“Despite lower volumes and net sales in Vehicle Contract Manufacturing and Roof & Kinematic Systems business areas, the manufacturing operations were successfully executed during the year. Quality and delivery performance remained at a high level. In 2024, several activities and functions were reorganized, improving the cost efficiency of the Group. I warmly thank all Valmet Automotive employees for their commitment during this action-packed year.
In the turbulence of the automotive industry, we have initiated a strategic review for expanding Valmet Automotive’s business operations to new industries. Leveraging our decades of experience in industrial serial production, we believe our in-depth expertise can be effectively applied to a variety of industries, including contract manufacturing of defence supplies. Moreover, we continue to promote clean energy transition through IONCOR, our subsidiary that focuses on battery systems,” says Pasi Rannus, CEO, Valmet Automotive.
Financial performance
During the financial year 2024, the Group’s gross sales grew by 2.4% to EUR 2,275.5 (2,221.4) million. Net sales were EUR 511.4 (531.2) million, 3.7% lower than the previous year. In the Vehicle Contract Manufacturing (VCM) and Roof & Kinematic Systems (RKS) business areas, gross and net sales decreased due to lower volumes, while IONCOR experienced significant growth in gross and net sales as a result of volume increases of existing programs.
Comparable operating profit, excluding items affecting comparability, amounted to EUR -17.7 (26.5) million, or -3.5% (5.0%) of net sales. Comparable operating profit was burdened by higher depreciation as well as decreased production volume and unfavorable sales mix in the VCM business area. The comparable operating profit in other business areas was at break-even level or slightly positive.
Items affecting comparability amounted to EUR -61.2 (-7.0) million, and the Group’s reported operating profit amounted to EUR -78.8 (19.5) million, or -15.4% (3.7%) of net sales. Items affecting comparability included general restructuring measures in all business areas and a sizable write-down of one major contract asset as a result of a mutual separation agreement with one customer.
Investments, cash flow, and financing
Investments focused mainly on development projects as well as replacement, productivity, and flexibility investments in all business areas. The Group’s cash flow after investments amounted to EUR 29.5 (-49.7) million, partly driven by lower investment-related cash outflows. Cash flow from operations before net working capital remained clearly positive, although lower than the previous year. However, a favorable net working capital change more than compensated for the lower profitability.
Valmet Automotive has a four-year EUR 100 million working capital financing facility that will mature at the end of 2025. The Group continued to explore financing options during the financial year.
Key events in business areas
In 2024, Valmet Automotive continued to increase the independent role of its business areas to strengthen their competitive position. As a response to declining European automotive industry, lower volumes, and order book, all business areas took necessary measures to adjust their operations across various locations.
Valmet Automotive appointed new leadership to its Electric Vehicle Systems business line (EVS), which was renamed IONCOR in September. As part of its strategic entry to non-automotive segments, IONCOR also introduced the Energy Pack battery system concept. The Energy Pack concept provides a compact, scalable, and cost-effective solution for electrifying trucks, buses, and off-highway vehicles.
In the RKS business area, the year was characterized by several production launches. In addition, the expansion of the production plant in Zary, Poland, started, with the first production lines expected to be ready during 2025.
Sustainability
Valmet Automotive’s sustainability strategy aims to ensure a resilient and profitable business while upholding integrity, dignity and respect for planetary boundaries.
Turning strategy into action, the Group has successfully reduced CO₂ emissions from its own operations by more than 90% since 2020. Looking ahead, Valmet Automotive is future-proofing its operations with science-based climate targets (SBTs) in its own and value chain emissions by 2030.
The Group’s standalone 2024 Sustainability Report marks a shift from the Global Reporting Initiative (GRI) framework towards the European Sustainability Reporting Standards (ESRS), reflecting growing regulatory expectations and stakeholder demand for transparent, robust sustainability performance.
Financial statements
The company prepares its financial statements in accordance with International Financial Reporting Standards (IFRS).
*Gross sales are presented as an alternative performance measure. It is defined as total (gross) sales including both net sales and sales of customer-directed materials and parts. Customer-directed materials and parts are materials that are purchased from the principal or from suppliers selected by the principal at prices negotiated by the principal.
SOURCE: Valmet Automotive
