Finland's Metso Q3 orders jump as mining demand lifts minerals segment

Overview

• Finland-based mining tech provider's Q3 orders grew 28% yr/yr; sales up 3%

• Adjusted EBITA rose 4% yr/yr; EPS from continuing operations fell 12%

• Minerals segment drove order growth, supported by strong mining customer activity

Outlook

• Company did not provide specific financial guidance for upcoming quarters or full year in its press release

• Metso expects market activity in Minerals and Aggregates to remain at current level next 6 months

• Metso sees high utilization in Minerals and customers preparing investments for longer-term demand

Result Drivers

• MINERALS SEGMENT - Co said strong mining customer activity and favorable copper and gold prices drove 34% yr/yr order growth in Minerals, with equipment orders up 79%

• AFTERMARKET SALES - Aftermarket sales grew 10% yr/yr and accounted for 57% of group sales, reflecting continued customer activity

• AGGREGATES MARKETS - Aggregates orders rose 4% yr/yr, driven by European and North American markets; sales up 5% yr/yr

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 11 "strong buy" or "buy", 7 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the heavy machinery & vehicles peer group is "buy."

• Wall Street's median 12-month price target for Metso Oyj is €18.50, about 13.4% above its October 21 closing price of €16.31

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 19 three months ago

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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.)