Metso - Pioneer in aggregate processing

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1780

Metso has received an order to supply six pressure filters to Jindal Steel’s iron ore processing plant in Eastern India. The order has been booked in the Minerals segment’s second-quarter 2025 orders received. The value of the order will not be disclosed.

Jindal Steel is one of India’s leading companies specializing in steel production, mining, and infrastructure projects. Jindal Steel has an annual steel production capacity of 9.6 MTPA and a power generation capacity of 1,634 MW. Jindal Steel is committed to creating sustainable value for all its stakeholders. The fully automatic Larox® FFP 3512 filters, which are part of the Metso Plus range, will be installed at the company’s pelletizing plant in Angul, India.

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Here are Aapeli’s preliminary comments as Metso reports its results on Wednesday. :slight_smile:

We expect the company to show fairly stable operational development compared to the reference period, in line with consensus. Similarly, we expect order intake to have continued favorably, in line with the market. The report will also focus on more detailed comments on the market outlook for Crushing and Minerals, as well as updated comments on the direct and indirect effects of US tariffs.

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Second Quarter 2025 in brief

  • Market activity remained at the previous quarter’s level
  • Orders received grew by 6% to a total of EUR 1,234 million (EUR 1,162 million). Aggregates +5% and Minerals +7%
  • Revenue was at the comparison period’s level, i.e., EUR 1,213 million (EUR 1,214 million). Aggregates -3% and Minerals +1%
  • Adjusted EBITA was EUR 171 million, representing 14.1% of revenue (EUR 205 million and 16.9%).
  • Operating profit was EUR 173 million, representing 14.2% of revenue (EUR 195 million and 16.1%)
  • Cash flow from operations was EUR 147 million (EUR 152 million)

Small addition to outlook:

Metso expects market activity to remain at the current level in both the Minerals segment and the Aggregates segment. Turbulence related to tariffs may affect global economic growth and market activity.

In its previously published outlook, Metso expected market activity to remain at the current level in the Minerals segment and the Aggregates segment.

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Here is a company report from Aapeli on Metso after Q2. :slight_smile:

Metso’s Q2 result clearly fell short of our and consensus expectations, as the revenue structure and the implementation of the ERP system update pressured margin development. According to the company, this should still be only a temporary phenomenon. Correspondingly, Metso’s received orders were well in line with our expectations, although they were slightly below market expectations. The company made no changes to its outlook, and reflecting the overall picture, our forecast changes also remained mostly cosmetic. Due to the increasing uncertainty in the operating environment, we lowered our required rate of return for the share, and reflecting this, we are raising our target price to EUR 11.0 (previously EUR 10.0). However, due to the increased valuation driven by the share price increase, we are lowering our recommendation to reduce (previously add).

Quoted from the report:

Cash flow continued to improve

During H1, Metso’s net cash flow from operating activities (incl. lease liability payments) was EUR 260 million (cf. full year 2024: EUR 294 million), supported by a successful organic reduction in inventory levels (acquisitions have reduced the impact). Thus, its operating cash flow continued in the desired direction. Correspondingly, it generated only EUR 76 million in free cash flow (2024: EUR 70 million), which was pressured by the STM acquisition. Reflecting the dividend distribution that occurred in Q2, interest-bearing net debt was growing (Q2’25: EUR 1285 million vs. Q1’25: EUR 1070 million), but the balance sheet ratios remained at a good level (net debt/EBITDA 1.5x, equity ratio 39%)

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Nordea published its updated Metso analysis. The recommendation remains at BUY, the target price rises to EUR 13.00 (previous: EUR 12.00).

Näyttökuva 2025-07-27 kello 20.36.34

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Metso has received an order from a major Australian gold mining operator for a grinding circuit based on innovative and mobile HPGR (High Pressure Grinding Roll) technology. The solution is the first of its kind in Australia. The value of the order, which is not disclosed, has been booked in the Minerals segment’s third quarter 2025 orders received.

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Metso has initiated an evaluation process aimed at reviewing the future of its loading and hauling businesses located in Finland and Sweden. The evaluation process is part of Metso’s goal to focus on businesses whose international reach and financial performance support the company’s growth targets.

As part of this process, Metso’s primary plan is to sell the aforementioned business to an external party. If a suitable buyer is not found, the company will consider discontinuing operations and winding down the business in Finland and Sweden. The business under evaluation employs approximately 110 employees, most of whom are in Finland.

Metso has today initiated negotiations with employee representatives in Finland and Sweden, in accordance with country-specific legislation, to address the planned changes and their potential impacts. All decisions and further actions will be taken only after the negotiations have been concluded.

The loading and hauling business units are located in Kokkola and Kalajoki in Finland, and Luleå in Sweden. The unit manufactures, among other things, truck bodies, buckets, and ground engagement tools for various applications in both the mining and aggregates industries.

