Valmet CorpOMXHEX: VALMT

Report (valmet half year financial review q2 2026 final highres)

Jul 24, 2026 at 7:00 AM UTC · Issued by Valmet Corp

Watch Valmet explain itValmet Oyj (VOYJF) Q2 2026 Earnings Call · Replay · Jul 24

Half Year Financial Review

January 1 - June 30, 2026

The acquisition of Severn on July 1 accelerates the growth of the high performing Process Performance Solutions segment, further increasing its scale and earnings power.

July 24, 2026, at 9 a.m. EEST

VALMET'S HALF YEAR FINANCIAL REVIEW JANUARY 1 - JUNE 30, 2026

Net sales and Comparable EBITA increased in the second quarter April-June 2026

Orders received decreased 10 percent to EUR 1,373 million (EUR 1,520 million). Organically orders received decreased 9 percent. The decrease was mainly driven by capital project order intake in the Biomaterial Solutions and Services segment which decreased from the comparison period but increased sequentially.
Net sales increased 6 percent to EUR 1,315 million (EUR 1,241 million).
Comparable EBITA increased 6 percent to EUR 152 million (EUR 143 million). The increase was supported by higher net sales and cost savings from the operating model renewal.
Comparable EBITA margin remained at the previous year's level at 11.5 percent (11.5%).
Earnings per share (EPS) increased to EUR 0.40 (EUR 0.15) and adjusted EPS increased to EUR 0.47 (EUR 0.23). The increase in both EPS and adjusted EPS mainly reflects the restructuring expenses related to the operating model renewal in the comparison period.
January-June 2026
Orders received decreased 14 percent to EUR 2,466 million (EUR 2,852 million). Organically orders received decreased 12 percent.
Net sales increased 6 percent to EUR 2,560 million (EUR 2,426 million).
Comparable EBITA remained at the previous year's level and was EUR 266 million (EUR 265 million).
Comparable EBITA margin was 10.4 percent (10.9%).
EPS was EUR 0.59 (EUR 0.48). Adjusted EPS was EUR 0.73 (EUR 0.64).
Cash flow provided by operating activities totaled EUR 100 million (EUR 297 million).

Key figures1

Orders received	1,373	1,520 -10%	2,466	2,852 -14%
Order backlog2			4,259	4,711 -10%
Net sales	1,315	1,241 6%	2,560	2,426 6%
Comparable EBITA	152	143 6%	266	265 0%
% of net sales	11.5%	11.5% 0.0 pp	10.4%	10.9% -0.5 pp
EBITA	150	81 86%	232	194 19%
Profit for the period	75	28 >100%	109	89 22%
Earnings per share, EUR	0.40	0.15 >100%	0.59	0.48 22%
Adjusted earnings per share, EUR	0.47	0.23 >100%	0.73	0.64 15%
Cash flow provided by operating activities	65	79 -18%	100	297 -66%
Free cash flow	50	46 8%	68	240 -72%
Comparable ROCE (LTM)3			13.5%	13.1% 0.4 pp
ROCE (LTM)3			12.3%	10.4% 1.9 pp
Net debt to EBITDA4 ratio (LTM)			1.42	1.60 -11%
Gearing2			39%	42% -3 pp

EUR million, or as indicated Q2/2026 Q2/2025 Change

The calculation of key figures is presented on section 'Formulas for calculation of indicators'.
At end of period.
Return on capital employed before taxes.
Last twelve months' EBITDA LTM = Last twelve months.

Q1-Q2/ 2026

Q1-Q2/

2025 Change

Figures in brackets, unless otherwise stated, refer to the comparison period, i.e., the same period of the previous year.

Guidance for 2026 unchanged Valmet reiterates its guidance issued on February 6, 2026, in which Valmet	Segment key figures				Q1-Q2/	Q1-Q2/
estimates that net sales in 2026 will remain at the previous year's level in	Orders received, EUR million	Q2/2026	Q2/2025	Change	2026	2025	Change
comparison with 2025 (EUR 5,197 million) and Comparable EBITA in
2026 will remain at the previous year's level or increase in comparison


with 2025 (EUR 620 million).
Short-term market outlook

Process Performance Solutions	379	376 1%	779	782 0%
Biomaterial Solutions and Services	994	1,144 -13%	1,687	2,070 -19%
of which biomaterial services	493	534 -8%	999	1,102 -9%
Total	1,373	1,520 -10%	2,466	2,852 -14%

Net sales, EUR million	Q2/2026	Q2/2025	Change	Q1-Q2/ 2026	Q1-Q2/ 2025	Change
Process Performance Solutions	370	372 0%		711	711 0%
Biomaterial Solutions and Services	945	869 9%		1,849	1,715 8%
of which biomaterial services	475	460 3%		889	893 0%
Total	1,315	1,241 6%		2,560	2,426 6%
Comparable EBITA, EUR million	Q2/2026	Q2/2025	Change	Q1-Q2/ 2026	Q1-Q2/ 2025	Change
Process Performance Solutions	69	66 4%		132	121 9%
Biomaterial Solutions and Services	98	87 12%		162	169 -4%
Other	-15	-10 -52%		-28	-26 -11%
Total	152	143 6%		266	265 0%
Comparable EBITA, % of net sales	Q2/2026	Q2/2025	Change	Q1-Q2/ 2026	Q1-Q2/ 2025	Change

(July-December 2026)

Valmet's short-term market outlook covers the period July-December 2026, compared with April-June 2026.

It reflects Valmet's estimate of the expected growth rate of its key markets, based on ongoing discussions with customers and other market information.

The outlook describes underlying market trends, excluding the normal seasonal variation in Valmet's business. It should not be interpreted as guidance for Valmet's own orders received.

Process Performance Solutions

Process Performance Solutions	18.7%	17.8% 0.9 pp	18.6%	17.0% 1.5 pp
Biomaterial Solutions and Services	10.4%	10.0% 0.3 pp	8.8%	9.9 % -1.1 pp
Total	11.5%	11.5% 0.0 pp	10.4%	10.9% -0.5 pp

Process Performance Solutions	71	53 34%	133	107 25%
Biomaterial Solutions and Services	96	50 90%	128	131 -2%
Other	-16	-22 27%	-29	-43 32%
Total	150	81 86%	232	194 19%

Valmet estimates that the market for Process Performance Solutions is

expected to remain at low year-over-year growth. At the same time,
uncertainty related to the geopolitical situation and global economic
outlook remains high, which reduces short-term market visibility.
Biomaterial Solutions and Services	EBITA, EUR million	Q2/2026	Q2/2025	Change	Q1-Q2/ 2026	Q1-Q2/ 2025	Change
Valmet estimates that the market in Biomaterial Solutions and Services
will remain similar to the second quarter. However, it is typical that the
timing of customers' large investment decisions can have a significant
impact on market activity in any individual quarter. The biomaterial
services market is expected to remain soft in the coming quarters.
Uncertainty related to the geopolitical situation and global economic
outlook remains high, which reduces short-term market visibility.

LETTER FROM PRESIDENT AND CEO

Net sales and Comparable EBITA increased in the second quarter

T"he Severn acquisition is another step in the systematic development of Valmet's portfolio and it further strengthens the strategic role of the Process Performance Solutions business as an important driver of the Group's growth and profitability. Severn increases the segment's annualized net sales to approximately EUR 1.7 billion.

"In the second quarter of 2026, the decisive actions we took last year to strengthen Valmet's competitiveness continued to deliver

- net sales grew organically, and comparable EBITA increased. This came against a market environment that remained cautious overall, though with early indications that capital project activity in our biomaterial businesses is gradually recovering from an unusually subdued start to the year.

Orders received totaled EUR 1.4 billion, with organic order intake down 9 percent against a demanding comparison period. Biomaterial capital orders totaled EUR 501 million, a clear step up from Q1 and consistent with our view of gradually improving capital project activity. Biomaterial services markets remained soft, but the market is stabilizing. Process Performance Solutions delivered organic order growth of 1 percent, in line with the low-growth market environment we described in Q1, including notable wins in the marine segment.

Net sales grew 6 percent organically. Comparable EBITA increased by EUR 9 million year-on-year, supported by higher net sales and cost savings. The comparable EBITA margin was

11.5 percent, flat year-on-year. On a year-to-date basis, comparable EBITA is now slightly ahead of last year, demonstrating the resilience of our full-year trajectory despite the softer start to 2026.

The measures taken to renew Valmet's operating model continue to deliver tangible results. On a last-twelve-months basis, our comparable SG&A costs are now EUR 79 million lower than in the full year 2024. We also continued to implement the production footprint plans we outlined earlier this year.

Shortly after the quarter ended, on 1 July, we closed the Severn acquisition and welcomed approximately 950 new colleagues to Valmet. Severn's offering is a natural complement to ours, and we see a strong cultural fit between our organizations. The acquisition is another step in the systematic development of Valmet's portfolio and further strengthens the strategic role of the Process Performance Solutions business as an important driver of the Group's growth and profitability. Severn expands the segment's addressable market and increases the segment's annualized net sales to approximately EUR 1.7 billion. At this scale, we can respond faster to customers wherever they operate and invest with more conviction in the technology and service capabilities they need.

We are reiterating our guidance for 2026. Looking ahead, geopolitical and macroeconomic uncertainty remains elevated, and customers are likely to remain selective in their investment decisions. With Severn now part of Valmet and the cost discipline we have demonstrated over the past year continuing, we are well positioned to deliver and to keep building a stronger, more resilient Valmet, over the long term."

Thomas Hinnerskov President and CEO

News conference and webcast for analysts, investors and media

Valmet will host a results webcast in English as a live webcast at https://valmet.events.inderes.com/q2-2026 on Friday, July 24, 2026, at 10:00 a.m. Finnish time (EEST). President and CEO Thomas Hinnerskov and CFO Katri Hokkanen will be presenting the results.

Recording of the webcast will be available shortly after the event on the same address.

Participants may also join the news conference via a conference call by registering at:

https://events.inderes.com/valmet/q2-2026/dial-in

After the registration you will receive dial-in details and a conference ID. To ask a question during the call, please dial #5 on your telephone keypad.

The event is held in English.

Valmet's Half Year Financial Review January 1 - June 30, 2026 Orders received

Orders received, EUR million Q2/2026 Q2/2025 Change Organic1

Q1-Q2/ 2026

Q1-Q2/

2025 Change Organic1

Process Performance Solutions	379	376	1%	1%	779	782	0%	3%
Biomaterial Solutions and Services	994	1,144	-13%	-13%	1,687	2,070	-19%	-17%
of which biomaterial services	493	534	-8%	-8%	999	1,102	-9%	-8%
Total	1,373	1,520	-10%	-9%	2,466	2,852	-14%	-12%

1 Organic growth in orders received, excluding impact from changes in foreign exchange rates. Indicative only. The impacts from foreign currency fluctuations are calculated by translating the current-year period's reported key figures into euro amounts using the exchange rates in effect for the comparable period in the previous year.

Orders received in Q2/2026

Orders received decreased 10 percent to EUR 1,373 million (EUR 1,520 million). The decrease was mainly driven by capital project order intake in the Biomaterial Solutions and Services segment which decreased from the comparison period but increased sequentially.

Orders received remained at the previous year's level in the Process Performance Solutions segment and decreased in the Biomaterial Solutions and Services segment.

Organically orders received decreased 9 percent.

