Nokian Tyres reports solid performance for 2025
Nokia, Finland – Nokian Tyres plc reported solid financial performance for the full year 2025, with profitability improvements continuing into the fourth quarter, the Finnish tire maker said in its Financial Statement Release published on February 10. Net sales for 2025 rose to €1,373.6 million from €1,289.8 million the previous year, reflecting a 7.2 % increase on a constant currency basis supported by growth across all geographic regions. Segments operating profit climbed 28 % to €91.3 million, driven largely by higher passenger car tire prices and increased sales volume, while overall operating profit improved significantly to €35.8 million compared with just €1.8 million in 2024. Cash flow from operating activities also strengthened, reaching €146.2 million versus €77.4 million a year earlier.
In the final quarter of 2025, net sales were almost flat at €416.4 million, up slightly from €415.0 million in the same period of 2024, with growth in North America and the Nordic region. Segment operating profit for October–December rose sharply by 42.3 % to €51.1 million, while operating profit more than doubled to €35.1 million. Earnings per share for the quarter were €0.12 compared with €0.04 a year earlier, and operating cash flow remained robust.
The company highlighted that the fourth quarter marked its best quarter in three years, a turnaround driven by pricing power in passenger car tires and lower material costs. Nokian Tyres also noted progress in expanding its production platform, including the Romanian factory ramp-up, which contributed to improved operational efficiency. The Heavy Tyres segment, however, continued to face soft market conditions.
Paolo Pompei, who started as President and CEO on January 1, 2025, described the year as one of “strong improvement” despite a challenging operating environment and weak overall market demand. Nokian pointed to strict cost discipline, optimized product and price mix, and better working capital management as key factors in enhancing its financial performance.
Looking ahead to 2026, the company expects net sales to grow compared with 2025 and forecasts its segments operating profit as a percentage of net sales to be in the range of 8 %–10 %. The release also noted that tire demand across its markets is anticipated to remain flat, with global economic, geopolitical and trade uncertainties potentially causing volatility in the business environment. Nonetheless, Nokian plans to build on the momentum with a focus on profitable growth, new premium products and strengthened brand positioning to deliver value to consumers.
Analysts have also observed the company’s improved performance cited in other recent reporting, characterizing 2025 as a potential turning point for the firm, with price increases and higher volumes bolstering earnings while the business navigates broader market challenges.