Nokian ‘turning point’ with sharp rise in full-year earnings

Nokia, Finland – Nokian Tyres plc has reported ‘strong profitability improvement’ in 2025, driven largely by pricing and higher volumes.

For the fiscal year ended 31 Dec 2025, Nokian posted segment a 28% year-on-year increase in segment operating profit to €91.3 million, which it said was due mainly to higher passenger car tire prices and sales volumes.

Sales for the year came in at €1.37 billion, up 6.5% compared to the year before,  with growth in "all geographic areas," Nokian reported 10 Feb.

The Finnish tire maker saw a strong improvement in profitability in the final quarter of the year, with segment operating profit up 42% year-on-year at €51 million on marginally higher sales of €416 million.

Nokian linked the growth to higher passenger car tire prices and lower material costs, while the heavy tires segment was impacted by soft markets.

Commenting on the results, president and CEO Paolo Pompei said 2025 was “a year of strong improvement for Nokian Tyres despite uncertain operating environment and weak market development.”

The fourth quarter, according to Pompei, was “our best quarter in three years.”

Pompei noted that Nokian accelerated its efforts to strengthen financial performance, with emphasis on optimising the product and price/mix, improving operational efficiency, and further leveraging its expanded manufacturing platform.

In addition, Pompei said Nokian maintained “strict cost discipline across the organisation from raw material sourcing to indirect and SG&A spending.”
The year also saw Nokian completing its significant investment phase with the start of commercial production at a greenfield production plant in Oradea, Romania.

While the ramp-up in Romania progresses, Pompei said the factory is shifting from investment mode towards stabilising manufacturing operations.

“Overall, 2025 marked a turning point for Nokian Tyres, demonstrating our ability to adapt and stay competitive,” Pompei added.

In 2026, he went on to say, Nokian intends to build on the momentum with a focus on profitable growth supported by “new premium products, brand repositioning and a strong emphasis on delivering value to consumers.”

For the fiscal year 2026, Nokian said it expects net sales to grow compared to the previous year and segments operating profit as a percentage of net sales to be 8–10%.

Tire demand in Nokian Tyres’ markets is expected to remain flat in 2026, while global economy and geopolitical, trade and tariff uncertainties may cause volatility.