In April-June 2026, Valmet received several notable orders, including:

A board making line, automation and lifecycle support to Sun Paper in China, enabling energy- and resource-efficient production,
A flue gas condenser and heat pumps for Gren Tartu's biomass heat and power plant in Estonia, and
An automation order to strengthen Lenzing AG's gas boiler operations in Austria.
Orders received in Q1-Q2/2026
Orders received decreased 14 percent to EUR 2,466 million (EUR 2,852 million) in the first six months.
Orders received remained at the previous year's level in the Process Performance Solutions segment and decreased in the Biomaterial Solutions and Services segment.
Organically orders received decreased 12 percent.
In addition to the aforementioned, in the first six months of 2026, Valmet received several notable orders, including:
Three additional IntelliTissue machines for Yusen Group in China,
Valmet integrated automation systems for three new passenger and cargo (RoPax) ships in Finland,
Automation solutions for a multifuel waste-to-energy plant in Poland,
Ash Crystallizer helps Mercer Stendal pulp mill in Germany to reduce emissions and improve performance
A hard nip sizer with supply system and related services to a customer in Europe.

Order backlog
Order backlog, EUR million	As at June 30, 2026	As at June 30, 2025	Change	As at March 31, 2026
Total	4,259	4,711	-10%	4,200

Order backlog amounted to EUR 4,259 million at the end of the reporting period, which is at the same level as at the end of March 2026 and 10 percent lower than at the end of June 2025.

Approximately 15 percent of the order backlog is from Process Performance Solutions, while 85 percent is from Biomaterial Solutions and Services (at the end of June 2025, 15% and 85%).

Approximately EUR 2.2 billion of the order backlog is currently expected to be realized as net sales during 2026 (at the end of Q2/2025, EUR 2.3 billion was expected to be realized as net sales during 2025).

Long-term development of orders received (EUR million)

5,837

4,740

5,194

4,955

5,216

4,829

3,722

3,986

3,653

3,071

2,878

3,139

3,272

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Q2/2026

LTM

LTM = Last Twelve Months

Net sales

Net sales, EUR million Q2/2026 Q2/2025 Change Organic1

Q1-Q2/ 2026

Q1-Q2/

2025 Change Organic1

Process Performance Solutions	370	372	0%	0%	711	711	0%	3%
Biomaterial Solutions and Services	945	869	9%	8%	1,849	1,715	8%	9%
of which biomaterial services	475	460	3%	3%	889	893	0%	1%
Total	1,315	1,241	6%	6%	2,560	2,426	6%	7%

1 Organic growth in net sales. Indicative only. The impacts from foreign currency fluctuations are calculated by translating the current-year period's reported key figures into euro amounts using the exchange rates in effect for the comparable period in the previous year.

Net sales in Q2/2026

Net sales in April-June increased 6 percent to EUR 1,315 million (EUR 1,241 million). Net sales increased in the Biomaterial Solutions and Services segment and remained at the previous year's level in the Process Performance Solutions segment.

Organically net sales increased 6 percent.

Net sales in Q1-Q2/2026

Net sales in the first six months increased 6 percent to EUR 2,560 million (EUR 2,426 million). Net sales increased in the Biomaterial Solutions and Services segment and remained at the previous year's level in the Process Performance Solutions segment.

Organically net sales increased 7 percent.

Long-term development of net sales (EUR million)

3,547 3,740 3,935

2,928 2,926 3,058 3,325

2,473

5,074 5,532 5,359 5,197 5,331

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Q2/2026

LTM

LTM = Last twelve months

Organic growth

	Orders received		Net Sales
	Q2	Q1-Q2	Q2	Q1-Q2
Organic growth1	-9%	-12%	6%	7%
Mergers and acquisitions	0%	0%	0%	0%
Changes in foreign exchange rates2	-1%	-2%	0% -2%
Total change	-10%	-14%	6%	6%

1 Indicative only.

2 The impacts from foreign currency fluctuations are calculated by translating the current-year period's reported key figures into euro amounts using the exchange rates in effect for the comparable period in the previous year.

Organic growth in Q2/2026

Organically orders received decreased 9 percent and net sales increased 6 percent in April-June. The decrease was mainly driven by capital project order intake in the Biomaterial Solutions and Services segment which decreased from the comparison period but increased sequentially.

Acquisitions completed in earlier periods did not impact the comparability of orders received or net sales in the second quarter.

Changes in foreign exchange rates compared to the exchange rates for the corresponding period in 2025 decreased orders received by 1 percent and net sales by 0 percent. Foreign exchange rate impacts on orders received were mainly driven by US dollar and Brazilian real, and the impacts on net sales were mainly driven by Brazilian real, US dollar and Chinese yuan.

Organic growth in Q1-Q2/2026

In the first six months, Valmet's orders received decreased organically by 12 percent while net sales increased organically by 7 percent.

Acquisitions completed in earlier periods did not impact the comparability of orders received or net sales in the first six months.

Foreign exchange rate changes decreased Valmet's orders received by 2 percent and net sales by 2 percent. Foreign exchange rate impacts on orders received were mainly driven by US dollar and Swedish krona, and the impacts on net sales were mainly driven by US dollar, Brazilian real and Swedish krona.

Comparable EBITA

Comparable EBITA, EUR million Q2/2026 Q2/2025 Change

Q1-Q2/ 2026

Q1-Q2/

2025 Change

Comparable EBITA margin by segment, Q1-Q2/2026

Process Performance Solutions	69	66 4%	132	121 9%
% of net sales	18.7%	17.8% 0.9 pp	18.6%	17.0% 1.5 pp
Biomaterial Solutions and Services	98	87 12%	162	169 -4%
% of net sales	10.4%	10.0% 0.3 pp	8.8%	9.9% -1.1 pp
Other	-15	-10 -52%	-28	-26 -11%
Total	152	143 6%	266	265 0%
% of net sales	11.5%	11.5% 0.0 pp	10.4%	10.9% -0.5 pp

20%

8.8%

18.6%

15%

Comparable EBITA in Q2/2026

In April-June comparable EBITA increased 6 percent to EUR 152 million, corresponding to 11.5 percent of net sales (EUR 143 million and 11.5%). The increase in comparable EBITA was supported by higher net sales and cost savings from the operating model renewal.

Items affecting comparability amounted to EUR -1 million (EUR

-62 million) in the second quarter. The change was mainly related to restructuring expenses of the operating model renewal in the comparison period.

Comparable EBITA in Q1-Q2/2026

In the first six months Valmet's Comparable EBITA remained at the previous year's level at EUR 266 million, corresponding to

10.4 percent of net sales (EUR 265 million and 10.9%). Despite higher net sales and cost savings from the operating model renewal, margin decreased due to lower gross profit margins.

Items affecting comparability amounted to EUR -34 million (EUR -70 million) in the first six months. The change was mainly related to higher restructuring expenses in the comparison period.

10%

Process Performance Solutions

Biomaterial Solutions and Services

Comparable EBITA of the Process Performance Solutions segment remained at the previous year's level and was EUR 69 million (EUR 66 million). Comparable EBITA margin was 18.7 percent (17.8%). The margin was supported by strong operational performance.

Comparable EBITA of the Biomaterial Solutions and Services segment increased to EUR 98 million, corresponding to 10.4 percent of the segment's net sales (EUR 87 million and 10.0%). Comparable EBITA was supported by higher net sales and cost savings from the operating model renewal.

Comparable EBITA of the Process Performance Solutions segment increased 9 percent to EUR 132 million, corresponding to 18.6 percent of the segment's net sales (EUR 121 million and 17.0%). The improvement was supported by cost savings related to the operating model renewal, strong operational performance, and was further supported by elevated product margins during the period.

Comparable EBITA of the Biomaterial Solutions and Services segment remained at the previous year's level EUR 162 million, corresponding to 8.8 percent of the segment's net sales (EUR 169 million and 9.9 percent). Sales mix for the period reflected a higher share of revenue from large projects and smaller mill improvement projects. Profitability declined despite higher net sales and cost savings from the operating model renewal, driven by a lower gross profit margin.

Comparable EBITA, Q1-Q2/2026 (EUR million)

(excl. Other)

Process Performance Solutions,

EUR 132 million

Biomaterial Solutions and Services,

EUR 162 million

Segments and business areas Process Performance Solutions segment

Process Performance Solutions delivers flow control

Q1-Q2/

technologies and automation systems ranging from individual measurements to full plant-wide solutions, complemented by lifecycle services. It serves a global customer base of broad range of industries with mission-critical solutions that enhance resource efficiency, operational reliability, and financial performance. Its strategic mission is to unlock resource efficiency, with a target EBITA margin of 20% by 2030.

Process Performance Solutions Q2/2026 Q2/2025 Change

2026

2025 Change

Orders received (EUR million)	379	376 1%	779	782 0%
Flow Control	208	206 1%	415	421 -1%
Automation Solutions	172	170 1%	364	362 1%
Net sales (EUR million)	370	372 0%	711	711 0%
Flow Control	206	196 5%	397	388 2%
Automation Solutions	164	176 -6%	315	323 -3%
Comparable EBITA (EUR million)	69	66 4%	132	121 9%
Comparable EBITA, %	18.7%	17.8% 0.9 pp	18.6%	17.0% 1.5 pp

Q2/2026

Orders received by the Process Performance Solutions segment remained at the previous year's level (organically +1%) at EUR 379 million (EUR 376 million). Orders received remained at the previous year's level in both Flow Control and Automation Solutions, demonstrating resilience despite continued geopolitical tensions.

Net sales for the segment remained at the previous year's level (organically +0%) at EUR 370 million (EUR 372 million). Net sales remained at the previous year's level in Flow Control and decreased in Automation Solutions.

Comparable EBITA of the segment remained at the previous year's level at EUR 69 million (EUR 66 million). Comparable EBITA margin increased to 18.7 percent (17.8%). The margin was supported by strong operational performance.

The comparable EBITA of the segment corresponded to 41 percent (43%) of Valmet's comparable EBITA (excl. Other).

Q1-Q2/2026

Orders received by the Process Performance Solutions segment remained at the previous year's level (organically +3%) at EUR 779 million (EUR 782 million) in the first six months. Orders received remained at the previous year's level in both Automation Solutions and Flow Control.

Net sales for the segment remained at the previous year's level (organically +3%) at EUR 711 million (EUR 711 million). Net sales remained at the previous year's level in both Flow Control and Automation Solutions.

Comparable EBITA of the segment increased to EUR 132 million, corresponding to 18.6 percent of the segment's net sales (EUR 121 million and 17.0%). The improvement was supported by cost savings related to the operating model renewal, strong operational performance, and was further supported by elevated product margins during the period.

The comparable EBITA of the segment corresponded to 45 percent of (42%) Valmet's comparable EBITA (excl. Other).

Orders received by Business area, Q2/2026 Orders received by Business area, Q1-Q2/2026

Flow Control 55%

Automation Solutions 45%

Flow Control 53%

Automation Solutions 47%

Long-term development of orders received (EUR million)

1,340

1,446

1,500

1,497

1,081

416

467

248

337

368

386

415

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Q2/2026

LTM

Long-term development of comparable EBITA (EUR million) and comparable EBITA margin

19.2% 18.6%

19.6% 20.3%

18.3% 17.7%

290 301

248 255

190

2021 2022 2023 2024 2025 Q2/2026 LTM

LTM = Last twelve months

Comparable EBITA Comparable EBITA margin

Biomaterial Solutions and Services segment

Biomaterial Solutions and Services serves global

Q1-Q2/

producers across the pulp, paper, packaging, tissue, and bioenergy industries. It provides lifecycle services, upgrades and complete production lines. These solutions enable improvements in fiber yield, energy and water efficiency, emissions, and operational uptime. Its strategic mission is to advance circularity, with a target EBITA margin of 14% by 2030.

