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Metso (OTCPK:OUKP.Y) 2025 Capital Markets Day Transcript
2025-10-02 12:02

Summary of Metso's Capital Markets Day 2025 Company Overview - Company: Metso (OTCPK:OUKP.Y) - Event: Capital Markets Day 2025 - Date: October 02, 2025 - Location: Helsinki, Finland Key Points Industry and Market Context - The Aggregates and Minerals segments are the primary focus areas for Metso, with expectations of 4% market growth in both segments [32][34]. - The company has experienced stagnation and some decline in sales over the last six quarters, attributed to external factors like COVID-19 and exiting the Russian market, which represented about 10% of its business [34]. Strategic Objectives - Metso's new strategy is titled "We Go Beyond," focusing on growth, excellence, and becoming the number one in the market [11][12]. - The strategy emphasizes customer experience, aftermarket intensity, and sustainability as core components [12][25]. - Four strategic objectives for the period include: 1. Best in customer experience 2. Front runner in safety and sustainability 3. Higher aftermarket share 4. Financial performance excellence [12]. Financial Targets - Metso has set a 7% annual sales growth target by 2028, with 5-6% expected from organic growth and 1-2% from bolt-on M&A [33]. - The adjusted EBITDA margin target has been revised from 17% to 18% by 2028 [34]. - The company aims to maintain a net debt to EBITDA ratio below 1.5 and continue paying dividends of at least 50% of earnings per share [39][41]. Operational Insights - Metso has a strong focus on aftermarket services, which are expected to drive growth and profitability [18][20]. - The company has invested in expanding its service network and enhancing customer proximity, which is critical for maintaining competitive advantage [18][42]. - There is a commitment to sustainability, with a target to reduce CO2 emissions by 72% from the 2019 baseline and a focus on energy-efficient solutions [26][27]. Challenges and Opportunities - The company acknowledges a global shortage of skilled workforce in the mining and aggregates sectors, which increases demand for OEMs like Metso [18]. - Metso is looking to optimize its working capital, particularly inventory management, which currently stands at $1.8 billion, representing 38% of revenues [65][66]. - The company is exploring M&A opportunities in areas where it does not currently hold a leading position but sees potential for growth [43]. Cultural and Organizational Changes - Metso emphasizes the importance of a customer-centric culture and has involved over 150 employees in developing the new strategy [10][21]. - The company aims to foster a fast and fearless mindset to adapt to rapidly changing market conditions [23]. Conclusion - Metso is positioned to leverage its strengths in the aggregates and minerals sectors while addressing challenges through strategic growth initiatives, operational excellence, and a commitment to sustainability. The focus on aftermarket services and customer experience is expected to drive future profitability and shareholder value [30][45].