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Valmet Shares Surge on Record Profit and Sharp Rebound in Orders
Valmet Oyj (VALMT) shares surged over 8% on Wednesday after the Finnish process technology group reported a record quarterly profit and a sharp acceleration in order intake, reversing a trend of declines from the first half of the year.
Record Earnings and Order Growth
In its third-quarter 2026 interim review, Valmet announced a record comparable EBITA of EUR 169 million, a 6% increase from the same period last year. The company's comparable EBITA margin remained stable at 12.4%, demonstrating effective cost management and the successful integration of recent acquisitions.
The most significant development for investors was a decisive rebound in demand. Key highlights include:
- Orders received climbed 30% year-over-year to EUR 1,408 million.
- Organic order growth was 25%, a stark turnaround from organic declines of 15% in Q1 and 9% in Q2.
- The Biomaterial Services segment, a previous source of concern, saw orders grow 12% organically, signaling a recovery in a key market.
Strong Cash Flow and Analyst Upgrade
AdValmet's financial health also showed marked improvement, with operating cash flow more than doubling to EUR 210 million from EUR 94 million a year earlier. Free cash flow saw a similar jump, rising to EUR 183 million from EUR 70 million.
Following the strong report, analysts at DNB Carnegie raised their price target on Valmet stock to EUR 38 from EUR 36 and reiterated their "Buy" recommendation. While management maintained its full-year 2026 guidance, the robust quarterly performance provided a strong catalyst for the stock, which traded near its 52-week high.
Market Context
The stock's advance was driven entirely by its strong company-specific results. The move contrasted with the broader Finnish market, as the OMX Helsinki 25 index was only modestly higher on the day. The combination of record profitability, a sharp recovery in orders, and improved cash generation prompted a significant positive re-evaluation of the company by investors.
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