Valmet Oyj (VLMTY) shares surged as much as 28.9% to €28.42 on Friday, reaching their highest intraday level since February 27. This upward movement followed the release of the Finnish process technology group's second-quarter results, which outperformed analyst estimates across nearly every key financial metric. The stock had previously closed at €22.04 on Thursday. Friday's peak of €28.42 remains below the company's 52-week high of €32.15.

Valmet reported its financial outcomes for the April-June period, revealing a 6% rise in net sales to €1.32 billion, up from €1.24 billion recorded during the same quarter a year earlier. This performance surpassed both the average analyst estimate of €1.24 billion and the highest individual forecast of €1.27 billion, the latter of which was compiled by Vara Research.

The company's Comparable EBITA for the second quarter demonstrated a similar 6% growth, increasing to €152 million from €143 million in the comparable prior-year period. This result exceeded the consensus average of €140 million and surpassed even the highest analyst estimate of €150 million. Meanwhile, the Comparable EBITA margin held firm at 11.5%, identical to the year-earlier period and above the consensus average of 11.3%. Valmet attributed this operational improvement to its higher net sales and ongoing cost savings derived from the renewal of its operating model. For industrial technology companies with large project and service operations, Comparable EBITA is closely watched because it strips out certain items and gives investors a clearer view of underlying operating profitability.

In terms of new business, orders received experienced a 10% decline, falling to €1.37 billion from €1.52 billion. Despite this downturn, the figure exceeded the consensus average of €1.28 billion and remained within the anticipated forecast range. The drop in new orders was largely attributed to the capital project intake within the Biomaterial Solutions and Services segment. However, Valmet noted that while orders fell on a year-over-year basis, they showed an increase sequentially. Orders are an important indicator for Valmet because they feed future revenue, particularly in businesses exposed to customers' capital investment cycles.

On the bottom line, Valmet reported earnings per share of €0.40, which was marginally below the consensus average of €0.42 but remained within the forecast range. Conversely, adjusted earnings per share registered at €0.47, outpacing the €0.45 market consensus. Profit for the reporting period was recorded at €75 million, narrowly missing the projected consensus of €76.5 million, yet well within the initial forecast range spanning €66 million to €93.2 million.

Strategic Split Under Review

Beyond the financial performance, a major catalyst for the market reaction was the board's announcement of a strategic review. This review will evaluate the feasibility of separating two of Valmet's core divisions—Biomaterial Solutions and Services, and Process Performance Solutions—into two distinct, standalone companies that would each be independently listed on Nasdaq Helsinki. A potential separation would be significant because it could give investors two more focused businesses to assess, with each company having its own strategy, management priorities, and capital allocation framework.

Chair Pekka Vauramo provided context to this potential corporate restructuring, stating that the board “will only proceed with a separation if we conclude after detailed analysis that separation is clearly in the best interests of our shareholders.” The company clarified that no transaction is currently guaranteed. Furthermore, Valmet committed to providing a comprehensive update on the review no later than the publication of its full-year 2026 results, making the review process a key item for shareholders to monitor alongside order intake, margins, and execution against guidance.

Alongside the strategic review, the company used its earnings release to reiterate its full-year 2026 financial guidance. Valmet continues to target net sales approximately matching the 2025 level of €5.2 billion, with Comparable EBITA projected to reach or exceed the €620 million achieved last year.

New Chief Financial Officer Appointed

In a parallel leadership development, Valmet officially confirmed an upcoming transition in its executive suite. Pia Aaltonen-Forsell has been appointed as the company's new Chief Financial Officer. She will take over the financial reins from Katri Hokkanen, who is scheduled to vacate the position by the end of September 2026. Aaltonen-Forsell will be joining Valmet from her current role at Finnair, with a start date set for no later than the end of January 2027.