Nokian Tyres Delivers 14 percent Sales Growth in Q1; Expansion and Cost Pressures Continue
- By Sharad Matade
- May 12, 2025
Nokian Tyres Plc reported strong year-on-year sales growth of 14.2 percent in the first quarter of 2025, with net sales reaching €269 million in comparable currency, reflecting solid performance across all regions. However, earnings were impacted by rising raw material costs and ramp-up expenses linked to new production facilities.
“We had strong sales growth in quarter one,” said President and CEO Paolo Pompei. “This is continuing our journey and strong sales growth that we had also in quarter four and quarter three last year.”
Segment EBITDA was reported at €12.25 million, or 4.6 percent of net sales, while the segment operating profit stood at a loss of €18.5 million — a deterioration from the €15.1 million loss in Q1 2024. “Obviously, we are not fully satisfied actually with the financial performance, and we have accelerated actions to improve our financial performance in the next quarters,” Pompei added.
€800 Million Investment Phase Nears Completion
The Finnish tyre manufacturer is now in the final year of a three-year investment cycle totalling close to €800 million. “Two major investments to build on our new Nokian will be done by the end of this year,” said CFO Niko Haavisto. “We are returning back to the more maintenance type of investments... estimating that to be around €120 million starting next year.”
Key among those investments is the state-of-the-art Romanian factory, which began delivering tyres at the end of March and will ramp up through 2027. “I've been myself 28 years in the business. I can tell you that the investment we've made in Romania is really state-of-the-art... also a factory that is providing us the same flexibility... that we had in Russia,” said Pompei.
Meanwhile, the Dayton, U.S. plant is expected to reach 80 percent capacity this year. “The land plot and the layout would allow us to triple the capacity there. However, it's not something that we are planning at this moment,” Haavisto said.
Margin Pressures from Raw Material and Tariff Impacts
Margins remain under pressure, largely due to input costs. “The decline was mainly driven by the higher raw materials, and obviously, the necessity as a cost to reinforce our market position in the growing market areas,” said Pompei. Price increases have already been implemented in Q1 and are expected to take effect from Q2 onwards. “We are expecting a positive development or pricing mix already starting from quarter two,” he added.
In North America, tariffs are a growing concern. “The tariffs, of course, are causing some disturbances and some uncertainties,” Pompei noted. “The effect of the tariff will be visible in quarter two. This will require... a lot of discipline from our side.”
Despite this, the CEO sees strategic upside: “The US market is today importing more than 50, actually 60 percent, of the tyres that are sold in the US. Obviously, for us, having a direct presence in Dayton can represent an extremely good element to play in the near future if the tariff remains there.”
Long-Term Outlook: Growth with Leaner Cost Structure
While the company posted a Q1 operating loss, executives remained firm on long-term financial targets: €2 billion in annual sales, a 15 percent EBIT margin, and 23–25 percent EBITDA margin. “Those are all intact, and that’s what we believe in,” said Haavisto.
Pompei summarised the strategic vision: “We want to play in the profitable niches of the market, which today are winter tyres... all-season... and heavy tyres as well. Those are extremely profitable niches.” He added, “We are a small player... and of course, we are still a small market player when we look at the global tyre market, which is approximately €250 billion. We have plenty of opportunities to grow.”
On capital structure, the company expects net debt — now around €800 million — to peak in Q3 before tapering off. Liquidity remains “on the safe side,” supported by a commercial paper programme and committed credit lines.
“We are working very hard, really, to deliver growth and at the same time to improve our financial position,” Pompei said. “We can really position Nokian Tyres growing above the market level with our unique value proposition — safe and sustainable, and high-performing products in demanding weather conditions.”
Continental Secures Global OE Supply For New All-Electric Renault Twingo
- By TT News
- June 18, 2026
Continental has secured a global original equipment supply agreement for the new all-electric Renault Twingo. The latest generation of the compact vehicle is now being produced exclusively with the 18-inch Continental EcoContact 7 tyre as standard across all worldwide markets.
