Valmet's Share Buyback: A Strategic Move for Long-Term Growth

Valmet Oyj, a leading global developer and supplier of process technologies, automation, and services for various process industries, has completed its share buyback program for its share-based incentive plans. The program, which began on February 14, 2025, and ended on February 19, 2025, saw the company acquire a total of 115,000 of its own shares for an average price of EUR 27.98 per share. The total purchase price paid for the shares was EUR 3,217,811. Following the acquisitions, Valmet owns a total of 479,258 treasury shares, representing approximately 0.26 percent of the total number of shares in the company.

The completion of the share buyback program has several implications for Valmet's long-term financial strategy, particularly in relation to its share-based incentive plans. By acquiring its own shares, Valmet has invested in its own future and demonstrated its commitment to its employees and shareholders. The acquisition of these shares reduces the number of outstanding shares in the market, which can have several positive effects on the company's financial strategy.

Firstly, the reduction in the number of outstanding shares can lead to an increase in Earnings per Share (EPS). With fewer shares outstanding, the company's earnings are distributed among a smaller number of shares, resulting in a higher EPS. This can make the company's shares more attractive to investors and potentially drive up the stock price. Additionally, the increased EPS can enhance the company's financial performance and strengthen its position in the market.

Secondly, the share buyback program aligns the interests of the company and its employees. Employees participating in the LTI Plans and Restricted Share Pool incentive now have a vested interest in the company's performance and share price. This alignment of interests can foster a more collaborative and productive work environment, as employees are more likely to be motivated to contribute to the company's success.

Lastly, the share buyback program can enhance shareholder value by increasing the value of each share. By reducing the number of shares, Valmet can increase the value of the remaining shares, making its shares more valuable to shareholders and potentially attracting new investors. This can also make the company a more attractive target for potential mergers or acquisitions, as it would bring a larger stake to the table.

In conclusion, the completion of Valmet's share buyback program supports the company's long-term financial strategy by helping to meet obligations from share-based incentive plans, increasing EPS, enhancing shareholder value, and aligning the interests of the company and its employees. The acquisition of 115,000 shares demonstrates Valmet's commitment to its long-term growth and its confidence in the company's future prospects.