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Valmet announces a new strategy, 'Lead the Way', and publishes new 2030 financial targets

Valmet announces a new strategy, 'Lead the Way', and publishes new 2030 financial targets

Yahoo04-06-2025
Valmet Oyj's stock exchange release on June 4, 2025 at 8:30 p.m. EEST
ESPOO, Finland., June 4, 2025 /PRNewswire/ -- Valmet is holding its Capital Markets Day 2025 tomorrow June 5, 2025, presenting its new strategy and 2030 financial targets designed to deliver a step-up improvement in financial performance, growth, and ability to transform industries towards a regenerative tomorrow.
"Since stepping into the role of President and CEO ten months ago, I've had the opportunity to engage deeply with our customers, employees and investors around the world. These conversations reaffirmed that Valmet's 225-year legacy, strong customer relationships, and highly committed people form a powerful foundation for the company's next chapter.
At the same time, it became clear that realizing our full potential requires a shift in mindset and culture – one that elevates performance, sharpens accountability, and unlocks new levels of value creation.
With our strategic renewal now complete, we are bringing sharper focus and higher ambition to everything we do. Our new strategy 'Lead the Way' is built on four fundamentals and a smaller number of more ambitious initiatives than before. The new operating model simplifies our structure, strengthens cost competitiveness, and reinforces accountability.
For our people, this new strategy means improved role clarity, full empowerment, and accountability. For our stakeholders, it translates to greater customer value, improved financial performance, and stronger shareholder returns," says Valmet's President and CEO Thomas Hinnerskov.
New strategy 'Lead the Way'
The new strategy is designed to create an accountable high-performance culture and accelerate the growth trajectory towards bolder targets with increased cost competitiveness.
During the strategy renewal Valmet has defined its purpose as 'Transforming industries towards a regenerative tomorrow'.
Valmet's new Strategy 'Lead the Way' is based on four strategic fundamentals:
Customer success
Lifecycle commitment
Global competitiveness
Accountability
These strategic fundamentals are being reinforced by Valmet's operating model renewal, announced on March 31, 2025, and becoming effective on July 1, 2025. The new operating model allows the company to operate with strong business areas close to customers, providing integrated expertise in services and technology. A newly formed Global Supply unit for manufacturing and procurement will centrally drive operational excellence and ensure cost competitiveness.
2030 Financial Targets
Valmet's new 2030 financial targets reflect a step change in ambition. Valmet's financial targets are the following (previous targets in brackets):
Organic net sales growth (CAGR) over the cycle of 5% (previously: over two times the market growth or exceed market growth)
Comparable EBITA margin of 15% (previously: 12–14%)
Comparable return on capital employed before taxes (Comparable ROCE) of 20% (previously: at least 15%)
Gearing below 50% (new target)
Valmet is establishing clear capital allocation priorities to support the strategy and long-term value creation.
Segment-specific strategic missions, priorities and targets
Valmet is setting two distinct strategic missions and sets of strategic priorities for two segments within the company.
Biomaterial Solutions and Services segment consists of three business areas: Pulp, Energy and Circularity; Packaging and Paper; and Tissue. Strategic mission for the segment is Advancing circularity.
Segment has three strategic priorities:
Seamless lifecycle approach to grow in services and technology
Continuous innovation with customers, leading the way towards circularity
Relentless drive for product cost competitiveness
The new Global Supply organization targets EUR 100 million of cost efficiencies by optimizing procurement, logistics, and manufacturing activities across the full Biomaterial Solutions and Services segment.By 2030, the segment seeks to double the organic growth in biomaterial services to 8% and reach 14% Comparable EBITA margin (LTM Q1 2025: 10.5%). Process Performance Solutions segment consists of two business areas: Automation Solutions and Flow Control. Strategic mission for the segment is Unlocking resource efficiency.
Segment has three strategic priorities:
Leading lifecycle value, reliability and customer experience
Customer-focused innovation and strategic portfolio expansion
Growth in high-quality technologies and digital capabilities in mission-critical solutions
By 2030, the segment seeks to accelerate organic growth to over double the market rate and reach 20% Comparable EBITA margin (LTM Q1 2025: 17.6%).
Guidance for 2025 unchanged
Valmet reiterates its guidance issued on February 13, 2025, in which Valmet estimates that net sales in 2025 will remain at the previous year's level in comparison with 2024 (EUR 5,359 million) and Comparable EBITA in 2025 will remain at the previous year's level in comparison with 2024 (EUR 609 million).
Capital Markets Day on June 5, 2025
To present the new strategy in more detail and answer questions, Valmet will host its 2025 Capital Markets Day tomorrow. The event can be followed via a live webcast at https://valmet.videosync.fi/cmd-2025. The webcast will run from 12:00 to 3:00 p.m. EEST. A recording of the event will be available at the same address shortly after the event.
Presentation materials will be available on Valmet's CMD 2025 website by the beginning of the event. The language of the event and materials is English.
Further information about Valmet's Capital Markets Day, please contact:Investors and analysts: Pekka Rouhiainen, VP, Investor Relations, Valmet, tel. +358 10 672 0020Media: Antti Ylitalo, Director, External Communications, Valmet, tel. +358 10 672 0000
VALMET Katri HokkanenCFOPekka RouhiainenVP, Investor Relations
DISTRIBUTION:Nasdaq HelsinkiMajor mediawww.valmet.com
Valmet has a global customer base across various process industries. We are a leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries, and with our automation and flow control solutions we serve an even wider base of process industries. Our more than 19,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward – every day.
The company has more than 225 years of industrial history and a strong track record in continuous improvement and renewal. Valmet's net sales in 2024 were approximately EUR 5.4 billion.
Valmet's shares are listed on the Nasdaq Helsinki and the head office is in Espoo, Finland.
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View original content:https://www.prnewswire.co.uk/news-releases/valmet-announces-a-new-strategy-lead-the-way-and-publishes-new-2030-financial-targets-302473550.html
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