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Finland's Neste Q3 revenue and EBITDA jump on strong renewables

By Reuters News


Overview

  • Finland renewable fuels producer's Q3 revenue and EBITDA rose sharply on strong operational performance

  • Record renewable products sales volumes and high margins boosted results

  • Company approved new dividend policy targeting annual payout of 20-40% of EPS


Outlook

  • Neste sees 2026 Renewable Products sales volumes about flat with 2025

  • Company expects 2026 Oil Products sales volumes to be lower than 2025 due to planned maintenance

  • Neste estimates 2026 capital expenditure excluding M&A at about EUR 1.2 bln


Result Drivers

  • RENEWABLE PRODUCTS SALES - Record quarterly sales volume and high sales margins in Renewable Products drove results, per CEO Heikki Malinen

  • MIDDLE DISTILLATE MARKETS - Exceptionally strong middle distillate prices and wide cracks boosted Oil Products margins

  • PERFORMANCE IMPROVEMENT PROGRAM - Performance improvement program contributed EUR 103 mln of EBITDA increase in Q3


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

EUR 6.55 bln

Q3 Comparable EBITDA

EUR 1.56 bln

Q3 EBITDA

EUR 1.58 bln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"

  • The average consensus recommendation for the oil & gas refining and marketing peer group is "buy"

  • Wall Street's median 12-month price target for Neste Oyj is €38.00, about 29.7% above its October 28 closing price of €29.30

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 13 three months ago


Reuters Recommended Reads

  • Oct 28 - Norway's Equinor Q3 adjusted operating income nearly doubles on higher output, gas prices

  • Oct 28 - Finland's Fortum Q3 revenue rises on higher nuclear generation volumes

  • Oct 29 - Spain's Repsol increases buybacks as Q3 profit soars above expectations


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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