Nokian Tyres - Mot en ny framtid (?)

On the margins, if we talk about the passenger car tyre divisioon the EBIT margin was around 30 % when production was mainly in Russia. In Finland I think they can do some 15 %, in USA and Romania then somewhat more. Peers have been doing 15-20 % in the best years and Nokian has better mix since they dont have (cheaper) OEM tires (ie. to new cars) and they have mostly higher priced winter tyres.

So the passenger car tyre division could reach 20 % EBIT margin when Romania is up and running, which would translate to around 15 % at group level (distribution chain Vianor diluting this), which is also the company target for 2027. Our estimates are somewhat more cautious, around 12 % for 2027-28 for the group.

Well, not really. Of course one could calculate some fair value for the Russian operations and the “loss” vs. that, but all that is theoretical and also behind us so when thinking about the share we shouldnt concern us with the history. I dont think there’s any major harm done to the company or the brand.

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