Helsinki Exchange: Which Companies Are Growing Again?
It's an interesting time on the Helsinki Stock Exchange. While news was previously dominated by cost-cutting and cooling demand, we are now seeing a group of industrial companies that have successfully turned things around. In this analysis, we focus on five companies whose profit curves have taken a clear upward turn. We will examine whether this success is driven by one-off savings or a long-term business improvement supported by real orders.
Metso has made one of the strongest turnarounds, growing its operating profit by 15.2% and sales revenue by an impressive 14.5%. This is a significant change from the previous quarter's decline, indicating that demand for mining equipment has recovered.
The growth was driven by a nearly 19% jump in equipment sales in the Minerals segment. Although the company also recently announced restructuring, the figures confirm that the core business is strong and growth is not just coming from cost savings, but from actual sales.
Measurement equipment manufacturer Vaisala is also back on a growth path, showing a 12.7% increase in revenue and a 6.6% improvement in operating profit. The company has managed to overcome the previous period's decline thanks to successful project deliveries.
The success is driven by the 'Weather and Environment' business area, where project sales grew by nearly 67%. This compensates for the weakness in the Industrial Measurements division. For investors, this is a signal that the company's portfolio is diverse enough to provide stability in uncertain times.
In Valmet's case, we see a classic example of efficiency gains. Although sales revenue remained at the same level as last year, the company managed to increase its operating profit by 14.7%. This demonstrates management's ability to maintain margins even with stable revenue.
The improvement in profitability came mainly from cutting general expenses (-10.3%). At the same time, the recent news of a major heat pump plant contract in Helsinki adds confidence, confirming Valmet's technological competitiveness in the green energy sector and supporting its future outlook.
Konecranes presents an interesting contradiction for investors: sales revenue fell by 7.6%, yet operating profit grew by 11.2%. The company has managed to protect and even improve its profitability in a challenging environment.
The secret lies in cost management – the costs of materials and subcontracting decreased significantly. This is a sign of strong pricing power and operational efficiency. The stock's strong upward trend suggests that the market highly values this stability.
Steel manufacturer SSAB made the biggest leap, increasing its operating profit by nearly 50%. The share price has reacted by moving near its yearly highs, reflecting investor optimism.
However, it's worth looking behind the numbers here. The large growth was partly due to a low comparison base, as there was major maintenance work at its US plants last year. Nevertheless, the strength of the US market is currently the company's main asset, helping to offset weakness in the European market.
Conclusion
In conclusion, the Helsinki Stock Exchange shows that the industrial sector is adaptable. The best picks right now are those (like Metso and Vaisala) that can also grow their sales revenue, not just cut costs. 'Almost there' is packaging manufacturer Huhtamäki, whose decline has slowed, but growth has not yet returned. Investors should watch whether companies relying on cost savings (Valmet, Konecranes) can also restore revenue growth in the coming quarters.
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