Nokian Tyres (TYRES) Q2 2025 earnings summary

Executive summary

• Q2 2025 net sales reached EUR 343.7 million, up 6.9% year-over-year, with operating profit improving nearly 31% to EUR 26.3 million, driven by strong Passenger Car Tyres performance and efficiency gains.

• Year-to-date sales growth was 9.3%, with segment EBITDA up 18% and segment operating profit up 56%.

• Ramp-up of the Romanian factory is on track, with first commercial deliveries in Q2 and a target of 1 million tires in 2025, supporting future growth and sustainability.

• Recognized among the world's most sustainable companies, ranked 98th by TIME magazine.

• Management changes include a new CEO, interim CFO, and key leadership appointments to support strategic growth.

Financial highlights

• Q2 net sales: EUR 343.7 million, up 6.9% year-over-year; segment EBITDA: EUR 57.2 million (16.7% of net sales); segment operating profit: EUR 26.3 million (7.7% of net sales).

• Passenger Car Tyres Q2 net sales: EUR 206 million (+11.3% in comparable currencies), operating profit EUR 15.9 million (7.7% margin).

• Heavy Tyres Q2 net sales: EUR 61 million (+1.3% in comparable currencies), operating profit EUR 6 million (9.9% margin).

• Vianor Q2 net sales: EUR 98 million (+1.2% in comparable currencies), operating profit EUR 7.1 million (7.2% margin).

• Cash flow from operating activities improved to EUR 16.5 million in Q2 from -57.9 million a year earlier; CapEx for H1 2025 was EUR 89.7 million, mainly for capacity expansion.

Outlook and guidance

• 2025 net sales expected to grow and segment operating profit margin to improve versus 2024, supported by increased capacity in Romanian and US factories.

• Tire demand in core markets expected to remain stable, but volatility possible due to global economic and geopolitical uncertainties.

• Volume growth for the second half guided below 10%; Heavy Tyres business expected to remain down.

• CapEx guidance for 2025 remains EUR 180–200 million, with normalization expected after 2025.

• Growth supported by good finished goods inventory availability.