Half-Year Report H1/2023

Figures in brackets refer to the corresponding period in 2022, unless otherwise stated.

Second-quarter 2023 in brief

• Healthy market activity in the mining industry, while the aggregates market was softer
• Orders received declined -13% and amounted to EUR 1,398 million (EUR 1,610 million)
• Sales grew 15% to EUR 1,483 million (EUR 1,295 million)
• Adjusted EBITA increased 59% to EUR 246 million, or 16.6% of sales (EUR 155 million, or 12.0%)
• Operating profit increased to EUR 230 million, or 15.5% of sales (EUR -13 million, or -1.0%)
• Cash flow from operations was EUR 62 million (EUR 15 million)

January–June 2023 in brief

• Orders received declined -3% to EUR 2,931 million (EUR 3,034 million)
• Sales grew 18% to EUR 2,901 million (EUR 2,459 million)
• Adjusted EBITA increased 48% to EUR 461 million, or 15.9% of sales (EUR 312 million, or 12.7%)
• Operating profit was EUR 426 million, or 14.7% of sales (EUR 127 million, or 5.1%)
• Earnings per share were EUR 0.34 (EUR 0.08) and for continuing operations EUR 0.35 (EUR 0.08)
• Cash flow from operations was EUR 173 million (EUR 89 million)

President and CEO Pekka Vauramo:

We performed well in the second quarter with the Group's profitability reaching its highest level to date, driven by a continued improvement in the Minerals segment and solid performances in Aggregates and Metals. In addition, we made good progress in several key areas, such as launching new solutions for battery metals processing and investing in our capacity around the world.

The market activity remained in line with expectations and was healthy in the mining market yet softer in the aggregates market, especially in Europe. As a result of a high year-on-year comparison in the Minerals equipment business and the softness in Aggregates, our orders received came in lower year-on-year. In Minerals services, orders for spare parts and consumables grew at a healthy rate compared to a year ago, while there were fewer orders for upgrades and modernizations, mostly due to timing.

The 15% sales growth was the result of all segments efficiently delivering their backlogs. The volume growth, coupled with the successful price and cost management and overall solid execution, increased our adjusted EBITA to EUR 246 million and the adjusted EBITA margin to a record of 16.6%. The Minerals segment reported strong margin growth, with adjusted EBITA reaching 18.1% as a result of improved performance in both the equipment and services business. The Aggregates and Metals segments also continued to show strong profitability of 17.0% and 12.2% adjusted EBITA margins, respectively.

Sales of our Planet Positive products grew 43% to almost EUR 1.5 billion during the last 12 months, and there is strong demand for these products that drive more sustainable minerals processing. In other focus areas, we have seen continuous positive development, such as high personnel engagement and inclusion scores and a reduction in our carbon footprint.

During the quarter, we continued to advance in several key areas designed to strengthen our position in the markets and our capabilities to drive customer success. For example, we launched an advanced battery black mass recycling process, as a result of which our offering for battery minerals production covers 90% of the process. We also signed partnerships as a technology supplier for feasibility studies and pilot plants related to the production of battery minerals and rare earth ores in various countries.

Looking ahead, we see energy transition and electrification advancing, which will support our business in the coming years. Our full focus will be on capitalizing on these opportunities and further improving our performance.     

Market outlook

According to the company's disclosure policy, Metso’s market outlook describes the expected sequential development of market activity during the following six-month period using three categories: improve, remain at the current level, or decline.

Metso expects the market activity to remain at the current level in Minerals and to slightly decline in Aggregates.

In its previously published outlook, Metso expected the overall market activity to remain at the current level, including normal seasonality in the aggregates market.

Key figures

*Figures for the comparison periods include a EUR 150 million non-recurring charge related to the wind-down of business in Russia that was booked in Q2/2022.

Audiocast and conference call details

President and CEO Pekka Vauramo and CFO Eeva Sipilä will present the results in an audiocast and a conference call for analysts and investors today at 1:00 p.m. EEST.  

The audiocast can be followed at http://metso-outotec.videosync.fi/q2-2023-result

A recording and a transcript will be available on this webpage after the event has finished.    

Conference call participants are requested to register on the link below. 

http://palvelu.flik.fi/teleconference/?id=10010590

Further information, please contact:  

Juha Rouhiainen, Vice President, Investor Relations, Metso Corporation, tel. +358 20 484 3253, email: juha.rouhiainen(a)chevrolet-cruze.com