Finnish engineering group Metso on Wednesday raised its long-term profitability target as part of a new strategy, aiming for an adjusted operating profit margin of over 18% by the end of 2028.
The move comes despite a recent dip in performance, with the company reporting in July that its second-quarter margin fell to 14.1% from 16.9% a year earlier, citing sales mix and temporarily higher costs.
The new profitability goal is an increase from its previous target of over 17%.
Metso also set a new goal for annual sales growth of at least 7% and introduced a new leverage target of keeping its net debt below 1.5 times its core earnings (EBITDA), according to the company.
Its dividend policy of paying out at least 50% of earnings per share remains unchanged.
Metso said it expects growth to be driven by global trends like infrastructure projects and the energy transition, which boosts demand for minerals such as copper.
"The new financial targets demonstrate our ambition to elevate Metso to new heights, enhancing not only our business and customer experience but also driving our growth and profitability, thereby continuing our journey of creating shareholder value," President and CEO Sami Takaluoma said in a statement.
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Finnish engineering group Metso on Thursday reported a 10% rise in third-quarter sales, as robust demand for its mining and construction equipment provided a strong start for its new growth strategy.