Biomaterial Solutions and Services Q2/2026 Q2/2025 Change

2026

2025 Change

Orders received (EUR million)	994	1,144 -13%	1,687	2,070 -19%
Pulp, Energy and Circularity	436	426 2%	677	871 -22%
Packaging and Paper	340	454 -25%	640	792 -19%
Tissue	218	265 -18%	371	407 -9%
of which biomaterial services	493	534 -8%	999	1,102 -9%
Net sales (EUR million)	945	869 9%	1,849	1,715 8%
Pulp, Energy and Circularity	411	383 7%	845	705 20%
Packaging and Paper	360	361 0%	695	747 -7%
Tissue	173	125 38%	309	263 17%
of which biomaterial services	475	460 3%	889	893 0%
Comparable EBITA (EUR million)	98	87 12%	162	169 -4%
Comparable EBITA, %	10.4%	10.0% 0.3 pp	8.8%	9.9% -1.1 pp

Q2/2026

Orders received by the Biomaterial Solutions and Services segment decreased 13 percent (organically -13%) to EUR 994 million (EUR 1,144 million). Orders received remained at the previous year's level in the Pulp, Energy and Circularity business area and decreased in the Packaging and Paper and Tissue business areas. The decrease was mainly driven by capital project order intake in the Biomaterial Solutions and Services segment which decreased from the comparison period but increased sequentially. Orders received in biomaterial services decreased 8 percent (-8% organically) to EUR 493 million (EUR 534 million).

Net sales for the segment increased 9 percent (organically +8%) to EUR 945 million (EUR 869 million). Net sales in biomaterial services remained at the previous year's level (organically 3%) at EUR 475 million (EUR 460 million).

Comparable EBITA of the segment increased to EUR 98 million, corresponding to 10.4 percent of the segment's net sales (EUR 87 million and 10.0%). Comparable EBITA was supported by higher net sales and cost savings from the operating model renewal.

The comparable EBITA of the segment corresponded to 59 percent (57%) of Valmet's comparable EBITA (excl. Other).

Q1-Q2/2026

Orders received in the first six months by the Biomaterial Solutions and Services segment decreased 19 percent (organically

-17%) to EUR 1,687 million (EUR 2,070 million). Orders received decreased in all three business areas. Orders received in biomaterial services decreased 9 percent (organically -8%) to EUR 999 million (EUR 1,102 million).

Net sales for the segment increased 8 percent (organically +9%) to EUR 1,849 million (EUR 1,715 million). Net sales in biomaterial services remained at the previous year's level (organically +1%) at EUR 889 million (EUR 893 million).

The comparable EBITA of the segment remained at the previous year's level at EUR 162 million, corresponding to 8.8 percent of the segment's net sales (EUR 169 million and 9.9%). Sales mix for the period reflected a higher share of revenue from large projects and smaller mill improvement projects. Profitability declined despite higher net sales and cost savings from the operating model renewal, driven by a lower gross profit margin.

The comparable EBITA of the segment corresponded to 55 percent (58%) of Valmet's comparable EBITA (excl. Other).

Orders received by Business area, Q2/2026

Pulp, Energy and Circularity 44%

Packaging and Paper 34%

Tissue 22%

Orders received by Business area, Q1-Q2/2026

Pulp, Energy and Circularity 40%

Packaging and Paper 38%

Tissue 22%

Long-term development of orders received (EUR million)

3,071

3,392

3,627

3,319

3,615

3,716

3,333

2,656

2,840

2,955

4,273 4,113

4,392

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Q2/2026

LTM

2014-2023 figures have not been restated to reflect the new segment reporting structure which Valmet implemented as of July 1, 2025.

Long-term development of comparable EBITA (EUR million) and comparable EBITA margin

10.8%

9.5%

10.0%

10.3%

9.7%

379

382

422

403

381

374

2021 2022 2023 2024 2025 Q2/2026 LTM

.LTM = Last twelve months

Comparable EBITA

Comparable EBITA margin

Operating profit

Operating profit (EBIT) in April-June was EUR 127 million corresponding to 9.7 percent of net sales (EUR 57 million and 4.6%). The increase was mainly due to higher restructuring expenses related to the operating model renewal in the comparison period.

Operating profit (EBIT) for the first six months of 2026 was EUR 185 million corresponding to 7.2 percent of net sales (EUR 146 million and 6.0%).

Net financial income and expenses

Net financial income and expenses in April-June were EUR -13 million (EUR -16 million).

Net financial income and expenses in the first six months of 2026 amounted to EUR -26 million (EUR -32 million).

Profit before taxes and earnings per share

Profit before taxes for April-June was EUR 114 million (EUR 41 million). Profit attributable to owners of the parent in April-June was EUR 74 million (EUR 28 million), with EPS at EUR 0.40 (EUR 0.15) and adjusted EPS at EUR 0.47 (EUR 0.23). The increase in both EPS and adjusted EPS mainly reflects the restructuring expenses related to the operating model renewal in the comparison period.

Profit before taxes for the first six months of 2026 was EUR 159 million (EUR 115 million). Profit attributable to owners of the parent was EUR 109 million (EUR 89 million), with EPS at EUR

0.59 (EUR 0.48), and adjusted EPS at EUR 0.73 (EUR 0.64).

Return on capital employed (ROCE) and return on equity (ROE)

For the twelve months preceding June 30, 2026 comparable return on capital employed (comparable ROCE) before taxes was 13.5 percent (13.1%) and return on capital employed (ROCE) before taxes was 12.3 percent (10.4%). Return on equity (ROE) for the corresponding period was 12.3 percent (10.6%).

Cash flow and financing

Operating cash flow

Cash flow provided by operating activities amounted to EUR 65 million (EUR 79 million) in April-June and EUR 100 million (EUR 297 million) in the first six months 2026. The decrease was mainly related to the change in net working capital.

Comparable cash conversion ratio amounted to 62 percent (95%) in the last twelve months. Valmet's average comparable cash conversion ratio for the period 2015-2025 was 92 percent.

Cash conversion ratio-calculated from the reported EBITA-was 67 percent (116%) during the last twelve months. Valmet's average cash conversion ratio for the period 2015-2025 was 97 percent.

Net working capital

Net working capital amounted to EUR 60 million (EUR -139 million) at the end of the reporting period. Net working capital includes a EUR 123 million dividend liability.

The change in net working capital in the statement of cash flows was EUR -70 million (EUR 7 million) in April-June and EUR

-153 million (EUR 73 million) in the first six months 2026.

Free cash flow

Free cash flow for April-June amounted to EUR 50 million (EUR 46 million).

Free cash flow for January-June amounted to EUR 68 million (EUR 240 million) the decrease was mainly due to change in net working capital.

Cash flow after investing activities

Net cash provided by investing activities amounted to EUR -15 million (EUR -32 million) in the second quarter.

Cash flow after investing activities totaled 50 million (EUR 48 million) in the second quarter and EUR 71 million (EUR 243 million) in the first six months 2026.

Dividends paid in 2026

In compliance with the resolution of the Annual General Meeting, Valmet paid the first installment of dividend for 2025 on April 9, 2026, totaling EUR 125 million, or EUR 0.68 per share. The second installment of EUR 0.67 per share, totaling EUR 123 million, will be paid in October 2026.

Valmet's dividend policy is to pay out at least 50 percent of the profit for the period as dividend. The dividend payout ratio for 2025 is 89%.

Debt, gearing and liquidity

At the end of June, net debt to EBITDA ratio was 1.42 (1.60), gearing 39 percent (42%), and equity-to-assets ratio was 42

percent (41%).

Interest-bearing liabilities amounted to EUR 1,580 million (EUR 1,494 million), and net interest-bearing liabilities totaled EUR 965 million (EUR 992 million) at the end of the reporting period.

On December 12, 2025, Valmet completed its first Schuldschein loan transaction, amounting to EUR 375 million. The transaction strengthened Valmet's long-term debt structure, diversified its funding sources, and expanded Valmet's debt investor base. The loan consists of 11 tranches with both fixed and floating interest rate structures and offers a diversified maturity profile of three, five, seven and ten years, with an average maturity of nearly six years. By the end of the reporting period, the transaction had been fully drawn, with EUR 281 million settled in December 2025 and the remaining EUR 94 million of the Schuldschein loan settled in January 2026.

The average interest rate of Valmet's total debt was 3.6 percent (3.6%) and average maturity of non-current debt including current installments was 3.5 years (3.1) at the end of June. Lease

liabilities have been excluded from calculation of average interest rate and average maturity.

Valmet's liquidity was strong at the end of the reporting period, with cash and cash equivalents amounting to EUR 584 million (EUR 485 million) and other interest-bearing assets totaling EUR 31 million (EUR 18 million). Valmet's liquidity was secured with a committed multi-currency revolving credit facility of EUR 450 million, which was undrawn at the end of the reporting period. Liquidity was additionally secured by an uncommitted commercial paper program worth EUR 300 million, of which EUR 124 million was outstanding at the end of the reporting period.

Long-term development of key financial indicators

Net sales (EUR million)

5,331

5,197

5,359

5,532

5,074

6,000

4,000

2,000

2022 2023 2024 2025 Q2/2026 LTM

Comparable EBITA % of net sales

18%

Valmet's financial targets

Valmet's 2030 financial targets were published on June 4, 2025 and are the following:

12%

	11.2%	11.4%	11.9%	11.6%
10.5%

2022 2023 2024 2025 Q2/2026 LTM

Organic net sales growth (CAGR) over the cycle of 5%
Comparable EBITA margin of 15%
Comparable return on capital employed before taxes (Comparable ROCE) of 20%
Gearing below 50%
Comparable return on capital employed before taxes (Comparable ROCE)
13.5%

13.0%

12.7%

14.5%

17.6%

30%

20%

10%

2022 2023 2024 2025 Q2/2026 LTM

Gearing at end of period, %

60%

			40%		39%		35%		39%
	20%

40%

20%

-20%

2022 2023 2024 2025 Q2/2026

LTM=Last twelve months.

Capital expenditure

Gross capital expenditure (excluding business combinations and right-of-use assets) totaled EUR 15 million (EUR 33 million) in April-June, and represented 1.1 percent (2.7%) of net sales.

Decline reflects the comparison period, which included new modern centralized premises in Finland.

In the first six months of 2026, gross capital expenditure (excluding business combinations and right-of-use assets) totaled EUR 32 million (EUR 57 million), and represented 1.3 percent (2.4%) of net sales.

Acquisitions and divestitures

Valmet made no acquisitions or divestitures during the first six months of 2026.

After the reporting period, on July 1, 2026, Valmet completed the acquisition of Severn Group ("Severn"), a well-established industrial valve company specializing in severe service flow control solutions. The acquisition - originally announced on December 22, 2025 - strengthens the Process Performance Solutions segment and further accelerates Valmet's growth beyond the company's traditional core biomaterials business.

Severn will be integrated into the Flow Control business area of the Process Performance Solutions segment. The acquisition expands Valmet's Flow Control business into new addressable markets, increases the installed base and the related after market potential, and expands the company's technology offering in severe service flow control solutions.

Severn generated net sales of approximately EUR 205 million in 2025, with an EBITA margin of approximately 16 percent. Severn has approximately 950 employees. The transaction is valued at USD 480 million on a cash- and debt-free basis (approximately EUR 410 million calculated at the exchange rates at the time of the announcement in December 2025).

Progress in strategy execution

During the second quarter, Valmet continued to execute its strategy to accelerate growth and improve profitability in the Biomaterial Solutions and Services segment:

As part of the global Commercial Excellence program aimed at accelerating growth in the services business, Valmet has developed new data-driven operating models to improve sales productivity and increase customer activity. Since the launch of the program, proposal response times have been reduced by approximately half, while the number of customer visits has increased by approximately one quarter. At the same time, Valmet has developed new service offerings, identified new lifecycle business opportunities within the installed base, and further developed the commercial pricing of its solutions portfolio.

