Nokian Tyres delivered a sharp improvement in second-quarter profitability as higher sales volumes, stronger pricing and lower manufacturing costs boosted earnings, while the company said it is entering a new phase focused on profitable growth after completing its major investment programme.

Net sales rose 10.6 percent year on year to €379.9 million in the April–June quarter, while operating profit more than doubled to €34.8 million from €14.8 million. Segment operating profit increased 71 percent to €45 million, driven by higher sales and improved manufacturing efficiency.

For the first six months of 2026, revenue increased 7.6 percent to €659.6 million, while segment operating profit climbed to €40.7million, more than five times the €7.8 million reported a year earlier. Operating profit returned to positive territory at €17 million, compared with a loss of €21.1 million in the first half of 2025.

"We delivered a strong quarter in line with our strategic ambition," said Paolo Pompei, President and Chief Executive. "Operating profit increased by 136 percent, driven by higher sales volumes and enhanced pricing."

Passenger car tyres lead recovery

The Passenger Car Tyres business remained the principal growth engine, with quarterly sales increasing 13.9 percent to €235 million, while segment operating profit more than doubled to €35.5 million. Heavy Tyres also returned to growth, posting a 10.4 percent increase in sales, although profitability at retail chain Vianor remained under pressure from cost inflation and seasonal factors.

Chief financial officer Timo Koponen said higher sales volumes remained the largest driver of earnings improvement.

"The Passenger Car Tyres continued their very strong performance also in Q2," he said, adding that the business had benefited from improved pricing, a richer product mix and lower raw material costs.

Management also highlighted six consecutive quarters of positive price and mix development, reflecting its strategy of moving further into premium products and larger rim-size tyres.

Romania becomes a strategic growth engine

Nokian Tyres said its new manufacturing facility in Romania is performing ahead of plan and is playing a key role in rebuilding capacity following the exit from Russia.

Sales in Central and Southern Europe rose 31.3 percent during the quarter, supported by higher production from the Romanian plant. "Everything is developing in this area according to plan," Pompei told analysts, referring to the Romanian factory.

He added that the new manufacturing footprint, together with recently launched products, was enabling the company to regain market share.

"We lost a significant amount of sales when we couldn't leverage our manufacturing facility in Russia at the end of 2022. Now, obviously, we are approaching the market with a new spirit, regaining market share in all the key markets where we believe we can be successful."

The company said contract manufacturing would continue to account for around 10 percent of total production, allowing it to focus internal capacity on strategically important products.

Investment phase winds down

Having invested heavily over recent years to rebuild its manufacturing network, Nokian Tyres is now shifting its attention towards cash generation and returns.

Capital expenditure in the first half fell to €24.5 million, compared with €89.7 million a year earlier. The company expects full-year capital expenditure to remain below €100 million, substantially lower than previous years.

"Following the successful completion of our major investment phase, capital expenditure will be somewhat lower this year than in the previous year," Pompei said.

Koponen said lower capital expenditure and stronger earnings had improved free cash flow, although higher receivables linked to increased sales continued to weigh on working capital. He added that net debt declined by €49m during the quarter while liquidity remained strong.

Premium positioning remains central

Nokian Tyres continues to focus on premium products rather than competing in lower-priced market segments.

The company said all-season tyres continued to outperform the broader market, while its flagship Hakkapeliitta 01 winter tyre had received a positive customer response.

Pompei said the strategy remains centred on strengthening brand equity and improving margins.

"We keep pushing our premium positioning, strengthening our brand through strong marketing investments, new products, and, in particular, better prices," he said.

Outlook unchanged despite uncertainty

Nokian Tyres maintained its full-year guidance, forecasting revenue growth in 2026 and a segment operating margin of 8–10 percent.

While management expects replacement tyre demand to remain broadly stable, it acknowledged that geopolitical tensions, tariffs and raw material price volatility continue to create uncertainty.

"We continue to focus on executing our strategy, strengthening our premium positioning, and improving profitability," Pompei said. "While there is still work ahead, we are on the right path to deliver profitable growth and create long-term value for all our stakeholders."

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Birla Carbon will present its carbon black solutions at the Global Polymer Summit 2026, scheduled for 28–30 September at the Kentucky International Convention Center in Louisville. The company will exhibit at Booth 417, targeting tyre and mechanical rubber goods (MRG) manufacturers seeking higher performance and reduced environmental impact.

The company’s portfolio spans tyre and MRG applications, addressing durability, strength, abrasion resistance and product life across tyres, belts, hoses, sealing systems and anti-vibration products. Birla Carbon will also feature Continua Sustainable Carbonaceous Material (SCM), a circular carbon range with consistent quality and global availability and Continua Sustainable Carbon Black (SCB), produced from recycled or bio-based feedstocks.

Supported by extensive manufacturing, technical expertise and customer-focused teams across the Americas, Birla Carbon provides reliable volumes, responsive service and tailored solutions. Attendees can meet company experts at Booth 417 to explore its product portfolio, technical capabilities and sustainable offerings.

John Davidson, President – Americas & EMEA, Birla Carbon, said, “The tyre and mechanical rubber goods industries are at an important phase, where performance, supply resilience and sustainability must advance together. The next phase of growth will depend on stronger collaboration across the value chain and the ability to translate innovation into scalable, commercially viable solutions. At Birla Carbon, we are combining our manufacturing network, portfolio strength, technical expertise and regional capabilities to help customers navigate this transition and build more resilient and sustainable businesses.”

