Metso Oyj reported first-quarter results showing a blend of operational progress and near-term cash-generation pressure. Adjusted EBITA for the quarter was €203 million, a figure that came in 3% below analyst expectations, while total order intake edged past forecasts by 2%.
Group sales reached €1,252 million, up 3% compared with the prior year but still 3% short of consensus estimates. The revenue mix comprised €567 million in original equipment sales and €685 million in service sales, underscoring the continuing contribution of aftermarket activity to overall top-line performance.
Operating cash flow weakened relative to market expectations. Net cash flow from operations settled at €78 million, which represents 50% of the consensus forecast. Management attributed the lower-than-expected cash conversion to inventory build-up and to the timing of deliveries within the Mineral Products division.
Segment performance
The Minerals segment generated sales of €953 million, missing the €969 million estimate, while orders in the segment totaled €1,115 million, up 5% year-over-year. Adjusted EBITA for Minerals rose to €168 million, a 10% increase from the prior year, and segment margins expanded by 80 basis points to 17.6%. Within Minerals, aftermarket revenue grew 1% and product revenue increased 14%.
The Aggregates division reported sales of €299 million, below the €321 million consensus, with orders of €440 million, representing 10% year-over-year growth. Adjusted EBITA in Aggregates was €48 million, a 2% decline from the year-ago quarter, while margins were unchanged at 16.0%.
Across the company, aftermarket orders rose 7%, and management noted that upgrades and modernizations delivered double-digit growth, indicating continued demand for service and refurbishment activity.
Balance sheet and outlook
Net debt increased to €1,126 million, up 5% year-over-year. On margin performance, group adjusted EBITA margin improved by 30 basis points to 16.2%.
Metso maintained its market outlook, expecting activity in both Minerals and Aggregates to remain at current levels. The company also flagged that ongoing geopolitical uncertainty could influence market activity going forward.
Overall, the quarter showed mixed signals: order growth and margin expansion in key segments contrasted with weaker-than-expected sales relative to consensus and a significant shortfall in operating cash flow, driven by inventory timing and deliveries in Minerals.