Under the Global Supply program, significant decisions were made during the first quarter regarding the reorganization of production capacity and consolidation of operations to improve cost-competitiveness. During the second quarter, focus was on the implementation of these measures. The measures will simplify Valmet's manufacturing network, improve efficiency, strengthen competitiveness, and support long-term profitability. The financial benefits of the measures are expected to materialize gradually during 2027-2028. At the same time, procurement efficiency initiatives have progressed as planned, with sourcing shifted to more cost-competitive countries and supplier contract terms renegotiated.

By June 30, 2026, initiatives related to the operational model renewal have decreased last twelve month's comparable SG&A costs by EUR 79 million compared to the base financial year 2024.

Valmet's Executive Leadership Team

Valmet's Executive Leadership Team, as of June 30, 2026, consists of the following members:

Thomas Hinnerskov, President and CEO
Katri Hokkanen, CFO
Emilia Torttila-Miettinen, EVP Automation Solutions
Simo Sääskilahti, EVP Flow Control
Petri Rasinmäki, EVP Packaging and Paper
Sami Riekkola, EVP Pulp, Energy and Circularity
Jon Jested-Rask, EVP Tissue
Aki Niemi, EVP Global Supply
Celso Tacla, EVP Latin America
Xiangdong Zhu, EVP China Chair
Anu Pires, EVP People, Communications and Culture
Olli Hänninen, EVP Strategy and Transformation

Rasmus Oksala, EVP Legal, and General Counsel

On March 30, 2026 Valmet announced that Valmet's Chief Financial Officer Katri Hokkanen had decided to leave the company. She will continue in her current position to lead Finance and be an active member of Valmet's Executive Leadership team until the end of September 2026 to ensure an orderly and seamless transition. The recruitment process for a new CFO is ongoing.

Personnel

The number of personnel at the end of June was 18,673 (19,412). The decrease mainly reflects the operating model renewal.

During the first six months of 2026, Valmet employed an average of 18,467 people (19,305).

Personnel expenses totaled EUR 689 million (EUR 725 million) in the first six months of 2026, of which wages, salaries and remuneration amounted to EUR 539 million (EUR 568 million). The decrease mainly reflects the operating model renewal.

Geographical areas

				Q1-Q2/	Q1-Q2/
Orders received, EUR million	Q2/2026	Q2/2025	Change	2026	2025	Change

Orders received

North America	371	403 -8%	690	923 -25%
Latin America	107	142 -24%	225	261 -14%
EMEA	449	575 -22%	911	1,042 -13%
China	303	294 3%	407	399 2%
Asia-Pacific	143	107 33%	233	227 2%
Total	1,373	1,520 -10%	2,466	2,852 -14%

Measured by orders received, the top three countries in the second quarter of 2026 were the USA, China and Finland, which together accounted for 52 percent of total orders received.

In the first six months of 2026, the top three countries were the USA, China, and Finland, which together accounted for 47 percent of total orders received.

Measured by net sales, the top three countries in the second	Net sales, EUR million	Q2/2026	Q2/2025	Change	Q1-Q2/ 2026	Q1-Q2/ 2025 Change
quarter of 2026 were the USA, Brazil and China, which together
accounted for 49 percent of total net sales. The net sales in Brazil
were driven by the Arauco project.


In the first six months of 2026, the top three countries were the
USA, Brazil, and China, which together accounted for 51 percent of total net sales.

Net sales

North America	2,245	2,355	-5%	2,268
Latin America	1,669	1,613	3%	1,630
EMEA	10,694	11,366	-6%	10,469
China	2,293	2,348	-2%	2,284
Asia-Pacific	1,772	1,730	2%	1,719
Total	18,673	19,412	-4%	18,370

Personnel

As at June 30, 2026

As at

June 30, 2025 Change

As at March 31, 2026

North America	371	332 12%	701	660 6%
Latin America	235	182 29%	516	325 59%
EMEA	441	455 -3%	820	891 -8%
China	160	124 29%	300	257 17%
Asia-Pacific	108	147 -27%	221	292 -24%
Total	1,315	1,241 6%	2,560	2,426 6%

Progress in sustainability

Sustainability strategy

Valmet's sustainability approach is aligned with Valmet's strategy, 'Lead the Way', which puts sustainability in the center of Valmet's operations through a dual mission of unlocking resource efficiency in Process Performance Solutions and advancing circularity in the Biomaterial Solutions and Services.

Valmet's purpose of 'transforming industries towards a regenerative tomorrow' reflects Valmet's ambition and commitment to sustainability. Valmet's Sustainability Agenda translates the purpose into measurable action through four priorities:

Climate and Nature
People and Rights
Responsible Value Chain, and
Circular and Net-zero Aligned Solutions.
Valmet's Sustainability Agenda helps to guide its customer industries towards a net-zero, circular economy that respects planetary boundaries and protects nature for future generations. Valmet helps industries to shift from linear, fossil-based systems to circular, resource efficient and low carbon operations through circular design, material recovery, energy efficient processes, carbon capture, advanced recycling, and lifecycle services.
Equally, sustainability is about how people experience Valmet's business every day.
Valmet's sustainability work is guided by Valmet's Nature and Climate Policy Statement and Human Rights Policy Statement.
Valmet's Sustainability team is a part of the global Strategy and Transformation function. This integration supports strong alignment between business strategy, transformation, and sustainability, ensuring an impactful approach.
Valmet's Climate Transition Plan outlines Valmet's pathway toward net-zero and introduces climate targets and decarbonization levers to reduce greenhouse gas (GHG) emissions across its value chain and own operations. Valmet's climate targets are:
60 percent emission reduction in own operations by 2030 and net-zero by 2040
50 percent share of spend from suppliers with aligned climate targets by 2030
60 percent share of net sales from circular and net-zero solutions and services by 2040

Progress in Sustainability Agenda

During the second quarter of 2026, Valmet continued the implementation of its Climate Transition Plan with a focus on actions in own operations. The implementation has started with, for example, creating an e-learning to create internal awareness on the plan, and establishing a net-zero recognition program as well as climate and nature performance indicators for own locations.

Valmet completed a Life Cycle Assessment (LCA) for a lime kiln conversion solution, proving up to 90 percent reduction in GHG emissions. In June, Valmet also introduced new dryer fabric solutions as a part of its Bioneer product family that can reduce

the overall carbon footprint of the dryer fabric close to 30 percent according to the LCA.

Valmet progressed with strengthening its sustainability and human rights due diligence by conducting four customer project site assessments covering 28 subcontractors. As a next step, Valmet will continue to drive the identified improvements and corrective actions.

Valmet conducted a new global dialogue survey with an 80% response rate. The survey results indicated good level of belonging and sense of meaning at work. More clear change communication and actioning on feedback were identified as focus areas for improvement.

Progress in health and safety

Valmet's new HSE strategy 'Lead the Way to Zero Harm' sets a vision to reach a world-class health, safety, and environmental performance with an ambitious target to reduce total recordable incident rate to below 1.0 by 2030. The new strategy emphasizes safety as a mindset that must be carried in everyday decision-making. The new HSE strategy is driven by four key pillars: Leadership, Risk Management, Process Excellence and Innovation, and Engagement and Learning.

During the second quarter, the total recordable incident rate (TRIF) for Valmet's own employees was 3.5 (3.0) and for external workforce 5.6 (3.3). The safety observation rate (per million working hours) was 1,592 (1,625).

Lawsuits and claims

On October 15, 2024, Valmet announced that Metsä Fibre Oy has filed a request for arbitration against Valmet Technologies Oy, which is a subsidiary of Valmet. The arbitration concerns Metsä Fibre's bioproduct mill in Kemi, Finland, which came into operation as planned on September 20, 2023.

Valmet Technologies Oy disputes the claims brought by Metsä Fibre and will also actively pursue claims of its own against Metsä Fibre. Metsä Fibre's monetary claims put forward in the arbitration currently amount to approximately EUR 47 million. In addition, Metsä Fibre has also reserved the right to present certain other claims based on contractual relationships between Metsä Fibre and other parties, which are still unresolved.

Estimation of the total amount of such claims is not included in the Statement of Claim.

Valmet's management does not expect to the best of its current understanding any material adverse impacts on its operations or financial position due to this arbitration. This assessment takes into account the grounds currently presented, provisions made, insurance coverage in force, and the extent of Valmet's total business activities.

Corporate Governance Statement and Remuneration Report

Valmet has published a Corporate Governance Statement and a Remuneration Report for 2025, which comply with the recommendations of the Finnish Corporate Governance Code for listed companies. These reports also cover other central areas of corporate governance, and they have been published on Valmet's website, separately from the Report of the Board of Directors, at https://www.valmet.com/governance.

Shares and shareholders

Share capital, number of shares and shareholders

As at June 30

2026 2025

Share capital, EUR	140,000,000	140,000,000
Number of shares	184,529,605	184,529,605
Treasury shares	295,690	317,852
Shares outstanding	184,233,915	184,211,753
Market capitalization, EUR million	3,894	4,848
Number of shareholders	113,492	103,663

Trading of shares

Trading of Valmet

In addition to Nasdaq Helsinki Ltd, Valmet's shares are also traded on other marketplaces, such as CBOE DXE, Turquoise, BATS, Frankfurt and Chi-X. A total of approximately 25 million Valmet shares were traded on these five alternative marketplaces in January-June 2026 (Source: www.valmet.com/investors/ valmet-share/trading-volumes/).

Ownership structure as at June 30, 2026

Nominee registered

and non-Finnish holders 35%

Finnish private investors 21%

Finnish institutions, companies and foundations 45%

Source: Euroclear Finland Oy

At the end of the reporting period Valmet had 113,492 shareholders according to Euroclear Finland Oy. 45 percent of Valmet's shares were held by Finnish institutions, companies, and foundations; 35 percent by nominee registered and non-Finnish

Several lawsuits, claims and disputes based on various grounds

are pending against Valmet in various countries, including product liability lawsuits and claims as well as legal disputes related to Valmet's deliveries. Valmet is also a plaintiff in several lawsuits. Although some of the claims are substantial, Valmet's management does not expect to the best of its present understanding that the outcome of these lawsuits, claims and disputes will have a material adverse effect on Valmet in view of the grounds currently presented for them, provisions made, insurance coverage in force and the extent of Valmet's total

shares on Nasdaq Helsinki

January 1-June 30

2026 2025

holders, and 21 percent by Finnish private investors.

Number of shares traded	52,658,248	49,536,650
Total value, EUR million	1,317	1,304
High, EUR	30.37	30.05
Low, EUR	21.00	21.00
Volume-weighted average price, EUR	25.01	25.44
Closing price on the final day of trading, EUR	21.12	26.27

business activities.

The closing price of Valmet's share on the final day of trading for

the reporting period, June 30, 2026, was EUR 21.12, i.e., 20 percent lower than the closing price on the last day of trading in the second quarter of 2025 (EUR 26.27 on June 30, 2025).

Flagging notifications

During the reporting period, Valmet did not receive flagging notifications referred to in the Securities Market Act. More information on flagging notifications can be found at https://www.valmet.com/flagging-notifications.

Resolutions of Valmet's Annual General Meeting

Valmet's Annual General Meeting 2026 was held in Helsinki on March 25, 2026. The Annual General Meeting adopted the Financial Statements for 2025 and discharged the members of the Board of Directors and the President and CEO from liability for the financial year 2025. The Annual General Meeting adopted the remuneration report for governing bodies, for which the decision is advisory. The Annual General Meeting authorized the Board of Directors to decide on the repurchase of the Company's own shares and on the issuance of shares and special rights entitling to shares.

