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

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

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

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(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.)