549300R0VN9C371W0E07-2025-12-31-en

Metso Corporation - Board of Directors' report and financial statements 2025 |4

Board of Directors’ report

Financial year 2025

Figures in brackets refer to the corresponding period in 2024, unless otherwise stated. Comparative income

statement, orders received and order backlog figures for the Group and Minerals segment have been

restated following the reclassification of the Metals & Chemical Processing business as part of continuing

operations since July 1, 2025.

Operating environment

Market activity in Metso’s customer industries remained solid throughout 2025. However, tariffs and broader

macro‑economic uncertainty continued to slow some customers’ investment decisions related to new

equipment purchases.

In the Minerals segment, the number of requests for quotations stayed at a high level all year as customers

actively planned to increase the production of metals needed for the electrification of society. This

development was particularly supported by high market prices for copper and gold. Demand in the segment’s

aftermarket business remained strong throughout the year, driven by high utilization rates at mines. It was

also positive that demand for services related to production efficiency and equipment renewals increased

clearly compared to the previous year.

In the Aggregates market, the year was better than the previous one, especially in Europe. In North America,

tariffs added uncertainty during the year, although market conditions were supported by the normalization of

distributor inventory levels. In other regions, such as China and South America, activity remained broadly in

line with the previous year.

Key figures


EUR million	2025	2024	Change %
Orders received*	5,471	5,278	4
Orders received by aftermarket business*	3,000	2,904	3
% of orders received*	55	55	–
Order backlog*	3,457	3,223	7
Sales*	5,240	5,026	4
Sales by aftermarket business*	2,805	2,846	-1
% of sales*	54	57	–
Adjusted EBITA*	829	830	0
% of sales*	15.8	16.5	–
Operating profit*	735	749	-2
% of sales*	14.0	14.9	–
Earnings per share, continuing operations, EUR*	0.58	0.61	-5
Earnings per share, total, EUR*	0.51	0.40	28
Cash flow from operations	974	576	69
Gearing, %	40.8	44.9	–
Net debt/EBITDA, last 12 months*	1.2	1.3	–
Personnel at end of period	17,982	16,832	7

*Comparative figures for 2024 have been restated. More information is available in note 5.5. discontinued operations.

Metso Corporation - Board of Directors' report and financial statements 2025 |5

Financial performance

The Group's annual orders received increased by 4% and totaled EUR 5,471 million (EUR 5,278 million).

Equipment orders increased by 4% and aftermarket orders increased by 3% year-on-year. The Group's sales

grew by 4% to EUR 5,240 million (EUR 5,026 million). The order backlog at the end of the year was EUR 3,457

million (3,223 million).

The Group's adjusted EBITA was EUR 829 million (EUR 830 million) and adjusted EBITA margin was 15.8%

(16.5%). Operating profit was EUR 735 million, or 14.0% of sales (EUR 749 million and 14.9%) including

adjustments of EUR -14 million (EUR -14 million). Profit before taxes was EUR 636 million (EUR 670 million).

The effective tax rate was 24% (24%). Earnings per share for continuing operations were EUR 0.58 (EUR 0.61).

Cash flow from operations was EUR 974 million (EUR 576 million).

Impacts from currency and structural changes on orders received


EUR million, %	Aggregates	Minerals	Total
2024*	1,231	4,046	5,278
Organic growth in constant currencies, %	6	6	6
Impact of changes in exchange rates, %	-3	-4	-4
Structural changes, %	4	0	1
Total change, %	7	3	4
2025	1,317	4,154	5,471

Impacts from currency and structural changes on sales


EUR million, %	Aggregates	Minerals	Total
2024*	1,207	3,819	5,026
Organic growth in constant currencies, %	4	6	6
Impact of changes in exchange rates, %	-3	-3	-3
Structural changes, %	4	1	2
Total change, %	5	4	4
2025	1,266	3,974	5,240

*Comparative figures for 2024 have been restated. More information is available in note 5.5. discontinued operations.

Financial position

The Group’s net interest-bearing liabilities were EUR 1,092 million at the end of December (Dec 31, 2024: EUR

1173 million). Gearing increased to 40.8% (Dec 31, 2024: 44.9 %) and the debt-to-capital ratio to 35.4% (Dec 31,

2024: 35.9%). The equity-to-assets ratio was 41.6% (Dec 31, 2024: 41.5%).

The Group's liquidity position remained solid. Liquid funds, consisting of cash and cash equivalents, amounted

to EUR 501 million (Dec 31, 2024 : EUR 431 million), and there were no deposits or securities with a maturity of

more than three months (Dec 31, 2024: EUR 0 million).

Metso has a committed syndicated revolving credit facility of EUR 700 million with a maturity in 2030. The

facility includes sustainability performance targets impacting the cost of borrowing. At the end of the year,

the facility was undrawn. The company has a EUR 600 million Finnish commercial paper program, which was

not utilized at the end of December. At the end of December Metso had bonds outstanding EUR 1,060

million at carrying value (Dec 31, 2024: EUR 892 million).

During 2025, the company made several funding transactions:

• New EUR 700 million sustainability-linked revolving credit facility agreement maturing in 2030 which

refinanced EUR 600 million facility

• The company structured its maturity profile by purchasing EUR 130 million of the outstanding bond

maturing in 2027 through a voluntary tender offer. At the same time the company issued a new EUR 300

million bond with a coupon of 3.75% and maturity in 2032.

The average interest rate of loans and derivatives was 3.3%, on December 31, 2025. The duration of interest-

bearing debt, excluding lease liabilities and the Aggregates Technology Center financing arrangement, was

2.5 years and the average maturity 3.6 years.

The sustainability KPIs in Metso's sustainability-linked bond (ISIN XS2717378231) issued in 2023 are scope 1 and

2 emissions (original sustainability-linked bond baseline year 2022: 48,944 tCO2e), as well as spend with all

suppliers that have committed to science-based emissions targets or have an equivalent verifiable emissions

reduction target. In 2025, scope 1 and 2 emissions were 30,111 tCO2e, a decrease of 38.5% from the original

bond baseline and spend with all suppliers having the aforementioned target reached 35.3%. Metso therefore

reached its 2025 target of 30%.

At the end of December, Metso had a ‘Baa2’ long-term issuer rating with positive outlook from Moody’s

Investor Service.

Metso Corporation - Board of Directors' report and financial statements 2025 |6

Reporting segments: Aggregates

Key figures


EUR million	2025	2024	Change %
Orders received	1,317	1,231	7
Orders received by aftermarket business	419	431	-3
% of orders received	32	35	–
Order backlog	433	439	-1
Sales	1,266	1,207	5
Sales by aftermarket business	403	419	-4
% of sales	32	35	–
Adjusted EBITA	196	198	-1
% of sales	15.5	16.4	–
Operating profit	169	179	-6
% of sales	13.4	14.8	–

Orders received grew by 7% to EUR 1,317 million. The growth was attributed to the North American and

European markets. Orders in North America were supported by acquisitions, while activity in Europe was

higher year-on-year. Sales grew by 5%, Equipment sales grew by 10%, while aftermarket sales were 4% lower

year-on-year. Adjusted EBITA was EUR 196 million (EUR 198 million), corresponding to a margin of 15.5%

(16.4%). The lower profitability was due to the higher share of equipment in the sales mix.

Reporting segments: Minerals

Key figures


EUR million	2025	2024	Change %
Orders received*	4,154	4,046	3
Orders received by aftermarket business*	2,581	2,473	4
% of orders received*	62	61	–
Order backlog*	3,024	2,784	9
Sales*	3,974	3,819	4
Sales by aftermarket business*	2,402	2,427	-1
% of sales*	60	64	–
Adjusted EBITA*	680	665	2
% of sales*	17.1	17.4	–
Operating profit*	616	570	8
% of sales*	15.5	14.9	–

*Comparative figures for 2024 have been restated. More information is available in note 5.5. discontinued operations.

Orders received increased by 3% year-on-year, thanks to aftermarket and large equipment orders.

Aftermarket orders increased by 4%, as activity - especially related to rebuilds and modernizations - was

higher compared to 2024. Sales grew by 4% to EUR 3,974 million, thanks to the 13% increase in equipment

sales, while aftermarket sales declined by 1%. Adjusted EBITA was EUR 680 million with the adjusted EBITA

margin of 17.1% (EUR 665 million and 17.4%). The decline was primarily due to the equipment-weighted sales

mix.

Metso Corporation - Board of Directors' report and financial statements 2025 |7

Capital expenditure and investments

Gross capital expenditure excluding right-of-use assets was EUR 196 million in 2025. The main investments

were a new Aggregates Technology Center in Finland, new service centers in North America and a

manufacturing center in Romania.

Research and development

R&D expenses including investments were EUR 122 million, or 2.3% of sales.

Inventions and patents


Pieces	2025	2024
Invention disclosures	215	175
Patent applications (including utility models)	2,107	2,116
Individual granted patents in force, as of December 31	7,963	7,924
Inventions protected by patents, as of December 31	1,070	1,058

Corporate governance and remuneration

Metso Annual General Meeting 2025

The Annual General Meeting (AGM) was held on April 24, 2025, in Helsinki. The AGM resolved to approve

the Board of Directors’ proposal to pay a dividend of EUR 0.38 per share from the financial year 2024 in two

installments. The first dividend installment of EUR 0.19 per share was paid on May 6, 2025, and the second

installment of EUR 0.19 per share was paid on October 31, 2025.

Metso Board composition and remuneration

The AGM resolved to elect nine members to the Board of Directors. From the current Board members Brian

Beamish, Klaus Cawén, Terhi Koipijärvi, Niko Pakalén, Reima Rytsölä, Kari Stadigh and Arja Talma were re-

elected and Anders Svensson and Eriikka Söderström were elected as new Board members for the term

ending at the closing of the Annual General Meeting 2026. Kari Stadigh was re-elected as the Chair of the

Board of Directors and Klaus Cawén as the Vice Chair of the Board of Directors for the term ending at the

closing of the Annual General Meeting 2026.