The Annual General Meeting decided to pay a dividend of EUR

1.35 per share for the financial year which ended on December 31, 2025. The dividend was decided to be paid in two installments. The first installment of EUR 0.68 per share was paid on April 9, 2026, to shareholders who on the dividend record date March 27, 2026, were registered in the Company's shareholders' register held by Euroclear Finland Oy. The second installment of EUR 0.67 per share will be paid on October 7, 2026, to shareholders who on the dividend record date September 29, 2026, are registered in the Company's shareholders' register held by Euroclear Finland Oy.

The Annual General Meeting confirmed the number of Board members as eight and re-elected Pekka Vauramo as Chair of Valmet Oyj's Board and Annika Paasikivi as Vice-Chair. Anu Hämäläinen, Pekka Kemppainen, Annareetta Lumme-Timonen, Monika Maurer, Bernd Eikens and Jonas Gustavsson were re-elected as Board members. The term of office of the members of the Board of Directors expires at the close of the Annual General Meeting 2027.

PricewaterhouseCoopers Oy was re-elected as the Company's auditor for a term expiring at the end of the Annual General Meeting 2027. Pasi Karppinen, Authorised Public Accountant, will act as the responsible auditor. PricewaterhouseCoopers Oy will also carry out the assurance of the Company's sustainability reporting.

Valmet published a stock exchange release on March 25, 2026, concerning the resolutions of the Annual General Meeting and the organizing meeting of the Board of Directors. The stock exchange release and meeting materials can be viewed on Valmet's website at www.valmet.com/investors/governance/ annual-general-meeting.

Board authorizations regarding shares

At Valmet's AGM 2026, the Board of Directors was authorized to repurchase up to 9.2 million shares (approximately 5% of all shares) and to issue up to 18.5 million shares (approximately 10% of all shares), including special rights and directed issues. Shares may be repurchased or issued for capital structure management, financing, execution of acquisitions and investments or carrying out other business transactions, and share-based incentives (however, up to 500,000 shares for incentives, corresponding to 0.3% of all shares).

Validity of the authorizations

The authorizations shall remain in force until the close of the next Annual General Meeting, and they cancel the corresponding authorizations granted by the Annual General Meeting 2025.

Use of AGM authorizations

During the second quarter, the authorizations by the Annual General Meeting were not used.

At the end of the reporting period, the Company held 295,690 treasury shares related to the share-based incentive programs, representing roughly 0.16 percent of all Valmet shares.

On March 13, 2026, a total of 5,157 treasury shares were conveyed without consideration to participants in Valmet's longterm incentive plans for the periods 2023-2026.

More information about share-based incentive plans can be found in Valmet's Remuneration Report, which is available at https://www.valmet.com/governance.

Composition of the Nomination Board

On June 4, 2026, Valmet announced the composition of its Nomination Board. The following persons have been nominated to Valmet's Nomination Board:

Markus Melkko, President and CEO, Oras Invest Oy (10.40% of share capital and votes)
Matts Rosenberg, CEO, Solidium Oy (10.10% of share capital and votes)
Markus Aho, Deputy CEO and Chief Investment Officer, Varma Mutual Pension Insurance Company (3.90% of share capital and votes)
Mikko Mursula, President and CEO, Ilmarinen Mutual Pension Insurance Company (3.46% of share capital and votes).

Risks and business uncertainties

Valmet is exposed to risks arising from its operations as well as from changes in the global business environment. These risks may have an adverse effect on Valmet's business, financial position, results of operations, and consequently on the value of the company. Valmet seeks to manage and mitigate risks through its risk management processes. Some of the risks faced by Valmet are currently known and assessed, while other risks that are not presently identified or that are not considered material may emerge in the future and become significant.

Geopolitical uncertainty in the Middle East continues due to ongoing military hostilities, including severe disruptions to shipping and energy markets following the closure of the Strait of Hormuz. Valmet has business operations, projects, and personnel in countries in the surrounding region. The situation increases risks related to safety, project execution, logistics, and customer activity, and contributes to cost pressure and volatility in global transport and energy markets. During the reporting period, the Middle East situation had limited impacts on Valmet's operations, whereas related market uncertainty had impacts on customer activity.

Further details of Valmet's risks and business uncertainties are available in the Valmet Annual Report 2025.

Events after the reporting period

July 1, 2026: Valmet completes the acquisition of Severn Group, accelerating the growth of the Process Performance Solutions segment After the reporting period, on July 1, 2026, Valmet completed the acquisition of Severn Group, an industrial valve company specializing in severe service flow control solutions. The acquisition was originally announced on December 22, 2025.

Severn will be integrated into the Flow Control business area of the Process Performance Solutions segment. Severn generated net sales of approximately EUR 205 million in 2025, with an EBITA margin of approximately 16 percent. Severn has approximately 950 employees. The transaction is valued at USD 480 million on a cash- and debt-free basis (approximately EUR 410 million

calculated at the exchange rates at the time of the announcement in December 2025). Additional information is available under the section Acquisitions and Divestments.

There have been no other subsequent events after the reporting period that required recognition or disclosure.

General economic outlook according to OECD

The global economy has come under pressure in the first half of 2026 as the Middle East conflict disrupts energy and commodity markets. Supply chain disruptions through the Strait of Hormuz and damage to Gulf energy facilities have pushed up oil, gas, and fertilizer prices, weighing on confidence and household spending globally. AI investment, lower US tariffs, and supportive policies carried over from 2025, including lower interest rates and elevated public investment, continue to support growth, although financial conditions have tightened and market volatility has risen.

Labor markets are cooling, with job openings falling in several advanced economies. G20 inflation is expected to reach 4.0 percent in 2026 before easing to 3.1 percent in 2027.

Global GDP growth is projected to slow from 3.4 percent in 2025 to 2.8 percent in 2026, and 3.1 percent in 2027. A longer energy shock could cut growth to just 2.1 percent in 2026 and 1.8 percent in 2027. Emerging Asian economies, especially India and parts of Southeast Asia, remain key drivers of global growth.

(OECD Economic Outlook, Volume 2026 Issue 1)

Guidance for 2026 unchanged

Valmet reiterates its guidance issued on February 6, 2026, in which Valmet estimates that net sales in 2026 will remain at the previous year's level in comparison with 2025 (EUR 5,197 million) and Comparable EBITA in 2026 will remain at the previous year's level or increase in comparison with 2025 (EUR 620 million).

Short-term market outlook (July-December 2026)

Valmet's short-term market outlook covers the period July-December 2026, compared with April-June 2026.

It reflects Valmet's estimate of the expected growth rate of its key markets, based on ongoing discussions with customers and other market information.

The outlook describes underlying market trends, excluding the normal seasonal variation in Valmet's business. It should not be interpreted as guidance for Valmet's own orders received.

Process Performance Solutions

Valmet estimates that the market for Process Performance Solutions is expected to remain at low year-over-year growth. At the same time, uncertainty related to the geopolitical situation and global economic outlook remains high, which reduces short-term market visibility.

Biomaterial Solutions and Services

Valmet estimates that the market in Biomaterial Solutions and Services will remain similar to the second quarter. However, it is typical that the timing of customers' large investment decisions can have a significant impact on market activity in any individual quarter. The biomaterial services market is expected to remain soft in the coming quarters. Uncertainty related to the geopolitical situation and global economic outlook remains high, which reduces short-term market visibility.

In Espoo, Finland, on July 23, 2026 Valmet's Board of Directors

Consolidated statement of income

Net sales	1,315	1,241	2,560	2,426
Cost of goods sold	-956	-890	-1,890	-1,733
Gross profit	359	351	669	692

Selling, general and administrative expenses	-233	-290	-463	-537
Other operating income and expenses, net	-1	-6	-23	-11
Share in profits and losses of associated companies, operative investments	2	1	2	1
Operating profit	127	57	185	146

Financial income and expenses, net	-13	-16	-26	-32
Profit before taxes	114	41	159	115

Income taxes	-40	-12	-50	-26
Profit for the period	75	28	109	89

Attributable to:
Owners of the parent	74	28	109	89
Non-controlling interests	-	-	-	-
Profit for the period	75	28	109	89

Earnings per share attributable to owners of the parent:
Earnings per share, EUR	0.40	0.15	0.59	0.48
Diluted earnings per share, EUR	0.40	0.15	0.59	0.48

EUR million Q2/2026 Q2/2025

Q1-Q2/ 2026

Q1-Q2/ 2025

Consolidated statement of comprehensive income

EUR million Q2/2026 Q2/2025

Q1-Q2/ 2026

Q1-Q2/ 2025

Profit for the period	75	28	109	89

Items that may be reclassified to profit or loss:
Gains and losses on cash flow hedges	5	-8	15	5
Change in fair value reserve	-	-1	1	-1
Currency translation on subsidiary net investments	9	-63	30	-75
Share of other comprehensive income of associated companies accounted for using equity method	1	-1	1	-1
Income tax relating to items that may be reclassified	-1	2	-3	-1
Total items that may be reclassified to profit or loss	14	-71	44	-73

Items that will not be reclassified to profit or loss:
Remeasurement of defined benefit plans	-2	-6	3	-1
Income tax relating to items that will not be reclassified	-	1	-1	-
Total items that will not be reclassified to profit or loss	-1	-5	2	-

Other comprehensive income for the period	13	-76	46	-74

Total comprehensive income for the period	87	-48	155	15

Attributable to:
Owners of the parent	87	-48	154	16
Non-controlling interests	1	-	1	-1
Total comprehensive income for the period	87	-48	155	15

Consolidated statement of financial position

Assets

EUR million

As at June 30, 2026 As at June 30, 2025 As at December 31,

2025

Non-current assets
Intangible assets
Goodwill	1,804	1,799 1,800
Other intangible assets	1,000	1,079 1,040
Total intangible assets	2,804	2,878 2,840

Property, plant and equipment
Land and water areas	36	38 38
Buildings and structures	162	159 164
Machinery and equipment	287	277 292
Right-of-use assets	166	182 171
Assets under construction	74	89 75
Total property, plant and equipment	725	744 740

Other non-current assets
Investments in associated companies	22	17 19
Non-current financial assets	31	48 35
Deferred tax assets	106	102 96
Non-current income tax receivables	7	41 6
Other non-current assets	48	36 46
Total other non-current assets	215	244 203
Total non-current assets	3,744	3,867 3,782

Current assets
Inventories
Materials and supplies	227	205 213
Work in progress	371	480 377
Finished products	299	281 294
Total inventories	897	966 884

Receivables and other current assets
Trade receivables	828	712 769
Amounts due from customers under revenue contracts	288	349 327
Other current financial assets	87	72 82
Income tax receivables	62	81 67
Other current assets	244	212 189
Cash and cash equivalents	584	485 535
Total receivables and other current assets	2,092	1,911 1,968
Total current assets	2,989	2,877 2,852

Total assets	6,733	6,744 6,634

Equity and liabilities

EUR million

As at June 30, 2026 As at June 30, 2025 As at December 31,

2025

Equity
Share capital	140	140 140
Reserve for invested unrestricted equity	1,380	1,379 1,380
Cumulative translation adjustments	-82	-115 -112
Hedge and other reserves	20	-2 8
Retained earnings	1,035	969 1,168
Equity attributable to owners of the parent	2,492	2,371 2,584