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Michelin has unveiled the X Multi Energy D2 tyre, developed to address the specific challenges of regional haul operations. Fleets in this segment face demanding roads, frequent stop-and-start cycles and escalating fuel expenses that affect both performance and profitability. By blending durability, fuel savings and Michelin’s established performance standards, the new tyre aims to boost fleet productivity while reducing overall operating costs.

The tyre features a revised tread pattern and a new tread compound to better resist tread damage caused by high-torque vehicles and stop-and-go regional driving. It is constructed on Michelin’s Duracore casing, which integrates Infinicoil and Powercoil technologies and benefits from a reinforced bead design known as Duracoil Technology. This casing is engineered to last up to one million miles and support as many as four retreads.

In the effort to curb fuel expenses, the X Multi Energy D2 improves rolling resistance by 9 percent over its predecessor, the Michelin X Multi Energy D tyre, and by 18 percent compared with leading competitors. It also enhances late-life traction, offering 10 percent better wet handling and 16 percent better snow starting traction when worn, giving drivers and operations managers greater confidence on varying roads.

For original equipment manufacturers, the tyre meets Greenhouse Gas standards and supports applicable vehicle carbon-reduction requirements. Designed for regional applications where traction, durability and fuel efficiency matter, it is available in 295/75R22.5 LRG and 11R22.5 LRG and LRH sizes, replacing the X Multi Energy D tyre in those sizes.

Yahn Heurlin, VP of B2B Marketing, Michelin North America, Inc., said, “Michelin is driven by a deep commitment to understanding the needs and challenges customers face every day. This customer-first mindset inspires the development of purpose-built solutions designed to address real-world pain points and help fleets operate more efficiently.”

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Firestone, a Bridgestone Americas subsidiary, has unveiled the Destination LE4 highway touring tyre as the successor to its best-selling Destination LE3. The new model features a deeper tread depth, an advanced compound and a non-directional tread pattern, delivering longer wear life along with improved wet and light snow performance for year-round driving confidence.

Backed by a 70,000-mile limited warranty, the Destination LE4 is projected in external testing to wear 16 percent longer than its predecessor, 9 percent longer than the General Grabber H/T and 43 percent longer than the BFGoodrich Advantage Control HT. Thinner 3D sipes enhance traction and handling, while internal testing showed wet stopping distances reduced by 8 feet versus the Toyo Open Country H/T II and 4 feet versus the BFGoodrich Advantage Ctrl HT, with dry stopping improved by 8 feet and 2 feet, respectively, plus a 2-foot dry gain over the LE3.

Sustainability gains come through wear-resistance technology, optimised material usage that lowers raw material consumption and enhanced traction technology. Two technical firsts originated at the Bridgestone Americas Technology Center in Akron, Ohio: a high-strength, lightweight carcass architecture using light body plies and steel cords for durability and low rolling resistance despite deeper tread, and advanced compound mixing that improves ingredient consistency for tread wear, handling and wet grip.

Available in 65 sizes for 15- to 22-inch rims, the Destination LE4 covers small CUVs, SUVs, pickups and larger trucks, including the Mazda CX-5, Ford F-150, RAM 1500, Chevrolet Trailblazer and Nissan Armada.

Jeremy Norwood, Chief Engineer, New Product Engineering, Bridgestone Americas, said, “Drivers loved the Firestone Destination LE3 for its comfortable, quiet ride and all-season reliability. With the new Destination LE4, we enhanced those strengths by extending wear life and improving wet-weather handling, delivering dependable performance, confident control and everyday value.”

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The Yokohama Rubber Co., Ltd. has announced that Y.T. Rubber Co., Ltd. (YTRC), its Thai subsidiary focused on natural rubber processing, earned the Outstanding Provincial-Level CSR Organization Award. The honour formed part of the ‘CSR Award 2026’ initiative run by Thailand’s Ministry of Social Development and Human Security, and the presentation took place on 22 August 2026.

Built around the idea of ‘CSR Partnerships for Sustainable Thailand’, the award programme highlights organisations demonstrating exemplary corporate social responsibility at provincial or metropolitan level throughout the country’s 76 provinces and Bangkok. A total of 92 recipients – among them YTRC, other firms and bodies chosen nationwide and provincial CSR centres – convened at IMPACT Challenger Hall in Nonthaburi Province to collect commemorative plaques.

Governor Jumpot Wannachatsiri (left) presents flowers to YTRC Managing Director Noboru Takita (centre) and Department Manager Supachai Choosuwan at the Surat Thani Provincial Council.

YTRC, established in Surat Thani Province in 2008, has long pursued environmental preservation and dependable ties with nearby communities. Working with the Rubber Authority of Thailand (RAOT), it surveys natural rubber plantations and supplies management assistance to farmers, supporting sustainable procurement of the material. The company further backs agroforestry practices that give rubber farmers steadier incomes while partnering with the Surat Thani Provincial Office of Social Development and Human Security on efforts to nurture constructive community relations.

The recognition reflects YTRC’s continuous community-oriented CSR work and its notable local impact. A special event on 31 August saw the Surat Thani Provincial Council once more acknowledge those contributions, with the governor presenting a celebratory bouquet. Separately, the CSR Center of Surat Thani Province ranked among only nine centres nationwide to win the Outstanding Provincial CSR Promotion Center Award.

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