Nokian Tyres Delivers 14 percent Sales Growth in Q1; Expansion and Cost Pressures Continue
- By Sharad Matade
- May 12, 2025
Nokian Tyres Plc reported strong year-on-year sales growth of 14.2 percent in the first quarter of 2025, with net sales reaching €269 million in comparable currency, reflecting solid performance across all regions. However, earnings were impacted by rising raw material costs and ramp-up expenses linked to new production facilities.
“We had strong sales growth in quarter one,” said President and CEO Paolo Pompei. “This is continuing our journey and strong sales growth that we had also in quarter four and quarter three last year.”
Segment EBITDA was reported at €12.25 million, or 4.6 percent of net sales, while the segment operating profit stood at a loss of €18.5 million — a deterioration from the €15.1 million loss in Q1 2024. “Obviously, we are not fully satisfied actually with the financial performance, and we have accelerated actions to improve our financial performance in the next quarters,” Pompei added.
€800 Million Investment Phase Nears Completion
The Finnish tyre manufacturer is now in the final year of a three-year investment cycle totalling close to €800 million. “Two major investments to build on our new Nokian will be done by the end of this year,” said CFO Niko Haavisto. “We are returning back to the more maintenance type of investments... estimating that to be around €120 million starting next year.”
Key among those investments is the state-of-the-art Romanian factory, which began delivering tyres at the end of March and will ramp up through 2027. “I've been myself 28 years in the business. I can tell you that the investment we've made in Romania is really state-of-the-art... also a factory that is providing us the same flexibility... that we had in Russia,” said Pompei.
Meanwhile, the Dayton, U.S. plant is expected to reach 80 percent capacity this year. “The land plot and the layout would allow us to triple the capacity there. However, it's not something that we are planning at this moment,” Haavisto said.
Margin Pressures from Raw Material and Tariff Impacts
Margins remain under pressure, largely due to input costs. “The decline was mainly driven by the higher raw materials, and obviously, the necessity as a cost to reinforce our market position in the growing market areas,” said Pompei. Price increases have already been implemented in Q1 and are expected to take effect from Q2 onwards. “We are expecting a positive development or pricing mix already starting from quarter two,” he added.
In North America, tariffs are a growing concern. “The tariffs, of course, are causing some disturbances and some uncertainties,” Pompei noted. “The effect of the tariff will be visible in quarter two. This will require... a lot of discipline from our side.”
Despite this, the CEO sees strategic upside: “The US market is today importing more than 50, actually 60 percent, of the tyres that are sold in the US. Obviously, for us, having a direct presence in Dayton can represent an extremely good element to play in the near future if the tariff remains there.”
Long-Term Outlook: Growth with Leaner Cost Structure
While the company posted a Q1 operating loss, executives remained firm on long-term financial targets: €2 billion in annual sales, a 15 percent EBIT margin, and 23–25 percent EBITDA margin. “Those are all intact, and that’s what we believe in,” said Haavisto.
Pompei summarised the strategic vision: “We want to play in the profitable niches of the market, which today are winter tyres... all-season... and heavy tyres as well. Those are extremely profitable niches.” He added, “We are a small player... and of course, we are still a small market player when we look at the global tyre market, which is approximately €250 billion. We have plenty of opportunities to grow.”
On capital structure, the company expects net debt — now around €800 million — to peak in Q3 before tapering off. Liquidity remains “on the safe side,” supported by a commercial paper programme and committed credit lines.
“We are working very hard, really, to deliver growth and at the same time to improve our financial position,” Pompei said. “We can really position Nokian Tyres growing above the market level with our unique value proposition — safe and sustainable, and high-performing products in demanding weather conditions.”
Toyo Tires Secures CDP ‘A List’ Recognition For Actions Against Climate Change
- By TT News
- January 10, 2026
Toyo Tires has made its way to the annual A-List of CDP for its climate change mitigation efforts. This premier recognition, awarded for the first time to the company in the 2025 evaluation, reflects the company’s comprehensive decarbonisation efforts, which include validated science-based targets for cutting greenhouse gas emissions and a shift towards renewable energy at its production sites. CDP’s annual assessment is a key benchmark for corporate sustainability across climate, water and forests.
