Stock exchange release
Nokian Tyres plc Interim Report January–March 2025: Strong sales growth in all regions. Actions accelerated to improve financial performance
Nokian Tyres plc Interim Report January–March 2025, May 6, 2025 at 1:00 p.m. EEST
This release is a summary of Nokian Tyres’ Interim Report January–March 2025. The complete report is attached to this release. It is also available on the company’s website at company.nokiantyres.com/investors.
January–March 2025
- Net sales were EUR 269.5 million (January–March 2024: 236.6). With comparable currencies, net sales increased by 14.2%. Sales growth outperformed the market in all regions.
- Segments operating profit was EUR -18.5 million (-15.1). The decline was due to higher raw material and SG&A costs. Heavy Tyres improved profitability in a weak market. Operating profit was EUR -35.9 million (-26.2). EUR -17.4 million (-11.1) was booked as non-IFRS exclusions.
- Earnings per share were EUR -0.27 (-0.18).
- Cash flow from operating activities was EUR -121.8 million (-87.3).
- Paolo Pompei started as President and CEO of Nokian Tyres on January 1, 2025.
Guidance for 2025 (unchanged)
In 2025, Nokian Tyres’ net sales are expected to grow and segments operating profit as a percentage of net sales to improve compared to the previous year.
Assumptions for 2025
Tire demand in Nokian Tyres’ markets is expected to remain at the previous year’s level in 2025. Development of global economy as well as geopolitical, trade and tariff uncertainties may cause volatility to the company’s business environment.
Nokian Tyres’ sales growth is based on increasing capacity in the Romanian and US factories as well as good availability of finished goods inventories.
Paolo Pompei, President and CEO:
“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.”
Key figures
EUR million | 1–3/2025 | 1–3/2024 | 2024 |
Net sales | 269.5 | 236.6 | 1,289.8 |
Net sales change, % | 13.9% | 0.1% | 9.9% |
Net sales change in comparable currencies, % | 14.2% | 1.4% | 10.6% |
Operating profit | -35.9 | -26.2 | 1.8 |
Operating profit, % | -13.3% | -11.1% | 0.1% |
Result before tax | -47.3 | -31.6 | -31.5 |
Result for the period | -37.8 | -25.5 | -22.8 |
EPS, EUR | -0.27 | -0.18 | -0.17 |
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Segments EBITDA | 12.5 | 12.5 | 185.2 |
Segments EBITDA, % | 4.6% | 5.3% | 14.4% |
Segments operating profit | -18.5 | -15.1 | 71.4 |
Segments operating profit, % | -6.9% | -6.4% | 5.5% |
Segments ROCE, %* | 3.6% | 4.0% | 3.9% |
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Equity ratio, % | 50.7% | 57.6% | 52.5% |
Gearing, % | 65.9% | 29.7% | 48.2% |
Interest-bearing net debt | 802.1 | 395.1 | 613.1 |
Capital expenditure | 52.0 | 69.7 | 350.1 |
Cash flow from operating activities | -121.8 | -87.3 | 77.4 |
* Rolling 12 months
In addition to IFRS figures, Nokian Tyres publishes alternative non-IFRS segments figures, which exclude the ramp-up of the US and Romanian factories and other possible items that are not indicative of the Group’s underlying business performance.
BUSINESS UNIT REVIEWS
Passenger Car Tyres
EUR million | 1–3/2025 | 1–3/2024 | 2024 |
Net sales | 174.1 | 143.1 | 779.9 |
Net sales change, % | 21.7% | 7.3% | 19.4% |
Net sales change in comparable currencies, % | 22.2% | 8.7% | 20.2% |
Operating profit | -23.3 | -13.5 | -15.6 |
Operating profit, % | -13.4% | -9.4% | -2.0% |
Segment operating profit | -6.2 | -2.8 | 52.2 |
Segment operating profit, % | -3.6% | -2.0% | 6.7% |
Heavy Tyres
EUR million | 1–3/2025 | 1–3/2024 | 2024 |
Net sales | 55.8 | 55.1 | 235.1 |
Net sales change, % | 1.4% | -19.3% | -8.6% |
Net sales change in comparable currencies, % | 1.3% | -18.5% | -8.0% |
Operating profit | 7.3 | 6.3 | 30.0 |
Operating profit, % | 13.0% | 11.5% | 12.8% |
Segment operating profit | 7.3 | 6.3 | 30.0 |
Segment operating profit, % | 13.0% | 11.5% | 12.8% |
Vianor, own operations
EUR million | 1–3/2025 | 1–3/2024 | 2024 |
Net sales | 58.8 | 55.9 | 354.9 |
Net sales change, % | 5.2% | 0.7% | 3.2% |
Net sales change in comparable currencies, % | 5.7% | 2.3% | 3.6% |
Operating profit | -15.4 | -15.9 | -3.8 |
Operating profit, % | -26.2% | -28.5% | -1.1% |
Segment operating profit | -15.4 | -15.9 | -3.8 |
Segment operating profit, % | -26.2% | -28.5% | -1.1% |
Number of own service centers at period end | 173 | 175 | 174 |
WEBCAST & CONFERENCE CALL
A combined webcast and teleconference for investors, analysts and media will be held on May 6, 2025 at 2:00 p.m. EEST. Nokian Tyres’ President and CEO Paolo Pompei and CFO Niko Haavisto will present the results. Participants can follow the webcast via https://nokiantyres.events.inderes.com/q1-2025/register.
To ask questions, please join the teleconference by registering at https://events.inderes.com/nokiantyres/q1-2025/dial-in. Phone numbers and a conference ID to access the conference will be provided upon registration.
A recording of the webcast will be available on the company’s website for 12 months after the event.
THE ANNUAL GENERAL MEETING 2025
The Annual General Meeting of Nokian Tyres plc will be held on May 7, 2025.
FINANCIAL REPORTING
Half Year Financial Report January–June 2025 will be published on July 18, 2025.
Releases and company information are available at company.nokiantyres.com/investors.
Further information:
Paolo Pompei, President and CEO, tel: +358 10 401 7742
Niko Haavisto, CFO, tel: +358 10 401 7819
Annukka Angeria, Senior Manager, Investor Relations and Strategic Project Communications, tel: +358 10 401 7581
Nokian Tyres' purpose is to make the world safer by reinventing tires, and how they are made, over and over again - a safer place to drive, work and live now and for generations to come. Inspired by our northern heritage, we develop and manufacture premium tires for passenger cars, trucks and heavy machinery with sustainability at the heart of all our operations. Our Vianor chain provides tire and car services. We are some 3,800 people with net sales of EUR 1.3 billion in 2024, and together we lead the journey to smarter driving for people and for businesses. Nokian Tyres is listed on Nasdaq Helsinki. Further information: company.nokiantyres.com,www.nokiantyres.com.
