Neste Corporation, Half-year financial report, 24 July 2026 at 9 a.m. (EET)
Neste delivers all-time high quarterly results in exceptional market environment — long-term fundamentals for renewables strengthening
Second quarter in brief:
● Comparable EBITDA totaled EUR 1,203 (341) million
● EBITDA totaled EUR 1,144 (246) million
● Renewable Products' comparable sales margin was USD 1,223 (361)/ton
● Oil Products' total refining margin was USD 25.8 (10.0)/bbl
● Cash flow before financing activities was EUR 164 (226) million
January–June in brief:
● Comparable EBITDA totaled EUR 2,064 (551) million
● EBITDA totaled EUR 2,047 (446) million
● Cash flow before financing activities was EUR 450 (0) million
● Leverage ratio was 29.9% at the end of June (31.12.2025: 34.3%)
● Earnings per share was EUR 1.69 (-0.10)
Figures in parentheses refer to the corresponding period for 2025, unless otherwise stated.
President and CEO Heikki Malinen:
"Neste delivered record results during the second quarter of 2026, which I am very pleased with. The conflict in the Middle East dominated global oil and product markets through most of the period, creating an exceptional market environment for Neste. At the same time, we benefited from favorable regulatory decisions that will continue to support demand for renewables for years to come. We successfully captured the market potential to deliver strong margins, leading to robust financial results, despite production limitations in Renewable Products.
The Group's comparable EBITDA for the second quarter reached EUR 1,203 (341) million, driven by record-high renewable margins and exceptionally strong middle distillate markets. Our performance improvement program continued its solid delivery, contributing EUR 118 million of EBITDA increase in the quarter and bringing our cumulative run-rate improvement to EUR 594 million against the 2024 baseline.
In Renewable Products, comparable EBITDA reached an all-time high of EUR 859 (174) million, supported by a record high sales margin of USD 1,223 (361)/ton and sales volumes exceeding 1 million tons. The improved mandate outlook and sustained demand for renewable diesel have strengthened the European market. An encouraging example is Germany's final adoption of its RED III legislation during the quarter, which is expected to add approximately 1.5 million tonnes of renewable diesel annual demand in 2026 and even more in the coming years. In the US, higher biofuel mandates have substantially boosted domestic renewable diesel and biodiesel demand. Renewable Identification Number (RIN) prices have significantly risen since the beginning of the year, being the primary driver of the strongest US renewable diesel margins in several years.
In Oil Products, comparable EBITDA was EUR 334 (135) million, with a total refining margin of USD 25.8 (10.0)/bbl and an average Porvoo utilization rate of 90% (92%). The main margin drivers were exceptionally wide middle distillate cracks — a product slate for which Porvoo is highly optimized. This market upside was fully captured thanks to the solid production of the refinery. Porvoo refinery has already commenced preparations for its scheduled maintenance turnaround starting in the third quarter. We have ensured security of supply for our customers by producing and storing products in advance, which will enable uninterrupted sales and distribution during maintenance work.
In Marketing & Services, comparable EBITDA was EUR 23 (32) million. The result reflects lower volumes and tighter unit margins in Finland and the Baltic countries, alongside negative inventory effects resulting from sharp product price fluctuations during the quarter. We continue to strengthen our long-term competitiveness through commercial network improvement initiatives designed to enhance the customer experience.
The Group’s financial position has markedly improved on the back of the strong results for the first half of the year. Our leverage ratio was 29.9% at the end of June — comfortably below our 40% target. Free cash flow was EUR 164 (226) million, impacted by a EUR 842 million increase in working capital resulting mainly from higher inventory levels and valuations related to the preparation for the upcoming planned maintenance activities in our refineries.
The ongoing Middle East conflict has accelerated global energy debate: repeated supply shocks keep energy security high on the policy agenda. In this context, reducing reliance on imported fossil fuels is an increasingly important strategic goal both to strengthen energy security of supply and to mitigate climate change. Renewable fuels have a vital role to play here, and Neste is uniquely positioned to contribute through our growing global production capacity as well as a highly diversified feedstock supply chain.
Our strategic priorities remain unchanged. The Rotterdam refinery expansion — which on completion will be the world's largest renewable diesel and SAF refinery — continues to progress. Concurrently, we remain focused on strengthening day-to-day execution, as we recognize there is still room to improve our operational reliability. By combining operational excellence, cost competitiveness and careful capital allocation, we are steadily unlocking Neste's full potential.
