CEO's review
Nokian Tyres' President and CEO Paolo Pompei on February 10, 2026:
“2025 was a year of strong improvement for Nokian Tyres despite uncertain operating environment and weak market development. The fourth quarter was our best quarter in three years. I want to thank our team for their strong execution and focus on the priorities we set for the year. Their efforts enabled us to increase 2025 net sales in all regions and deliver a clear improvement in profitability. Passenger Car Tyres was the main driver of the improved results, while Heavy Tyres was impacted by soft markets. Vianor delivered solid performance.
As highlighted in our reports throughout the year, we accelerated our efforts to strengthen our financial performance. The emphasis was on optimizing the product and price/mix, improving operational efficiency, and further leveraging the expanded manufacturing platform. In addition, we maintained strict cost discipline across the organization from raw material sourcing to indirect and SG&A spending. These measures enhanced our financial performance as the year progressed, and we will continue implementing them during this year. Improved working capital management and reduced capital expenditures contributed to stronger cash flow in 2025.
The fourth quarter was our best quarter in three years.
At the same time, we completed a significant investment phase during which we rebuilt our production capacity to support future growth and delivery reliability. The ramp‑up of the new Romanian factory progressed as planned, and in 2025 we produced one million tires. While the ramp-up progresses, the factory is now shifting from investment mode towards stabilizing manufacturing operations.
A stronger consumer focus and a strengthened Nokian Tyres brand are central to our strategy. New partnerships announced in 2025 with the International Ice Hockey Federation and former Formula 1 champion Kimi Räikkönen are expected to enhance Nokian Tyres’ global visibility and brand credibility, reflecting our premium performance and Nordic heritage. These initiatives support long-term value-creation by making the brand more visible, relevant, and trusted.
Overall, 2025 marked a turning point for Nokian Tyres, demonstrating our ability to adapt and stay competitive. While our work to further strengthen our performance continues, we are well-positioned to enter the next phase from a solid foundation.
In 2026, we will build on this momentum with a clear focus on profitable growth supported by new premium products, brand repositioning and a strong emphasis on delivering value to consumers. At the same time, we will continue to drive higher productivity and efficiency, while maintaining strict cost discipline.
Our updated financial targets announced today provide a clear direction for the future and reflect our ambition to create sustainable value for our shareholders.”