Neles is a leading valve and valve automation company with strong market positions, above-market growth and resilient business model with strong profitability over cycles. It targets value creation for all its stakeholders.

Key facts

Leading flow control solutions 

Solid balance sheet

Experienced management team

Neles published its Q3 review on October 28

Determining the acquisition cost of Neles and Metso Outotec shares in Finnish income taxation

Neles as an investment

Reinventing reliability. Neles is a leading best-in-class valve and valve automation company.

As a result of the demerger of Metso Corporation, Metso was renamed as Neles, which is a globally recognized valve and valve automation company and brand with highly attractive market positions.

Neles continues to be listed on Nasdaq Helsinki with the trading symbol ‘NELES’.

Neles targets to create value for its shareholders as an independent entity through its:

  • Leading position as a flow control solution provider with market leadership across pulp & paper valves and downstream oil & gas valves
  • Continued growth in existing and new industries – both organically and through selected acquisitions  
  • Focus on R&D and sustainability development
  • Continued outperformance in market growth with strong profitability while investing in growth
  • Proven track record and resilient business through economic cycles
  • Diversified sales mix by region, customer and industry
  • Focused, dedicated and experienced management to leverage further growth opportunities
  • Solid balance sheet and financial position

We expect the market activity in Pulp and Paper projects to continue at a good level.

Market activity in Oil and Gas projects is expected to continue to decline from the good level in the first half of the year, due to general economic concerns. Postponements and global uncertainties are reducing visibility in the Oil and Gas project business.

Market activity for Services and the customer Maintenance, Repair and Operations-driven (MRO) businesses is expected to gradually improve from the suppressed levels during the reporting period, because customers’ operations are resuming to a more normal level. Large shutdowns are still being postponed due to the Covid-19 pandemic situation and customers’ tightening cash management actions.

The ongoing Covid-19 pandemic continues to create uncertainties and risks of abrupt changes in all markets.

Financial targets

The mid-term financial targets derived from the strategy for the future Neles Corporation are:

  • Orders received of more than EUR 1 billion around 2025
  • Annual organic growth ambition of at least 5%
  • EBITA margin of at least 15%, while investing in growth
  • Maintaining a strong balance sheet (net debt/EBITDA less than 2.5), while investing in growth
  • Dividend payout of approx. 40% of net earnings (excluding PPA amortization related to acquisitions)

Neles’ strategic targets are mid-term ambitions and should not be viewed as guidance for the near-term performance of Neles as the current Covid-19 pandemic will adversely impact the Neles’ business in the short-term, as disclosed in Metso’s Q1 interim report on May 7, 2020. 

Investor contact

For more information on Neles Corporation, please contact:

Ms Rita Uotila

Vice President, Investor Relations

Tel: +358 400 954 141

Email: rita.uotila@neles.com

 

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