Metso - Pioneer in aggregate processing

Here is Aapeli’s company preview report, as Metso releases its Q4 results on Thursday. :slight_smile:

We have raised our forecasts for Minerals for the coming years, reflecting recent order announcements, and we estimate that the positive momentum will continue, driven by the current strong state of the metals market. We also expect this to support the company’s longer-term growth and margin potential through the growth of the service business. With the strong earnings growth outlook for the coming years, we are ready to place more weight on the longer-term potential in our assessment; reflecting this, we are raising our target price to EUR 16.0 (prev. EUR 12.5). However, given the sharp rise in the share price and valuation, we see the expected return for the coming years relying on a dividend yield that has fallen to a rather low level, which is why we reiterate our Reduce recommendation.

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A good and pretty much expected result. Good to continue from here :slight_smile:

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Aapeli has written a company report on Metso following Q4. :slight_smile:

Metso’s Q4 result was in line with both our and consensus expectations. The result was supported by revenue development that exceeded forecasts, while the margin relative to expectations was weighed down by a rather equipment-heavy sales mix. In contrast, the company’s order intake fell short of our high expectations. The company made no changes to its outlook, and we believe the demand situation can be expected to remain good. Based on the report, we made only minor revisions to our forecasts. Consequently, we see the return expectation for the coming years still relying too heavily on a moderate dividend yield. Thus, we reiterate our Reduce recommendation for the share and our target price of 16 euros.

Quoted from the report:

..In our assessment, the most significant drivers in Minerals continue to be gold and copper projects in particular. Development has also been positive in Aggregates regarding equipment orders, driven especially by the normalization of the situation in North America and a pick-up in European demand, although demand on the services side is still more moderate.

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Metso will supply several Vertimill® 4500 grinding mills for a direct reduction (DR) grade iron ore production plant. The value of the order is over EUR 10 million, and it has been booked in the Minerals segment’s first-quarter 2026 orders received.

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Metso and Loesche GmbH have entered into a partnership agreement to bring the revolutionary Metso Loesche VRM dry grinding technology for minerals processing to the market. The partnership combines Metso’s expertise in comprehensive and sustainable minerals processing and service solutions with Loesche’s Vertical Roller Mill technology. This innovative technology, based on a new type of process, improves the efficiency of minerals processing.

Detailed information about Metso Loesche VRM dry grinding technology

Metso Loesche VRM dry grinding technology is part of the Metso Plus product portfolio. At its best, it can replace and simplify traditional primary and secondary grinding. VRM technology is also suitable for the particle size range required in tertiary grinding. Dry grinding simplifies the comminution circuit and brings savings in energy consumption and operating costs. The technology can also be combined with coarse particle flotation or magnetic separation, which reduces or even eliminates water consumption entirely, if a completely dry process is feasible at the site.

The wear parts for the Metso Loesche VRM are manufactured from advanced materials that resist wear and ensure high availability. Integrated process control ensures optimal operation with easy start-up and shut-down functions and a fast transition to production.

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Metso is launching a revamped portfolio of digital services for its aggregates customers, bringing together digital solutions into one integrated whole. The new offering improves machine uptime, boosts production performance, and eases the daily work of both customers and distributors.

The unified digital portfolio is designed to solve customers’ operational challenges and consists of three components: AI-powered Predictive Maintenance, Production Performance, and the MyMetso service. Together, they enable real-time data to support decision-making, remote machine monitoring, and data-driven recommendations that support safer, more resource-efficient, and more productive aggregates operations.

AI-powered predictive maintenance reduces unplanned downtime

The new AI-powered predictive maintenance service helps customers avoid unplanned downtime by identifying early signs of equipment failure before they cause disruptions.

Key benefits:

  • Higher uptime: Early detection of anomalies and prevention of unexpected stops.

  • Avoiding major failures: Reducing the risk of long periods of downtime.

  • Right parts available at the right time: Advance information on the parts that will be needed.

  • Predictive maintenance: Moving from reactive to planned maintenance actions.

The service analyzes real-time data from the machines and combines it with Metso’s strong equipment expertise and aggregates knowledge, providing reliable recommendations directly through the MyMetso service. Predictive recommendations are immediately available for all new machines connected to the Metso Metrics service. Retrofit kits are available for connecting older machines.

Production performance enhancement increases output and improves visibility into the production process

Metso’s new subscription-based production performance service optimizes production volumes and improves the machine operator’s visibility into the crushing process at all its stages. Production performance services aimed at contractors are part of the Metso Plus offering.

