Why invest in us
Nokian Tyres is investing in profitable growth and is committed to delivering sustainable long-term shareholder value.
Nokian Tyres is the market leader in premium car tires in the Nordic countries and is pursuing significant growth in North America and in Central Europe. In addition to passenger car tires, the company is one of the leading manufacturers of special heavy tires for segments such as forest and agricultural machinery. The Vianor tire retail chain supports the company’s growth strategy by ensuring strong distribution in the Nordics.
1. Investing in growth with a diversified manufacturing footprint
Nokian Tyres’ production facilities in Finland and the U.S. are among the most efficient and productive factories in the tire industry. The company is finalizing capacity expansion in the U.S. factory. In addition, Nokian Tyres is building new production capacity for passenger car tires in Oradea, Romania, to serve especially the Central European markets from 2025 onwards.
As a whole, the diversified production network will enable the production of 15+ million passenger car tires in 2027. The company’s own production is being supported by carefully selected manufacturing partners.
2. Strong cash generation and healthy returns to shareholders
Nokian Tyres has a strong financial position and a high equity ratio. The company generates strong cash flow with its premium niche business model, prioritized investments and careful working capital management to deliver healthy returns to its shareholders.
Nokian Tyres prioritizes capital allocation on organic growth, returning cash to shareholders through dividends, and share buybacks. With its financial strength and strong cash generation, Nokian Tyres is well positioned to deliver sustainable growth and long-term shareholder value.
3. Ambitious growth targets and attractive dividends
Nokian Tyres’ long-term growth targets include reaching EUR 2 billion in net sales, segments operating profit at the level of 15% and net debt/segments EBITDA ratio of 1–2. The company’s dividend policy is to pay a dividend of at least 50% of net earnings. Nokian Tyres has a strong track record of delivering sustainable dividends.
With a solid balance sheet and strong cash generation, the company is able to invest in growth while keeping its dividend policy unchanged.
4. Sustainability at the core of the business
Nokian Tyres is committed to continuing as the forerunner in sustainability in the industry and has set non-financial targets in addition to financial targets. The company’s sustainability targets include, among others, increasing the share of recycled or renewable raw materials by 50% by 2030 and reducing its absolute Scope 1 and 2 GHG emissions by 42% by 2030 from 2022 base year. In the long term, the company is committed to further reducing greenhouse gas emissions, aiming to achieve net-zero greenhouse gas emission level by 2050.
To reach these targets, Nokian Tyres, for example, invests in the new factory in Oradea, which will be the industry’s first zero CO₂ emission factory, and continues its work on reducing the environmental impacts of tires throughout their entire lifecycle, from raw material sourcing to product recycling.
We make the world safer by reinventing tires, and how they are made, over and over again
Nokian Tyres purpose
Nokian Tyres passenger car tires are mainly sold in the replacement tire market, selling tires to consumers via dealers. According to Global Data, the size of the replacement tire market for passenger car tires, SUV tires, and pick-up truck tires in Nokian Tyres’ primary markets in the Nordic countries, Central Europe, and North America amounted to approximately 600 million tires. The U.S. Tire Manufacturers Association (USTMA) estimates that the North American market covers nearly half of the total market. In addition to Nokian Tyres, companies like Bridgestone, Michelin, Goodyear, Continental and Pirelli operate on these markets.