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Häggblom didn’t stay part of the company for long. Only bought in 2023 and now a sale is being considered.
Is the sale of this business part of a strategy focusing on core competencies, or is it short-sightedness of the quarterly economy after a soft Q2? October 2nd is Metso’s Capital Markets Day; perhaps then it will be explained in more detail in which direction the new CEO wants to take the company. Until now, the strategy from Vauramo’s time has been followed. The annual report did not specify profitability, but buckets and rock truck bodies presumably cannot be sold with the same margin as more complex process equipment.

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Metso’s service center expansion in Antofagasta, Chile, has been completed, strengthening the company’s ability to meet the growing needs of the mining industry. The expansion area is 1,200 m², bringing the total service area of the center to 4,800 m².

Operating in the La Negra area, at the heart of Chile’s northern mining region, the service center has tripled the number of technical-commercial agreements in recent years. The center has established itself as a significant strategic partner for the country’s leading mining companies. It provides reliable support to customers, improving operational reliability, ensuring business continuity, and achieving cost-effectiveness.

Service Capability for Large Equipment

The expansion introduces new operating models and advanced technological solutions, enabling maintenance procedures for large mining equipment to be carried out more efficiently, safely, and reliably.

With the expansion, the center can repair and refurbish mining customers’ large grinding technology equipment, such as HRC™ and HPGR high-pressure grinding rolls, as well as Vertimill® and HIGmill™ grinding mills. The center also supports concentration and dewatering technologies, such as filter plate maintenance services. In addition, the center offers maintenance services for crushers, mills, screens, and car dumpers for mining wagons.

As part of the expansion, Metso has also installed an overhead crane with a lifting capacity of up to 140 tons, and a precision vertical lathe capable of processing parts with a diameter of up to 5 meters. The crane is one of the largest in South America and, together with the vertical lathe, reduces the need for equipment transportation, speeds up delivery times, and supports local maintenance services.

The Antofagasta service center offers refurbishment, repair, assembly, and parts manufacturing services according to strict OEM standards. The center has paid special attention to quality and safety, achieving significant results: for example, 100 screen repairs have been carried out without a single accident.

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https://news.cision.com/fi/metso-corporation/r/metso-toimittaa-energiatehokkaaseen-hpgr-teknologiaan-perustuvat-prosessilaitteet-rautamalmi--ja-kup,c4227394

Metso has received a comprehensive process equipment order from Fortress Minerals Inc. for the Bukit Besi iron ore project and the Mengapur copper project in Malaysia. The value of the order, which is not disclosed, has been booked in Minerals segment’s Q3 2025 orders received.

The delivery includes two Metso HRCTM HPGR (High Pressure Grinding Roll) crushers, enabling energy-efficient grinding. The order also includes Vertimill® and SMD mills, TankCell® flotation cells, screens, MD and slurry pumps, and MHCTM cyclones. Most of the equipment belongs to the Metso Plus offering.

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Metso has inaugurated its Circored™ pre-reduction pilot plant in Frankfurt, Germany. The investment reflects Metso’s commitment to advancing low-carbon technologies and supporting the global transition to fossil-free steelmaking.

The Circored™ pilot plant, which is based on Metso’s proprietary technology, enables continuous pre-reduction using hydrogen as the sole reducing agent. It integrates pre-heating, reduction, gas cleaning, and recirculation systems for hydrogen and dust, and features electric heaters to support nearly zero-carbon operation.

In the CircoredTM pilot plant, a wide range of iron ore types can be tested, providing process data for engineering future commercial-scale plants. It also helps define the operating window for different ore qualities.

The CircoredTM direct reduction process can be integrated with Metso’s DRI Smelting Furnace or other smelting technologies. Both CircoredTM and DRI Smelting Furnace technologies are part of the Metso Plus offering.

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Jussi Halme has made a video about Metso. :slight_smile:

Metso is among the top engineering companies on the Helsinki Stock Exchange – a company whose technology plays a key role in the mining, processing, and recycling of minerals and aggregates worldwide.

The first half of 2025 brought increasing orders, but also challenges in profitability. Why did the service business falter? What does the implementation of the ERP system mean for investors? And what opportunities do Metso’s acquisitions and new investments open up in the long term?

In this video, I go through Metso’s latest figures, analyze the risks and growth prospects, and consider what investors should take into account when evaluating the company’s stock.

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Metso’s Head of Investor Relations Juha Rouhiainen was talking about the company as an investment. :slight_smile:

Topics: 00:00 Metso as an investment 14:24 Q&A

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Metso has signed an agreement to acquire the Australian company Q&R Industrial Hoses. The company is privately owned and specializes in rubber seals for pinch valves, rubber slurry handling hoses, and other rubber products and linings.