Non-controlling interests	7	7 6

Total equity	2,499	2,378 2,590

Liabilities
Non-current liabilities
Non-current debt	1,063	1,141 1,153
Non-current lease liabilities	126	136 128
Employee benefit liabilities	149	160 156
Non-current provisions	16	36 20
Other non-current liabilities	3	13 7
Deferred tax liabilities	242	267 246
Total non-current liabilities	1,599	1,753 1,710

Current liabilities
Current debt	344	171 132
Current lease liabilities	47	47 48
Trade payables	460	414 500
Current provisions	195	200 192
Amounts due to customers under revenue contracts	849	940 855
Other current financial liabilities	38	78 41
Income tax liabilities	83	89 58
Other current liabilities	618	674 508
Total current liabilities	2,634	2,612 2,334
Total liabilities	4,233	4,366 4,044

Total equity and liabilities	6,733	6,744 6,634

Consolidated statement of cash flows

EUR million Q2/2026 Q2/2025

Q1-Q2/ 2026

Q1-Q2/ 2025

Cash flows from operating activities
Profit for the period	75	28	109	89
Adjustments
Depreciation and amortization	51	52	102	106
Change in provisions2	-6	36	-2	42
Financial income and expenses	13	16	26	32
Income taxes	40	12	50	26
Other non-cash items	7	-9	28	11
Change in net working capital	-70	7	-153	73
Net interests paid	-12	-16	-20	-27
Income taxes paid	-32	-48	-39	-55
Net cash provided by (+) / used in (-) operating activities	65	79	100	297

Cash flows from investing activities
Capital expenditure on fixed assets	-15	-33	-32	-57
Proceeds from sale of fixed assets	-	2	3	2
Business combinations, net of cash acquired and loans repaid	-	-1	-	1
Net cash provided by (+) / used in (-) investing activities	-15	-32	-29	-54

Cash flows from financing activities
Repurchase of own shares	-	-	-	-3
Dividends paid	-125	-125	-125	-125
Proceeds from non-current debt1	-	-	94	-
Repayments of current portion of non-current debt1	-13	-100	-82	-127
Repayments of lease liabilities	-14	-16	-28	-32
Net proceeds from (+) / repayments of (-) current debt	121	51	114	53
Financial investments	-19	33	-6	12
Net cash provided by (+) / used in (-) financing activities	-51	-157	-34	-222

Net increase (+) / decrease (-) in cash and cash equivalents	-1	-109	38	20
Effect of changes in exchange rates on cash and cash equivalents	6	-14	12	-18
Cash and cash equivalents at beginning of period	579	607	535	482
Cash and cash equivalents at end of the period	584	485	584	485

In 2026, Valmet refinanced an existing EUR 50 million loan by entering into a new agreement with the same counterparty. As the refinancing did not involve any cash movements, it is excluded from the Consolidated statement of cash flows.
Includes in 2025 EUR 52 million addition to restructuring provision relating to the change negotiations of the operating model renewal.

Consolidated statement of changes in equity

EUR million Share capital

Reserve for invested unrestricted equity

Cumulative translation

adjustments

Hedge and other

reserves Retained earnings

Equity attributable to owners of the parent

Non-controlling

interests Total equity

Balance at January 1, 2026	140	1,380	-112	8	1,168	2,584	6	2,590
Profit for the period	-	-	-	-	109	109	-	109
Other comprehensive income for the period	-	-	30	12	4	46	-	46
Total comprehensive income for the period	-	-	30	12	112	154	1	155

Transactions with owners in their capacity as owners
Dividends	-	-	-	-	-249	-249	-	-249
Share-based payments, net of tax	-	-	-	-	3	3	-	3
Balance at June 30, 2026	140	1,380	-82	20	1,035	2,492	7	2,499

Balance at January 1, 2025	140	1,375	-40	-6	1,137	2,607	7	2,614
Profit for the period	-	-	-	-	89	89	-	89
Other comprehensive income for the period	-	-	-75	3	-2	-73	-	-74
Total comprehensive income for the period	-	-	-75	3	88	16	-1	15

Transactions with owners in their capacity as owners
Dividends	-	-	-	-	-249	-249	-	-249
Repurchase of own shares	-	-	-	-	-3	-3	-	-3
Share-based payments, net of tax	-	4	-	-	-4	1	-	1
Balance at June 30, 2025	140	1,379	-115	-2	969	2,371	7	2,378

Basis of preparation

General information

Valmet Oyj (the "Company" or the "parent company") and its subsidiaries (together "Valmet", "Valmet Group" or the "Group") form a global developer and supplier of technologies, automation, flow control solutions, and services for the process industries.

Valmet Oyj is domiciled in Helsinki, and its registered address is Keilasatama 5, 02150 Espoo, Finland. The Company's shares are traded on Nasdaq Helsinki Ltd.

These condensed consolidated interim financial statements were approved by the Board of Directors on July 23, 2026.

Basis of presentation

standards and interpretations did not have a material impact on the results or financial position of the Group, or the presentation of these condensed consolidated interim financial statements.

Except for the above, the accounting policies applied in the preparation of these condensed consolidated interim financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2025.

In these condensed consolidated interim financial statements, the figures are presented in million euros subject to rounding, which may cause some rounding inaccuracies in aggregate column and row totals.

IFRS 18 Presentation and disclosure in Financial

In addition, IFRS 18 amends IAS 7, affecting the presentation of the consolidated statement of cash flows, particularly through the reclassification of cash flows related to interest and dividends.

The starting point for determining cash flows from operating activities will shift to operating profit. Valmet does not anticipate any significant changes to the information currently disclosed in the notes. However, to comply with the new disclosure requirements, Valmet will introduce a new note covering Management-defined Performance Measures (MPMs) and provide additional information on operating expenses by nature.

Valmet continues to follow the developing interpretation guidance and analyse the impact of the new standard.

Key exchange rates

Average rates Period-end rates

These condensed consolidated interim financial statements for the six months ended June 30, 2026, have been prepared in accordance with IAS 34 - Interim financial reporting and in conformity with IFRS Accounting Standards as adopted by the European Union. The financial information presented in these condensed consolidated interim financial statements has not been audited. These condensed consolidated interim financial

Statements

Valmet will apply IFRS 18 Presentation and Disclosure in Financial Statements starting from its effective date January 1, 2027 with retrospective application. The comparative information for the financial year ending December 2026 will therefore be restated in accordance with IFRS 18.

Q1-Q2/2026

USD (US dollar)	1.1673	1.0920	1.1394	1.1720
SEK (Swedish krona)	10.8100	11.1374	11.0935	11.1465
CNY (Chinese yuan)	8.0202	7.9086	7.7314	8.3970

Business combinations

Q1-

Q2/2025 Q2/2026 Q2/2025

statements should be read in conjunction with the Group's annual consolidated financial statements for the year ended December 31, 2025, which have been prepared in accordance with IFRS.

Valmet Group has applied new standards and interpretations published by IASB that are effective for the first time for financial reporting periods commencing on January 1, 2026. These

IFRS 18 introduces new guidance on the presentation of income and expenses within the Consolidated statement of income, including the use of new categories. As a result, the standard will affect how operating profit is calculated and reported. Based on management's current assessment and prevailing circumstances, the impact is not expected to be material.

Valmet made no acquisitions or divestitures during the first six months of 2026.

Reportable segments

Valmet has two operating segments and two reportable segments for financial reporting purposes: Process Performance Solutions and Biomaterial Solutions and Services. Corporate functions are presented as Other.

The Process Performance Solutions segment delivers flow control technologies and automation systems ranging from individual measurements to full plant-wide solutions, complemented by lifecycle services. The segment serves a global customer base of broad range of industries with mission-critical solutions that enhance resource efficiency, operational reliability, and financial performance. The Biomaterial Solutions and Services segment serves global producers across the pulp, paper, packaging, tissue and bioenergy industries. The segment provides complete production lines and key process islands, complemented by a full range of lifecycle services. These solutions enable improvements in fiber yield, energy and water efficiency, emissions, and operational uptime.

The financial reporting structure reflects Valmet's operational model, and is aligned with the way the Group's Chief Operating Decision Maker (CODM), the President and CEO of Valmet, evaluates the

operational performance of the segments and allocates resources. One key indicator of performance reviewed by the CODM is Earnings before interest, taxes and amortization (EBITA). Performance is also assessed through Comparable EBITA, i.e., with EBITA excluding certain items of income and expense that reduce the comparability of Valmet's performance from one period to another. The alternative performance measures of EBITA and Comparable EBITA, are published by Valmet as part of regulated financial information to enable users of the financial information to prepare more meaningful analysis on Valmet's performance. Items affecting comparability consist of income and expenses arising from activities that amend the capacity of Valmet's operations. Items include restructuring costs, gains or losses on sale of businesses or non-current assets, transaction costs related to business combinations, and income and expenses incurred outside Valmet's normal course of business, such as impairment charges and income and expenses recorded as a result of settlement payments to/from third parties (e.g., penalties incurred as a result of tax audits or settlements to closed lawsuits), and share in profits and losses of associated companies.

	Q1-Q2/	Q1-Q2/				Q1-Q2/	Q1-Q2/
Orders received, EUR million	2026	2025	Change	2025	EBITA, EUR million	2026	2025	Change	2025

Process Performance Solutions	779	782	0%	1,500
Biomaterial Solutions and Services	1,687	2,070	-19%	3,716
Total	2,466	2,852	-14%	5,216

Process Performance Solutions	133	107	25%	279
Biomaterial Solutions and Services	128	131	-2%	323
Other	-29	-43	32%	-68
Total	232	194	19%	534

Process Performance Solutions	711	711	0%	1,481
Biomaterial Solutions and Services	1,849	1,715	8%	3,716
Total	2,560	2,426	6%	5,197

Process Performance Solutions	18.7%	15.0% 18.8%
Biomaterial Solutions and Services	6.9%	7.6% 8.7%
Total	9.1%	8.0% 10.3%

Net sales, EUR million

Q1-Q2/ 2026

Q1-Q2/

2025 Change 2025

EBITA, % of net sales

Q1-Q2/ 2026

Q1-Q2/

2025 2025

Process Performance Solutions	132	121	9%	290
Biomaterial Solutions and Services	162	169	-4%	381
Other	-28	-26	-11%	-51
Total	266	265	0%	620

Comparable EBITA, EUR million

Q1-Q2/ 2026

Q1-Q2/

2025 Change 2025

Items affecting comparability, EUR million

Q1-Q2/ 2026

Q1-Q2/

2025 2025

Process Performance Solutions	1	-14 -11
Biomaterial Solutions and Services	-34	-39 -58
Other	-1	-17 -17
Total	-34	-70 -85

Process Performance Solutions	18.6%	17.0% 19.6%
Biomaterial Solutions and Services	8.8%	9.9% 10.3%
Total	10.4%	10.9% 11.9%

Comparable EBITA, % of net sales

Q1-Q2/ 2026

Q1-Q2/

2025 2025

Amortization, EUR million

Q1-Q2/ 2026

Q1-Q2/

2025 Change 2025

Process Performance Solutions	-26	-27	4%	-55
Biomaterial Solutions and Services	-11	-11	4%	-22
Other	-10	-9	-4%	-19
Total	-47	-48	2%	-96

Reconciliation between Comparable EBITA, EBITA and Operating profit

EUR million Q2/2026 Q2/2025

Q1-Q2/ 2026

Q1-Q2/ 2025

Comparable EBITA	152	143	266	265

Items affecting comparability in cost of sales
Income and expenses related to capacity adjustments12	-5	-21	-14	-22
Expensing of fair value adjustments recognized in business combinations	-	-	-1	-2
Other items affecting comparability	-3	-	-4	-1
Items affecting comparability in selling, general and administrative expenses
Income and expenses related to capacity adjustments12	4	-40	-	-43
Expenses related to acquisitions	-1	-	-1	-
Other items affecting comparability	-1	-1	-1	-2
Items affecting comparability in other operating income and expenses
Income and expenses related to capacity adjustments1	3	-	-9	-
Expenses related to acquisitions	-	-	-	-
Other items affecting comparability	-1	-	-6	-3
Items affecting comparability in share in profits and losses of associated companies, operative investments
Other items affecting comparability	2	1	2	1
EBITA	150	81	232	194

Amortization included in cost of sales
Other intangibles	-	-	-	-
Amortization included in selling, general and administrative expenses
Intangibles recognized in business combinations	-17	-18	-35	-36
Other intangibles	-6	-6	-12	-11
Operating profit	127	57	185	146

Includes EUR 22 million costs in 2026 related to planned changes in Valmet's manufacturing footprint in Sweden and Poland, of which EUR 11 million relates to restructuring costs.
Includes in 2025 EUR 63 million restructuring costs due to change negotiations and strategy renewal costs related to Valmet's operating model renewal.

