Slides
Page 1
Q1/2025 results President and CEO Sami Takaluoma April 24, 2025
Page 2
April 24, 2025 Forward looking statements It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding expectations for general economic development and the market situation, expectations for customer industry profitability and investment willingness, expectations for company growth, development and profitability and the realization of synergy benefits and cost savings, and statements preceded by ”expects”, ”estimates”, ”forecasts” or similar expressions, are forward looking statements. These statements are based on current decisions and plans and currently known factors. They involve risks and uncertainties which may cause the actual results to materially differ from the results currently expected by the company. Such factors include, but are not limited to: 1) general economic conditions, including fluctuations in exchange rates and interest levels which influence the operating environment and profitability of customers and thereby the orders received by the company and their margins 2) the competitive situation, especially significant technological solutions developed by competitors 3) the company’s own operating conditions, such as the success of production, product development and project management and their continuous development and improvement 4) the success of pending and future acquisitions and restructuring.
Page 3
April 24, 2025 Agenda 01 Results in brief 02 Financials 03 Sustainability, outlook and management agenda 04 Q&A
Page 4
01 Results in brief
Page 5
April 24, 2025 Q1/2025 highlights Market activity in line with expectations Equipment orders grew in both segments Solid adj. EBITA margin of 16.5% Strong cash flow from operations of EUR 196 million
Page 6
April 24, 2025 Group Q1/2025 key figures EUR million Q1/2025 Q1/2024 Change % Orders received 1,413 1,361 4 Sales 1,173 1,217 -4 Adjusted EBITA 193 200 -3 % of sales 16.5 16.5 – Operating profit 170 188 -9 % of sales 14.5 15.4 – Earnings per share, continuing operations, EUR 0.14 0.15 -7 Cash flow from operations 196 158 25 1,361 1,162 1,226 1,391 1,413 1,217 1,214 1,160 1,272 1,173 16.5 16.9 16.9 16.0 16.5 Orders received, EUR millionSales, EUR million Adjusted EBITA, % of sales Q1/2024 Q2/2024 Q3/2024 Q4/2024 Q1/2025 0 500 1,000 1,500 2,000 EUR million Resilient margin performance
Page 7
April 24, 2025 Aggregates orders grew and margin remained healthy • Orders received EUR 400 million (EUR 365 million) ◦ Seasonal uptick in North America and Europe ◦ Further supported by acquisitions ◦ Equipment orders 16%, services -2% • Sales EUR 307 million (EUR 303 million) ◦ Equipment up 5% (acquisitions), services -5% ◦ Services share 33% (36%) • Adjusted EBITA EUR 49 million (EUR 52 million) ◦ Margin of 16.0% (17.0%) ◦ Good cost control ◦ Lower share of services EUR million 365 314 259 294 400 303 331 283 290 307 17.0 16.6 16.1 16.0 16.0 Orders received, EUR millionSales, EUR million Adjusted EBITA, % of sales Q1/2024 Q2/2024 Q3/2024 Q4/2024 Q1/2025 0 100 200 300 400 500
Page 8
April 24, 2025 Solid equipment orders and margin in Minerals • Orders EUR 1,013 million (EUR 997 million) ◦ Strong small equipment orders ◦ Copper and gold strongest metals ◦ Equipment orders +10%, services -2% • Sales EUR 866 million (EUR 914 million) ◦ Services -6%, equipment -3% ◦ Services share of sales 67% (68%) • Adjusted EBITA EUR 153 million (EUR 160 million) ◦ Margin of 17.7% (17.5%) ◦ Good cost control and operational efficiency EUR million 997 847 968 1,098 1,013 914 883 877 982 866 17.5 17.3 18.3 17.0 17.7 Orders received, EUR millionSales, EUR million Adjusted EBITA, % of sales Q1/2024 Q2/2024 Q3/2024 Q4/2024 Q1/2025 0 500 1,000 1,500
Page 9
April 24, 2025 Tariff implications • The US accounted for approximately 15% of Metso's sales in 2024 • Metso's local US manufacturing is limited to three brands selling mobile aggregates equipment and a few smaller product lines • Mitigation of the tariff impacts ongoing, including passing tariffs into customer prices and optimizing Metso's sourcing and supply chain • China-based supply into the US has already been minimized earlier • Metso's extensive geographical footprint provides flexibility to support deliveries from multiple countries • At the moment, Metso doesn't expect material direct impact. Increased uncertainty and volatility could impact global economy and delay customer investment decisions April 24, 2025
Page 10
02 Financials in detail
Page 11
