Metso Outotec Oyj Stock Earnings Reports

Metso reported a solid start to FY26: Q1 orders of EUR 1.555bn (6% YoY, 10% organic cc) and sales of EUR 1.252bn (3% YoY, 5% organic cc). Adjusted EBITDA was EUR 203m (16.2% margin) and operating cash flow was EUR 78m for the quarter (rolling 12-month operating cash flow EUR 856m). Book-to-bill was healthy at 1.24 and backlog grew ~6% YoY, driven largely by Minerals aftermarket. Segment highlights: Aggregates delivered record order intake (EUR 440m) with equipment strength but weaker aftermarket; Minerals continued to drive revenue and margin (adjusted EBITDA EUR 168m, 17.6% margin) and won a ~EUR 100m greenfield copper project in Peru. Management completed strategic actions (divestments of Ferrous and Loading & Hauling, ERP rollout, acquisition of MRA Automation, investment in China rubber plant) and launched a partnership with Loesche on a vertical roller mill dry-grinding technology. Inventory build (WIP) weighed on Q1 cash flow; management expects deliveries and aftermarket revenue to pick up from Q2 onward and reiterated unchanged outlook assuming stable market activity. Key risks: geopolitical turmoil, commodity price volatility, higher logistics and energy costs (notably LNG in India), and tariff changes (Section 232); Metso says tariff impacts are being passed through to customers via surcharges. Financial position remains strong: net debt/EBITDA ~1.2x and Moody’s Baa2 with positive outlook. Management reiterated medium-term margin objectives (20% in Minerals by 2028) and expects to harvest benefits from ERP and other efficiency measures over time.