The world in which we operate remains volatile and uncertain and global oil and gas trade flows will take time to fully normalize. The resilience of our feedstock sourcing, our global refinery network and continuous performance improvement ensure that we can continue to serve our customers reliably. With the increased demand outlook for renewables, we are on track to continue building long-term shareholder value."
The Group's second quarter 2026 results
Neste's revenue in the second quarter totaled EUR 5,987 (4,511) million. Higher end product prices boosted revenue by EUR 2.4 billion year-over-year. Total sales volumes had a negative impact of EUR -0.7 billion, as a result of lower sales volumes of Oil Products due to preparations for the upcoming turnaround. Currency exchange rates as well as lower Oil Products’ trading volumes had an approximately EUR -0.2 billion negative impact on the revenue.
Group comparable EBITDA increased to EUR 1,203 (341) million. Renewable Products' comparable EBITDA rose to EUR 859 (174) million, thanks to record high sales margins and elevated diesel prices. Oil Products' comparable EBITDA reached EUR 334 (135) million, driven by exceptionally wide diesel cracks. Marketing & Services’ comparable EBITDA was EUR 23 (32) million.
Group EBITDA was EUR 1,144 (246) million, impacted by inventory valuation losses of EUR -87 (-111) million, while changes in the fair value of open commodity and currency derivatives were EUR 32 (22) million. Profit before income taxes was EUR 948 (-52) million, and after an effective tax rate of 19%, net profit was EUR 765 (-36) million. Earnings per share were EUR 1.00 (-0.05).
The Group's January–June 2026 results
Neste's revenue in the first six months totaled EUR 11,150 (9,528) million. Higher end product prices had a positive impact of approximately EUR 3.5 billion. This more than compensated lower volume in Renewable Products and Oil Products that resulted in EUR -0.5 billion negative impact. Currency exchange rates as well as less trading in Oil Products had an approximately EUR -1.4 billion negative impact on the revenue.
Group comparable EBITDA was EUR 2,064 (551) million. Renewable Products' January-June comparable EBITDA was EUR 1,292 (246) million, impacted by higher sales margins and positive regulatory tailwind that drove demand. Oil Products' comparable EBITDA was EUR 707 (256) million, driven by exceptionally wide middle distillate cracks margin. Marketing & Services comparable EBITDA was EUR 72 (49) million. Other's comparable EBITDA was EUR -7 (0) million.
Group EBITDA was EUR 2,047 (446) million, impacted by inventory valuation gains of EUR 54 (losses -67) million and changes in the fair value of open commodity and currency derivatives totaling EUR -67 (-8) million. Profit before income taxes was EUR 1,614 (-108) million, and net profit was EUR 1,298 (loss -76) million. Earnings per share were EUR 1.69 (-0.10).
Outlook
Guidance for 2026
● Renewable Products' sales volumes in 2026 are approximately at the same level as in 2025.
● Oil Products' sales volumes in 2026 are expected to be lower than in 2025 due to the planned maintenance turnaround.
Additional information
● The Group's full-year 2026 cash-out capital expenditure excluding M&A is estimated to be approximately EUR 1.2 billion.
● There are three scheduled maintenance turnarounds in H2 2026, with the following approximate durations:
- Porvoo: 8 weeks starting in August 2026
- Rotterdam: 8 weeks during Q4 2026
- Singapore: 11 weeks starting in December 2026 for one of the production lines.
Conference call
A conference call in English for investors and analysts will be held on 24 July 2026, at 3 p.m. Finland / 1 p.m. London / 8 a.m. New York. In order to receive the participant dial in numbers and a unique personal PIN, participants are requested to register using this link: https://events.inderes.com/neste/q2-2026/dial-in. The conference call can also be followed as a webcast.
Further information:
Heikki Malinen, President and CEO, tel. +358 10 458 11
Eeva Sipilä, Chief Financial Officer, tel. +358 40 727 6766
Jukka Miettinen, VP, Investor Relations, tel. +358 40 778 8855
Neste in brief
Neste (NESTE, Nasdaq Helsinki) is the world's leading producer of renewable diesel and sustainable aviation fuel (SAF), with production on three continents. The company’s renewables production capacity is expected to reach 6.8 million tons annually in 2027. Neste also produces high-quality oil products at its Porvoo refinery in Finland. The company has a network of nearly 1,000 fuel stations with expanding service offering, such as EV charging, in Finland and in the Baltics.
Neste’s strategy focuses on growth in renewable fuels, which help its customers to reduce their greenhouse gas emissions. Neste is included in many international indices for its sustainability performance. In 2025, Neste's revenue stood at EUR 19.0 billion. Read more: neste.com