oyj is headquartered in Espoo, Finland.

Show Full description

1.b. Last Insights on VALMT

Valmet Oyj's recent performance has been impacted by several negative drivers. The company's announcement to review manufacturing operations in Sweden and Poland, including potential closure of its Sundsvall site, may lead to restructuring costs and uncertainty. Additionally, the departure of CFO Katri Hokkanen by the end of September 2026 may create leadership uncertainty. Furthermore, the company's Beyond Circularity program, although aimed at advancing sustainability, may have incurred significant R&D expenses. These factors, along with potential volatility in the energy market, may affect Valmet's financials.

1.c. Company Highlights

2. Valmet's Q4 Results Exceed Expectations

Valmet reported a strong fourth quarter with net sales of EUR 1.5 billion and a comparable EBITA margin of 13.3%, the highest quarterly margin in the company's history. Earnings per share (EPS) came in at EUR 0.57, beating analyst estimates of EUR 0.3875. The company's full-year performance was also resilient, with a record full-year margin of 11.9% and net sales holding steady. The acquisition of Severn Group is expected to strengthen Valmet's flow control in several key process industries.

Publication Date: Feb -13

📋 Highlights
  • Record Full-Year Margin:: Valmet achieved a record full-year EBITA margin of 11.9%, driven by Process Performance Solutions’ 21.9% margin and operational efficiencies.
  • Severn Group Acquisition:: Valmet acquired Severn Group, enhancing flow control capabilities in key industries, adding leading severe-service valve technologies.
  • Q4 Financial Performance:: Fourth-quarter EBITA reached EUR 196 million (13.3% margin), the highest in Valmet’s history, with operating cash flow of EUR 189 million.
  • Order Backlog Growth:: Order backlog surged to EUR 4.3 billion at year-end, with EUR 3.1 billion expected to convert to 2026 sales, reflecting strong project pipeline.
  • 2026 Savings Program:: EUR 30 million net savings target for 2026 from operating model and supply chain optimizations, with EUR 249 million dividends maintained at 89% payout ratio.

Segment Performance

Process Performance Solutions (PPS) performed exceptionally well, with a margin of 21.9%, driven by solid commercial execution, operating model efficiencies, and disciplined cost control. Biomaterial Solutions and Services remained stable, with a margin of 11.6%. The company's order backlog amounted to EUR 4.3 billion at the end of 2025, with approximately EUR 3.1 billion expected to convert into net sales during 2026.

Financial Highlights

Valmet's cash flow from operating activities amounted to EUR 189 million for the fourth quarter, bringing the full-year operating cash flow to EUR 581 million. Net working capital decreased to EUR 29 million at year-end, and CapEx for the year totaled EUR 103 million. The company's net debt amounted to EUR 904 million at the end of 2025, with a gearing of 35%, well within its target of under 50% gearing.

Outlook and Guidance

Valmet expects net sales to remain at the previous year's level in 2026, reflecting the flat order backlog and short-term market environment. The comparable EBITDA is expected to remain at the previous year's level or increase, driven by additional net savings from the operating model renewal and the first benefits from the new global supply unit. Analysts estimate next year's revenue growth at 5.4%.

Valuation

Using the current price, Valmet's P/E Ratio is 18.53, and the Dividend Yield is 4.79%. The EV/EBITDA ratio is 9.74, indicating a reasonable valuation. With a Return on Equity (ROE) of 11.38% and a Net Debt / EBITDA ratio of 1.64, Valmet appears to be in a good position to execute its strategy.

3. NewsRoom

Card image cap

3 European Dividend Stocks To Watch Yielding Up To 7.9%

10:32

Source:

Card image cap

Valmet reschedules its Interim Review January - March 2026 results webcast

08:29

Source:

Card image cap

Top European Dividend Stocks To Watch In April 2026

05:31

Source:

Card image cap

European Dividend Stocks To Consider For Your Portfolio

Apr -14

Source:

Card image cap

Valmet to publish its Interim Review for January - March 2026 on April 28, 2026

Apr -14

Source:

Card image cap

Top 3 European Dividend Stocks To Consider

Apr -14

Source:

Card image cap

3 European Dividend Stocks To Watch With Up To 4.7% Yield

Apr -10

Source:

Card image cap

3 European Dividend Stocks To Consider With At Least 3% Yield

Apr -10

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.07%)

6. Segments

Services

Expected Growth: 2.5%

Valmet Oyj's 2.5% growth in services is driven by increasing demand for sustainable paper and pulp production, growing need for maintenance and repair services, and expansion into new geographies. Additionally, the company's focus on digitalization and automation solutions, as well as its strong aftermarket presence, contribute to the growth.

