Nokian reported Q1 2025 earnings of EUR 269.5 million (approx. $304 million), up 13.9% year-over-year and 14.2% in comparable currencies. The company outpaced market demand in every region. Passenger car tires led the charge, climbing 21.7% due to better product availability. However, operating profit dropped to EUR -35.9 million (approx. $-40 million), and segments operating profit landed at EUR -18.5 million (approx. $-20 million). CEO Paolo Pompei, who began his role in January, said pricing actions would improve results in Q2 and beyond.
Nokian Expands Output in Romania and North America
Nokian said its Q1 2025 earnings highlight the ramp-up of its zero CO₂ emission plant in Romania. The company shipped its first tires in March and expects to deliver one million units in 2025. It aims to reach 6 million annually by 2027. In North America, Nokian expanded all-season and light truck tire production to improve local supply and offset tariff risks.
Heavy Tires Stable, Vianor Losses Continue in Nokian Q1 2025 Earnings Report
Heavy tires held steady with EUR 55.8 million (approx. $62 million) in sales. The company improved profitability by shifting toward a better channel mix. Segment operating profit rose from EUR 6.3 million (approx. $7 million) to EUR 7.3 million (approx. $8 million).
Vianor, Nokian’s retail and service network, lost money. Despite modest sales growth, it posted a EUR -15.4 million (approx. $-17 million) operating loss due to seasonal demand changes.
Cash Flow Tightens After Heavy Capital Investments
Nokian’s recent investments – totaling EUR 800 million (approx. $902 million) over three years—continue to impact liquidity. In Q1, cash flow from operations fell to EUR -121.8 million (approx. $-137 million) due to higher inventory and receivables. Nokian closed the quarter with EUR 84.8 million (approx. $95 million) in cash and a gearing ratio of 65.9%.
To support growth, Nokian added Tommi Alhola (Central Europe) and Lauri Halme (North America) to lead regional passenger tire operations. Sustainability also remains central. The Romania factory earned ISCC PLUS certification, and the new Seasonproof 2 tire launched with up to 38% renewable or recycled content—Nokian’s highest level yet.
Nokian Q1 2025 Earnings Outlook: Growth and Profitability in Focus
Nokian maintained its 2025 forecast. The company expects higher net sales and stronger operating margins year-over-year. It will rely on pricing improvements and better production efficiency to reach its goals, despite ongoing global uncertainty, it said.
