Nokian Tyres (TYRES) Q4 2025 earnings summary

Executive summary

• 2025 saw a significant turnaround in profitability and cash flow, driven by strong price/mix improvements in passenger car tires and completion of a major investment phase, including the ramp-up of the Romanian factory with one million tires produced.

• Over 150 new products launched, supporting premium brand positioning and growth in Central Europe and North America.

• Sustainability progress included 28% renewable/recyclable materials in products and a 38% reduction in CO2 emissions from the 2022 baseline.

• Cash flow from operating activities improved to EUR 146.2 million, supported by better working capital management and reduced capital expenditures.

• New partnerships with Kimi Räikkönen and the International Ice Hockey Federation enhanced brand visibility.

Financial highlights

• Full-year net sales reached EUR 1,373.6 million, up 7.2% year-over-year with comparable currencies.

• Segments EBITDA was EUR 222.2 million (16.2% of net sales), and segments operating profit was EUR 91.3 million (6.6% of net sales), both showing notable improvement.

• Operating profit rose to EUR 35.8 million (2.6% of net sales) from EUR 1.8 million in 2024.

• Q4 EBITDA up 30% to EUR 87.1 million (20.9% of sales); Q4 operating profit EUR 35.1 million (+127.8% YoY).

• Board proposes a dividend of EUR 0.25 per share for April 2026.

Outlook and guidance

• 2026 net sales expected to grow single digits, with segments operating profit margin guided at 8%-10%.

• Tire demand in core markets expected to remain flat; profitability supported by new products, price/mix, and efficiency improvements.

• Gradual reduction of IFRS exclusions, targeting near zero by 2029.

• CapEx for 2026 anticipated at EUR 130 million, aligning with depreciation.

• Updated long-term targets to 2029: net sales EUR 1.8–2.0 billion, segments EBITDA >24%, segments operating profit >15%, net debt/segments EBITDA <2.