Valmet (VALMT) Shares Soar 29% on Strong Q2 Performance and Potential Business Split

Key Highlights

Table of Contents

Shares of Valmet climbed as high as 28.9% to reach €28.42 on Friday, marking the 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 expanded 6% to €152 million, exceeding the €140 million consensus and outpacing the highest prediction of €150 million
Company’s board initiated a strategic evaluation to potentially separate Biomaterial Solutions and Services from Process Performance Solutions into two distinct publicly-traded entities on Nasdaq Helsinki
Management confirmed 2026 financial targets, projecting revenue to match 2025’s €5.2 billion level with Comparable EBITA reaching or exceeding €620 million

Shares of Valmet experienced a dramatic rally on Friday, jumping as much as 28.9% to €28.42 and reaching the company’s strongest intraday performance since late February. The Finnish industrial technology specialist saw investors respond enthusiastically to second-quarter financial results that exceeded Wall Street expectations on virtually all core performance indicators.

Valmet Oyj, VLMTY

For the three months ending in June, revenue climbed 6% year-over-year to €1.32 billion, improving from the prior year’s €1.24 billion. The figure surpassed the analyst consensus of €1.24 billion and exceeded even the most optimistic individual projection of €1.27 billion tracked by Vara Research.

The company’s Comparable EBITA reached €152 million, representing a 6% year-over-year improvement from €143 million in the same quarter last year. This performance beat the analyst consensus of €140 million and outpaced the top estimate of €150 million.

Comparable EBITA margin remained stable at 11.5%, unchanged from the year-ago quarter and exceeding the consensus projection of 11.3%.

Management attributed the stronger performance to improved revenue generation and efficiency gains achieved through its operational model transformation initiative.

New orders declined 10% to €1.37 billion compared to €1.52 billion in the prior-year period. Despite the year-over-year decrease, the figure still exceeded the analyst consensus of €1.28 billion and fell within expected ranges.

The order book decline stemmed primarily from reduced capital project bookings within the Biomaterial Solutions and Services division. The company emphasized that while orders decreased compared to last year’s quarter, they showed sequential improvement from the previous quarter.

Earnings per share registered at €0.40, marginally below the €0.42 consensus but remaining within forecast parameters. On an adjusted basis, EPS reached €0.47, beating the €0.45 consensus estimate.

Net profit for the quarter totaled €75 million, slightly under the €76.5 million consensus but well within the anticipated range of €66 million to €93.2 million.

Board Explores Potential Company Separation

Perhaps more significant than the quarterly results, Valmet’s board disclosed plans to conduct a comprehensive strategic evaluation of potentially dividing Biomaterial Solutions and Services and Process Performance Solutions into two independent publicly-traded companies on Nasdaq Helsinki.

Board Chair Pekka Vauramo emphasized that the board “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 stressed that no final decision has been made. Valmet committed to delivering an update on the strategic review no later than when it releases full-year 2026 financial results.

The company maintained its previously announced 2026 financial outlook, projecting revenue to remain at 2025’s level of €5.2 billion while targeting Comparable EBITA at or above last year’s €620 million.

CFO Transition Announced

Valmet additionally disclosed an executive leadership transition. The company named Pia Aaltonen-Forsell as its next Chief Financial Officer, replacing Katri Hokkanen, who is scheduled to depart the position by September 2026.

Aaltonen-Forsell, currently with Finnair, will assume her new responsibilities no later than the conclusion of January 2027.

Valmet shares had finished Thursday’s trading session at €22.04. While Friday’s intraday peak of €28.42 represents a substantial gain, it remains below the stock’s 52-week high of €32.15.

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