The Nokian Tyres half-year report for January-June 2025 reveals growth in net sales, improved segment operating profit, and stronger financial performance, according to the company. All regions outperformed the market. Paolo Pompei also officially began his tenure as President and CEO on Jan. 1.
From April to June 2025, Nokian Tyres reported net sales of $407.2 million, up from $380.4 million during the same period in 2024. With comparable currencies, net sales rose by 6.9%. Segment operating profit increased by 30.6%, reaching $30.8 million, driven by passenger car tire sales, early-year price hikes, and reduced supply chain costs.
Operating profit rose to $17.3 million from $9.8 million, while non-IFRS exclusions totaled -$13.4 million. Earnings per share remained flat at $0.00. Cash flow from operating activities improved significantly, turning positive at $19.3 million, up from -$67.8 million in Q2 2024.
Nokian Half-Year Report Figures Reflect Business Performance
In the first half of 2025, net sales reached $719.7 million, compared to $658.6 million in the same period of 2024. With comparable currencies, net sales rose 10.0%. Segment operating profit climbed to $9.1 million, a 56.5% increase.
Overall operating profit for the period was -$24.7 million, compared to -$20.8 million the previous year. The company reported -$33.9 million in non-IFRS exclusions. Earnings per share fell to -$0.32 from -$0.21. Cash flow from operations improved but remained negative at -$123.5 million, compared to -$170.3 million the year before.
CEO Paolo Pompei Outlines Progress and Future Goals
“Nokian Tyres’ business developed favorably in the second quarter. Net sales increased by 7%, supported by positive contributions from all business units,” Pompei said. “Our Passenger Car Tyres segment outperformed the market. We strengthened our position across all regions. The Group’s segments operating profit improved significantly.
Pompei noted that early efforts to boost financial performance are already producing results. The company implemented price and product mix adjustments to offset rising raw material costs. It also increased its focus on Central Europe and North America.
“We have implemented several operational initiatives aimed at improving efficiency, increasing productivity, and strengthening cash management across the organization,” he said. “We expect these measures to continue delivering results throughout the rest of 2025 and into 2026.”
Nokian Tyres began commercial deliveries of the Seasonproof 2 tire from its new Romanian facility. The tire, designed for all-season performance, marks a key step in scaling production, it said.
Pompei also highlighted Nokian’s inclusion on TIME magazine’s list of the world’s 500 most sustainable companies. Ranked 98th, the company earned recognition for environmental and social responsibility efforts.
2025 Outlook Remains Positive Despite Volatility
The company maintains its 2025 guidance: net sales should grow, and segment operating profit as a percentage of net sales will improve year-over-year. While tire demand is expected to match 2024 levels, geopolitical and economic uncertainties may affect results.
Sales growth will depend on capacity increases in Romanian and U.S. factories, along with solid finished goods inventory availability.
Pompei emphasized that 2025 marks the end of a three-year investment phase, during which the company spent approximately $938 million to expand capacity. Although profitability and cash flow took short-term hits, these investments lay the groundwork for long-term success, Pompei said.
Building a new foundation requires significant effort,” he said. “I would like to sincerely thank all Nokian Tyres employees for embracing our ongoing transformation with competence, enthusiasm, and strong commitment.”