The AGM resolved that the members of the Board of Directors will be paid the same fixed annual

remuneration as in the previous term as follows:

• Chair: EUR 176,500

• Vice Chair: EUR 88,300

• Other members: EUR 71,500 each

and the additional remuneration to be paid for the members of the Board of Directors that are elected as

members of the committees of the Board will be also unchanged as follows:

• EUR 26,300 for the Chair of the Audit & Risk Committee

• EUR 10,850 each for the other members of the Audit & Risk Committee

• EUR 13,0200 for the Chair of the Remuneration and HR Committee

• EUR 5,430 each for the other members of the Remuneration and HR Committee.

As a condition for the annual remuneration, the Board members are obliged, directly based on the AGM’s

decision, to use 20 or 40 percent of their fixed total annual remuneration for purchasing Metso shares from

the market at a price formed in public trading. These purchases were carried out on April 28, 2025.

The AGM also resolved to approve the following meeting fees, unchanged from the previous term: EUR 900 for

meetings requiring travel within the Nordic countries, EUR 1,800 for meetings requiring travel within a continent,

EUR 3,000 for meetings requiring intercontinental travel, and EUR 900 for meetings with remote attendance.

Authorized public accounting firm Ernst & Young Oy was re-elected as Auditor for a term ending at the

closing of the Annual General Meeting 2026. Ernst & Young Oy has appointed Toni Halonen, APA, as the

principally responsible auditor. The remuneration to the Auditor was decided to be paid against the Auditor’s

reasonable invoice approved by the company.

The AGM approved the Board’s proposals, which related to authorizing the Board to decide on the

repurchase of an aggregate maximum of 82,000,000 of Metso’s own shares (corresponding to approximately

9.9 percent of all shares) and authorizing the Board to decide on the issuance of shares and the issuance of

special rights entitling to shares.

Metso Corporation - Board of Directors' report and financial statements 2025 |8

Appointments to the Metso Leadership Team

On January 7, Metso appointed Pasi Kyckling as the company’s Chief Financial Officer (CFO) and a member

of the Metso Leadership Team. Kyckling started in his role in April 2025.

On November 11, Metso appointed Teija Saari as the company’s Chief People Officer (CPO) and a member of

the Metso Leadership Team. Saari starts in her role on March 1, 2026.

After the appointments Metso’s Leadership Team consists of the following members:

Sami Takaluoma, President and CEO

Pasi Kyckling, CFO

Markku Simula, President, Aggregates business area

Piia Karhu, President, Minerals business area

Heikki Metsälä, President, Services business area

Saso Kitanoski, President, Consumables business area

Claudia Genin, Chief Growth Officer

Hannele Järvistö, Interim Head of HR

Nina Kiviranta, General Counsel

Personnel

Metso had 17,982 employees (16,832 employees) at the end of December 2025.

Personnel by area


	Share, %
Europe	32
North and Central America	13
South America	26
Asia Pacific and Greater China	14
Africa, Middle East and India	15
Total	100

Other main events in 2025

Acquisition of screening business in China

On February 10, Metso announced the acquisition of the screening business, operations and key assets of the

privately owned Selm (Beijing) Technology Co., Ltd. By combining the new offering with its existing expertise,

Metso will strengthen its services for mining and aggregates customers in China. Selm's offering consists of

mining and aggregate screens and technologies, including micro-sized screening solutions. It has around 180

employees and its operations are located in Shenyang, Northeast China. The acquisition closed in July.

Conveyance of own shares based on the long-term incentive plans

On March 20, a total of 409,427 of Metso's treasury shares were conveyed without consideration to 163 key

persons based on the Performance Share Plan 2022–2024 and Restricted Share Plan 2022–2024. The transfer

of shares was based on the authorization given to the Board by the Annual General Meeting 2024.

Annual report for 2024

On March 26, Metso published its Annual Report for 2024. The report consists of four sections: Business

Overview, Financial Review, Corporate Governance Statement, and Remuneration Report.

Acquisition of Swiss Tower Minerals

On April 2, Metso completed the acquisition of its long-time partner Swiss Tower Mills Minerals AG (STM), of

which it previously had a 15% minority ownership. The acquisition further strengthened Metso's position as a

leading provider of crushing and grinding solutions for the mining industry.

New EUR 700 million revolving credit facility

On April 29, Metso signed a new EUR 700 million sustainability-linked revolving credit facility (RCF) agreement

to refinance the existing EUR 600 million facility. The syndicated five-year facility has two one-year extension

options, subject to the lender’s approval, and it will be used as a backup for general corporate purposes.

Metso Corporation - Board of Directors' report and financial statements 2025 |9

Issuance of EUR 300 million bond

On May 21, Metso issued a senior unsecured bond under its EMTN (Euro Medium Term Note) program. The

EUR 300 million bond, which will mature in May 2032, pays a fixed coupon of 3.750%. The bond is listed on

the Luxembourg Stock Exchange. Proceeds were used to repay some of Metso’s existing indebtedness in

connection with a tender offer for its outstanding EUR 300 million 4.875% notes due 2027, announced on May

19, 2025, to refinance existing debt and for general corporate purposes.

Divestment of the Ferrous business

On May 30, Metso signed an agreement to sell its Ferrous business to SMS group, a global company

providing technology and services in plant construction and mechanical engineering for the metals industry.

Approximately 180 employees, primarily based in Germany, India and China, joined the SMS group at the

closing of the transaction, which took place after the reporting period, on January 5, 2026.

New service center in Western Canada

On June 6, Metso announced the construction of a new service center in Western Canada. The center is

expected to be fully operational by early 2026.

New screen manufacturing center in Romania

On July 3, Metso announced that it is expanding its stationary screen production footprint by establishing a

new manufacturing center in Oradea, Romania. This investment will ensure the screening business growth

strategy by increasing capacity and enhancing customer proximity and service capabilities for customers

located in Europe, Central East Asia, and the Middle East.

Acquisition of TL Solution

On July 4, Metso announced that it is enhancing its innovative mill lining recycling technology development

and customer service capabilities by signing an agreement to acquire TL Solution’s recycling operations and

induction heating technology development capabilities. TL Solution, a privately owned company based in

Oulu, Finland, has previously worked with Metso to develop recycling technology.

Acquisition of Q&R Industrial Hoses

On September 16, Metso signed an agreement to acquire Q&R Hoses, a privately owned Australian company

specializing in the manufacture of pinch valve sleeves, rubber hoses, and other products and linings.

Updated strategy and new financial targets

On September 24, the Board approved an updated strategy for the period 2026–2030. The Board also

decided on new financial targets to be achieved by the end of 2028. Metso's new strategy, ‘We go beyond.’,

focuses on business growth and improved profitability, customer-centricity, market leadership, and increasing

the share of aftermarket sales. There are four strategic objectives: the best customer experience, a higher

share of aftermarket sales, leadership in sustainability and safety, and financial excellence.

The approved financial targets include a new sales growth target and an increased profitability target.

These targets are to be achieved by the end of 2028:

• Annual sales growth (CAGR) of at least 7% (new target)

• Adjusted EBITA margin over 18% (previously over 17% over the cycle)

• Net debt-to-EBITDA ratio below 1.5 (new target replacing ‘maintain investment-grade rating’ target)

• Annual dividend of at least 50% of earnings per share (no change)

Capital Markets Day 2025

On October 2, Metso's Capital Markets Day was held in Helsinki and attracted strong participation from

analysts, portfolio managers, and banking contacts.

Termination of S&P Global Ratings credit rating

On November 4, Metso determined that a credit rating from a single rating agency is sufficient. Following this

assessment, Metso terminated its long-term issuer credit rating with Standard & Poor’s Global Ratings. Metso

continues to be rated by Moody’s Investors Service.

Composition of the Shareholders’ Nomination Board and its proposals

On December 4, Metso’s Shareholders’ Nomination Board published its proposals to the Annual General

Meeting, planned to be held on April 22, 2026. The Nomination Board proposes that the Board of Directors

would have nine members and that Klaus Cawén, Terhi Koipijärvi, Niko Pakalén, Kari Stadigh, Anders

Svensson, Eriikka Söderström and Arja Talma would be re-elected. Brian Beamish and Reima Rytsölä have

announced that they are not available for re-election. The Nomination Board will propose that Matts

Rosenberg and Petra Sundström be elected as new members of the board. Their resumes are attached to this

release. The Nomination Board will also propose that Kari Stadigh would be re-elected Chair of the Board

and Klaus Cawén Vice Chair.

Metso Corporation - Board of Directors' report and financial statements 2025 |10

All the Board member candidates have given their consent to be elected and have been assessed to be

independent of the company and its significant shareholders, except for Matts Rosenberg, who has been

assessed to be independent of the company but not independent of its significant shareholders.

The Nomination Board will propose fixed annual remuneration to the Board members as follows (current

remuneration in brackets):

• Chair EUR 181,000 (EUR 176,500)

• Vice Chair EUR 89,500 (EUR 88,300)

• Other members EUR 72,500 (EUR 71,500)

An additional remuneration will be proposed to be paid to the Board members that are elected as members

of the Audit & Risk Committee and the Remuneration and HR Committee as follows (current remuneration in

brackets):

• Chair of the Audit & Risk Committee EUR 27,000 (EUR 26,300)

• Members of the Audit & Risk Committee EUR 11,000 (EUR 10,850)

• Chair of the Remuneration and HR Committee EUR 13,500 (EUR 13,200)

• Member of the Remuneration and HR Committee EUR 5,500 (EUR 5,430)

The Nomination Board will propose that, as a condition for the annual remuneration, the Board members

should be obliged, directly based on the Annual General Meeting’s decision, to use 20% or 40% of their fixed

total annual remuneration to purchase Metso shares from the market at a price formed in public trading and

that the purchase be carried out within two weeks from the publication of the interim report for January 1 –

March 31, 2026.

