Nokian Tyres reports higher profits on improved pricing, efficiencies

Nokia, Finland – Nokian Tyres reported higher sales and a significant improvement in profitability for the first quarter of 2026, supported by pricing actions and lower costs.

Net sales for the three months to end of March period rose 3.8% year-on-year to €279.6 million, or 4.9% at constant currencies, Nokian reported 22 April.

While still in the negative territory, segments operating performance improved 76.6% to a loss of €4.3 million, compared to a loss of €18.5 million reported last year.

Segment earnings (EBITDA), meanwhile, grew sharply from €12.5 million reported in the first quarter of 2025 to €30 million this year.

The Finnish tire maker linked the improvement to “higher passenger car tire prices and lower manufacturing and material costs,” with earnings per share improving to -€0.16 from -€0.27 a year earlier.

According to CEO Paolo Pompei, the performance marked the “fourth consecutive quarter of year-over-year improvement in both sales and operating profit.”

Pompei linked the gains to “disciplined strategy execution [which] is delivering tangible results.”

“Passenger Car Tyres” segment was the main growth driver, with a 9.1% year-on-year growth in net sales in comparable currencies.

“Heavy Tyres”, meanwhile, delivered “a solid and stable performance,” Pompei said.

By segment, Passenger Car Tyres returned to profitability, posting operating profit of €2.6 million compared with a loss of €23.3 million a year earlier.

Heavy Tyres reported operating profit of €8.6 million, up from €7.3 million, while Vianor, the group’s retail arm, remained loss-making with an operating loss of €17.1 million.

Looking ahead, Nokian reiterated its 2026 guidance, expecting net sales to grow and segments operating margin to reach 8–10%.

Pompei said the company is now shifting focus following a period of heavy investment: “With the significant investment phase now behind us, our focus in 2026 and the years ahead is on sustainable, value-driven growth.”

He added that the group aims to improve profitability by more than €200 million by 2029 through “commercial actions and efficiency improvement initiatives.”

However, the Nokian leader noted that “market uncertainty and geopolitical tensions are likely to persist.”

The company said tire demand in its core markets is expected to remain flat in 2026, with risks linked to the global economy as well as “geopolitical, trade and tariff uncertainties, including the ongoing conflict in the Middle East.”