The selection of this specific tyre is underpinned by its superior performance on the EU tyre label, particularly regarding energy efficiency and rolling noise. These attributes are critical for electric vehicle applications, as low rolling resistance directly contributes to maximising the driving range per charge, while reduced noise emission ensures a more serene cabin environment.
The tyre’s exceptional energy efficiency stems from a novel rubber compound and the advanced Smart Energy Casing technology, which incorporates new materials to minimise internal friction. Efficiency is further amplified by an aerodynamically optimised sidewall, featuring a golf-ball-inspired ‘Aerodimple’ structure that reduces air turbulence and the energy required to maintain motion.
Furthermore, Continental has engineered the Silent Pattern tread design to specifically mitigate rolling noise. By meticulously calibrating the tread block spacing and angles to counteract low-speed urban frequencies, the tyre delivers a quieter experience for both passengers and surrounding communities. This tyre variant, size 205/45 R18 90H XL FR, has been homologated for the Twingo in numerous countries.
Bridgestone UK Secures Top Tyre Safety Honour For Road Safety Campaign
- By TT News
- June 18, 2026
Bridgestone UK has been named Tyre Manufacturer of the Year at the 2026 TyreSafe Awards, recognising its sustained efforts to improve road safety and influence driver behaviour across the country. The honour specifically highlights the effectiveness of the company’s 'Be a Road Safety Hero' initiative.
Since its inception, that campaign has reached over 24 million individuals, combining public education, retailer participation and direct engagement to translate awareness into practical action. More than 25 nationwide events have been held at venues ranging from supermarkets to tyre retail sites, resulting in over 10,500 complimentary safety inspections. Those checks uncovered more than 1,200 separate issues, including roughly 200 tyres deemed illegal for road use.
Beyond these hands-on clinics, the programme has distributed extensive educational resources and maintained visibility through digital media and targeted public relations. Partnerships with groups like Sporting Bears have helped convey safety messages to enthusiast communities, while Bridgestone staff have collectively logged over 10,000 volunteer hours in support of the campaign’s objectives.
Helen Roe, Senior Manager – Brand, Events, Product & Digital Marketing, said, "While we're naturally delighted to receive this recognition, what matters most to us is the impact the campaign is having beyond the award itself. Our 'Be a Bridgestone Road Safety Hero' campaign was designed to encourage drivers to take simple steps that can make a big difference, and we're proud that the campaign is helping to identify potentially dangerous tyres and prompting drivers to take action. Tyre safety isn’t something any one organisation can tackle alone. That’s why we’ve worked closely with our retailers and partners to take this message directly to motorists in ways that are practical, visible and engaging. To have carried out over 10,500 tyre checks over the last couple of years, demonstrates the scale of the challenge but also the power of education and collaboration. We see this award not as the finish line, but as motivation to continue championing safer roads for everyone.
“We’d also like to recognise and congratulate TyreSafe, on their 20th year anniversary, for bringing together so many to collaborate on raising tyre safety awareness in the UK and for their continued work with government, police and emergency services to raise the profile of tyre safety nationwide. Ultimately, tyres carry lives. With an estimated 6.1 million illegal tyres still on UK roads, raising awareness remains critical. Regular tyre checks are a simple step that can make a real difference – for drivers and for everyone around them.”
Toyo Tires Secures Class Victories And Multiple Podiums At 2026 SCORE Baja 500
- By TT News
- June 18, 2026
Toyo Tires secured a dominant performance at the 58th SCORE Baja 500, with drivers Trey Gibbs and Gustavo Vildósola Sr. claiming victories in the Trophy Truck Spec and Legends classes, respectively. The championship-winning Open Country M/T-R tyres were instrumental in the success, particularly in the highly competitive Spec class, which boasted the largest field among the top five categories. Brent Fox added to the brand's success by finishing second in the Spec class, delivering a third podium finish for Team Toyo over the race weekend.