Entity-wide information

Valmet has operations globally in approximately 40 countries. Measured by net sales, the top three countries in the first six months of 2026 were the USA, Brazil and China, which together accounted for 51 percent of total net sales. In the first six months of 2025, the top three countries were the USA, China and Brazil, which together accounted for 44 percent of total net sales. Net sales for Finland (the country of domicile) amounted EUR 115 million in the first six months of 2026 (EUR 138 million).

Net sales by destination:

Q1-Q2/2026: EUR 2,560 million

North America, EUR 701 million

Latin America, EUR 516 million

EMEA, EUR 820 million

China, EUR 300 million

Asia-Pacific, EUR 221 million

Q1-Q2/2025: EUR 2,426 million

North America, EUR 660 million

Latin America, EUR 325 million

EMEA, EUR 891 million

China, EUR 257 million

Asia-Pacific, EUR 292 million

Gross capital expenditure (excluding business combinations and right-of-use assets) by location:

EUR million	North America	Latin America	EMEA	China	Asia-Pacific	Total
Q1-Q2/2026	5	3	18	4	2	32
Q1-Q2/2025	11	2	35	4	4	57

Revenue

Valmet's revenue is reported and monitored by management, by segment, business area and geographical area. Flow Control business area's valves equipment sales are recognized at a point in

is recognized at a point in time. The nature of revenue in each geographical area in any given reporting period is driven by volume and size of ongoing projects.

Net sales by business areas:

time. Automation Solutions business area's revenue consists of long-term contracts and short-term service contracts. Revenue for long-term contracts is recognized over time based on the cost-to-cost method. For the projects that do not meet the over time revenue recognition criteria, revenue is recognized at a point in time. Revenue for short-term service contracts is recognized at a point in time. Pulp, Energy and Circularity, Packaging and Paper, and Tissue business areas' revenue is derived from both large long-term projects, for which revenue is mostly recognized over time based on the cost-to-cost method and a large volume of short-term service contracts with relatively low individual value, for which revenue is mainly recognized at a point in time. These short-term service contracts include smaller maintenance, improvements and rebuilds. Sale of spare parts and consumables

EUR million Q2/2026 Q2/2025

Timing of revenue recognition:

Performance obligations satisfied at a point in time	715	704	1,327	1,380
Performance obligations satisfied over time	600	538	1,233	1,046
Total	1,315	1,241	2,560	2,426

EUR million Q2/2026 Q2/2025

Q1-Q2/ 2026

Flow Control	206	196	397	388
Automation Solutions	164	176	315	323
Pulp, Energy and Circularity	411	383	845	705
Packaging and Paper	360	361	695	747
Tissue	173	125	309	263
Total	1,315	1,241	2,560	2,426

Q1-Q2/ 2026

Q1-Q2/ 2025

In order to mitigate credit risk and compensate for contract costs incurred upfront, Valmet regularly requires advance payments from its customers. During the reporting period Valmet had not entered into any material contracts where the period between when Valmet transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or more. Neither were there any ongoing projects from previous reporting periods for which the former would apply.

The creditworthiness of a customer is verified before entering into a contract. However, if a risk of non-payment arises after contract inception, the probability of collection of consideration is re-evaluated and if assessed improbable, recognition of revenue is discontinued. An allowance for non-collectability of open receivables and contract assets is established as concluded appropriate.

Valmet receives payments from customers based on invoicing schedules as set out in the customer contracts. Changes in contract assets and liabilities are due to Valmet's performance under the contracts. Amounts due from customers under revenue contracts primarily relate to Valmet's right to consideration for work completed but not yet invoiced at the reporting date. These assets are transferred to trade receivables when right to consideration becomes unconditional, which is typically at the time when Valmet has contractual right to issue an invoice. Significant part of amounts due to customers relate to advance consideration received from customers in long-term capital contracts for which revenue is recognized over time. These amounts are recognized as revenue as (or when) Valmet performs under the contracts.

Following tables provide specification of movements in amounts due from customers under revenue contracts and amounts due to customers under revenue contracts over the reporting period. Revenue recognized in the period also includes revenue recognized related to performance obligations satisfied in previous periods, the amount of which however is insignificant.

Amounts due from customers under revenue contracts:

Amounts due to customers under revenue contracts:

EUR million	Q1-Q2/ 2026	Q1-Q2/ 2025	2025
Carrying value at beginning of the period	855	904 904
Translation differences	16	-34 -29
Revenue recognized in the period	-1,205	-1,182 -2,579
Consideration invoiced and/or received	1,183	1,251 2,559
Carrying value at end of the period	849	940 855
	As at June 30,	As at June 30,	As at December 31,
EUR million	2026	2025	2025

Amounts due to customers under revenue contracts for which revenue is recognized
Point in time	338	337 339
Over time	510	602 516
Carrying value at end of the period	849	940 855

Valmet typically issues contractual product warranties under which it guarantees the mechanical functioning of equipment delivered during the agreed warranty period. Valmet does not issue service-type warranties.

As at June 30, 2026, Valmet had no costs to obtain or fulfill contracts capitalized under IFRS 15.

The aggregate amount of transaction price allocated to unsatisfied or partially satisfied performance obligations as at June 30, 2026, was EUR 4,259 million (EUR 4,711 million).

EUR million

Q1-Q2/ 2026

Q1-Q2/

2025 2025

Carrying value at beginning of the period	327	344 344
Translation differences	-1	-2 1
Revenue recognized in the period	531	328 936
Transfers to trade receivables	-570	-322 -954
Carrying value at end of the period	288	349 327

Net working capital

Payment schedules of large long-term projects have a significant impact on net working capital development. Net working capital does not include non-operative items such as taxes, interest-bearing assets and liabilities, or other items related to funding of the Group's operations.

Intangible assets and property, plant and equipment

Intangible assets

Carrying value at beginning of the period	2,840	2,934 2,934
Translation differences	6	-24 -22
Capital expenditure	5	9 18
Acquired in business combinations	-	8 8
Amortization	-47	-48 -96
Impairment losses	-	-2 -3
Other changes	-	1 1
Carrying value at end of the period	2,804	2,878 2,840

EUR million Q1-Q2/2026 Q1-Q2/2025 2025

EUR million

As at June 30,

2026

As at June 30,

2025

As at December 31,

2025

Impact to cash flows Q1-Q2/ 2026

Assets included in net working capital
Non-current trade receivables	14	19 16	2
Other non-current assets	48	36 46	-2
Inventories	897	966 884	-13
Trade receivables	828	712 769	-58
Amounts due from customers under revenue contracts	288	349 327	40
Derivative financial instruments (assets)	55	71 63	8
Other receivables	249	214 190	-59

Liabilities included in net working capital
Employee benefits	-149	-160 -156	-8
Provisions	-211	-237 -212	-1
Other non-current non-interest-bearing liabilities	-1	-1 -1	-
Trade payables	-460	-414 -500	-40
Amounts due to customers under revenue contracts	-849	-940 -855	-7
Derivative financial instruments (liabilities)	-41	-90 -47	-6
Other current liabilities	-608	-664 -495	113
Total net working capital	60	-139 29	-31
Effect of changes in foreign exchange rates			9
Remeasurement of defined benefit plans			2
Change in allowance for doubtful receivables and inventory obsolescence provision			-13
Change in provisions			2
Dividend liability			-123
Change in net working capital in the Consolidated statement of cash flows			-153

Property, plant and equipment (excluding right-of-use assets)

EUR million Q1-Q2/2026 Q1-Q2/2025 2025

Carrying value at beginning of the period	568	569 569
Translation differences	7	-20 -18
Capital expenditure	27	48 85
Depreciation	-32	-32 -64
Impairment losses	-8	-1 -2
Other changes	-4	-2 -2
Carrying value at end of the period	559	563 568

Leases

Right-of-use assets

EUR million Q1-Q2/2026 Q1-Q2/2025 2025

Carrying value at beginning of the period	171	156 156
Translation differences	2	-6 -5
Additions	20	69 82
Depreciation	-23	-26 -49
Other changes	-3	-12 -14
Carrying value at end of the period	166	182 171

Financial instruments

Derivative financial instruments

As at 30 June, 2026 As at June 30, 2025

	Notional amount	Fair value, assets	Fair value, liabilities	Fair value, net	Notional amount	Fair	value, assets	Fair value, liabilities	Fair value, net
Forward exchange contracts1	4,075	51	-39	12	4,007	67		-82	-15
Interest rate swaps1	700	3	-1	2	670	3		-6	-3
Electricity forward contracts2	163	1	-	1	184	-		-1	-
Nickel forward contracts3	462	-	-	-	746	-		-2	-2
Steel scrap forward contracts3	1,295	-	-	-	661	-		-	-

Notional amount and fair values in EUR million.
Notional amount in GWh and fair values in EUR million.
Notional amount in metric tons and fair values in EUR million.

The notional amounts give an indication of the volume of derivative contracts entered into, but do not provide an indication of the exposure to risk.

Classification of financial assets and liabilities:

EUR million	As at 30 June, 2026				As at June 30, 2025
EUR million	At amortized cost	At fair value through other comprehensive income	At fair value through profit and loss	Carrying value	At amortized cost	At fair value through other comprehensive income	At fair value through profit and loss	Carrying value	Fair value level
Non-current financial assets
Equity investments		10	2	12		8	2	10	1,3
Trade receivables	14 14				19			19
Derivative financial instruments		5	-	5		18	-	18	2
Total	14	15	3	31	19	26	3	48

Current financial assets
Interest-bearing financial assets	30 30					18		18	2
Non-interest-bearing financial assets	6 6				2			2
Trade receivables	828 828				712			712
Derivative financial instruments		40	11	50		43	10	52	2
Cash and cash equivalents	584 584				485			485
Total	1,418	70	11	1,498	1,199	60	10	1,269

Non-current financial liabilities

Loans from financial institutions	864			864	939			939
Bonds1	199 199				202			202
Lease liabilities	126 126				136			136
Derivative financial instruments		3	-	3		12	-	12	2
Total	1,189	3	-	1,192	1,276	12	-	1,288

Current financial liabilities
Loans from financial institutions	199 199				99			99
Lease liabilities	47 47				47			47
Interest-bearing liabilities	146 146				72			72
Trade payables	460 460				414			414
Derivative financial instruments		23	16	38		53	25	78	2
Total	851	23	16	890	632	53	25	710

The bonds have been measured at amortized cost, adjusted by the fair value to the extent that fair value hedge accounting is applied.