The Nomination Board will propose the following meeting fees to be paid for attending the meetings of the

Board and its committees:

• EUR 900 for meetings requiring travel within the Nordic countries

• EUR 1,800 for meetings requiring travel within a continent

• EUR 3,000 for meetings requiring intercontinental travel

• EUR 900 for meetings with remote attendance

Metso’s Board of Directors will include all the above-mentioned proposals in the notice of the Annual General

Meeting of 2026.

Metso’s Shareholders’ Nomination Board comprises:

• Annareetta Lumme-Timonen (Investment Director, Solidium Oy) as Chair

• Philip Ahlgren (Partner, Cevian Capital Partners Ltd.)

• Risto Murto (President and CEO, Varma Mutual Pension Insurance Company)

• Mikko Mursula (President and CEO, Ilmarinen Mutual Pension Insurance Company)

• Kari Stadigh (Chair of Metso’s Board of Directors)

The Shareholders’ Nomination Board consists of the representatives of the four largest registered

shareholders of the company based on the ownership situation as of August 15 annually, as well as the Chair

of Metso’s Board of Directors.

Kari Stadigh did not participate in the decision-making concerning the remuneration of the Board members.

Divestment of loading and hauling operations

On December 10, Metso signed an agreement to divest its loading and hauling business in Finland and

Sweden to Miilux Oy. The agreement follows the strategic assessment announced in August 2025.

Approximately 100 employees, mainly in Kokkola and Kalajoki in Finland and in Luleå in Sweden, along with

the related assets and facilities, joined the new owner at the closing of the transaction, which took place after

the reporting period in February 2026.

Commencement of new plan periods in long-term incentive plans targeted to Metso management

and key employees

On December 17, the Board approved the commencement of a new plan period 2026-2028 in the following

share-based long-term incentive programs for the company management and key personnel: The

Performance Share Plan (also "PSP") and the Restricted Share Plan (also "RSP").

Short-term business risks and market uncertainties

The uncertainty in the global markets may affect Metso's market environment. Trade restrictions and tariffs

pose risks for global economic growth and may affect both Metso's customers and suppliers. Metso has

actively mitigated the impact of tariffs on its operations through its extensive geographical footprint, by

passing tariffs on to customers through prices, and by optimizing its sourcing and supply chain. However,

higher uncertainty may have a negative impact on customers' capex decision-making. There are also other

market- and customer-related risks that could cause ongoing projects to be postponed, delayed,

discontinued, or terminated.

Geopolitical tensions and related trade barriers may impact global supply chains and may affect Metso's

ability to deliver on time and/or on budget. The financial position of suppliers may be at risk, due to working

capital requirements and funding costs, which could also lead to challenges with on-time deliveries. If

suppliers are unable to deliver and the company is unable to find alternative sources in the time required, it

may lead to contractual penalties and/or obligations.

Uncertain market conditions could adversely affect our customers’ payment behavior and increase the risk of

lawsuits, claims, and disputes taken against Metso in various countries related to, among other things, Metso’s

products, projects and other operations.

Metso Corporation - Board of Directors' report and financial statements 2025 |11

Even though currency exposure of firm delivery and purchase agreements is hedged, exchange rate

fluctuations may impact the company's financial position.

Information security and cyber threats could disturb or disrupt Metso’s businesses and operations.

Disputes related to delivery execution are a risk for Metso and can result in extra costs and/or penalties. In

contracts related to the delivery of major projects, the liquidated damages attributable to, for instance,

delayed delivery or non-performance may be significant. Even though provisions are made in accordance

with accounting principles, the possibility of additional liabilities materializing cannot be excluded.

Metso is and may become involved in some disputes that may lead to or are in litigation and arbitration.

Differing interpretations of international contracts and laws may cause uncertainties on the outcome of these

disputes, including the legal basis and amounts of claims or liabilities relating to pending and past projects.

The enforceability of contracts in certain market areas may be challenging or difficult to foresee.

Market outlook

According to the company's disclosure policy, Metso’s market outlook describes the expected sequential

development of market activity during the following six-month period using three categories: improve, remain

at the current level, or decline.

Metso expects that the market activity in both Minerals and Aggregates will remain at the current level.

Metso Corporation - Annual report 2025 |12

Corporate governance

statement


Metso’s governance structure ............................................................	14
Shareholders’ Nomination Board .......................................................	15
Nomination Board Proposals for the AGM 2026 .............................	16
Board and Board committees .............................................................	17
Diversity of the Board .........................................................................	19
Board and Committee work in 2025 ..................................................	19
Management structure .......................................................................	20
Compliance Management and Code of Conduct ............................	21
Risk management .................................................................................	23
Internal control .....................................................................................	23
Audit ......................................................................................................	25
Metso Board .........................................................................................	28
Metso Leadership Team .....................................................................	31

Metso Corporation - Board of Directors' report and financial statements 2025 |13

Corporate governance statement 2025

Metso's Corporate governance statement has been prepared in accordance with current laws and regulations and is issued as part of the Board of Directors' report.

Metso Corporation (“Metso” or “Company”) follows the Finnish Corporate Governance Code 2025, (“Code”)

issued by the Securities Market Association, available at www.cgfinland.fi, and complies with the Code in its

entirety. Metso’s financial reports, including consolidated financial statements, are prepared in accordance

with the International Financial Reporting Standards (IFRS), IFRIC Interpretations as adopted by the European

Union, as well as the regulations issued by the Financial Supervisory Authority and the rules of Nasdaq

Helsinki. This statement has been reviewed by the Board of Director's Audit and Risk Committee.

Important laws and policies that influence Metso’s corporate governance

Significant regulations taken into consideration in the preparation of this statement:

• Finnish Companies Act

• Finnish Accounting Act

• Finnish Auditing Act

• Finnish Securities Markets Act

• Market Abuse Regulation (“MAR”)

• Finnish Corporate Governance Code 2025; rules, regulations, and guidelines of Nasdaq Helsinki and the

Finnish Financial Supervisory Authority

Significant internal rules and policies:

• Articles of Association

• Code of Conduct

• Corporate Governance Principles

• Metso Board Charter and Board Committee Charters

• Internal Audit Charter

More information about Metso governance is available on the Metso website .

Metso Corporation - Board of Directors' report and financial statements 2025 |14

Metso’s governance structure

In accordance with the Finnish Companies Act, the General Meeting of Shareholders is the highest decision-

making body of Metso. The Board of Directors (“Board”) oversees the company’s management and

operations and decides on significant matters. The President and CEO, assisted by the Metso Leadership

Team, is responsible for the management of the company in accordance with the strategy and targets set by

the Board as well as the applicable laws and regulations. Metso’s business areas, together with the market

areas, are responsible for the Company’s business operations. The business areas each have their defined

targets, which are implemented by them or jointly with the market areas. The Board is responsible for

ensuring compliance with good corporate governance principles.

General Meeting of Shareholders

The Board has the authority to convene the Annual General Meeting of Shareholders (“AGM”). The Board

may decide to convene the AGM on its own initiative and has an obligation to convene an Extraordinary

General Meeting (“EGM”) at the request of the Company’s auditor or shareholders holding at least ten (10)

percent of all the shares in the Company. The AGM is held annually before the end of June. The AGM

decides on the matters set out in the Finnish Companies Act and the Articles of Association, including the

following:

• Approval of the financial statements

• Use of profit, such as dividends

• Election of the Chair, Vice Chair and other members of the Board and deciding on their remuneration

• Discharging the members of the Board and the President and CEO from liability

• Election of the Auditor and the sustainability reporting assurance provider and deciding on the Auditor's

and the assurance provider’s compensation

• Remuneration policy of the governing bodies, and Remuneration report (advisory resolution)

• Other proposals made by the Board or a shareholder, such as:

– Amendments to the Articles of Association

– Special authorizations to the Board (e.g., authorization to decide on payment of an additional dividend,

on a share issue, or the repurchase of the Company’s own shares)

The AGM decisions are primarily made by a simple majority vote. According to the Finnish Corporate

Governance Code, the Chair of the Board, other members of the Board, and the proposed new members of

the Board, as well as the CEO and the Auditor are required to be present at the AGM.

The notice of the AGM is published as a stock exchange release three weeks to three months before the

AGM. Shareholders who are listed in Metso’s shareholder register maintained by Euroclear Finland Ltd by the

record date of the AGM have the right to participate in the AGM. Each share entitles its holder to one vote.

Instructions for participation by nominee-registered shareholders are available in the notice of the AGM.

A general meeting can be held at the Company’s domicile (Helsinki), Espoo, or Vantaa. In addition, a general

meeting can be held without a meeting venue as a so-called remote meeting.

Shareholders are entitled to have an issue included on the AGM agenda if the matter requires a decision by

the AGM, according to the Finnish Companies Act. The request must be submitted to the Board in writing

and early enough to be included in the notice of the AGM. The latest possible date for submission is

announced on the Metso website.

Metso’s governance bodies

Metso Corporation - Board of Directors' report and financial statements 2025 |15

Annual General Meeting in 2025

The Annual General Meeting 2025 of Metso was held in Helsinki on April 24, 2025. The AGM 2025 was

streamed online for the shareholders who had registered for the AGM, and the shareholders were also able

to exercise their shareholder rights in connection with the AGM by voting in advance. A total of 2,186

shareholders, representing 71.8% of the Company’s votes, participated in the AGM either in person or by

proxy.

The AGM 2025 resolved to elect nine members to the Board of Metso Corporation: Kari Stadigh was re-

elected as the Chair, Klaus Cawén as the Vice Chair, and Brian Beamish, Terhi Koipijärvi, Niko Pakalén, Reima

Rytsölä, and Arja Talma as members of the Board, and Anders Svensson and Eriikka Söderström were elected

as new members of the Board. The Board’s term of office will end at the closing of the Annual General

Meeting 2026. The AGM 2025 further decided to authorize the Board to decide on the repurchase of Metso

shares as well as to issue shares and special rights entitling to shares.

More information on Metso’s AGM 2025 is available on the Metso website.

