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 a 28% year-on-year increase in segment operating profit to €91.3 million, on stronger passenger car tire pricing and higher sales volumes.

Sales for full-year 2025 came in at €1.37 billion, up 6.5% compared to the year before, with growth in "all geographic areas," the Finnish tire maker reported 10 Feb.

Nokian noted 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 these gains to higher passenger car tire prices and lower material costs, though its 'heavy' tires segment was impacted by soft markets.

Commenting, president and CEO Paolo Pompei described 2025 as “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.”

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

In addition, Pompei said Nokian had maintained “strict cost discipline across the organisation from raw material sourcing to indirect and SG&A spending.”

Last year also saw Nokian complete a significant investment phase with the start of commercial production at a greenfield production plant in Oradea, Romania.

With the ramp-up in Romania progressing, 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 summarised.

In 2026, he said 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.”

This year, Nokian expects net sales to grow compared to the previous year and segment operating profit as a percentage of net sales to come in at around 8-10%.

Tire market demand is expected to remain flat in 2026, while global economy and geopolitical, trade and tariff uncertainties may cause volatility, the group concluded.