Nokian Tyres plc Half Year Financial Report January-June 2025: Strong operating profit improvement in the second quarter. Actions ongoing to further strengthen financial performance
Nokian Tyres plc Half Year Financial Report January-June 2025: Strong operating profit improvement in the second quarter. Actions ongoing to further strengthen financial performance |
| [18-July-2025] |
Nokian Tyres plc Half Year Financial Report January–June 2025, July 18, 2025 at 1:00 p.m. EEST NOKIA, Finland, July 18, 2025 /PRNewswire/ -- This release is a summary of Nokian Tyres' Half Year Financial Report January–June 2025. The complete report is attached to this release. It is also available on the company's website at company.nokiantyres.com/investors. April–June 2025
January–June 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' 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." Key figures
* 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
Heavy Tyres
Vianor, own operations
WEBCAST & CONFERENCE CALL A combined webcast and teleconference for investors, analysts and media will be held on July 18, 2025 at 2:00 p.m. EEST. Nokian Tyres' President and CEO Paolo Pompei and interim CFO Jari Huuhtanen will present the results. Participants can follow the webcast via https://nokiantyres.events.inderes.com/q2-2025/register. To ask questions, please join the teleconference by registering at https://events.inderes.com/nokiantyres/q2-2025/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. FINANCIAL REPORTING Interim Report January–September 2025 will be published on October 28, 2025. Releases and company information are available at company.nokiantyres.com/investors. Further information: Paolo Pompei, President and CEO, tel: +358 10 401 7000 This information was brought to you by Cision http://news.cision.com. The following files are available for download:
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Company Codes: Bloomberg:TYRES@FH, Helsinki:TYRES, OTC-PINK:NKRKY, ISIN:FI0009005318, RICS:TYRES.HE |
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