CEO's review

Nokian Tyres' President and CEO Paolo Pompei on July 18, 2025:

“Nokian Tyres’ business developed favorably in the second quarter. Net sales increased by 7%, supported by positive contributions from all business units. Our Passenger Car Tyres segment outperformed the market, and we strengthened our position across all regions. The Group’s segments operating profit improved significantly.

As outlined in our Q1 report, we have accelerated our efforts to enhance financial performance. It is encouraging to see early positive results from these actions. We introduced price and product mix adjustments to offset increased raw material costs and to gradually strengthen our position in Central Europe and North America.

Since the beginning of the year, we have implemented several operational initiatives aimed at improving efficiency, increasing productivity, and strengthening cash management across the organization. We expect these measures to continue delivering results throughout the rest of 2025 and into 2026.

In Romania, the ramp-up of our operations is proceeding according to plan. During the quarter, we began commercial deliveries of our new Nokian Tyres Seasonproof 2, manufactured at our new facility and engineered to provide premium performance in the all-season tire segment.

In the second quarter, we once again received recognition for our long-term sustainability efforts, as TIME magazine included Nokian Tyres among the world’s 500 most sustainable companies. We were ranked 98th on the list, reflecting our strong performance in environmental and social responsibility

While geopolitical tensions and evolving tariff dynamics continue to create short-term uncertainty, we remain focused on the factors within our control. In 2025, our goal is to grow net sales and improve segments operating profit as a percentage of net sales compared to the previous year.

This year marks the conclusion of a three-year investment phase, during which we have invested approximately EUR 800 million in expanding our production capacity. While these investments have temporarily impacted profitability and cash flow, they were essential for securing our long-term success.

Building a new foundation requires significant effort. I would like to sincerely thank all Nokian Tyres employees for embracing our ongoing transformation with competence, enthusiasm, and strong commitment.”