CEO's review

Nokian Tyres' President and CEO Paolo Pompei on May 6, 2025:

"Nokian Tyres’ first quarter net sales increased strongly with positive sales development across all the business units. Thanks to improved product availability, Passenger Car Tyres outperformed the market, and our market position improved in all regions. This is a great achievement from our team and shows that consumers see Nokian Tyres as a brand they value. Heavy Tyres’ net sales increased and profitability improved despite the weak market environment.

While we want to continue industry leading growth, we need to increase our focus on profitability, which was not at a satisfactory level in the first quarter. Price increases implemented in the first quarter, which are intended to offset increased raw material cost, will be reflected in our results from the second quarter onwards. Further performance improvement will be achieved through commercial and manufacturing excellence and procurement efficiencies. We started a careful review of our cost base in terms of raw materials, indirect purchasing and manufacturing. Changes that we made earlier this year to our management and leadership, will strengthen our central functions to create a more consumer-centric organization that enables us to better leverage synergies, best practices, and data-driven decisions across the Group."

"In Romania, we reached a significant milestone as we started tire deliveries from our new factory. Our focus is now on gradually ramping up production and ensuring the delivery of high-quality tires from the factory to our Central and South European customers. At the US factory, we continued our efforts to increase production of all-season and light truck tires, improving our product availability in North America. Currently, there is uncertainty in the market due to evolving tariff situation, but in the long-term, we see great potential for Nokian Tyres in North America.

While the geopolitical tensions cause short-term volatility to business, we focus on actions that are in our own hands. This year marks the end of a three-year-long investment phase, during which we have invested approximately EUR 800 million in capacity expansion. Although these investments create short-term pressure on our profitability and cash flow, they are necessary to ensure our long-term success. In 2025, we aim to increase net sales and improve segments operating profit as a percentage of net sales compared to the previous year. Due to seasonality, we expect profit to be generated in the second half of the year. I am confident that with our talented team, decades of expertise and decisive actions we are taking to improve our performance, we will drive the Nokian Tyres business forward and deliver long-term success.”