Shareholders’ Nomination Board

The Shareholders’ Nomination Board is a permanent corporate body of Metso established by the AGM in

2013. The Nomination Board is responsible for preparing and presenting a proposal for the nomination of the

members of the Board, the Chair and the Vice Chair of the Board, as well as proposals for the Board’s

remuneration and for successor planning of the members of the Board.

The Nomination Board consists of representatives nominated annually by Metso’s four largest registered

shareholders on August 15, as well as the Chair of the Board. The Chair of the Board convenes the first

meeting of the Nomination Board after the annual nomination process and serves as its member. The person

nominated by the largest shareholder shall act as the Chair of the Nomination Board, unless otherwise

decided by the Nomination Board, and shall convene the Nomination Board meetings thereafter.

More information on the Nomination Board, including the full Nomination Board Charter, is available on the

Metso website.

Nomination Board composition and competence

The Nomination Board composition was appointed as per share ownership on August 15, 2025, by the four

largest registered Metso shareholders listed in the table below. In addition, the Chair of Metso’s Board, Kari

Stadigh, is a member of the Nomination Board.

The professional backgrounds of the Nomination Board members are:

Annareetta Lumme-Timonen

Investment Director at Solidium Oy

Education: M.Sc. (Eng.), D.Sc. (Tech.)

Investment Director at Solidium Oy since 2009.

Member of Metso’s Nomination Board since 2020.

Philip Ahlgren

Partner at Cevian Capital AB

Education: M.Sc. (Finance)

Partner at Cevian since 2023.

Member of Metso’s Nomination Board since 2023.

Risto Murto

President and CEO of Varma Mutual Pension Insurance Company

Education: Ph.D. (Econ.)

President and CEO of Varma since 2014.

Member of Metso’s Nomination Board since 2020.

Mikko Mursula

CEO of Ilmarinen Mutual Pension Insurance Company

Education: MA (Econ.)

CEO of Ilmarinen since 2025, Deputy CEO at Ilmarinen 2018–2025.

Member of Metso’s Nomination Board since 2020.

Kari Stadigh

Education: M.Sc. (Eng.), BBA

CV available in this report's section Metso Board

Member of Metso’s Nomination Board since 2020.

Metso Corporation - Board of Directors' report and financial statements 2025 |16

Gender balance in the Nomination Board

Shareholders’ Nomination Board in 2025


Shareholder	Share ownership on August 15, 2025	Representative		Position	Meeting attendance in 2025
Solidium Oy (Chair)	14.9%	Annareetta Lumme-Timonen	●	Chair	7/7
Cevian Capital Partners Ltd	7.8%	Philip Ahlgren	●	Member	7/7
Varma Mutual Pension Insurance Company	4.0%	Risto Murto	●	Member	7/7
Ilmarinen Mutual Pension Insurance Company	3.4%	Mikko Mursula	●	Member	7/7
-	-	Kari Stadigh	●	Member	7/7

Nomination Board Proposals for the AGM 2026

On December 4, 2025, the Nomination Board provided Metso’s Board with its proposal for the Annual

General Meeting to be held on April 22, 2026.

Metso’s Board composition and remuneration

The Board’s term of office will commence at the end of the Annual General Meeting and will expire at the

closure of the next Annual General Meeting. The Nomination Board proposes to the AGM that the Board

have nine members and the current members Klaus Cawén, Terhi Koipijärvi, Niko Pakalén, Kari Stadigh,

Anders Svensson, Eriikka Söderström, and Arja Talma are proposed for re-election. Brian Beamish and Reima

Rytsölä have announced that they are not available for re-election.

The Nomination Board further proposes the election of Matts Rosenberg and Petra Sundström as new Board

members.

The Nomination Board also proposes that Kari Stadigh be re-elected as Chair of the Board and Klaus Cawén

as Vice Chair.

All the Board member candidates have given their consent to be elected and have been assessed to be

independent of the company and its significant shareholders, except for Matts Rosenberg, who is considered

independent of the company but not of a significant shareholder.

The Nomination Board proposes fixed annual remuneration to the Board members as follows (current

remuneration in brackets):

• Chair – EUR 181,000 (EUR 176,500)

• Vice Chair – EUR 89,500 (EUR 88,300)

• Other members – EUR 72,500 (EUR 71,500)

An additional remuneration is proposed to be paid for the Board members who are elected as members of

the Audit and Risk Committee and the Remuneration and HR Committee as follows (current remuneration in

brackets):

• Chair of the Audit and Risk Committee – EUR 27,000 (EUR 26,300)

• Members of the Audit and Risk Committee – EUR 11,000 (EUR 10,850) each

• Chair of the Remuneration and HR Committee – EUR 13,500 (EUR 13,200)

• Members of the Remuneration and HR Committee – EUR 5,500 (EUR 5,430) each

Metso Corporation - Board of Directors' report and financial statements 2025 |17

The Nomination Board proposes that, as a condition for the annual remuneration, the Board members will be

required, directly based on the Annual General Meeting’s decision, to use 20% or 40% of their fixed total

annual remuneration for purchasing Metso shares from the market at the prevailing public trading price.

The purchase would be executed within two weeks following the publication of the interim report for

January 1–March 31, 2026.

According to the Nomination Board's proposal, the meeting fees for the Board and its committees would

remain unchanged:

• EUR 900 for meetings requiring travel within the Nordic countries

• EUR 1,800 for meetings requiring travel within a continent

• EUR 3,000 for meetings requiring intercontinental travel

• EUR 900 for meetings with remote attendance.

Metso’s Board of Directors will include all the above-mentioned proposals in the notice of the Annual General

Meeting of 2026.

Kari Stadigh did not participate in decisions regarding Board member remuneration.

Board and Board committees

The general objective of the Board is to direct Metso’s business and strategy in a manner that secures a

significant and sustained increase in the value of the Company for its shareholders. The Board acts within the

remit of the powers and responsibilities provided under the Finnish Companies Act and other applicable

legislation. According to the Finnish Companies Act, the Board has general authority to decide and act on all

matters not reserved by law or under the Articles of Association to other corporate governing bodies.

The Board oversees the management and operations of Metso. It also decides on significant matters related

to strategy, investments, organizational structure, and finances. The Board’s main responsibility is to evaluate

the strategic direction of Metso, the effectiveness of Metso’s operations, and the performance of

management. The Board must always act in good faith with the best interests of Metso and all its

shareholders in mind. The Board may not undertake actions that are likely to result in an unjust benefit to a

shareholder at the expense of the Company or another shareholder.

The Board has two permanent committees: the Audit and Risk Committee as well as the Remuneration and

HR Committee. The Board elects the members of these committees from among its members at its annual

assembly meeting and monitors the activities of these committees during the year. The committees have

Charters approved by the Board.

The Board conducts an annual evaluation of its operations and working methods, either as a self-assessment

or through an external assessor, as deemed appropriate by the Board. The purpose of the evaluation is to

review how the Board has executed its tasks during its term and to act as a basis for the development of the

Board’s work. The results of the evaluation are reported to the Nomination Board.

The Charter of the Board further specifies the duties of the Board and the individual members, as well as the

Board’s working methods. For the full Charter of the Board, see the Metso website.

Metso Corporation - Board of Directors' report and financial statements 2025 |18

Organization of Board work

Board of Directors

5–10 members (including Chair)

Majority independent of the Company

At least two are independent of significant shareholders

Meets regularly, ten times a year on average, according to a schedule

decided in advance.

Has quorum when more than half of the members are present and one of

them is the Chair or the Vice Chair.

Decisions are carried by a simple majority of votes. In case of a tie, the Chair

has the casting vote.

Key responsibilities:

To decide on:

• Targets and strategy

• Investments, acquisitions and divestments

• Organizational structure and approval of the appointment and dismissal of

Metso Leadership Team members

• Financial guarantees

• Principles for incentive plans

• Key corporate policies

To ensure:

• Supervision of accounting and financial matters

• Proper preparation of financial reports

• Adequacy of bookkeeping and financial planning, information and control

systems, and risk management

Appointment, evaluation, remuneration and possible dismissal of the President

and CEO.

Follow-up and evaluation of related-party transactions. The Board monitors

and assesses related-party transactions and decides on transactions that do

not fall within Metso’s established business or are not fulfilled according to

normal terms and conditions, as well as ensures that possible conflicts of

interest are dealt with accordingly and are taken into consideration in the

decision-making.

Remuneration and HR Committee

At least three members (including the Chair)

Majority independent of the Company

Key responsibilities:

To prepare and/or make proposals on:

• Remuneration policy for the governing bodies and related instructions for

the Board, Remuneration report, as well as responsibility for answering

related questions at the General Meeting

• Appointments and succession planning of Metso’s CEO and Metso

Leadership Team

• Development of personnel remuneration and talent management

To review and monitor:

• Competitiveness of remuneration systems

Audit and Risk Committee

At least three members (including Chair)

Majority independent of the Company

At least one member:

• Independent of significant shareholders

• With expertise specifically in accounting and auditing

Key responsibilities:

To review, monitor and assess:

• Financial reporting and management estimates, draft financial reporting

• Sustainability reporting, draft sustainability reporting

• Accounting, tax, treasury, as well as risk management policies and

procedures

• Risk management system

• Legal disputes as well as Compliance reporting and related corrective

actions

• ESG matters: sustainability targets and reporting, human rights policy and

program, and corporate governance reporting

• Cybersecurity: audit findings and corrective actions

To approve:

• Internal and external audit plans

• External auditor’s and sustainability assurance provider’s fees

• Non-audit services and non-assurance related services provided by an

external auditor/assurance provider

Key responsibilities also include mandatory duties regarding auditing and

sustainability assurance and related to preparations for the selection of the

auditor, follow-up on the services provided by the auditor, ensuring the

quality of the audit control, and evaluating the independence of the auditors

and sustainability assurance provider as well as the auditing and sustainability

assurance process.