The assessment also highlighted Toyo Tires' commitment to transparency, as verified by independent third-party data reviews. Viewing its business activities as intrinsically connected to society and the future, the Toyo Tires Group treats reducing environmental impact as a top operational priority.
Moving forward, the company is dedicated to advancing decarbonization across all its manufacturing processes and broader supply chain, aiming to support a sustainable global society.
Apollo Tyres Expands Vredestein Gravel Tyre Range With Aventura Core Series
- By TT News
- January 10, 2026
Apollo Tyres Ltd has introduced a new and more affordable range of gravel tyres under the Vredestein Aventura Core Series. This new-generation family consists of three distinct models: the Aventura Seta Core, Aventura Core and Aventura Grezzo Core. Engineered in Europe, these tyres are built for enhanced durability and dependable performance across diverse surfaces, offering riders a cost-effective upgrade for adventure biking.
The series is constructed around a streamlined Core platform, which incorporates a robust 60 TPI casing for increased puncture resistance and stable handling on uneven terrain. While utilising the proven tread patterns of existing Vredestein gravel tyres, this refined construction delivers high-end capability at a more accessible price point.
Each model is tailored for specific riding conditions. The Aventura Seta Core is designed for speed, with a race-optimised tread for fast rolling on asphalt and high-speed gravel, complemented by shoulder knobs for technical cornering. For versatile, everyday use, the Aventura Core offers a balanced blend of rolling efficiency and predictable grip across tarmac, hardpack and gravel roads. Finally, the Aventura Grezzo Core provides confidence on loose and rugged terrain, featuring an aggressive tread for enhanced traction in sand and soft surfaces, while its chained centre tread maintains efficiency on harder ground.
The Aventura Core Series will be available starting 1 February 2026. The Aventura Seta Core comes in 40, 45 and 50-622 sizes. The Aventura Core is offered in 50-584 and 40, 45, 50-622 sizes. The Aventura Grezzo Core is available in 50-584 and 40, 45, 50-622 sizes. Colour options include black/black and black/transparent sidewalls.
Nic Knippers, Division Head – Vredestein Two Wheel Tyres, Apollo Tyres Ltd, said, “The Aventura Core Series marks an important expansion of our gravel offering within the Vredestein range. By introducing three purpose-designed tyres built on a shared durable foundation, we can better support riders across the full spectrum of gravel terrain – from high-speed racing to off-road exploration and everyday mixed-surface riding.”
Continental Expands HDR 5 And HSR 5 Tyre Lines With New Size
- By TT News
- January 10, 2026
Continental Tires Americas has expanded its HDR 5 and HSR 5 19.5-inch product lines with a new 245/70R19.5 size, specifically engineered for urban and regional delivery fleets.
These tyres are built to endure high-scrub environments and the demanding stop-and-go cycles typical of city routes. Key advancements include a reformulated tread compound that reduces rolling resistance for better fuel economy while also extending tread life. The redesigned sidewall enhances durability to support multiple retreads, maximising the value of each tyre casing. Furthermore, both models are validated for use on electric and hybrid vehicles, as well as traditional combustion engines.
This size extension provides a practical option for fleets seeking to improve operational cost-efficiency and tyre longevity under rigorous driving conditions, continuing the proven performance of the existing series with targeted upgrades.
NIRT Silver Jubilee Celebrations Commence In Kottayam
- By TT News
- January 10, 2026
The Silver Jubilee of the National Institute for Rubber Training (NIRT) commenced on the morning of 9 January 2026 at Kottayam's Hevea Hall. Union Minister of State George Kurian formally inaugurated the event, with Member of Parliament K Francis George presiding. Attendees also heard an address from MLA Chandi Oommen.
A wide array of activities marked the inaugural programme. These included unveiling a commemorative monument, honouring former NIRT Directors and recognising student cohorts. Several publications and materials were launched, such as a Silver Jubilee souvenir and tutorial videos for stakeholders. The new jubilee logo was revealed, and a memorandum of understanding was signed between the Rubber Board and the Government of Nagaland.
The ceremony further involved prize distributions for earlier competitions and celebrated the Diamond Jubilee of Rubber magazine. The day's schedule continued with a curated panel discussion and a dedicated exhibition at the NIRT campus.
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