Strategy and targets
Our strategy
Our growth strategy concentrates on getting back to EUR 2 billion growth track with strong profits. The strategy is divided into two phases: the first phase focuses on increasing new capacity and operational capability. When the second phase starts in 2026, the growth is expected to accelerate.
Increased capacity and strong innovation pipeline
Increased capacity, new products and enhanced operational capabilities will support our development towards our new financial targets. Building the industry’s first zero CO₂ emission factory in Romania is an essential part of our journey towards EUR 2 billion net sales. At the same time, we add capacity in Finland and the US, and utilize manufacturing partners.
We have an excellent product portfolio and a strong innovation pipeline, and the expanding range of safe, sustainable, and high-performing tires meet the needs of evolving consumer expectations.
Targets and Ambitions
Long-Term Financial Targets
Nokian Tyres' Board of Directors approved in April 2023 our long-term financial targets for the next five year.
- Growth: Net sales EUR 2 billion
- Profitability: Segments operating profit at the level of 15%
- Capital structure: Net debt/Segments EBITDA 1–2
Dividend policy: Nokian Tyres’ target is to pay a dividend of at least 50% of its net earnings.
Non-financial targets
Nokian Tyres non-financial targets focus on bringing new environmental and safety innovations to products, reducing CO₂ emissions in line with the Science Based Targets, further improving workplace safety, monitoring the sustainability of suppliers, and developing personnel wellbeing. The Board confirmed the following previously announced non-financial targets in April 2023.
Nokian Tyres will, for example:
- Increase the share of recycled or renewable raw materials in tires to 50% by 2030
- Reduce absolute Scope 1 and 2 GHG emissions by 42% by 2030 from 2022 base year
- Achieve net-zero greenhouse gas emission level by 2050 in line with the Net-Zero Standard of the Science Based Targets initiative
- Decrease accident frequency (LTIF) from 8.3 (2018) to 1.5 by 2025
- Audit 100% of significant high-risk suppliers by 2025
- Develop personnel wellbeing
Annual Report 2024
Nokian Tyres has published its Annual Report 2024, including a review by President and CEO Paolo Pompei.
Value Creation
Nokian Tyres creates value to its stakeholders through innovative tire solutions, sustainable practices, and a strong focus on safety and performance.
See howRead about our strategic progress
Nokian Tyres to streamline its logistics and supply chain by expanding its logistics center in Nokia, Finland
Nokian Tyres launches new all-season tire range for the Central European market, contains more renewable and recycled materials than before
