Valmet is holding its Capital Markets Day 2025 tomorrow June 5, 2025, presenting its new strategy and 2030 financial targets designed to deliver a step-up improvement in financial performance, growth, and ability to transform industries towards a regenerative tomorrow.
“Since stepping into the role of President and CEO ten months ago, I’ve had the opportunity to engage deeply with our customers, employees and investors around the world. These conversations reaffirmed that Valmet’s 225-year legacy, strong customer relationships, and highly committed people form a powerful foundation for the company’s next chapter.
At the same time, it became clear that realizing our full potential requires a shift in mindset and culture – one that elevates performance, sharpens accountability, and unlocks new levels of value creation.
With our strategic renewal now complete, we are bringing sharper focus and higher ambition to everything we do. Our new strategy ‘Lead the Way’ is built on four fundamentals and a smaller number of more ambitious initiatives than before. The new operating model simplifies our structure, strengthens cost competitiveness, and reinforces accountability.
For our people, this new strategy means improved role clarity, full empowerment, and accountability. For our stakeholders, it translates to greater customer value, improved financial performance, and stronger shareholder returns,” says Valmet’s President and CEO Thomas Hinnerskov.
New strategy ‘Lead the Way’
The new strategy is designed to create an accountable high-performance culture and accelerate the growth trajectory towards bolder targets with increased cost competitiveness.
During the strategy renewal Valmet has defined its purpose as ‘Transforming industries towards a regenerative tomorrow’.
Valmet’s new Strategy ‘Lead the Way’ is based on four strategic fundamentals:
- Customer success
- Lifecycle commitment
- Global competitiveness
- Accountability
These strategic fundamentals are being reinforced by Valmet's operating model renewal, announced on March 31, 2025, and becoming effective on July 1, 2025. The new operating model allows the company to operate with strong business areas close to customers, providing integrated expertise in services and technology. A newly formed Global Supply unit for manufacturing and procurement will centrally drive operational excellence and ensure cost competitiveness.
2030 Financial Targets
Valmet’s new 2030 financial targets reflect a step change in ambition. Valmet's financial targets are the following (previous targets in brackets):
- Organic net sales growth (CAGR) over the cycle of 5% (previously: over two times the market growth or exceed market growth)
- Comparable EBITA margin of 15% (previously: 12–14%)
- Comparable return on capital employed before taxes (Comparable ROCE) of 20% (previously: at least 15%)
- Gearing below 50% (new target)
- Valmet is establishing clear capital allocation priorities to support the strategy and long-term value creation.
- Segment-specific strategic missions, priorities and targets
- Valmet is setting two distinct strategic missions and sets of strategic priorities for two segments within the company.
- Biomaterial Solutions and Services segment consists of three business areas: Pulp, Energy and Circularity; Packaging and Paper; and Tissue. Strategic mission for the segment is Advancing circularity.
Segment has three strategic priorities:
- Seamless lifecycle approach to grow in services and technology
- Continuous innovation with customers, leading the way towards circularity
- Relentless drive for product cost competitiveness
The new Global Supply organization targets EUR 100 million of cost efficiencies by optimizing procurement, logistics, and manufacturing activities across the full Biomaterial Solutions and Services segment.
By 2030, the segment seeks to double the organic growth in biomaterial services to 8% and reach 14% Comparable EBITA margin (LTM Q1 2025: 10.5%).
Process Performance Solutions segment consists of two business areas: Automation Solutions and Flow Control. Strategic mission for the segment is Unlocking resource efficiency.
Segment has three strategic priorities:
- Leading lifecycle value, reliability and customer experience
- Customer-focused innovation and strategic portfolio expansion
- Growth in high-quality technologies and digital capabilities in mission-critical solutions
By 2030, the segment seeks to accelerate organic growth to over double the market rate and reach 20% Comparable EBITA margin (LTM Q1 2025: 17.6%).
Guidance for 2025 unchanged
Valmet reiterates its guidance issued on February 13, 2025, in which Valmet estimates that net sales in 2025 will remain at the previous year's level in comparison with 2024 (EUR 5,359 million) and Comparable EBITA in 2025 will remain at the previous year's level in comparison with 2024 (EUR 609 million).
