Financial year 2025 in brief (comparative figures restated):

  • Gross sales* increased by 22.5% to EUR 984.3 (803.3) million.
  • Net sales increased by 29.3% to EUR 325.5 (251.9) million.
  • Comparable operating profit turned positive and totaled EUR 16.2 (-20.1) million.
  • Operating profit amounted to EUR 10.4 (-28.2) million, or 3.2% (-11.2%) of net sales.
  • Cash flow after investments improved to EUR 44.7 (29.5) million, of which continuing operations accounted for EUR 46.4 (1.1) million and discontinued operations EUR -1.7 (28.3) million.
  • During the year, ownership and financing arrangements were completed including both equity and loan financing. As part of the arrangements, IONCOR Oy, a subsidiary focusing on the battery business, was divested.
  • The ownership and financing arrangements supported Valmet Automotive’s strategic change, which aims to increase the independence of its business areas and expand operations into new industries, such as the defense sector. The renewal strengthens the Group’s long-term competitiveness and business diversification.
  • The Board of Directors of Valmet Automotive proposes to the Annual General Meeting that no dividend be paid and that the parent company’s loss for the financial year, EUR -9,623,556.73, be retained in equity.

The comparative figures in brackets have been restated and they refer to the corresponding period of the previous financial year.

“The extensive ownership and financing arrangement completed in August 2025 sealed our new strategic direction. The equity financing by the State of Finland and the funds received from the divestment of IONCOR created a strong foundation for expanding Valmet Automotive’s operations in Finland into new industries, such as the defense sector. We signed our first defense industry contracts before the end of 2025. Demand for the Roof & Kinematic Systems business area, operating in Germany and Poland, was stable, and its result developed favorably.

Due to the weak market situation in the automotive industry, Valmet Automotive is undergoing the most significant transformation in its history to date. Unfortunately, this also impacted our personnel during the financial year, and we had to adjust our headcount across all our businesses. Despite the uncertainties in the business environment, we have a positive outlook for the future and are constantly engaging in active discussions with customers in both the automotive and other industries. I would like to express my warmest thanks to all our employees for their customer-oriented work and commitment to high quality amidst these challenges”, says CEO Pasi Rannus.

Key events in the 2025 financial year

In August 2025, Valmet Automotive completed a comprehensive ownership and financing arrangement, resulting in the State of Finland becoming the majority owner (79%) of Valmet Automotive, with Pontos Oy continuing as a minority owner (21%). At the same time, IONCOR Oy, a subsidiary focusing on the battery business, was divested and became a subsidiary of Finnish Minerals Group. The arrangements support the expansion of the Group’s business into new industries, such as the defense sector, in line with its strategy, and the strengthening of the company’s long-term competitiveness.

Valmet Automotive Group has two business areas: the Valmet Automotive (“VA”) business area operating in Finland, which focuses on engineering and manufacturing solutions, and the Roof & Kinematic Systems (“RKS”) business area operating in Germany and Poland, which focuses on convertible roof and kinematic solutions.

The VA business area implemented its new strategic direction by expanding its offering beyond automotive contract manufacturing to include defense manufacturing of armored vehicles and components. During the financial year, the company signed cooperation agreements with Patria and Sisu Auto.

The long-term vehicle manufacturing contracts of the VA business area ended in November 2025 due to continuing challenges in the European automotive industry, which led to a temporary decrease in the need for workforce and the initiation of change negotiations. As a result of the negotiations concluded in November, 230 employees were made redundant and 770 were temporarily laid off.

For the RKS business area, 2025 was the first full year of serial production of a key new convertible roof system. In addition, the first large-scale production program of an active aerodynamics system and active charging flaps was launched. At the end of the year, a new customer was also secured for a roof system project. A new high-tech manufacturing and logistics center, supporting the strategic growth plans, was completed at the RKS plant in Poland. The restructuring of the German technology center was completed in April 2025, resulting in the reduction of 46 employees.
Systematic and long-term work continued to strengthen the occupational safety culture across all operations. Excellent results were achieved during the year.

Operating environment

In 2025, the Group operated primarily within the automotive industry, which continued to face challenges, including overcapacity, geopolitical uncertainty and intensifying competition, particularly from Chinese OEMs. European light vehicle production levels remained below 2019 levels, prompting manufacturers to streamline production capacity in Europe.