Metso Corporation - Board of Directors' report and financial statements 2025 |19

Diversity of the Board

The Nomination Board and the Board approved the revised diversity principles in December 2022. The Board's

diversity principles are described in detail in Sustainability statement under section 1.4.2. Sustainability

expertise of the Board, its committees and the Metso Leadership Team. Taking the diversity principles into

consideration, the Nomination Board shall identify, evaluate, and propose candidates to be nominated for the Board.

The Nomination Board’s preparatory work aims to ensure that the diversity principles are taken into account when

nominating the Board, that the Board functions well as a whole, and that the competence profile of the Board

supports Metso’s existing and future businesses and is consistent with Metso’s strategic goals.

The Nomination Board prepares a proposal to the AGM regarding the Board composition, which shall always be

ultimately decided based on the qualification and competence that each candidate would bring to the Board. In

2025, in line with its Charter, the Nomination Board has taken the diversity principles into account in its proposal for

the composition of the Board to the AGM 2026, and the diversity principles have been reflected in the proposed

Board’s composition as a whole, including representation of both genders, in accordance with the recommendations

of the Finnish Corporate Governance Code 2025. Out of the nine members of the Metso Board, representing three

different nationalities, three are female (33%) and six are male (67%). The CVs of the Board are available in this

report's section Metso Board and on the Metso website.

Metso’s current Board composition, with both genders represented in the Board, is in compliance with the gender

representation recommendation set out in the Finnish Corporate Governance Code 2020, which continues to apply

until 30.6.2026, according to the Code 2025. As of 30.6.2026, the recommendation for a balanced representation of

women and men shall apply to Metso’s Board, as further specified in Code 2025. Metso’s current Board composition

does not yet reach the threshold for a balanced representation. However, if the AGM 2026 resolves to approve

the Nomination Board’s proposal for the composition of the Board, Metso’ Board composition will have

balanced representation of women and men in accordance with Code 2025.

More information on Board expertise available in the Sustainability statement section 1.4.2. Sustainability

expertise of the Board, its committees and the Metso Leadership Team.

Gender balance in the Board

Board and Committee work in 2025

In addition to the duties specified in the Board Charter, in 2025 the Board focused on Metso’s updated

strategy, 'We go beyond.', for 2026–2030, focusing on business growth, improved profitability, customer-

centricity, market leadership, and increasing aftermarket share. Together with the strategy, the Board

announced new financial targets to be achieved by end of 2028: at least 7% annual sales growth, adjusted

EBITA margin over 18%, net debt to EBITDA ratio below 1.5, and annual dividend of at least 50% of earnings

per share.

The Remuneration and HR Committee focused on the duties specified in its Charter, including preparing

matters concerning the remuneration of the President and CEO and members of the Metso Leadership Team,

preparing Metso's Remuneration report, as well as aligning short- and long-term incentive practices and

priorities with the Company's new strategy.

In 2025, the Audit and Risk Committee focused on the duties specified in its Charter, including monitoring

Metso’s financial information, treasury, tax, compliance, and risk management development, as well as

reviewing and approving internal and external audit plans and reports. Other topical agenda items included

monitoring and overseeing progress in the company-wide ERP Business Program roll-out and continuing

development in sustainability reporting related to the CSRD requirements.

Metso Corporation - Board of Directors' report and financial statements 2025 |20

The meeting attendance of Metso Board members in Board and Committee meetings from January 1–

December 31, 2025, is presented in the following table.


Member		Position	Board	Audit and Risk Committee	Remuneration and HR Committee
Kari Stadigh	●	Chair	10/10	-	3/3
Klaus Cawén	●	Vice Chair	10/10	5/5	-
Brian Beamish	●	Member	10/10	-	3/3
Terhi Koipijärvi	●	Member	10/10	5/5	-
Niko Pakalén	●	Member	10/10	-	3/3
Ian W. Pearce	●	Member	2/2	2/2	-
Reima Rytsölä	●	Member	10/10	-	3/3
Emanuela Speranza	●	Member	2/2	2/2	-
Anders Svensson	●	Member	7/8	-	-
Eriikka Söderström	●	Member	7/8	3/3	-
Arja Talma	●	Member	10/10	5/5	-

Management structure

President and CEO, and Metso Leadership Team

The main responsibility of Metso’s President and CEO, assisted by the Metso Leadership Team (“MLT”), is to

lead the daily operations of Metso with the aim of securing a significant, sustained increase in the value of the

company for its shareholders. The MLT consists of the President and CEO, business area Presidents, CFO,

Chief Growth Officer, General Counsel, and Chief People Officer.

The CEO prepares matters for decision by the Board, develops Metso in line with the targets agreed upon

with the Board, and ensures proper implementation of the Board’s decisions. It is further the duty of the CEO

to ensure that Metso’s operations follow applicable laws and regulations. The Company may have one or

more Deputy CEOs who will attend to the duties of the CEO if the CEO is prevented from doing so.

The role of the MLT is to manage Metso’s business. The MLT members have extensive authority in their

individual areas of responsibility and have the duty to develop Metso’s operations in line with the targets set

by the Board and the CEO. The MLT meetings are convened by the CEO on a regular basis and all decisions

made are recorded in the meeting minutes. The MLT has no statutory role determined by law or by the

Articles of Association; however, it has a significant role in Metso’s management.

Out of the eight MLT members, three are female (37.5%) and five are male (62.5%). The CVs of the MLT

members are available in this report's section Metso Leadership Team and on the Metso website.

In 2025, the MLT’s special focus areas were successful strategy work for 2026–2030 and defining new financial

targets. In addition, the MLT focused on product quality and safety, digital and AI opportunities, as well as

customer and employee engagement.

Metso Corporation - Board of Directors' report and financial statements 2025 |21

Metso Leadership Team in 2025*


Metso Leadership Team, composition in 2025
Sami Takaluoma	●		President and CEO	January 1–December 31, 2025
Markku Simula	●		President, Aggregates	January 1–December 31, 2025
Piia Karhu	●		President, Minerals	January 1–December 31, 2025
Heikki Metsälä	●		President, Services	January 1–December 31, 2025
Saso Kitanoski	●		President, Consumables	January 1–December 31, 2025
Pasi Kyckling Eeva Sipilä	●	●	Chief Financial Officer Chief Financial Officer	April 28–December 31, 2025 January 1–April 27, 2025
Claudia Genin	●		Chief Growth Officer	January 1–December 31, 2025
Nina Kiviranta	●		General Counsel	January 1–December 31, 2025
Carita Himberg		●	Chief People Officer	January 1–November 10, 2025

Changes in the Metso Leadership Team

Eeva Sipilä served as Chief Financial Officer (CFO) until April 27, 2025. Pasi Kyckling was appointed Chief

Financial Officer (CFO) and a member of the Metso Leadership Team as of April 28, 2025.

Carita Himberg served as Chief People Officer (CPO) until November 10, 2025. Hannele Järvistö acted as

interim Head of Human Resources as of November 11, 2025, until Teija Saari will join Metso as Chief People

Officer and a member of the Metso Leadership Team on March 1, 2026. Hannele Järvistö was not a member

of the MLT but participated in MLT work.

Gender balance in the Metso Leadership Team

Compliance Management and Code of Conduct

Metso’s Code of Conduct is the key corporate standard setting out the basic principles that are substantiated

in the Company’s policies and guidelines. With the Code of Conduct, Metso commits to proper business

conduct, sustainability and compliance in all its operations. The Code of Conduct is a globally applicable set

of rules for all Metso’s employees and business associates, ensuring consistent decision-making in the

everyday working environment and making Metso a responsible and trusted business partner. Metso’s Code

of Conduct summarizes in a single document the topics that are important in terms of health and safety,

human rights, sustainability, anti-corruption and integrity, trade compliance, information disclosure, and other

relevant compliance areas.

In addition, Metso is committed to the following global initiatives that guide compliance management:


	•UN Global Compact •OECD Guidelines for Multinational Enterprises •ILO Declaration on Fundamental Principles and Rights at Work •UN Declaration of Human Rights •UN Guiding Principles on Business and Human Rights

") as per December 31, 2025.

Metso Corporation - Board of Directors' report and financial statements 2025 |22

Metso’s commitment to human rights is outlined in Metso’s Human Rights Policy. Metso respects and is

committed to operating in a manner consistent with internationally proclaimed human rights, including the UN

Universal Declaration of Human Rights, the UN Guiding Principles on Business and Human Rights, the Ten

Principles of the UN Global Compact, and the ILO Declaration on Fundamental Principles and Rights at Work.

All employees are entitled to be treated fairly and with respect, and discrimination or harassment is not

tolerated in any form. Metso does not accept or use any form of compulsory, forced or child labor, and

respects all applicable laws and regulations regarding working hours and employee compensation. Metso’s

Anti-Corruption Policy underlines zero tolerance towards bribery and corruption. Compliance is everyone’s

responsibility at Metso, and a range of internal controls are in place to ensure compliance, as described in

this report's section Internal control. Third-party agreements in place require that suppliers, business partners,

and other stakeholders also follow similar standards.

Compliance management and the related policies are also discussed in the Sustainability statement section G

- Governance information. More information about Metso’s Code of Conduct and Human Rights Policy can

be found on the Metso website.

Compliance management in 2025

Metso Code of Conduct training is carried out every year. By the end of the year, 99.8% (2024: 99.0%) of

employees had completed the 2025 training. The annual Code of Conduct training is mandatory for all

employees as well as a mandatory part of onboarding for all new employees. In addition, third parties

involved in sales are required to complete specific anti-corruption training to ensure a common

understanding of Metso’s zero tolerance for corruption and bribery. We expect our suppliers to make every

effort to comply with our Supplier Code of Conduct. In 2025, in addition to strengthening due diligence

processes, the Compliance team provided customized compliance trainings with a risk-based approach for

internal and selected external suppliers to raise awareness of topical and key areas in compliance, such as

trade compliance, conflicts of interest and human rights.

