Metso - Pioneer in aggregate processing

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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Analyst’s comments after Metso’s Capital Markets Day. :backhand_index_pointing_down:

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Metso plans changes to its operating model and other efficiency measures in parts of its Minerals business area to more effectively support the development of growth and profitability. The measures aim for annual savings of 13 million euros.

Metso is initiating change negotiations in accordance with the Act on Co-operation within Undertakings, which concern parts of the Minerals business area’s digital and equipment business. The plan includes developing operating models and other efficiency-enhancing measures, as well as permanent personnel reductions.

The estimated number of personnel reductions is approximately 95 positions globally. Of these, a maximum of 55 are in Finland. Final decisions on the measures will be made once the negotiations have been concluded in accordance with the local legislation of each country.

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Metso has opened a new, state-of-the-art flotation technology laboratory at its Pori research center. The laboratory expands services offered to mining industry customers and supports Metso’s strategy as a global partner in advanced flotation and beneficiation solutions.

The latest flotation technology at the Pori research center is represented by a new type of coarse flotation machine, which enables the recovery of coarse particles without fluidized bed technology. The technology is intended to be brought to market after industrial-scale testing in 2026.

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Nordea published its updated Metso analysis. The target price rises to EUR 14.00 (previous: EUR 13.00), the recommendation remains at BUY. :backhand_index_pointing_down:

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Here are also Aapeli’s preliminary comments, as Metso announces its Q3 results on Thursday. :slight_smile:

We expect the company’s margins to have returned to more normal levels after a weaker previous quarter, and this also to have driven moderate earnings growth for the company compared to the reference period. We also forecast the company’s order intake to have seen slight growth. On the report, our focus will naturally be on more detailed market comments, but we do not expect any other significant news after the recently held CMD.

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Results published: Osavuosikatsaus tammi-syyskuulta 2025 - Metso

Third quarter 2025 in brief

  • Market activity remained at the previous quarter’s level

  • Orders received grew by 2% and amounted to a total of EUR 1,264 million (EUR 1,237 million). Aggregates +8% and Minerals +1%

  • Revenue grew by 10% to EUR 1,328 million (EUR 1,211 million). Aggregates +9% and Minerals +10%

  • Adjusted EBITA was EUR 222 million, or 16.7% of revenue (EUR 204 million and 16.8%)

  • Operating profit was EUR 205 million, or 15.5% of revenue (EUR 185 million and 15.3%)

  • Cash flow from operations was EUR 266 million (EUR -19 million)

  • New strategy and financial targets were published in September

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Nordea published its updated Metso analysis following the Q3 results. The target price rises to 15.00 euros (previous: 14.00 €), the recommendation remains at BUY level. :backhand_index_pointing_down:

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