The automotive industry continued to face significant cost pressures, particularly due to elevated energy, labor, and raw material costs. At the same time, manufacturers had to absorb substantial capital expenditure requirements related to electrification, software development, and increasingly stringent environmental and safety regulations. Shifts in global trade dynamics further shaped the competitive landscape.

The decision to offer engineering and manufacturing solutions expertise to new industries beyond car manufacturing diversifies the company’s revenue streams and preserves its core competencies. Growing geopolitical tensions and various regional conflicts have elevated defense capabilities to a strategic priority. Demand in the defense industry is growing, driven by long-term procurement programs, expanding order books, and political support in Europe and NATO countries. At the same time, the sector faces challenges related to scaling production capacity, securing skilled labor and navigating complex regulatory frameworks.

Group financial performance

During the financial year 2025, gross sales increased by 22.5% to EUR 984.3 (803.3) million. Net sales increased by 29.3% to EUR 325.5 (251.9) million.

The growth was based on good performance in both business areas. In engineering and manufacturing solutions, i.e., the VA business area, positive development was supported by pricing, volumes, and product mix. Growth in the RKS business area of roof and kinematic solutions was driven by new production programs, particularly the first full sales year of the new convertible roof system launched in late 2024, as well as the large-scale start of production for an active aerodynamics system and active charging flaps.

Comparable operating profit amounted to EUR 16.2 (-20.1) million or 5.0% (-8.0%) of net sales. The operating profit improvement was driven by higher margins resulting from increased sales in both VA and RKS business areas. Items affecting comparability, EUR -5.8 (-8.1) million, were mainly related to restructuring measures.
Reported operating profit amounted to EUR 10.4 (-28.2) million, corresponding to 3.2% (-11.2%) of net sales.

Group investments, cash flow, and financing

Cash flow after investments amounted to EUR 44.7 (29.5) million, of which continuing operations accounted for EUR 46.4 (1.1) million and discontinued operations EUR -1.7 (28.3) million. The positive development in continuing operations was primarily driven by higher profitability of the business and net proceeds from the IONCOR divestment. The positive development was partly offset by unfavorable working capital development related to the end of contract manufacturing contracts.

Following the ownership arrangements, the company received new equity totaling EUR 37.5 million. As part of the financing arrangements, Finnvera’s working capital facility was extended to year 2030 and a portion of the loan was repaid.

The ownership and financing arrangements significantly strengthened the Group’s financial position and extended the maturity profile of its debt.

Statement of non-financial information

Valmet Automotive Group publishes an annual Sustainability Report in the spring. The 2025 Sustainability Report utilizes the European Sustainability Reporting Standards (ESRS) as part of preparing for the requirements of the EU Corporate Sustainability Reporting Directive (CSRD). The Sustainability Report does not constitute an official sustainability statement in accordance with the CSRD or the Finnish Accounting Act.

Financial statements

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS).

* Gross sales are presented as an alternative (non-IFRS) performance measure to provide a comprehensive view of the scale of business operations and the related balance sheet items in relation to sales. It is defined as total (gross) sales including both net sales and sales of customer-directed materials and parts. Customer-directed materials and parts are materials that are purchased from the principal or from suppliers selected by the principal at prices negotiated by the principal.

 

Additional Information:

Pasi Rannus, CEO, Valmet Automotive

Interview requests: Nadja Doyle, nadja.doyle@valmet-automotive.com, +358 50 317 0538

Valmet Automotive, founded in 1968 in Finland, is a company focused on contract manufacturing of cars and other industrial products. Valmet Automotive is one of the leading vehicle contract manufacturers in the world, and one of the largest European manufacturers of convertible roof and kinematic systems, including electric vehicle charging flaps and active spoilers. The company offers its decades of expertise in serial production also beyond the automotive industry, for example, to the defense sector. Valmet Automotive’s greenhouse gas emission reduction targets are externally validated by Science Based Targets initiative. Valmet Automotive operates in Finland, Germany, and Poland. Valmet Automotive’s gross sales in 2025 amounted to EUR 984.3 million and net sales were EUR 325.5 million. Read more:  Valmet Automotive | The fast lane to future industries