Neste Corporation, Interim Report, 29 April 2026 at 9 a.m. (EET)
Strong financial performance in volatile markets - focus on operational reliability continues
First quarter in brief:
- Comparable EBITDA totaled EUR 861 (210) million
- EBITDA totaled EUR 903 (200) million
- Renewable Products' comparable sales margin was USD 856 (310)/ton
- Oil Products' total refining margin was USD 23.0 (9.9)/bbl
- Cash flow before financing activities was EUR 286 (-225) million
- Leverage ratio was 31.7% at the end of March (31.12.2025: 34.3%)
Figures in parentheses refer to the corresponding period for 2025, unless otherwise stated.
President and CEO Heikki Malinen:
"The final weeks of the first quarter of 2026 were characterized by the Middle East conflict and the closure of the Strait of Hormuz. This created the largest supply disruption in the history of the global oil markets, leading to extreme volatility in the crude oil and oil products prices. Neste has managed to navigate the situation well and the first-quarter financial performance was strong. Our refinery performance left room for improvement, but despite production limitations, Neste was able to deliver on its customer commitments amid high market volatility and cold weather in the Nordics that increased demand.
The Group's comparable EBITDA reached EUR 861 (210) million, reflecting the soaring global end-product prices. In addition, we continued to successfully execute our performance improvement program that contributed EUR 100 million EBITDA improvement in Q1. With a cumulative run rate improvement to EUR 476 million the program is already delivering value beyond the original target. The strong financial result is clearly reflected in our cash flow before financing activities, which improved to EUR 286 (-225) million. The robust cash generation has allowed us to continue deleveraging the company, and our leverage ratio decreased to 31.7%.
Renewable Products delivered a comparable EBITDA of EUR 433 (72) million. Sales volumes in Renewable Products totaled 874 (892) thousand tons, reflecting the impact of maintenance shutdowns and a delayed equipment replacement in Singapore. Despite lower volumes, our comparable sales margin increased significantly to USD 856 (310)/t. This was driven primarily by stronger term sales premiums, while the segment also benefited from the surge in fossil middle distillate prices.
Oil Products reported a comparable EBITDA of EUR 373 (120) million, with a total refining margin of USD 23.0 (9.9)/bbl. The average refinery utilization rate at Porvoo was 86% (88%). The result was supported in January-February by the high demand for middle distillates due to the cold weather and exceptionally strong end-product markets towards the end of the quarter, for which Neste had an optimal, middle-distillate focused product mix. We remain focused on improving our operational reliability and efficiency as we move closer to the scheduled maintenance period in Porvoo.
In Marketing & Services, comparable EBITDA was EUR 48 (17) million. The result was significantly supported by inventory profit of EUR 18 million that resulted from the rapid rise in product prices towards the end of the quarter.
The Middle East conflict continues to cause significant volatility in the oil markets. Neste's production assets are located far from the conflict area and our crude oil or renewable feedstock are not transported through the Strait of Hormuz. We have benefited from the fact that we source crude oil mostly from the North Sea and the renewable feedstock supply chain is highly diversified. While the conflict has not had a direct impact on our production, supply chains or product deliveries, we continue to monitor the situation closely and prepare for different scenarios.
The conflict highlights renewables' role in strengthening energy security in Europe and beyond. At the end of the quarter, the US finalized its historic Renewable Fuel Standards to strengthen American energy security. The record-high renewable volume obligations give a clear and strong demand signal for the biofuels industry and have a significant positive impact for Neste's US operations.
As we go forward, Neste's main focus remains on continuing our performance improvement work, especially enhancing operational reliability and our strategic investment project in Rotterdam, which is proceeding as planned. By driving internal efficiency and maintaining strict capital discipline, we will maximize the future potential of Neste. At the same time, we want to strengthen Neste's pioneering role as an agile, reliable and significant player in the much needed energy transition.
The world around us is uncertain in many ways, but I am confident that Neste is in a good position to continue its performance improvement as well as to serve its customers reliably across various product segments."
The Group's first quarter 2026 results
Neste's revenue in the first quarter totaled EUR 5,163 (5,017) million. Higher market prices boosted revenue by EUR 1.1 billion year-over-year. Total sales volumes had a positive impact of EUR 0.2 billion, driven by increased sales volumes of Oil Products and Marketing & Services. 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 increased to EUR 861 (210) million. Renewable Products' comparable EBITDA rose to EUR 433 (72) million, thanks to stronger sales premiums compared to the first quarter of 2025 and elevated diesel prices. Oil Products' comparable EBITDA reached EUR 373 (120) million, driven by exceptionally wide diesel cracks. Marketing & Services' comparable EBITDA was EUR 48 (17) million, supported by significant inventory profit.
The Group EBITDA was EUR 903 (200) million, supported by inventory valuation gains of EUR 141 (44) million, while changes in the fair value of open commodity and currency derivatives were EUR -99 (-31) million. Profit before income taxes was EUR 666 (-57) million, and after an effective tax rate of 20%, net profit was EUR 533 (-40) million. Earnings per share were EUR 0.69 (-0.05).
Outlook
Guidance for 2026
- Renewable Products' sales volumes in 2026 are approximately at the same level as in 2025.
- Oil Products' sales volumes in 2026 are expected to be lower than in 2025? due to the planned maintenance turnaround.
Additional information
- The Group's full-year 2026 cash-out capital expenditure excluding M&A is estimated to be approximately EUR 1.0 - 1.2 billion.
Conference call
A conference call in English for investors and analysts will be held on 29 April 2026, 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/q1-2026/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
Jukka Miettinen, VP, Investor Relations, tel. +358 40 778 8855
