Metso raises its profitability target
Metso Corporation’s stock exchange release on October 27, 2023, at 8:55 a.m. EEST
Metso’s Board of Directors has decided to update the company’s financial targets. The company’s focused portfolio, built around its Aggregates and Minerals segments, and the positive development seen in its profit-making capabilities have driven the profitability target to a new level. Going forward, the Group’s profitability target will call for an adjusted EBITA margin exceeding 17% over the cycle (previously exceeding 15% over the cycle). The company’s other financial targets remain unchanged.
After the update, Metso’s financial targets are:
- Adjusted EBITA margin exceeding 17% over the cycle
- Maintaining an 'Investment Grade' credit rating
- Dividend pay-out of at least 50% of earnings per share
- Progress in sustainability in alignment with the 1.5 °C commitment
”Since completing the Metso Outotec integration, we have successfully strengthened our results and profitability, de-risked our business and have made strong progress in our other targets. As a result, we have evaluated our financial targets and decided to raise the bar relating to the development of our profitability. Going forward, we will target an adjusted EBITA margin exceeding 17% over the cycle. This upgrade is based on the recent development of our financial performance, changes in our business portfolio, as well as on our possibilities to further improve the financial result of our continuing operations. We have achieved our previous adjusted EBITA margin target of exceeding 15% during the latest 12-month period,” Metso’s President and CEO Pekka Vauramo said.
”The further improvement of our profitability towards the new target will continue to be driven by the development our product- and aftermarket-focused business model and related offering, organic and acquired growth of the services business, as well as the ongoing improvements of productivity and operational efficiency in all our businesses. Our other three targets – a strong balance sheet, a competitive dividend, and the continuous development of sustainability – will remain unchanged and will contribute to our value generation also in the future,” Vauramo concluded.
Further information:
Juha Rouhiainen, VP, Investor Relations, Metso Corporation, tel. +358 20 484 3253, email: juha.rouhiainen@metso.com
Distribution:
Nasdaq Helsinki Ltd
Main media
www.metso.com
Metso is a frontrunner in providing sustainable technologies, end-to-end solutions and services for the aggregates, minerals processing and metals refining industries globally. By helping our customers increase their productivity, improve their energy and water efficiency and environmental performance with our process and product expertise, we are the partner for positive change.
Headquartered in Espoo, Finland, Metso employs over 16,000 people in close to 50 countries and sales for 2022 were about EUR 5.3 billion. The company is listed on the Nasdaq Helsinki. metso.com, x.com/metsoofficial