Nokian Tyres boosts earnings on pricing power as Romania ramp-up accelerates

Nokia, Finland – Nokian Tyres plc has reported strong third-quarter results, driven primarily by improved pricing.

Sales for the three months to end of September rose over 9% year-on-year to €344 million, the company said 28 Oct.

Segment operating profit increased to €32.5 million, up from €30.5 million in the same quarter last year.

Operating profit jumped more sharply, rising from €4.1 million in the third quarter of 2024 to €22 million this year, supported by higher passenger car tire prices.

Nokian linked the revenue growth to sales gains across all regions, with North America “outperforming the market.”

“We delivered another strong quarter, significantly improving our operating profit despite market uncertainties and weak market development,” said Paolo Pompei, president and CEO.

He added that ongoing performance-improvement measures are “delivering tangible results,” with operational initiatives improving efficiency and productivity across the organisation.

Looking ahead, full-year tire demand is expected to remain broadly unchanged, with the business environment still clouded by ‘geopolitical, trade and tariff uncertainties.’

However, sales growth is being supported by increasing capacity in the Romanian and US plants as well as “good availability of finished goods inventories,” the company reported.

The ramp-up of Nokian’s factory in Oradea, Romania, is progressing as planned, according to Pompei.

The facility is now running 24/7 and will produce around one million tires this year.

Separately, Nokian announced 28 Oct that it will begin personnel negotiations aimed at improving financial performance and operational efficiency.

The talks will involve white-collar employees in group functions and business units globally, as well as both blue- and white-collar staff in passenger car and heavy tire production in Nokia, Finland.

The measures cover around 1,700 permanent white-collar positions across the group.

According to preliminary estimates, the plans could lead to the termination of around 80 permanent white-collar roles.

In addition, Nokian is preparing for temporary layoffs affecting 650 blue- and white-collar employees in passenger car and heavy tire production in Nokia, for a period of up to 90 days per person.

These temporary layoffs may be implemented by the end of 2026, while permanent reductions could take place by late 2025.

At the end of September, Nokian employed roughly 4,400 people worldwide, including around 2,045 in Finland.