Nokian Tyres Announces Updated Strategy and Financial Targets

Nokian Tyres’ Board of Directors has approved the company’s updated strategy and financial targets extending until the end of 2029.

Nokian Tyres’ strength lies in its deep experience with extreme weather conditions. The company’s strategic theme, Making the unpredictable predictable in any weather condition, reflects its heritage and direction.

“Over the past years, Nokian Tyres has navigated the most significant transformations in its history. This period has been a complete strategic reset as we rebuilt the new Nokian Tyres platform. As we now enter the next phase of our development, we will refocus on sustainable, value‑driven growth. This positions us to take better control of the unpredictable also in the future and will reduce our exposure to geopolitical risks,” says President and CEO Paolo Pompei.

“We are sharpening our position to win where it matters and where we can differentiate supported by our strong heritage and knowhow, innovation capabilities and an excellent team. Our strategic plan includes a strong pipeline of innovative new products that will be produced in our advanced production facilities,” he continues.

Nokian Tyres strategic market segments

• Passenger Car Tyres: market‑leading position in winter tires and above‑market growth in all‑season and all‑weather segments.
• Heavy Tyres: above‑market growth in agricultural and forestry tires.
• Vianor: a key enabler in Europe, serving as a sales and service channel for both passenger car and heavy tires.

Nokian Tyres is a focused, niche player in the global passenger car and heavy tire markets. Key market trends such as electrification, a growing car parc, increasing rim sizes and growing winter tire demand continue to support favorable market development in the segments where Nokian Tyres operates.

Updated financial targets

Nokian Tyres’ financial targets extending until the end of 2029 are:

• Net sales: EUR 1.8–2.0 billion
• Profitability: Segments EBITDA > 24% and Segments operating profit >15%
• Capital structure: Net debt/Segments EBITDA <2

The company’s dividend policy remains unchanged: the target is to distribute at least 50% of net earnings.

Nokian Tyres prioritizes Segments EBITDA as a percentage of net sales as its key profitability metric. The company has defined a range for net sales and aims to keep Net debt/Segments EBITDA below 2.

“Our updated financial targets set a clear direction for the future and reflect our ambition to create sustainable value for our shareholders. Profitability improvement will be driven both by volume growth and by more than EUR 100 million coming from targeted performance initiatives. While maintaining strong performance in the Nordics, we aim to accelerate growth in North America and Central Europe. We will prioritize value creation through premium positioning, improved product mix and disciplined cost and operational efficiency,” Pompei summarizes.

Non‑financial targets unchanged

The Board has confirmed the previously announced non‑financial targets. Nokian Tyres will review these targets during 2026

Source: Nokian Tyres