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January–March 2025
Guidance for 2025 (unchanged)
In 2025, Nokian Tyres’ net sales are expected to grow and segments operating profit as a percentage of net sales to improve compared to the previous year.
Assumptions for 2025
Tire demand in Nokian Tyres’ markets is expected to remain at the previous year’s level in 2025. Development of global economy as well as geopolitical, trade and tariff uncertainties may cause volatility to the company’s business environment.
Nokian Tyres’ sales growth is based on increasing capacity in the Romanian and US factories as well as good availability of finished goods inventories.
Paolo Pompei, President and CEO:
“Nokian Tyres’ first quarter net sales increased strongly with positive sales development across all the business units. Thanks to improved product availability, Passenger Car Tyres outperformed the market, and our market position improved in all regions. This is a great achievement from our team and shows that consumers see Nokian Tyres as a brand they value. Heavy Tyres’ net sales increased and profitability improved despite the weak market environment.
While we want to continue industry leading growth, we need to increase our focus on profitability, which was not at a satisfactory level in the first quarter. Price increases implemented in the first quarter, which are intended to offset increased raw material cost, will be reflected in our results from the second quarter onwards. Further performance improvement will be achieved through commercial and manufacturing excellence and procurement efficiencies. We started a careful review of our cost base in terms of raw materials, indirect purchasing and manufacturing. Changes that we made earlier this year to our management and leadership, will strengthen our central functions to create a more consumer-centric organization that enables us to better leverage synergies, best practices, and data-driven decisions across the Group.
In Romania, we reached a significant milestone as we started tire deliveries from our new factory. Our focus is now on gradually ramping up production and ensuring the delivery of high-quality tires from the factory to our Central and South European customers. At the US factory, we continued our efforts to increase production of all-season and light truck tires, improving our product availability in North America. Currently, there is uncertainty in the market due to evolving tariff situation, but in the long-term, we see great potential for Nokian Tyres in North America.
While the geopolitical tensions cause short-term volatility to business, we focus on actions that are in our own hands. This year marks the end of a three-year-long investment phase, during which we have invested approximately EUR 800 million in capacity expansion. Although these investments create short-term pressure on our profitability and cash flow, they are necessary to ensure our long-term success. In 2025, we aim to increase net sales and improve segments operating profit as a percentage of net sales compared to the previous year. Due to seasonality, we expect profit to be generated in the second half of the year. I am confident that with our talented team, decades of expertise and decisive actions we are taking to improve our performance, we will drive the Nokian Tyres business forward and deliver long-term success.” Key figures
| EUR million | 1–3/2025 | 1–3/2024 | 2024 |
| Net sales | 269.5 | 236.6 | 1,289.8 |
| Net sales change, % | 13.9% | 0.1% | 9.9% |
| Net sales change in comparable currencies, % | 14.2% | 1.4% | 10.6% |
| Operating profit | -35.9 | -26.2 | 1.8 |
| Operating profit, % | -13.3% | -11.1% | 0.1% |
| Result before tax | -47.3 | -31.6 | -31.5 |
| Result for the period | -37.8 | -25.5 | -22.8 |
| EPS, EUR | -0.27 | -0.18 | -0.17 |
| Segments EBITDA | 12.5 | 12.5 | 185.2 |
| Segments EBITDA, % | 4.6% | 5.3% | 14.4% |
| Segments operating profit | -18.5 | -15.1 | 71.4 |
| Segments operating profit, % | -6.9% | -6.4% | 5.5% |
| Segments ROCE, %* | 3.6% | 4.0% | 3.9% |
| Equity ratio, % | 50.7% | 57.6% | 52.5% |
| Gearing, % | 65.9% | 29.7% | 48.2% |
| Interest-bearing net debt | 802.1 | 395.1 | 613.1 |
| Capital expenditure | 52.0 | 69.7 | 350.1 |
| Cash flow from operating activities | -121.8 | -87.3 | 77.4 |
* Rolling 12 months
In addition to IFRS figures, Nokian Tyres publishes alternative non-IFRS segments figures, which exclude the ramp-up of the US and Romanian factories and other possible items that are not indicative of the Group’s underlying business performance.
BUSINESS UNIT REVIEWS
Passenger Car Tyres
| EUR million | 1–3/2025 | 1–3/2024 | 2024 |
| Net sales | 174.1 | 143.1 | 779.9 |
| Net sales change, % | 21.7% | 7.3% | 19.4% |
| Net sales change in comparable currencies, % | 22.2% | 8.7% | 20.2% |
| Operating profit | -23.3 | -13.5 | -15.6 |
| Operating profit, % | -13.4% | -9.4% | -2.0% |
| Segment operating profit | -6.2 | -2.8 | 52.2 |
| Segment operating profit, % | -3.6% | -2.0% | 6.7% |
Heavy Tyres
| EUR million | 1–3/2025 | 1–3/2024 | 2024 |
| Net sales | 55.8 | 55.1 | 235.1 |
| Net sales change, % | 1.4% | -19.3% | -8.6% |
| Net sales change in comparable currencies, % | 1.3% | -18.5% | -8.0% |
| Operating profit | 7.3 | 6.3 | 30.0 |
| Operating profit, % | 13.0% | 11.5% | 12.8% |
| Segment operating profit | 7.3 | 6.3 | 30.0 |
| Segment operating profit, % | 13.0% | 11.5% | 12.8% |
Vianor, own operations
| EUR million | 1–3/2025 | 1–3/2024 | 2024 |
| Net sales | 58.8 | 55.9 | 354.9 |
| Net sales change, % | 5.2% | 0.7% | 3.2% |
| Net sales change in comparable currencies, % | 5.7% | 2.3% | 3.6% |
| Operating profit | -15.4 | -15.9 | -3.8 |
| Operating profit, % | -26.2% | -28.5% | -1.1% |
| Segment operating profit | -15.4 | -15.9 | -3.8 |
| Segment operating profit, % | -26.2% | -28.5% | -1.1% |
| Number of own service centers at period end | 173 | 175 | 174 |
…
Source: Nokian Tyres
Tire and Rubber Association of Canada
5409 Eglinton Ave W, Suite 208
Etobicoke, ON M9C 5K6
Tel: (437) 880-8420
Email: [email protected]