Metso Compliance Program

Metso Corporation - Board of Directors' report and financial statements 2025 |23

Risk management

Risk management is an integral part of Metso’s management system and internal control framework. It aims at

assessing risks in a systematic way to facilitate planning and decision-making. Risk management covers all

parts of the organization and captures risks, ranging from strategic and financial to operational risks, including

project-specific risk management processes.

Risk management supports the achievement of Metso’s strategic goals and business objectives. It ensures the

continuity of operations and secures Metso’s assets also in changing circumstances. Key risks and

opportunities are identified and weighed against business targets, and they are an integral part of the

businesses’ long- and short-term planning. In principle, business areas are responsible for their own risk

management. The risk management function has the ultimate oversight throughout the company to ensure

the visibility of risks and risk management activities. Company's overall risk assessment includes, e.g.,

sustainability risks, and the enterprise risk review results are reported annually to the Metso Leadership Team,

the Audit and Risk Committee, and Metso’s Board of Directors.

To monitor Metso’s risk management performance overseen by the Board, several assurance processes –

both internal and external – are in place. In 2025, the focus areas for risk management included supporting

the strategy planning process, further development of the Enterprise Risk Management (ERM) framework,

strengthening operational risk management practices, and enhancing the corporate security culture across the

organization. In addition, compliance risk management, including the human rights due diligence process, has

been further strengthened.

Metso’s short-term risks and market uncertainties are described in the Board of Director's report under Short-

term business risks and market uncertainties.

Cybersecurity

Metso’s Cybersecurity operations and development are a fundamental part of Metso’s corporate security

governance and risk management framework. The main objective of the Cybersecurity function is to protect

and support Metso’s business continuity as well as Metso’s customers and other business partners. The

Cybersecurity function provides stakeholders with real-time situational awareness, and activities are

continuously reported on and developed.

The Information Security Policy and related directives define the mandatory requirements and restrictions for

Metso employees and business partners on a global level when using Metso services and tools. The policy

and directives support the implementation of Metso’s business strategy and cybersecurity strategy work.

The Cybersecurity function oversees and implements external and internal security audits and is a mandatory

part of various internal approval processes. All relevant and separately agreed security incidents, audit

findings, and corrective actions are regularly reported to the Metso Leadership Team and Enterprise Risk

Management function, as well as to the Board’s Audit and Risk Committee.

Metso’s IT function is audited by a third party against globally recognized information security frameworks,

such as ISO27001. Information security training, which was updated in 2025, is mandatory for all employees

and external partners who have access to Metso´s IT systems on a regular basis.

In 2025, the Cybersecurity function conducted the following initiatives and projects: implementing an EU-wide

NIS2 directive, initiating the Cyber Resilience Act implementation project, an annual cybersecurity audit, a

technical cybersecurity (Red Teaming) exercise, and a Metso Leadership Team crisis exercise. New

Information Security policies and directives were published and implemented globally.

AI Governance

Artificial Intelligence (AI) at Metso is seen as an opportunity at all levels, from creating customer value to

improving internal efficiency. To enable this, AI Governance at Metso aims to ensure responsible, transparent

and compliant use of artificial intelligence across the Company. Metso’s AI Policy, approved by the Metso

Leadership Team in January 2025, establishes principles for regulatory compliance, risk management and

ethical use of AI.

Metso maintains an inventory of AI systems, conducts risk assessments for new and existing AI solutions, and

has integrated AI risk management into enterprise processes. Metso has also implemented an AI risk

management tool to further strengthen risk assessment and compliance practices. In addition to the AI

training launched in 2025 for all employees who have access to Metso´s IT systems, Metso offers tailored AI

training programs internally. Relevant AI governance activities and compliance updates are regularly reported

to the Metso Leadership Team.

In 2025, Metso established the Data, Analytics and AI (DAAI) Office within the Growth Function. In the

context of AI enablement, DAAI Office aims to reinforce AI governance while accelerating AI adoption and

learning across the Company. Metso also conducted its first internal audit on AI governance. The audit

findings were reported to the Board’s Audit and Risk Committee.

Internal control

Internal control help to ensure the reliability of financial and operational reporting, as well as Metso’s

compliance with laws, regulations, and operating principles. In addition, it safeguards Metso’s assets and helps

to ensure effective and efficient operations to meet the strategic, operational, and financial targets.

Metso Corporation - Board of Directors' report and financial statements 2025 |24

Main features of the internal control and risk management systems of the financial

reporting process

Metso’s internal control and risk management operating model related to financial reporting is designed

to provide sufficient assurance regarding the reliability of the reporting and the preparation of financial

statements in accordance with applicable laws and regulations, generally accepted accounting principles

(IFRS), and other requirements for listed companies.

Metso’s control standards are regularly updated to align with the Committee of Sponsoring Organizations

(COSO) framework and Metso’s business control environment.

The Board bears the overall responsibility for the internal control over financial reporting. The Board's Audit

and Risk Committee ensures that the established principles for financial reporting, risk management, and

internal control are followed. The President and CEO is responsible for maintaining an effective control

environment and for the ongoing work on internal control regarding financial reporting. The Internal Audit

function performs independent assessments on the effectiveness of the internal control environment

according to the annual audit plan approved by the Audit and Risk Committee, provides support for the

development of the internal control environment, and reports all relevant findings to the Audit and Risk

Committee, the President and CEO, and the responsible members of Metso Leadership Team.

The internal steering instruments for the internal control of financial reporting at Metso primarily consist of:

• Metso’s Code of Conduct

• Internal Control Policy and standards

• Treasury Policy

• Accounting policies and reporting instructions

The Audit and Risk Committee is regularly informed about the financial reporting control environment,

including:

• information on the development of strategic risk areas;

• activities planned and executed for these risk areas; and

• other measures to mitigate risks.

Risk assessment

The purpose of assessing risks is to identify the most significant threats at the Group, business area, Group

company, function, and process levels. Risk identification and assessment is a continuous process embedded

in operational reporting, planning, and audit processes, and includes consideration for fraud and unlawful

activities and loss or misappropriation of assets. Internal control requirements, accounting policies, and other

guidance are regularly updated to align with identified risks.

Metso's Three Lines Model

Control environment

Metso’s control activities are based on corporate standards, policies, guidelines, instructions and the

Company’s responsible leadership model to ensure that management directives are carried out and that

necessary action is taken to address risks related to the achievement of financial reporting objectives. The

Metso Compliance Program seeks to ensure compliance with our governance principles and with the Code of

Conduct in all our units, as well as to ensure the correctness of our financial reporting. The program is

designed to create a coherent control environment by implementing proper internal control principles for

different business processes and by sharing internal control-related best practices.

The internal control standards define the minimum level of internal controls that all units must achieve. All

units are required to perform regular self-assessments to ensure they are compliant with the minimum control

standards. In addition, the Internal Audit function is responsible for evaluating the operating effectiveness of

these controls according to the annual audit plan.

Metso Corporation - Board of Directors' report and financial statements 2025 |25

Information and communication

To secure an effective and efficient internal control environment, Metso’s internal and external communication

must be open, transparent, accurate, and timely. Accounting policies, financial reporting instructions, and the

Disclosure Policy are available on the Company's intranet, and regular trainings regarding internal control

issues and related tools are arranged for employees. The head of Internal Audit regularly reports to the Audit

and Risk Committee on the results of internal control assessments. The observations, recommendations, and

proposals for decisions and measures resulting from the Audit and Risk Committee's work are reported to the

Board after every Audit and Risk Committee meeting.

Monitoring

The effectiveness of internal control related to financial reporting is monitored by the Board and the Audit

and Risk Committee. The President and CEO, Metso Leadership Team, and the management of the business

areas, market areas, and Group companies are responsible for compliance and maintaining an effective and

efficient control environment. This includes follow-up of monthly financial reports and reviewing estimates,

plans and reports from Internal and External Audit.

Internal Audit assesses the effectiveness of Metso’s operations and the adequacy of risk management

annually according to annual audit plan and reports the risks and weaknesses related to the internal control

processes to the management and to the Audit and Risk Committee.

Reporting of suspected financial misconduct

Metso’s guidelines on the prevention of financial and other misconduct define how suspected misconduct is

reported, how it is investigated, and how it is handled thereafter. All employees are encouraged to report

suspected misconduct to their own supervisors, to other management, or, if necessary, directly to the

Compliance or Internal Audit functions. Additionally, Metso employees or any external party can report

suspicions of financial and other misconduct confidentially via the anonymous Whistleblower channel, which is

maintained by an independent party. The report can be submitted in several languages online, by phone, or

by email, and anonymously, if necessary. Suspected misconduct is investigated thoroughly and confidentially

without undue delay. The Compliance function determines how the matter will be investigated and reports

the alleged misconduct to the Audit and Risk Committee. The Legal & Compliance and the Human Resources

functions jointly implement any measures resulting from possible misconduct.

In 2025, 58 reports of suspected financial misconduct and 96 reports of suspected non-financial misconduct

were received by Compliance & Risk. The cases of misconduct were reviewed by the Audit and Risk

Committee in line with Metso’s guidelines on reporting misconduct. None of the cases had a significant

impact on Metso’s financial results.

Audit

Internal Audit

Internal Audit assists the Board in supervising the Company. The role of Metso’s Internal Audit function is to

provide independent, objective assurance and advisory services that add value by contributing to the

improvement of operations. Internal Audit offers a systematic and disciplined approach to evaluate and

improve the effectiveness of the organization’s governance, risk management, and internal control.

The operating principles of Internal Audit have been defined in the Internal Audit Charter, approved by the

Board’s Audit and Risk Committee. The Audit and Risk Committee also approves the Internal Audit plan,

including audits and other activities to be carried out during the year. The Internal Audit plan is developed

taking into consideration the corporate risk assessment, business area plans, and input from senior

management and the Audit and Risk Committee. The plan is reviewed and revised when necessary. Audit

observations, recommendations, and management corrective actions are reported regularly to the Audit and

Risk Committee. The Head of Internal Audit reports functionally to the Audit and Risk Committee and

administratively to the CFO.

