Neste (NESTE) Q1 2026 earnings summary

Executive summary

• Achieved strong Q1 2026 financial performance amid significant market volatility driven by geopolitical tensions, with robust operational reliability and cash flow improvement.

• Performance improvement program exceeded targets, delivering EUR 100 million EBITDA improvement in Q1 and a cumulative run rate of EUR 476 million.

• Advanced major investments, notably the Rotterdam expansion targeting the world's largest renewable fuels refinery, and new chemical recycling capacity at Porvoo.

• Maintained focus on safety and operational reliability, though safety metrics remained flat due to challenging winter conditions.

• Established a new Renewable Products, North America business unit and extended SAF supply agreements.

Financial highlights

• Revenue reached EUR 5,163 million in Q1 2026, up from EUR 5,017 million year-over-year.

• Comparable EBITDA surged to EUR 861 million from EUR 210 million in Q1 2025; reported EBITDA was EUR 903 million.

• Operating profit rose to EUR 685 million from EUR 294 million in Q4 2025.

• Free cash flow before financing activities was EUR 286 million.

• Earnings per share improved to EUR 0.69 from EUR -0.05 year-over-year.

Outlook and guidance

• Outlook remains unchanged; expecting continued volatility but well-positioned due to diversified sourcing and geographic footprint.

• Renewable Products sales volumes for 2026 expected to be similar to 2025; Oil Products volumes projected to decrease due to planned maintenance.

• Full-year 2026 capital expenditure (excluding M&A) estimated at EUR 1.0–1.2 billion.

• Q2 refining margins expected to be lower due to higher crude costs following the March conflict.

• Anticipates increased demand for renewable diesel in Europe as RED III implementation progresses.