For those financial assets and liabilities, which have been recognized at fair value in the Consolidated statement of financial position, the measurement hierarchy and valuation methods described below have been applied.

Level 1

Quoted unadjusted prices at reporting date in active markets. Valmet level 1 financial instruments

Contingencies and commitments

Guarantees on behalf of Valmet Group

1,075

1,070 1,029

EUR million

As at June 30,

2026

As at June 30,

2025

As at December 31,

2025

include equity investments classified as financial assets at fair value through other comprehensive income.

Level 2

The fair value of financial instruments in Level 2 is determined using valuation techniques. These techniques utilize observable market data readily and regularly available. Valmet level 2 financial instruments include over-the-counter (OTC) derivatives classified as financial assets and liabilities at fair value through profit or loss or derivatives qualified for hedge accounting and all other financial assets and liabilities except for equity investments.

Level 3

A financial instrument is categorized into Level 3 if the calculation of the fair value cannot be based on observable market data. Valmet level 3 financial instruments include equity investments classified as financial assets at fair value through profit or loss.

Provisions

EUR million Q1-Q2/2026 Q1-Q2/2025 2025

Carrying value at beginning of the period	212	190 190
Translation differences	2	-2 -1
Additions charged to profit or loss1,2	64	101 190
Acquired in business combinations	-	6 6
Provisions used2	-48	-42 -129
Unused provisions reversed1,	-19	-17 -44
Carrying value at end of the period	211	237 212

Non-current	16	36 20
Current	195	200 192

In 2026, additions charged to profit or loss include a restructuring provision of EUR 12 million related to change negotiations concerning planned changes in Valmet's manufacturing footprint in Sweden and Poland. Reversals of unused provisions recognized in profit and loss amounted to EUR 1 million during 2026.
Additions charged to profit or loss include, in the financial year 2025, a restructuring provision of EUR 52 million related to change negotiations for the renewal of the operating model. Of this amount, provisions used totaled EUR 31 million in 2025 and EUR 12 million in 2026.

The most significant commitments and contingencies of Valmet relate to guarantees provided by Valmet Oyj, its subsidiaries and financial institutions to customers and suppliers in the ordinary course of business, as disclosed in the above table.

Several lawsuits, claims and disputes based on various grounds are pending against Valmet in various countries, including product liability lawsuits and claims as well as legal disputes related to Valmet's deliveries. Valmet is also a plaintiff in several lawsuits. Although some of the claims are substantial, Valmet's management does not expect to the best of its present understanding that the outcome of these lawsuits, claims and disputes will have a material adverse effect on Valmet in view of the grounds currently presented for them, provisions made, insurance coverage in force and the extent of Valmet's total business activities.

Events after the reporting period

After the reporting period, on July 1, 2026, Valmet completed the acquisition of Severn Group, an industrial valve company specializing in severe service flow control solutions. The acquisition was originally announced on December 22, 2025.

margin of approximately 16 percent. Severn has approximately 950 employees. The transaction is valued at USD 480 million on a cash- and debt-free basis (approximately EUR 410 million calculated at the exchange rates at the time of the announcement in December 2025).

There have been no other subsequent events after the reporting period that required recognition or disclosure.

Q1-Q2/2026 Q1-Q2/2025

Comparable return on capital employed (Comparable ROCE) before taxes (LTM), %	13.5%	13.1%
Return on capital employed (ROCE) before taxes (LTM), %	12.3%	10.4%
Return on equity (ROE) (LTM), %	12.3%	10.6%
Net debt to EBITDA1 ratio	1.42	1.60
Gearing, end of period, %	39%	42%
Equity to assets ratio, end of period, %	42%	41%
Capital employed, end of period, EUR million	4,079	3,873
Interest-bearing liabilities, end of period, EUR million	1,580	1,494
Net interest-bearing liabilities, end of period, EUR million	965	992
Cash conversion ratio (LTM), %	67%	116%
Comparable cash conversion ratio (LTM), %	62%	95%
Earnings per share, EUR	0.59	0.48
Diluted earnings per share, EUR	0.59	0.48
Adjusted earnings per share, EUR	0.73	0.64
Equity per share, end of period, EUR	13.53	12.87
Number of outstanding shares, end of period	184,233,915	184,211,753
Average number of outstanding shares	184,234,874	184,177,525
Average number of diluted shares	184,234,874	184,177,525

Last twelve months EBITDA

Formulas for calculation of indicators

In addition to financial performance indicators as defined by IFRS, Valmet publishes certain other widely used measures of performance that can be derived from figures in the Consolidated statement of income and Consolidated statement of financial position, as well as notes thereto. The formulas for calculation of these alternative performance measures are presented below. Some of the alternative performance measures are calculated on a last twelve months basis (LTM).

Comparable gross profit (GP):

Gross profit +/- items affecting comparability in cost of sales

Comparable selling, general and administrative (SG&A) expenses: Selling, general and administrative expenses +/- items affecting comparability in selling, general and administrative expenses

Equity per share:

Equity attributable to owners of the parent Number of outstanding shares at end of period

Return on equity (ROE), % (LTM):

Gearing, %:

Net interest-bearing liabilities Total equity

Net interest-bearing liabilities:

x 100

EBITA:

Operating profit + amortization

Comparable EBITA1:

Operating profit + amortization +/- items affecting comparability

Profit for the period

Total equity (average for period)

Return on capital employed (ROCE) before taxes, % (LTM):

x 100

Non-current debt + non-current lease liabilities + current debt + current lease liabilities - cash and cash equivalents - other interest-bearing assets

Net debt to EBITDA ratio:

Net interest-bearing liabilities

Earnings per share:

Profit attributable to shareholders of the Company Average number of shares outstanding during period

Diluted earnings per share:

Profit attributable to shareholders of the Company Average number of diluted shares during period

Adjusted earnings per share1:

Profit before taxes + interest and other financial expenses

x 100

Total equity + interest-bearing liabilities (average for period)

Comparable return on capital employed (ROCE) before taxes, % (LTM): Profit before taxes + interest and other financial expenses +/-

items affecting comparability x 100

Total equity + interest-bearing liabilities (average for period)

Equity to assets ratio, %:

Total equity

Operating profit + amortization + depreciation (LTM)

Cash conversion ratio, % (LTM): Cash flows from operating activities EBITA

Comparable cash conversion ratio, % (LTM): Cash flows from operating activities Comparable EBITA

x 100

Profit attributable to shareholders of the Company - expensing of fair value adjustments recognized in business combinations, net of tax

Average number of shares outstanding during period

Alternative performance measure also calculated on a last twelve months basis

Balance sheet total - amounts due to customers under revenue contracts

x 100

Free cash flow:

Cash flows from operating activities - gross capital expenditure (excl. business combinations and right-of-use assets)

Quarterly information

EUR million, or as indicated Q2/2026 Q1/2026 Q4/2025 Q3/2025 Q2/2025

Orders received	1,373	1,092	1,281	1,083	1,520
Order backlog1	4,259	4,200	4,306	4,526	4,711
Net sales	1,315	1,244	1,477	1,295	1,241
Comparable gross profit	368	320	406	355	373
% of net sales	27.9%	25.7%	27.5%	27.4%	30.1%
Comparable SG&A expenses	-235	-226	-229	-215	-248
% of net sales	-17.9%	-18.1%	-15.5%	-16.6%	-20.0%
Comparable EBITA	152	114	196	159	143
% of net sales	11.5%	9.2%	13.3%	12.3%	11.5%
Operating profit (EBIT)	127	58	167	125	57
% of net sales	9.7%	4.6%	11.3%	9.7%	4.6%
Profit before taxes	114	45	149	112	41
% of net sales	8.7%	3.6%	10.1%	8.6%	3.3%
Profit for the period	75	34	105	86	28
% of net sales	5.7%	2.8%	7.1%	6.6%	2.3%
Earnings per share, EUR	0.40	0.19	0.57	0.46	0.15
Adjusted earnings per share, EUR	0.47	0.26	0.64	0.54	0.23
Expensing of fair value adjustments recognized in business combinations, net of tax	-13	-14	-14	-14	-14
Amortization	-23	-24	-24	-24	-24
Depreciation, property, plant and equipment (excl. right-of-use assets)	-16	-16	-16	-16	-16
Depreciation, right-of-use assets	-12	-12	-11	-12	-12
Depreciation, total	-28	-28	-28	-27	-28
Items affecting comparability:
in cost of goods sold	-8	-10	-2	-4	-22
in selling, general and administrative expenses	2	-5	-2	-3	-41
in other operating income and expenses, net	2	-17	-3	-4	-
in share in profits and losses of associated companies, operative investments	2	-	2	1	1
Total items affecting comparability	-1	-32	-6	-10	-62
Cash flow provided by operating activities	65	35	189	94	79
Gross capital expenditure (excl. business combinations and right-of-use assets)	-15	-17	-22	-24	-33
Free cash flow	50	18	167	70	46
Business combinations, net of cash acquired and loans repaid	-	-	-	-	-1
Research and development expenses, net	-34	-32	-34	-29	-32
% of net sales	-2.5%	-2.5%	-2.3%	-2.3%	-2.6%

At end of period.

Quarterly segment information

Orders received, EUR million Q2/2026 Q1/2026 Q4/2025 Q3/2025 Q2/2025

Process Performance Solutions	379	400	372	345	376
Biomaterial Solutions and Services	994	693	908	738	1,144
Total	1,373	1,092	1,281	1,083	1,520

Net sales, EUR million Q2/2026 Q1/2026 Q4/2025 Q3/2025 Q2/2025

Process Performance Solutions	370	341	410	361	372
Biomaterial Solutions and Services	945	904	1,067	934	869
Total	1,315	1,244	1,477	1,295	1,241

Comparable EBITA, EUR million Q2/2026 Q1/2026 Q4/2025 Q3/2025 Q2/2025

Process Performance Solutions	69	63	90	79	66
Biomaterial Solutions and Services	98	64	123	89	87
Other	-15	-13	-16	-9	-10
Total	152	114	196	159	143

Comparable EBITA, % of net sales Q2/2026 Q1/2026 Q4/2025 Q3/2025 Q2/2025

Process Performance Solutions	18.7%	18.5%	21.9%	21.9%	17.8%
Biomaterial Solutions and Services	10.4%	7.1%	11.6%	9.5%	10.0%
Total	11.5%	9.2%	13.3%	12.3%	11.5%

EBITA, EUR million Q2/2026 Q1/2026 Q4/2025 Q3/2025 Q2/2025

Process Performance Solutions	71	63	92	81	53
Biomaterial Solutions and Services	96	32	118	75	50
Other	-16	-13	-18	-7	-22
Total	150	82	191	149	81

EBITA, % of net sales Q2/2026 Q1/2026 Q4/2025 Q3/2025 Q2/2025

Process Performance Solutions	19.1%	18.4%	22.4%	22.4%	14.2%
Biomaterial Solutions and Services	10.1%	3.5%	11.0%	8.0%	5.8%
Total	11.4%	6.6%	12.9%	11.5%	6.5%

Items affecting comparability,

EUR million Q2/2026 Q1/2026 Q4/2025 Q3/2025 Q2/2025

Amortization, EUR million Q2/2026 Q1/2026 Q4/2025 Q3/2025 Q2/2025

Process Performance Solutions	-13	-14	-14	-14	-14
Biomaterial Solutions and Services	-5	-5	-5	-5	-6
Other	-5	-5	-5	-5	-5
Total	-23	-24	-24	-24	-24

Process Performance Solutions	1	-	2	2	-14
Biomaterial Solutions and Services	-2	-32	-6	-13	-37
Other	-1	-	-2	2	-12
Total	-1	-32	-6	-10	-62