In 2025, Internal Audit performed 20 audits covering selected key business processes, the internal control

environment in selected Metso entities and market areas, and Group-level risk themes such as information

security, health and safety, and selected compliance topics. Internal Audit continued to support the

organization in current topics also in 2025, including advising the ERP Business Program in internal control

topics, supporting the Compliance organization in Whistleblower and other investigations, and assisting the

organization in sustainability-related topics, such as developing internal controls in sustainability reporting

processes.

External Audit and sustainability assurance

In accordance with the Articles of Association, Metso has one auditor, which must be a firm of authorized

public accountants. The aggregate duration of the consecutive terms of a principal auditor may not exceed

seven years. Toni Halonen (Ernst & Young) was appointed as Metso's principal auditor following Mikko

Järventausta (Ernst & Young) who acted as Metso's principal auditor until the end of the audit of the 2024

financial period.

Pursuant to the EU Statutory Audit Directive, the same audit firm can be engaged as the company’s auditor

for a maximum period of 10 consecutive years, after which the company must put its auditing out to tender. If

the same audit firm is re-elected through tendering, it can be re-engaged as the auditor for up to 10

additional consecutive years, after which the audit firm must be changed. Ernst & Young started its term as

the auditor of Metso during the financial period 2020.

Metso Corporation - Board of Directors' report and financial statements 2025 |26

The auditor’s statutory obligation is to audit the Company’s accounting, financial statements, and

administration for the financial year. The Parent Company’s auditor must also audit the consolidated financial

statements and other mutual relationships between Group companies. In conjunction with the annual financial

statements, the auditor submits the Statutory Auditor’s Report to Metso’s shareholders, which is available in

the Financial statements section Auditor's report.

In 2025, under the EU Corporate Sustainability Reporting Directive, Metso’s sustainability reporting was

assured by Ernst & Young (limited assurance). The assurance process followed international standards (ISAE

3000 Revised). The assurance report is available in the Financial statements section Assurance report on the

Sustainability statement.

The auditor reports regularly to the Audit and Risk Committee and at least once a year to the Board. The

Audit and Risk Committee evaluates the performance and services of the auditors and sustainability assurance

provider each year and annually prepares proposals to the Annual General Meeting on the auditor and

sustainability assurance provider selection.

Metso’s pre-approval policy ensures that the Audit and Risk Committee monitors and approves all non-audit-

related services provided by the external auditor, including the scope and estimated fees for these services.

Audits and sustainability assurance in 2025

At the Annual General Meeting on April 24, 2025, Authorized Public Accountant Ernst & Young Oy was re-

elected as the auditor of Metso, with Toni Halonen as the principal auditor. Ernst & Young Oy was also

elected as the company’s sustainability reporting assurance provider for the financial year 2025.

The fees related to the 2025 auditing work amounted to EUR 3.9 million (2024: 3.7 million), for assurance work

EUR 0.4 million (2024: 0.4), and for tax and other services to EUR 0.1 million (2024: 0.1 million).

Metso


Auditors’ fees, EUR million	2025	2024
Audit services	3.9	3.7
Assurance services	0.4	0.4
Tax services	0.0	0.1
Other services	0.0	0.0
Total	4.4	4.3

Insider management

The Board shall ensure that the Company always has in place proper policies governing the management of

insider issues. These policies shall be in compliance with European Union and Finnish laws and regulations,

Corporate Governance principles, as well as the rules and guidelines of Nasdaq Helsinki Ltd and the Finnish

Financial Supervisory Authority (FIN-FSA).

Metso has determined, in accordance with the Market Abuse Regulation (MAR), that the members of the

Board and the President and CEO are persons subject to notification obligation. In addition, Metso maintains

project-specific insider lists in accordance with the MAR. An insider list is drawn up for all projects containing

inside information. Insiders are given written notification of their status as insiders and instructions on the

obligations that apply to insiders.

Metso observes a 30-day closed window period prior to the publication of financial reports. During this

period, the members of the Board and the Metso Leadership Team, as well as pre-defined Metso employees

who participate in preparing financial reports are not permitted to buy or sell Metso-issued securities. In

addition, trading with Metso financial instruments is prohibited by a person who is in possession of inside

information or is considered a project-specific insider, for the duration of the project until it is published or

terminated.

A list of employees who have regular access to Metso’s unpublished financial information based on their

position, access rights, duties, or a service agreement is maintained and reviewed by the Legal & Compliance

function.

Metso’s Legal & Compliance function is responsible for controlling insider compliance and, among others, for

the duties regarding insider management as follows:

• Controlling and assessing insider matters and monitoring regulatory changes

• Sharing information on insider matters and notifying management of their obligations, e.g. under MAR

• Organizing training on insider compliance topics to make sure insiders understand their responsibilities and

restrictions related to inside information in their possession

• Drawing up and maintaining the insider list and a list of managers and their closely associated persons for

use by both the Company, e.g. in managerial transaction notifications, and by the Financial Supervisory

Authority, when so required by MAR or other regulations.

Metso Corporation - Board of Directors' report and financial statements 2025 |27

Insider transactions

Metso’s insiders subject to notification obligation include the members of the Board as well as the President

and CEO. Their closely associated persons include their spouse and other family members, as well as

companies in which the insiders or their closely associated persons exercise control. Metso maintains a

are required to notify both the Company and the Finnish Financial Supervisory Authority of their transactions

involving the securities of Metso. Metso publishes a stock exchange release on these transactions when the

transactions reach a threshold of EUR 5,000 (without netting) on an annual level. Published management

transactions are available on the Metso website.

Metso’s disclosure practices

Metso’s communications are based on facts and on communicating both positive and negative issues

simultaneously to all stakeholders with an aim to give correct, sufficient, and relevant information about

Metso’s operations. Metso does not comment on market rumors, the development of its own or its

competitors’ share prices, the actions of specific competitors or customers, or analyst estimates.

Regulated disclosures include information about financial performance, which is released according to a

schedule announced in advance. Metso discloses all information that may have significant effect on the price

of Metso’s financial instruments without undue delay and simultaneously to all stakeholders. However, if the

conditions for delayed disclosure of the inside information are met in accordance with the applicable laws

and regulations, disclosure may be delayed. More information about disclosure practices and the Metso

Disclosure Policy is available on the Metso website.

Silent period

Metso observes a 21-day silent period prior to the publication of its financial results. During this time, Metso

does not comment on the financial performance, markets, or outlook, nor does it meet with capital markets

representatives or the financial media.

Transactions between Metso and its management or their related parties

To ensure that possible conflicts of interest are appropriately taken into consideration in all decision-making,

the Company has Group-wide procedures in place to identify and define its related parties. The Audit and

Risk Committee monitors and assesses how agreements and other legal acts between the Company and its

related parties meet the requirements of ordinary activities and arm’s-length terms in accordance with

applicable laws and regulations.

Metso has published instructions regarding transactions between Metso and its management. Metso assesses

and monitors these transactions to ensure that potential conflicts of interest are identified and adequately

considered in the Company’s decision-making. Metso’s Board of Directors evaluates and follows these

transactions and ensures that possible conflicts of interest are adequately considered in the decision-making.

The Group Controlling and Internal Audit functions monitor related-party transactions as part of the

Company’s normal reporting and monitoring procedures and report to the Audit and Risk Committee on a

regular basis. The decision-making processes have been structured in order to avoid conflicts of interest. If

the Company were to have related-party transactions that are not part of the Company’s ordinary course of

business or are not implemented under arm’s-length terms, such transactions are to be handled by the Audit

and Risk Committee and approved by the Board of Directors. Internal Audit is responsible for maintaining

and updating the list of related parties. The principles and process concerning the monitoring and evaluation

of related-party transactions have been established by the Audit and Risk Committee. Further information,

regarding related-party transactions is provided in the Financial statements section 5.3. Associated companies

and related party transactions.

During the financial period 2025, Metso did not have material related-party transactions, transactions

deviating from the Company’s ordinary course of business, or transactions that were not made on customary

commercial terms considering the market practices generally complied with and accepted in the field in which

Metso operates.

The members of Metso’s Board of Directors, the President and CEO, and the Metso Leadership Team

members have confirmed that neither they nor their related parties have engaged in business transactions

with Metso to be reported for the financial period 2025.

Metso Corporation - Board of Directors' report and financial statements 2025 |28

Metso Board

Kari Stadigh

Chair of the Board since 2021

Member of the Board since 2020

Member of the Remuneration and HR Committee

Nationality: Finnish

Born: 1955

Education: M.Sc. (Eng.), BBA

Independent of the company

Independent of significant shareholders

Main occupation: Several positions of trust, including

Chair of the Board, Saxo Bank SA

Meeting attendance in 2025

10/10 Board meetings

3/3 Remuneration and HR Committee meetings

Shareholding on December 31, 2025*

89,258 Metso shares

Klaus Cawén

Vice Chair of the Board since 2021

Member of the Board since 2020

Member of the Audit and Risk Committee

Nationality: Finnish

Born: 1957

Education: LL.M.

Independent of the company

Independent of significant shareholders

Main occupation: Executive Advisor, KONE Corporation

Key experience: Executive Vice President, KONE Corporation

Several positions of trust:

Vice Chair of the Board, Sanoma Corporation

Vice Chair of the Board, A. Ahlström Corporation

Member of the Board, Toshiba Elevator and Building Systems Corporation

Member of the Board, China Office of Finnish Industries

Senior Advisor, DevCo Partners Oy

Meeting attendance in 2025

10/10 Board meetings

5/5 Audit and Risk Committee meetings

Shareholding on December 31, 2025*

49,275 Metso shares

Brian Beamish

Member of the Board since 2022

Member of the Remuneration and HR Committee

Nationality: British and South African

Born: 1956

Education: B.Sc. Mechanical Engineering

Independent of the company

Independent of significant shareholders

Main occupation: Board professional

Key experience:

Several executive positions, Anglo American plc, 2000–2013, including Group

Director Mining and Technology, 2010–2013

Several positions of trust:

Board Member, Human Resources Committee Member, and Chair of the

Social, Ethics, Transformation and Sustainability (SETS) Board Committee,

Sappi

Meeting attendance in 2025

10/10 Board meetings

3/3 Remuneration and HR Committee meetings

Shareholding on December 31, 2025*

6,237 Metso shares

* No Metso shares or share-based rights were held by controlled companies.

