Is Valmet (HLSE:VALMT) Quietly Building a Decarbonization Moat With Fortum’s Biomass Conversion Deal?

• On 3 December 2025, Fortum announced that Valmet will deliver a boiler island fuel conversion from coal to biomass at the Zabrze combined heat and power plant in Poland, as part of Fortum’s €85 million retrofit that will eliminate coal use and significantly cut fossil CO₂ emissions.
• This contract further highlights Valmet’s role in enabling decarbonized district heating infrastructure, using certified local forest biomass and advanced boiler conversion technology to support cleaner air and more resilient community heating in Zabrze.
• We’ll now examine how this biomass boiler conversion win with Fortum fits into Valmet’s investment narrative around sustainability-focused growth.

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Valmet Oyj Investment Narrative Recap

To own Valmet, you need to believe that its mix of industrial automation, services and green process technologies can steadily compound value even with flat near term sales. The Fortum Zabrze biomass conversion supports the sustainability focused growth catalyst but is unlikely to change the most important short term swing factors, which remain demand softness in core capital markets and ongoing execution on margin improvement in Biomaterial Solutions and Services.

The Fortum contract sits well alongside Valmet’s June 2025 update, where it outlined a new two segment structure and 2030 targets that lean heavily on biomaterials, circularity and low carbon solutions. Both point to the same catalyst: if Valmet can convert its sustainability offering into higher service penetration and stable order intake, it could gradually smooth earnings that are currently exposed to large, lumpy capital projects.

Yet behind this green growth story, investors should also be aware of the risk that large, lumpy capital orders can...

Read the full narrative on Valmet Oyj (it's free!)

Valmet Oyj’s narrative projects €5.9 billion revenue and €557.7 million earnings by 2028.

Uncover how Valmet Oyj's forecasts yield a €28.29 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community fair value estimates for Valmet span roughly €28 to €51 per share, showing how far opinions can diverge. You might weigh these views against the company’s reliance on large, lumpy capital projects, which can make earnings and cash flows less predictable over time.

Explore 3 other fair value estimates on Valmet Oyj - why the stock might be worth as much as 89% more than the current price!

Build Your Own Valmet Oyj Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Valmet Oyj research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Valmet Oyj research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Valmet Oyj's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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