The second round of the 2026 SCORE World Desert Championship unfolded on a demanding 468.70-mile circuit through the northern Baja California peninsula. Driving the #215 Mason Motorsports / Toyo Tires / Ford Raptor, Gibbs achieved his maiden SCORE race victory with a winning time of 9 hours, 46 minutes and 7.59 seconds. This triumph extended Team Toyo’s remarkable winning streak in the Spec class to four consecutive years, a reign that began at the 2023 Baja 500. Fox secured the runner-up position in his #282 1Nine Industries / Ford Raptor, clocking in at 9 hours and 55 minutes to complete a one-two finish for the team.
In the Legends category, Vildósola Sr. returned to the top step of the podium behind the wheel of his #1L Mason Motorsports / Toyo Tires / Vildosola Racing / Ford Raptor. His winning effort, completed in 9 hours, 47 minutes and 56.17 seconds, marked his first victory of the season and extended his personal winning streak at the Baja 500 to five consecutive races, a run that started in 2022.
Looking ahead, Team Toyo aims to build on this momentum as the series progresses towards the Baja 400 in September. The brand’s legacy in the SCORE World Desert Championship remains extensive, with multiple victories across all major events. Notable wins include the San Felipe 250 on four occasions, the Baja 500 six times, the Baja 400 five times and the prestigious Baja 1000 six times, with a roster of accomplished drivers contributing to this storied record.
Gibbs said, “Winning the Baja 500 is something I’ve always dreamed of, and it still hasn’t fully hit me what my team and I accomplished over the weekend. Honestly, I don’t have the words to describe what this win feels like.”
Fox said, “Taking home second place in the Trophy Truck Spec class and completing the Baja 500 is something we’re really proud of. Thanks to Toyo Tires, we ran the entire race with no flats and zero issues.”
Stan Chen, Deputy Director – Consumer Marketing, Toyo Tire U.S.A. Corp, said, “Congratulations to Trey Gibbs on earning his first SCORE race victory this weekend, and to Gustavo Vildósola Sr. on adding another win to his accomplished career. Our drivers have continued to set the standard in the Spec and Legends classes at the Baja 500, and we’re proud of this past weekend’s continued success.”
Tyres Europe Joins Industrial Coalition Urging EU Trade Policy Overhaul
- By TT News
- June 18, 2026
Tyres Europe has joined a broad coalition of industrial sectors calling on the European Union to adopt a more dynamic and forceful trade policy amid deliberations by the European Council on economic security, competitiveness and EU-China relations. The tyre industry contends that current frameworks are increasingly mismatched with the realities of a fast-moving global economy, where distortions rapidly transcend borders and sectors.
The sector underpins approximately 500,000 jobs across the Union and supplies essential products for passenger mobility, freight, agriculture and defence. Its viability depends on fair competition within deeply interconnected value chains, yet structural overcapacity, state-induced market distortions and unfair trading practices are simultaneously affecting multiple industries. These pressures cascade across supply networks, weaken investment incentives and progressively hollow out Europe's industrial base. Tyres Europe argues that only a coherent policy combining robust trade defence instruments with broader industrial resilience measures can effectively counter this erosion.
A critical challenge lies in the temporal disconnect between agile global supply chains and the slower pace of EU investigations and duty implementation. Tyre manufacturing routes can be reconfigured within months, allowing exporters to front-load shipments during probes and redirect production to alternative locations once tariffs are imposed. This leaves European manufacturers under sustained competitive pressure even after investigations conclude. Tyres Europe has therefore endorsed the Joint Industry Statement, which urges a more ambitious application of trade policy that reflects the fundamentally altered contours of global commerce.
The organisation supports enhanced resources for investigations, a more proactive deployment of existing instruments aligned with industrial objectives and exploration of additional WTO-compatible tools to tackle systemic state-induced distortions. It also advocates for strategic use of the Foreign Subsidies Regulation to address recurrent distortive patterns beyond isolated case assessments. Given that tyre manufacturing involves long-term, capital-intensive decisions with near-irreversible capacity loss, preserving a competitive domestic base is framed as both an industrial goal and a matter of strategic autonomy. As European leaders shape their response to a volatile trading environment, Tyres Europe urges them to ensure that trade defence evolves to safeguard fairness and the industrial capabilities underpinning prosperity and innovation.
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