Nokian Tyres (TYRES) Q1 2025 earnings summary

Executive summary

• Achieved strong sales growth across all regions in Q1 2025, outpacing the market despite challenging conditions.

• Romanian factory began deliveries at the end of March, supporting expansion and local-to-local strategy.

• Heavy tire division performed well despite a declining market; actions are being accelerated to improve overall financial performance.

• CEO emphasized focus on profitable niches, innovation, and leveraging a premium brand, with management changes to drive consumer focus and operational excellence.

• Investment phase nearing completion, with transition to growth and profitability improvement phase by end of 2025.

Financial highlights

• Net sales reached EUR 269.5 million, up 14.2% year-over-year on a comparable currency basis.

• Segment EBITDA was EUR 12.5 million (4.6% of net sales), stable in absolute terms but lower as a percentage.

• Segment operating profit was -18.5 million, down from -15.1 million a year ago, mainly due to higher raw material and SG&A costs.

• Cash flow from operating activities was EUR -121.8 million, reflecting ongoing investment and working capital needs.

• Net sales grew in all regions: Nordics +5.9%, Central/Other Europe +34.4%, Americas +15.0%.

Outlook and guidance

• Guidance for 2025 remains unchanged: net sales expected to grow and operating profit margin to improve versus 2024.

• Tire demand in core markets expected to remain stable; growth supported by increased capacity in Romanian and US factories.

• Profitability improvement is targeted for the second half of 2025 as cost actions and price increases take effect.

• Volatility anticipated due to global economic, geopolitical, trade, and tariff uncertainties.