Neste Corporation, Interim Report, 29 October 2025 at 9 a.m. (EET)
Performance improvement actions and recovering market environment supporting results
Third quarter in brief:
- Comparable EBITDA totaled EUR 531 (293) million
- EBITDA totaled EUR 447 (301) million
- Renewable Products' comparable sales margin was USD 480 (341)/ton
- Oil Products' total refining margin was USD 15.5 (10.6)/bbl
- Cash flow before financing activities was EUR -50 (16) million
January-September in brief:
- Comparable EBITDA totaled EUR 1,083 (1,084) million
- EBITDA totaled EUR 893 (861) million
- Cash flow before financing activities was EUR -49 (-803) million
- Cash-out investments were EUR 679 (1,245) million
- Leverage ratio was 38.0% at the end of September (31.12.2024: 36.1%)
- Comparable earnings per share: EUR 0.25 (0.30)
- Earnings per share: EUR 0.04 (0.05)
Figures in parentheses refer to the corresponding period for 2024, unless otherwise stated.
President and CEO Heikki Malinen:
"We delivered improved results in the third quarter, underpinned by the successful continuation of our performance improvement program and reliable, safe operations. The market environment in Europe strengthened, with increased demand for our products. Middle distillate prices rose from the second quarter levels and had a positive impact on our result. Furthermore, we observed supportive developments in biofuel regulation across several key markets, reinforcing the long-term structural demand for renewables.
Our comparable EBITDA in the third quarter reached EUR 531 (293) million. With our performance improvement program, we achieved EUR 229 million EBITDA run rate annualized impact by the end of the third quarter. Higher inventories in preparation for the planned maintenance activities in Rotterdam and Singapore increased our working capital, resulting in free cash flow of EUR -50 (16) million. Leverage ratio was 38.0%, well in line with our financial target.
In Renewable Products, our comparable EBITDA totaled EUR 266 (106) million in the third quarter, driven by a stronger comparable sales margin of USD 480 (341)/ton and sales volume increase to 1,046 (999) thousand tons. Sustainable Aviation Fuel (SAF) sales increased to a new record level of 251 (112) thousand tons.
Oil Products delivered a strong result, generating a comparable EBITDA of EUR 232 (141) million in the third quarter. The utilization rate was 91% and sales volumes increased to 3,057 (3,045) thousand tons. We were well-positioned to capture the benefits from the improved market, with our refining margin reaching USD 15.5 (10.6)/bbl.
In Marketing & Services, our comparable EBITDA was EUR 34 (32) million in the third quarter. Lower volumes in the main markets were balanced by operational savings.
Our performance improvement program continues to deliver results, contributing to lower fixed and variable costs as well as starting to improve our margin. Initiatives include for example more efficient procurement, logistics and terminal network streamlining, commercial acceleration and margin optimization. As we move forward, there will be more emphasis on improving our refinery performance.
Our capital expenditure is focused on our strategic growth project in Rotterdam, which is progressing with currently more than 2,000 workers at the site. Safety continues to be our top priority and requires constant attention, especially now that construction work is at an intensive stage. When completed in 2027, the refinery will be the world's largest facility producing renewable diesel and SAF, optimally located to serve the expanding European market.
In the current volatile operating environment, we remain focused on safe and reliable operations, competitiveness and strengthening of our financial position. I'm pleased with the execution of our performance improvement program and the Neste team is committed to delivering results. We have a clear roadmap which we are executing in a disciplined and consistent manner."
The Group's third quarter 2025 results
Neste's revenue in the third quarter totaled EUR 4,534 (5,624) million. Lower market prices affected the revenue EUR -0.1 billion year-over-year. The increase in sales volumes had a positive impact of approximately EUR 0.1 billion on revenue, driven by the increased capacity in Renewable Products. Currency exchange rates as well as lower trading volumes had an approximately EUR -1.1 billion negative impact on the revenue.
The Group's comparable EBITDA was EUR 531 (293) million. Renewable Products' comparable EBITDA was EUR 266 (106) million, thanks to higher sales volume and margin compared to the third quarter of 2024. Oil Products' comparable EBITDA was EUR 232 (141) million, impacted by both increased sales volumes and higher margin compared to the third quarter of 2024. Marketing & Services' comparable EBITDA was EUR 34 (32) million. Comparable EBITDA for Others was EUR 1 (9) million.
