Nokian Tyres plc Interim Report January-September 2026: Strong profitability improvement continued in the third quarter

Paolo Pompei, President and CEO of Nokian Tyres

“Our strong performance continued in the third quarter. Operating profit increased by 73%, and year to date earnings per share turned positive for the first time since 2021, marking an important milestone in our transformation journey. The improvement reflects our continued focus on value over volume, supported by a stronger pricing and product mix as well as successful efficiency actions across the organization. The consistent execution of our strategy has delivered tangible results over several consecutive quarters, demonstrating that our strategic choices are not only strengthening the foundation for future growth but have also led to improved profitability. In the third quarter, Passenger Car Tyres led the earnings improvement, with both sales and profitability increasing and the segment operating profit margin reaching 20.5%. Despite challenging market conditions, Heavy Tyres increased sales while significantly improving profitability, delivering the segment operating profit margin of 15.3%. Across both businesses, we continued to improve productivity and efficiency in our manufacturing operations. New products remain a key driver of our premium positioning and profitable growth. During the quarter, our latest winter tire innovations became available to consumers in their target markets: Nokian Tyres Hakkapeliitta 01 mainly for the Nordics and North America, and Nokian Tyres Snowproof 3P for Central and Southern Europe. Both products achieved strong results in tire tests conducted by leading automotive magazines, underscoring their premium performance. Together with our successful expansion into larger rim sizes, these products further strengthen our market offering and support a higher-value product mix. As we continue to invest in our premium offering and future growth, we remain focused on cost efficiency and disciplined capital allocation. With the multi-year investment phase now successfully completed, capital expenditure will be lower this year as we leverage our state-of-the-art manufacturing platform and global production footprint. While geopolitical tensions and market uncertainty are likely to persist, we continue to execute our strategy through stronger premium positioning, disciplined pricing, and continuous efficiency improvements. Quarter after quarter, we have progressed in line with our plan, demonstrating our team's ability to deliver on its commitments and create sustainable value for our stakeholders.”