This acquisition is the next step in Metso’s goal to offer customers solutions and services covering the entire value chain for slurry handling. Following the acquisition of Jindex Pty Ltd’s valve and process control offering in 2024, the acquisition of Q&R further strengthens Metso’s offering.

The acquisition is expected to be completed in the fourth quarter of 2025. The parties have agreed not to disclose the purchase price, and it will not have a material impact on Metso’s financial results.

Metso supplies comprehensive solutions for slurry handling, including equipment, spare parts, and optimization and maintenance services. The equipment offering covers slurry pumps, pipes, special durable hoses for slurry transportation, valves, and hydrocyclones. In recent years, Metso has globalized its supply chain for slurry handling solutions and has an extensive network of manufacturing and service centers close to key mining markets.

About Q&R Industrial Hoses

Founded in 1976, Q&R Industrial Hoses is Australia’s oldest locally owned manufacturer of durable slurry handling hoses. The company supplies custom rubber hoses, expansion joints, and pinch valves worldwide. Its production facility is located in Sydney, Australia, and it employs 22 people.

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Metso has received a significant order from Western Australia to replace a customer’s mine railcar dumpers with a new solution. This order is a continuation of a long-term collaboration; Metso has been the main supplier of wagon dumpers to the customer located in the Pilbara region since 2002.

The solution will replace the current wagon dumpers, which are at the end of their service life. The order includes design, delivery, and technical support for the installation and commissioning of the replacement units. The updated wagon dumper consists of a new cell series and the modernization of rotating components and modern solutions.

The value of the order is approximately 16 million euros, and it has been booked in the Minerals segment’s orders received for the third quarter of 2025.

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Metso has received several orders for concentrate and tailings filtration solutions. Most of the orders concern filter modernizations and upgrades. Additionally, the order intake includes a comprehensive replacement solution for HRT High Rate thickeners, which incorporates the latest Reactorwell™ and Thickener Vane Feedwell™ feed technologies, part of the Metso Plus portfolio. The total value of the orders is approximately 10 million euros, and they have been booked in the Minerals segment’s third quarter 2025 orders. Since the beginning of the year, orders related to concentrate and tailings modernizations have accumulated to a total value of approximately 60 million euros.

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CMD:n (2.10.2025) Metso Updates Strategy / Financial Targets

Metso’s new strategy, “We go beyond.”, is based on business growth and improved profitability, customer centricity, market leadership, and growing aftermarket business. There are four strategic objectives: best customer experience, higher share of aftermarket revenue, pioneering in occupational safety and sustainability, and financial excellence.

New targets for growth and profitability

Metso’s financial targets, approved in connection with the strategy, include a new revenue growth target and a higher profitability target than before. These targets are intended to be achieved by the end of 2028:

  • Annual revenue growth (CAGR) of at least 7% (new target)

  • Adjusted EBITA margin over 18% (previously over 17% over the cycle)

  • Net debt to EBITDA ratio below 1.5 (new target, replaces the previous target of maintaining an Investment Grade credit rating)

  • Annual dividend of at least 50% of earnings per share (no change)

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Here are also Aapeli Pursimo’s comments on Metso’s updated strategy and new financial targets. :slight_smile:

Metso announced this morning its updated strategy for 2026–2030 and new financial targets, which are set to be achieved by the end of 2028. The new targets are more ambitious than before and include a new revenue growth target as well as a higher profitability target than before. The company will elaborate on its strategy and targets at its Capital Markets Day on October 2, 2025.

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Minérios Itaúna Ltda (Minerita) has selected Metso crushing and grinding equipment for its Compact iron ore project in Itatiaiuçu, Brazil. The concentrator aims to produce 4.5 million tons of high-quality pellet feed annually.

The energy-efficient crushing and grinding circuit for the first phase of the concentrator will process dense itabirite iron ore with a combination of a jaw crusher, a cone crusher, an HRC™e HPGR, and a ball mill. Regrinding will be performed by two Vertimill® mills. The order for the Vertimill® mills has been booked in the Minerals segment’s Q3 2025 orders received, and the orders for other equipment in the Q1 2025 orders received. The value of the orders will not be disclosed.

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Greetings to the Metso thread. Metso held a Capital Markets Day yesterday, and its recording can be viewed here, and the presentations alone can be found at least here. There have also been questions here at some point regarding Metso’s market shares/positions in different parts of its offering, and answers regarding market position can be found from yesterday (regional market shares for Aggregates are also available, for Minerals only the position). I’ve been quite sick lately, so my mind is moving even slower than usual, thus more detailed and comprehensive comments on the CMD will exceptionally be coming only on Monday.

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