Paper

Expected Growth: 1.8%

Valmet Oyj's 1.8% growth in paper segment is driven by increasing demand for sustainable packaging, growing e-commerce, and rising need for hygiene products. Additionally, the company's focus on innovation, cost savings, and strategic acquisitions have contributed to its growth. Furthermore, the shift towards digitalization and automation in the pulp and paper industry has also supported Valmet's growth.

Pulp and Energy

Expected Growth: 1.2%

Valmet Oyj's Pulp and Energy segment growth of 1.2% is driven by increasing demand for sustainable packaging, growing pulp prices, and rising energy production from biomass. Additionally, the company's focus on innovation, digitalization, and customer services has improved operational efficiency, leading to higher profitability and growth.

Flow Control

Expected Growth: 2.2%

Valmet Oyj's Flow Control segment growth of 2.2% is driven by increasing demand for industrial automation, digitalization, and sustainability in the pulp, paper, and energy industries. Additionally, the company's strategic acquisitions, investments in R&D, and expansion into emerging markets contribute to its growth momentum.

Automation Systems

Expected Growth: 2.8%

Valmet Oyj's Automation Systems segment growth of 2.8% is driven by increasing demand for industrial automation and digitalization in the pulp, paper, and energy industries. Growing need for process optimization, efficiency, and sustainability, coupled with investments in Industry 4.0 technologies, are key growth drivers. Additionally, Valmet's strong market position, innovative solutions, and expanding customer base contribute to the segment's growth.

7. Detailed Products

Pulp and Paper Mill Equipment

Valmet Oyj provides a wide range of equipment and solutions for pulp and paper mills, including pulp drying, paper machines, and converting equipment.

Automation and Quality Control Systems

Valmet's automation and quality control systems help pulp and paper mills optimize their production processes, improve product quality, and reduce waste.

Services and Maintenance

Valmet Oyj offers a range of services and maintenance solutions to help pulp and paper mills optimize their operations, improve efficiency, and reduce costs.

Biorefinery and Biomass Solutions

Valmet's biorefinery and biomass solutions enable the production of bioenergy, biochemicals, and biomaterials from renewable biomass sources.

Recycling and Waste Management Solutions

Valmet Oyj provides solutions for recycling and waste management, enabling the efficient processing and utilization of waste materials.

8. Valmet Oyj's Porter Forces

Forces Ranking

Threat Of Substitutes

Valmet Oyj's products are specialized and customized, making it difficult for customers to find substitutes. However, the company operates in a competitive industry, and customers may still find alternative solutions.

Bargaining Power Of Customers

Valmet Oyj's customers are largely industrial companies, which have limited bargaining power due to their dependence on the company's specialized products and services.

Bargaining Power Of Suppliers

Valmet Oyj relies on a diverse supplier base, which reduces the bargaining power of individual suppliers. However, some suppliers may still have significant negotiating power due to their size or specialized products.

Threat Of New Entrants

The capital-intensive nature of Valmet Oyj's industry, combined with the need for specialized expertise and technology, creates significant barriers to entry for new competitors.

Intensity Of Rivalry

Valmet Oyj operates in a highly competitive industry, with several established players competing for market share. The company must continually innovate and improve its products and services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 35.08%
Debt Cost 3.95%
Equity Weight 64.92%
Equity Cost 9.30%
WACC 7.42%
Leverage 54.04%

11. Quality Control: Valmet Oyj passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Smiths

A-Score: 6.3/10

Value: 3.0

Growth: 5.1

Quality: 7.0

Yield: 3.8

Momentum: 9.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Valmet

A-Score: 6.0/10

Value: 5.6

Growth: 4.8

Quality: 5.2

Yield: 8.1

Momentum: 7.5

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
GEA

A-Score: 5.8/10

Value: 3.5

Growth: 5.1

Quality: 6.6

Yield: 3.8

Momentum: 7.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
IMI

A-Score: 5.3/10

Value: 1.5

Growth: 5.1

Quality: 6.4

Yield: 2.5

Momentum: 7.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Mycronic

A-Score: 4.9/10

Value: 1.6

Growth: 8.1

Quality: 8.0

Yield: 3.1

Momentum: 5.0

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
Fluidra

A-Score: 4.8/10

Value: 3.2

Growth: 6.2

Quality: 6.0

Yield: 4.4

Momentum: 3.0

Volatility: 5.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

25.28$

Current Price

25.28$

Potential

-0.00%

Expected Cash-Flows