Key benefits:

  • Higher production volume: Adaptive Feed Control (AFC) minimizes idling and keeps crushers at an optimal load in multi-unit mobile crushing processes.

  • Improved visibility for the machine operator: Load and level data for the entire plant can be seen directly in the cabin of the excavator or wheel loader.

  • Lower safety risks: Remote management, wireless interlocks, and camera views.

  • Lower fuel consumption and CO2 emissions per ton: Lower idling and more stable operation reduce energy consumption.

According to field measurement results, adaptive feed control improves productivity by up to 5–15% depending on the application. Metso’s patented control software continuously optimizes the process throughout the entire crushing chain.

MyMetso service enables easy and flexible business interactions

The MyMetso service provides Metso’s aggregates distributors and customers with a centralized view of digital services, equipment data, and support services. The service’s functionalities are tailored according to user roles, so users see the information relevant to their daily work.

Key features:

  • Everything in one place: Part information, machine data, maintenance recommendations, fleet tracking, and support tools.

  • Right parts faster: Metso’s own equipment documentation guarantees accuracy.

  • Available 24/7 on any device.

  • Faster troubleshooting: Direct access to machine data and maintenance instructions.

The MyMetso service improves the smoothness of business interactions and supports the growth of customer and distributor businesses through improved visibility, faster quoting, and proactive customer support.

Metso will supply crushing and grinding equipment for Artemis Gold’s Blackwater gold mine expansion project in British Columbia, Canada. The value of the orders is over 39 million euros. Of this, approximately 16 million euros has been booked in the Minerals segment’s orders received for the second half of 2025, and approximately 23 million euros will be booked in the first quarter of 2026.

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Sijoituskästi has made a video of just over 2.5 minutes about Metso. :slight_smile:

https://x.com/STNXfi/status/2029995871123767503


Link for those without X:
https://twitter-thread.com/t/2029995871123767503

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The innovative Life Cycle Services (LCS) solution for pump availability launched by Metso in the fall of 2025 has received a positive reception from customers. Since the launch of the new service concept, Metso has signed several small and medium-sized multi-year service agreements in key market areas in Europe, Asia-Pacific, and the Americas. In February, Metso signed two five-year agreements covering maintenance services for over 100 slurry pumps for mining industry customers.

Metso’s performance-based life cycle service improves pump availability, extends the service life of wear parts, increases safety, and reduces the cost of ownership through long-term partnership.

The value of the combined orders is not disclosed. Service agreements can be worth several million euros depending on the scope and duration of the contract.

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An advertisement video on the AI company Palantir’s channel about the company’s cooperation with Metso. Duration 3 min.

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Metso has signed a significant agreement with Southern Peru Copper Corporation to supply copper solvent extraction and electrowinning (SX-EW) technology for their Tia Maria project in Cocachacra, Islay Province, Arequipa Region, Peru. Southern Peru Copper Corporation is one of the world’s largest copper producers. The new plant will produce approximately 120,000 tonnes of LME Grade A copper cathodes annually. The order, valued at 100 million euros, has been booked in the Minerals segment’s Q1 2026 orders received.

Metso’s delivery includes the main process equipment for the VSF® solvent extraction plant and electrowinning, including Dual Media filters, a robotic cathode stripping machine, and an acid mist collection system to minimize environmental impact. Metso has been responsible for the basic engineering of the project. The delivery also includes installation and commissioning supervision and related spare parts.

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Here’s Aapeli’s comments on Metso’s order from Peru :slight_smile:

Metso announced on Monday that it had received a significant contract worth EUR 100 million to supply copper processing technology to Peru. This order is a continuation of the large orders realized in recent months and strengthens our confidence in the order development of the company’s Minerals segment. The announcement does not create an immediate need for forecast changes, as our forecasts already include assumptions about the realization of larger project orders.

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Metso to supply advanced filtration technology for three iron ore concentrate filtration plants to Lloyds Metals & Energy Limited in Maharashtra, India. The value of the order, which is not disclosed, has been booked in the Minerals segment’s first quarter 2026 orders received.

Lloyds Metals & Energy is a mining and metals company with integrated operations covering mining, sponge iron (DRI) production and steel manufacturing. The company has a significant sponge iron and steel production facility in Chandrapur. The company is expanding its production facilities in various locations, while simultaneously implementing ten fully automatic Metso Larox® FFP 3512 filters.

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