April 24, 2025 Group Income Statement EUR million Q1/2025 Q1/2024 2024 Sales 1,173 1,217 4,863 Adj. EBITA 193 200 804 Adj. EBITA, % 16.5 16.5 16.5 Operating profit 170 188 727 Operating profit, % 14.5 15.4 15.0 Net financial expenses -16 -22 -80 Profit before taxes 154 165 648 Income taxes -40 -41 -162 Profit for the period, continuing operations 114 124 486 Earnings per share, continuing operations, EUR 0.14 0.15 0.59 Profit for the period 119 121 330 0.15 0.16 0.15 0.13 0.140.15 0.16 -0.09 0.19 0.14 Earnings per share, continuing operations, EUR Earnings per share, reported, EUR Q1/2024 Q2/2024 Q3/2024 Q4/2024 Q1/2025 -0.10 0.00 0.10 0.20 EUR
Page 12
April 24, 2025 Group Balance Sheet EUR million Mar 31, 2025 Mar 31, 2024 Dec 31, 2024 Goodwill and intangible assets 1,909 1,875 1,927 Property, plant and equipment 547 484 549 Right-of-use assets 128 109 136 Other non-current assets 283 273 300 Inventories 1,878 1,962 1,900 Receivables (trade and other) 1,663 1,421 1,496 Liquid funds 533 680 431 Assets held for sale 271 237 276 TOTAL ASSETS 7,212 7,041 7,015 Total equity 2,718 2,741 2,611 Interest-bearing liabilities 1,605 1,508 1,606 Non-interest-bearing liabilities 2,687 2,657 2,584 Liabilities held for sale 203 136 214 TOTAL EQUITY AND LIABILITIES 7,212 7,041 7,015 Indebtedness 673 840 815 884 825 1,036 1,156 1,173 1,070 Net debt Debt to equity, % Q1/2023Q2/2023Q3/2023Q4/2023Q1/2024Q2/2024Q3/2024Q4/2024Q1/2025 0 250 500 750 1,000 1,250 0% 20% 40% 60% 80% 100% EUR million
Page 13
April 24, 2025 Strong cash flow from operations EUR million Q1/2025 Q1/2024 2024 Profit for the period 119 121 330 Adjustments: Depreciation and amortization 44 42 165 Financial expenses, net 16 22 80 Income taxes 36 43 88 Other items 17 -6 33 Total adjustments 114 101 365 Change in net working capital -37 -64 -119 Net cash flow from operating activities before financial items and taxes 196 158 576 Improving cash generation 158 152 256 286 196 -19 Q1/2024 Q2/2024 Q3/2024 Q4/2024 Q1/2025 -50 0 50 100 150 200 250 300 350 EUR million Note: EUR 256 million in Q3/2024 is excluding the one-off item in discontinued operations
Page 14
April 24, 2025 Financial position • Ratings: ◦ S&P Global: 'BBB' with stable outlook (June 17, 2024) ◦ Moody’s: ‘Baa2’ long-term rating with stable outlook (May 13, 2024) • Average interest rate of loans and derivatives 3.7% • Q1 events: ◦ Second EUR 75 million installment was drawn from the EUR 150 million loan commitment signed in the fourth quarter of 2024. The loan matures in 2027. • Available credit facilities: ◦ EUR 600 million undrawn committed syndicated revolver ◦ EUR 600 million commercial paper program EUR million Mar 31, 2025 Mar 31, 2024 Dec 31, 2024 Liquid funds 533 680 431 Net debt 1,070 825 1,173 Gearing, % 39.4 30.1 44.9 Equity-to-assets ratio, % 43.0 42.2 41.5 Debt to capital, % 35.1 33.7 35.9 Equity/share, EUR 3.27 3.31 3.14
Page 15
03 Sustainability, outlook and management agenda
Page 16
April 24, 2025 Mixed progress with sustainability KPIs continues Logistics CO2 emissions -20% by 2025 Q1/2025 -10%*** Spend from suppliers with science-based emissions targets 30% by 2025 Q1/2025 34.1%**** Metso Plus sales to grow faster than overall sales Q1/2025 EUR 1,217 million* -14% y-o-y Below target Follows the cycle, bigger capex projects are fewer Above target Over 30 new suppliers signed for SBTi approved climate targets In target Close to 10 energy savings projects completed Below target Flat development *Rolling 12 months as of end of February 2025. Discontinued operations excluded **Scope 1 and 2, baseline year 2019 ***Baseline year 2019 ****of total procurement spend from suppliers that have committed to SBTi or alternative ambitious climate target validated by Metso. KPIs are calculated based on absolute figures. Net zero CO2 emissions in own operations** by 2030 Q1/2025 -71%**
Page 17
April 24, 2025 Market Outlook Metso expects that the market activity in both Minerals and Aggregates will remain at the current level. Tariff-related turbulence could potentially affect global economic growth and market activity. In its previously published outlook, Metso expected the market activity in both Minerals and Aggregates to remain at the current level. According to the company's disclosure policy, Metso’s market outlook describes the expected sequential development of market activity, adjusting for seasonality, during the following six-month period using three categories: improve, remain at the current level, or decline.
Page 18
Management short-term agenda April 24, 2025 • Maximize the potential of current market • Continue normalizing inventory levels • Successful ERP go-live • Finalize the strategy process • Develop the company culture
Page 19
Position line 7,22 Position line 4,73 Position line 8,32 Position line 14,51 Position line 14,51 04 Q&A
Page 20
Partner for positive change metso.com Thursday, October 10, 202420