Valmet Oyj
OMXH:VALMT
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Valmet Oyj
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The first quarter of 2023 was strong for Valmet, both in terms of order intake and profitability. Orders increased EUR 1.55 billion, which is 17% higher than a year ago and sets a new record for Valmet. We were especially happy to see the demand for Valmet's Stable business continue in such a good level.
Services orders increased to EUR 577 million, which is 28% higher than a year ago and the first time when Services quarterly orders topped the EUR 500 million mark.
Automation Systems and Flow Control grew nicely as well. During the last 12 months, Valmet's Stable business order intake was over EUR 3.2 billion. The orders for Process Technologies decreased from the high comparison quarter, and Valmet's an order backlog is EUR 4.59 billion, which is a huge level.
If we then take a look at the profitability numbers, we can see that the quarter was huge also from the profit point of view. Comparable EBITA margin was 16.1% in Services, 16.3% in Automation and 4.7% in Process Technologies.
Cost inflation continued to impact Valmet's margins in the Process Technologies segment during the quarter. Our goal is to offset the cost inflation through increased productivity, procurement savings and price increases going forward.
Valmet's comparable EBITA increased to EUR 133 million and the margin was 10.1%. This was the first time when Valmet's comparable EBITA margin topped 10% during the first quarter.
Moving on then to the short-term market outlook. Overall, the outlook is rather positive for the next 6 months. The outlook is good for Services, Flow Control, Automation Systems, Energy as well as Board and Paper. Pulp outlook is good/satisfactory as the workload and customer activity [ were high ] between business units. The outlook for Tissue continues to be satisfactory.
Valmet's guidance is unchanged. We estimate that net sales and comparable EBITA in 2023 will increase in comparison with 2022. The global economic outlook is facing several uncertainties. Rising interest rates, inflation, Russia's innovation of Ukraine and the remaining effects of COVID-19 are all causing uncertainties. Despite this, Valmet's order backlog is strong and the short-term market outlook continues to be good for most of our businesses.
In the long term, Valmet's business is supported by several favorable megatrends. Our customers operate in structurally growing pulp, board, tissue, energy and other process industries and Valmet is well positioned to benefit from these trends also in the future.