One-off costs related to organizational restructuring, totaling EUR 4 million, were booked in the third quarter results. These one-off costs have been eliminated from comparable EBITDA.
The Group EBITDA was EUR 447 (301) million, impacted by inventory valuation losses of EUR -23 (-176) million, and changes in the fair value of open commodity and currency derivatives totaling EUR -58 (141) million. Profit before income taxes was EUR 152 (26) million, and net profit EUR 106 (23) million. Earnings per share were EUR 0.14 (0.03).
The Group's January-September 2025 results
Neste's revenue in the first nine months totaled EUR 14,062 (15,067) million. Lower prices affected the revenue by EUR -1.4 billion. This was compensated by volume increases in Renewable Products and Oil Products that resulted in EUR 1.5 billion positive impact. Currency exchange rates as well as lower trading volume and price level in Oil Products had an approximately EUR -1.2 billion negative impact on the revenue.
Group comparable EBITDA was EUR 1,083 (1,084) million. Higher sales volumes but lower sales margins impacted both Renewable Products' and Oil Products' January-September comparable EBITDA, at EUR 512 (500) million and EUR 487 (480) million respectively. Marketing & Services' comparable EBITDA was EUR 83 (78) million. Other's comparable EBITDA was EUR -1 (16) million.
One-off costs related to organizational restructuring, totaling EUR 33 million, were booked in the first nine months results. These one-off costs have been eliminated from comparable EBITDA.
Group EBITDA was EUR 893 (861) million. Inventory valuation losses were EUR -90 (-422) million and changes in the fair value of open commodity and currency derivatives EUR -66 (167) million. Profit before income taxes was EUR 44 (47) million, and net profit was EUR 30 (40) million. Earnings per share were EUR 0.04 (0.05).
Outlook
Market outlook for 2025
The uncertainty in global trade and geopolitics and their impact on the global economic outlook are causing market volatility. Markets for both renewable fuels and oil products are sensitive to oil price development. The market in renewable fuels is expected to remain oversupplied in 2025.
Guidance for 2025 (unchanged)
- Renewable Products' sales volumes in 2025 are expected to be higher than in 2024?.
- Oil Products' sales volumes in 2025 are expected to be higher than in 2024?.
Additional information
- There will be two scheduled maintenance turnarounds in 2025: a 6-week turnaround in Rotterdam in Q4 2025 and a 6-week turnaround starting in mid-December 2025 in Singapore. There are no planned turnarounds in Porvoo in 2025?.
- The Group's comparable total fixed costs in 2025 are expected to be below 2024 level excluding one-off costs?.
- The Group's full-year 2025 cash-out capital expenditure excluding M&A is estimated to be approximately EUR 1.0 billion (previously 1.0-1.2 EUR billion).
Conference call
A conference call in English for investors and analysts will be held on 29 October 2025, at 3 p.m. Finland / 1 p.m. London / 8 a.m. New York. In order to receive the participant dial in numbers and a unique personal PIN, participants are requested to register using this link: https://events.inderes.com/neste/q3-2025/dial-in. The conference call can also be followed as a webcast.
Further information:
Heikki Malinen, President and CEO, tel. +358 10 458 11
Eeva Sipilä, Chief Financial Officer, tel. +358 40 727 6766
Anssi Tammilehto, SVP, Strategy, M&A and Investor Relations, tel. +358 50 458 8436
Neste in brief
Neste (NESTE, Nasdaq Helsinki) creates solutions for mitigating climate change and accelerating a shift to a circular economy. The company is the world's leading producer of sustainable aviation fuel (SAF) and renewable diesel, enabling its customers to reduce their greenhouse gas emissions. Neste refines waste, residues and other renewable raw materials to high-quality renewable fuels at its refineries located on three continents. The company's annual renewable fuels production capacity will be increased to 6.8 million tons in 2027.
Neste has high standards for sustainability and the company has consistently been recognized by several leading sustainability indices. In 2024, Neste's revenue stood at EUR 20.6 billion. Read more: neste.com