Nokian Tyres (TYRES) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw a significant improvement in operating profit, mainly driven by enhanced pricing in Passenger Car Tyres and ongoing actions to strengthen financial performance, including operational efficiency initiatives and the ramp-up of the Romanian factory.

• Double-digit net sales growth was achieved across all regions, with North America notably outperforming the market despite a slight regional decline.

• New product launches, such as the Powerproof 2 ultra high-performance summer tire and all-season tires for North America, and continued leadership in the winter tire segment were highlighted.

• Brand visibility increased through strategic sports partnerships, product innovation awards, and recognition for sustainability.

• CEO Paolo Pompei began his tenure in January 2025, focusing on strengthening financial performance and operational efficiency.

Financial highlights

• Q3 2025 net sales reached EUR 344.1 million, up 10.8% year-over-year in comparable currencies, with operating profit up 427% to EUR 21.8 million.

• Segments EBITDA was EUR 65.4 million (19% of sales), and segment operating profit grew to EUR 32.4 million (9.4% of net sales).

• Year-to-date net sales were EUR 957.3 million (up 9.4%), with improved segment EBITDA and operating profit.

• Cash flow from operating activities improved, supported by higher EBITDA, reduced inventory, and lower investments.

• Dividend of EUR 0.25 per share paid in May 2025.

Outlook and guidance

• Guidance for 2025 remains unchanged: net sales and segment operating profit as a percentage of net sales are expected to grow, supported by increased capacity in Romania and the US.

• Tire demand in core markets is anticipated to remain stable, with ongoing monitoring of global economic and geopolitical developments.

• CapEx for 2025 guided at EUR 180 million, with state aid from Romania (up to EUR 100 million) expected in late 2025 or early 2026.

• Target to generate positive operating cash flow in 2026.