Nokian Tyres (TYRES) Q4 2024 earnings summary

Executive summary

• Net sales grew to EUR 1,289.8 million in 2024, led by Central Europe and the Nordics, while North America faced challenges, especially in Q4.

• Investment phase completed at the US factory; Romanian factory opened as the world's first zero CO2 emission tire plant, ready for deliveries in 2025.

• Strategic focus on premium products, efficiency, sustainability, and expanding capacity in growth markets.

• Leadership transition completed, with Paolo Pompei appointed as President and CEO effective January 2025.

• Board proposes a dividend of EUR 0.25 per share for 2024, to be paid in May 2025.

Financial highlights

• Full-year net sales grew 10.6% to EUR 1,289.8 million; Q4 net sales rose 13.1% to EUR 415.0 million, led by Central Europe.

• Segment EBITDA was EUR 185.2 million (14.4% of sales); segment operating profit EUR 71.4 million (5.5% margin).

• Q4 EBITDA was EUR 67.1 million (16.2% margin); Q4 operating profit EUR 35.9 million, down YoY due to lower ASP and higher costs.

• EPS for 2024 was EUR -0.17; cash flow from operating activities was EUR 77.4 million.

• Investments totaled EUR 350.1 million, mainly for capacity expansion.

Outlook and guidance

• Net sales and segment operating profit as a percentage of net sales are expected to improve in 2025, supported by increased capacity in Romania and the US.

• Key drivers for margin improvement include enhanced factory efficiency, procurement, and cost control.

• Tire demand in core markets is expected to remain stable, but global economic and geopolitical uncertainties may cause volatility.

• CapEx for 2025 is estimated at approximately EUR 200 million, concluding the major investment phase.