Financial Statements Review 2024

Figures in brackets refer to the corresponding period in 2023, unless otherwise stated.

Fourth quarter 2024 in brief

• Overall market activity remained at the previous quarter's level; strong Minerals equipment orders
• Orders received increased 13% to EUR 1,391 million (EUR 1,232 million); equipment +26% and services +2%
• Sales declined 5% to EUR 1,272 million (EUR 1,342 million); equipment -7% and services -4%
• Adjusted EBITA was EUR 203 million, or 16.0% of sales (EUR 225 million, or 16.8%)
• Operating profit was EUR 167 million, or 13.1% of sales (EUR 200 million, or 14.9%)
• Cash flow from operations was EUR 286 million (EUR 216 million), supported by reduction in net working capital
• Sami Takaluoma started as President and CEO on November 1

January-December 2024 in brief

• Orders received declined 2% to EUR 5,140 million (EUR 5,252 million)
• Sales declined 10% to EUR 4,863 million (EUR 5,390 million)
• Adjusted EBITA declined 9% to EUR 804 million, and was 16.5% of sales (EUR 887 million, or 16.5%)
• Operating profit declined to EUR 727 million, and was 15.0% of sales (EUR 805 million, or 14.9%)
• For continuing operations, earnings per share were EUR 0.59 (EUR 0.65). Earnings per share were EUR 0.40 (EUR 0.66), including a negative one-off cost in discontinued operations
• Cash flow from operations was EUR 576 million (EUR 550 million)
• The Board will propose a dividend of EUR 0.38 for 2024 (EUR 0.36), to be paid in two installments

President and CEO Sami Takaluoma:

My first three months as Metso’s President and CEO have been eventful and rewarding. I have met numerous Metsonites, customers, and other stakeholders around the world, all reinforcing that Metso is in an excellent position to continue profitable growth and value creation. We began our strategy work for the next phase at the beginning of the year, and we will report on its outcome in the third quarter. We already know that our strong culture, committed people, and strong position in our chosen markets give us an excellent base to build our future.

Despite a generally weaker market last year due to macroeconomic uncertainties and slower decision-making by customers, we continued to improve our backlog during the fourth quarter. The Group's orders received grew by 13 percent, thanks especially to the strong order intake for the Minerals equipment business. It is noteworthy that customers are confident in Metso's strong offering to meet their needs, and they trust us when investing in the production of copper, gold, and other metals to address the growing demand. Thanks to requirements at our customers' mines, orders for Minerals services also increased compared to both the corresponding quarter of the previous year and the third quarter.

The Aggregates segment held up well. Orders were at the level of the comparison period, positively influenced by the acquisitions we made in the fall. The Aggregates market activity remained at the level of the previous quarter, and we have not yet seen the anticipated positive impact of spring season.

The Group's sales decreased by 5 percent, which was a result of the lower order intake during the previous quarters. Our adjusted EBITA was EUR 203 million, and the adjusted EBITA margin was healthy at 16.0 percent. This demonstrates our ability to maintain profitability despite declining sales. This is particularly evident in the Aggregates segment's adjusted EBITA margin of 16.0 percent. The Minerals segment's margin was 17.0 percent. A positive aspect of the quarter was the increase in operative cash flow to EUR 286 million, driven by solid profitability and reduced net working capital. Consequently, the annual operative cash flow of EUR 576 million was stronger than in 2023.

Overall, we performed well throughout 2024, despite some headwinds in the markets. Employee engagement is at an all-time high, and customer satisfaction has also steadily increased. We continued both organic investments and acquisitions, all of which will support our growth in the coming years. We also advanced our sustainability agenda both in our own operations and with our customers. One important area where we need to improve is occupational health and safety, which will receive more attention.

I want to thank all Metsonites for your commitment and achievements last year. I also thank our customers, partners, shareholders, and other stakeholders for your support and invite you to continue our journey together.

Market outlook

Metso expects that the market activity in both Minerals and Aggregates will remain at the current level.

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.

Key figures

Audiocast and conference call details

An audiocast and a conference call for analysts and investors will be arranged on the same day at 1:00 p.m. EET.  

The audiocast can be followed at https://metso.events.inderes.com/q4-2024

A recording and a transcript will be available on this webpage after the event has finished.    

Conference call participants are requested to register on the link below

https://events.inderes.com/metso/q4-2024/dial-in

Further information, please contact:  

Juha Rouhiainen, Vice President, Investor Relations, Metso Corporation, tel. +358 20 484 3253, email: juha.rouhiainen(a)metso.com