Nokian Tyres raises operating margin outlook to 9–10% after third-quarter profit rises 45.3%
Key Facts
Nokian Tyres raised its 2026 segment operating profit margin outlook to the upper end of the 9–10% range after reporting a 45.3% year-on-year increase in the third quarter to 47.0 million euros. In its interim report for January to September, the company said quarterly sales were 359.1 million euros, up 4.4% from the same period in 2025. Sales growth was 2.9% on a comparable-currency basis. The outlook update came as the company continued to expect annual net sales growth, while its previous guidance had kept the operating margin range at 8–10%. The results reflect profits rising faster than sales during the quarter, according to the figures reported by the company.
Operating profit was 37.9 million euros in the third quarter, compared with 21.8 million euros a year earlier, an increase of 73.5%. Earnings per share rose to 0.17 euros from 0.04 euros in the third quarter of 2025. Chief Executive Paolo Pompeii said, "Operating profit rose 73%, and earnings per share turned positive year to date for the first time since 2021." The statement places the quarter's improvement in the context of the nine-month period, rather than the quarter's results alone. Cash flow from operating activities also improved by 21.6 million euros year on year, but remained negative at 59.0 million euros, compared with negative 80.6 million euros in the corresponding period.
For the first nine months, sales rose 6.4% to 1,018.7 million euros from 957.3 million euros in the same period of 2025. Segment operating profit increased to 87.7 million euros from 40.2 million euros, a rise of 118.2%. The figures show profitability improving more broadly through the year to the end of September, compared with the pace of sales growth. Second-quarter results had shown sales of 379.9 million euros, up 10.6% year on year, and segment operating profit of 45.0 million euros, compared with 26.3 million euros. Earnings per share in that quarter were 0.14 euros, compared with zero in the corresponding period of 2025.
The company attributed the increase in third-quarter segment operating profit to price repositioning and lower manufacturing and material costs. The Passenger Car Tyres segment led the improvement, with sales rising 5.6% to 247.1 million euros and operating profit reaching 50.8 million euros, for a margin of 20.5%. In the Heavy Tyres segment, sales rose 2.4% to 56.7 million euros, while operating profit increased to 8.7 million euros from 5.0 million euros, and the margin was 15.3%. Management said the Hakkapeliitta 01 and Snowproof 3P winter tyre innovations became available to consumers in their target markets during the quarter. The company presented this as supporting its premium product mix.
Nokian Tyres expects tyre demand in its markets to remain stable in 2026, but said global economic developments, geopolitical and trade disruptions, and uncertainty over tariffs add volatility to its business environment. In its updated guidance, the company maintained its expectation of net sales growth from the previous year and raised its segment operating profit margin range from 8–10% to the upper half of the 9–10% range. This follows nine-month results showing segment operating profit more than doubling from a year earlier. The company is scheduled to publish its 2026 financial results on 9 February 2027, the next date on its financial reporting calendar.