Metso Corporation - Board of Directors' report and financial statements 2025 |29

Terhi Koipijärvi

Member of the Board since 2022

Member of the Audit and Risk Committee

Nationality: Finnish

Born: 1967

Education: M. Sc. (Forestry)

Independent of the company

Independent of significant shareholders

Main occupation: Senior Advisor, Miltton Group

Key experience:

Director, Communications, Strategy and Responsibility, Metsähallitus,

2017–2022

Several executive positions in global corporate responsibility and

sustainability, Stora Enso Ltd., 2010–2017

Several group leadership positions in environment and corporate

responsibility, Metsä Group, 2000–2010

Several positions of trust:

Chair of the Board, FIBS

Member of the Board, Green Resources AS (East Africa)

Member of the Board, Ponsse Plc

Meeting attendance in 2025

10/10 Board meetings

5/5 Audit and Risk Committee meetings

Shareholding on December 31, 2025*

13,360 Metso shares

Niko Pakalén

Member of the Board since 2023

Member of the Remuneration and HR Committee

Nationality: Finnish and Swedish

Born: 1986

Education: M.Sc. (Econ.)

Independent of the company

Independent of significant shareholders

Main occupation: Partner, Cevian Capital

Several positions of trust:

Member of the Board, AB SKF

Chairman of the Board, Human Practice Foundation Sweden

Meeting attendance in 2025

10/10 Board meetings

3/3 Remuneration and HR Committee meetings

Shareholding on December 31, 2025*

6,172 Metso shares

Reima Rytsölä

Member of the Board since 2023

Chair of the Remuneration and HR Committee

Nationality: Finnish

Born: 1969

Education: M.Soc.Sc.

Independent of the company

Independent of significant shareholders

Main occupation: CEO, Kojamo Oyj

Several positions of trust:

Member of the Board, Stora Enso Oyj

Member of the Board, Nokian Tyres plc 2023-2025

Meeting attendance in 2025

10/10 Board meetings

3/3 Remuneration and HR Committee meetings

Shareholding on December 31, 2025*

9,904 Metso shares

* No Metso shares or share-based rights were held by controlled companies.

Metso Corporation - Board of Directors' report and financial statements 2025 |30

Anders Svensson

Member of the Board since 2025

Nationality: Swedish

Born: 1975

Education: M.Sc. (Eng.)

Independent of the company

Independent of significant shareholders

Main occupation: President and CEO of Hexagon AB

Key experience:

President & CEO, Konecranes, 2022–2025

President, Sandvik Rock Processing Solutions, 2021–2022

President, Crushing & Screening Division, Sandvik Mining and Rock

Technology, 2016–2020

President, Customer Services & SVP, Global Sales, Sandvik Construction,

2015–2016

Several leadership roles in Sandvik’s Mining and Construction businesses,

2008–2015

Several leadership positions in Metso Minerals and Svedala, 2001-2008

Meeting attendance in 2025:

7/8 Board meetings

Shareholding on December 31, 2025*

3,110 Metso shares

Eriikka Söderström

Member of the Board since 2025

Member of the Audit and Risk Committee

Nationality: Finnish

Born: 1968

Education: M.Sc. (Economics)

Independent of the company

Independent of significant shareholders

Main occupation: Board professional

Key experience:

F-Secure, 2017–2021, CFO

Kone, 2013–2016, CFO

Vacon, 2009–2013, CFO

Nautor, 2008, CFO

Nokia Networks/Nokia Siemens Networks, 2006–2007,

interim CFO/Corporate Controller.

Several positions of trust:

Member of the Board, Amadeus IT Group (Chair of audit committee)

Member of the Board, Bekaert (Chair of audit committee)

Member of the Board, Kempower (Chair of audit committee)

Member of the Board, University of Vaasa

Meeting attendance in 2025:

7/8 Board meetings

3/3 Audit and Risk Committee meetings

Shareholding on December 31, 2025*

3,582 Metso shares

Arja Talma

Member of the Board since 2020

Chair of the Audit and Risk Committee

Nationality: Finnish

Born: 1962

Education: M.Sc. (Econ.), eMBA; Authorized Public Accountant

Independent of the company

Independent of significant shareholders

Main occupation: Board professional

Key experience:

Several Executive positions, Kesko Corporation, 2004–2015,

including CFO 2005–2011

Executive Vice President, Oy Radiolinja Ab, 2001–2003

Partner, APA, Auditor, KPMG Wideri Oy Ab, 1987–2001

Several positions of trust:

Chair of the Board and Member of the Audit Committee, Verkkokauppa.com

Member of the Board, Member of the Audit Committee, Nordea Bank Abp

Member of the Board, Chair of the Audit Committee, Glaston Corporation

Previous positions as Chair of the Audit Committee, e.g.:

Aktia Bank Plc, 2018–2022

Metso Corporation, 2016–2020

Posti Group Plc, 2016–2020

Sponda Plc, 2007–2017

Meeting attendance in 2025:

10/10 Board meetings

5/5 Audit and Risk Committee meetings

Shareholding on December 31, 2025*

41818 Metso shares

* No Metso shares or share-based rights were held by controlled companies.

Metso Corporation - Board of Directors' report and financial statements 2025 |31

Metso Leadership Team

Sami Takaluoma

President and CEO

Nationality: Finnish

Born: 1973

Education: M.Sc. in Engineering

Member of Leadership Team since 2020

Key experience:

President, Services, Metso Corporation, 2021–2024

President, Consumables, Metso Outotec Corporation,

Member of Executive Team, 2020–2021

President, Minerals Consumables business area, Metso Corporation,

2017–2020, Member of Executive Team, 2018–2020

Vice President, market area Nordics, Metso Corporation, 2014–2017

General Manager, market area UK & Ireland, Metso Corporation, 2010–2014

Various management positions, Wears business line, Metso Corporation,

2003–2010

Key positions of trust: –

Shareholding on December 31, 2025*

134,538 Metso shares

Markku Simula

President, Aggregates business area

Nationality: Finnish

Born: 1966

Education: M.Sc. in Engineering

Member of Leadership Team since 2020

Key experience:

President, Aggregates Equipment business area,

Member of Executive Team, Metso Corporation, 2017–2020

Senior Vice President, Aggregates business line,

Metso Corporation, 2016–2017

Senior Vice President, Oil and Gas business line,

Metso Corporation, 2014–2015

President, Flow Control business unit, Metso Corporation, 2008–2014

Various international management positions, Metso Automation, Neles

Automation, Neles Controls and Neles-Jamesbury, 1991–2008

Key positions of trust:

Member of the Board, Vexve Armatury Group Oy, 2020–

Shareholding on December 31, 2025*

93,207 Metso shares

Piia Karhu

President, Minerals business area

Nationality: Finnish

Born: 1976

Education: Doctor in Business Administration

Member of Leadership Team since 2020

Key experience:

President, Metals business area, Member of Leadership Team,

Metso Corporation, 2022–2024

Senior Vice President, Business Development, Member of Executive Team,

Metso Outotec Corporation, 2020–2022

Senior Vice President, Customer Experience, Member of the Executive Board,

Finnair Corporation, 2016–2020

Various leadership positions, Finnair Corporation, 2013–2016

Previously Management consultant for 12 years

Key positions of trust:

Member of the Board, Member of the Audit Committee, Kesko, 2018–

Shareholding on December 31, 2025*

49,366 Metso shares

* No Metso shares or share-based rights were held by controlled companies.

Metso Corporation - Board of Directors' report and financial statements 2025 |32

Heikki Metsälä

President, Services business area

Nationality: Finnish

Born: 1983

Education: M.Sc. in Mechanical Engineering

Member of Leadership Team since 2021

Key experience:

President, Consumables, Member of Leadership Team, Metso Corporation,

2021–2024

Senior Vice President, Mill and Chute Lining business line, Metso Outotec

Corporation, 7/2020–2021

Senior Vice President, Grinding and Lining Consumables, Metso Corporation,

2019–2020

Senior Vice President, Mining Consumables, Metso Corporation, 2017–2019

Several management positions, Metso Corporation, 2010–2016

Development and Site Manager, Destia, 2007–2010

Key positions of trust: –

Shareholding on December 31, 2025*

17,547 Metso shares

Saso Kitanoski

President, Consumables business area

Nationality: Austrian/Macedonian

Born: 1974

Education: Master of Science in Engineering, Mechanical Engineering, MBA

Member of the Metso Leadership Team since 2024

Key experience:

President, market area Europe and Central Asia, Metso Corporation, 2020–

2024

Senior Vice President, market area Europe and Middle East, Metso

Corporation, 2019–2020

Vice President, market area East Europe and Middle East, Metso Corporation,

2017–2019

Several management positions, Metso Corporation, 2001–2017

Sales Representative, Svedala Industries, 1998–2001

Key positions of trust: –

Shareholding on December 31, 2025*

18,437 Metso shares

Pasi Kyckling

Chief Financial Officer

Nationality: Finnish

Born: 1978

Education: M.Sc. (Econ.)Member of Leadership Team since 2025

Key experience:

Acting CFO, Stora Enso, 2024–2025

Group Transformation Officer, Stora Enso, 2024–2025

SVP, Strategy, Controlling and IT, Growth Business Unit, Stora Enso, 2022–

2023

Group Treasurer, Stora Enso, 2019–2021

Several other financial management leadership positions at Stora Enso since

2001

Key positions of trust: -

Shareholding on December 31, 2025*

9,000 Metso shares

* No Metso shares or share-based rights were held by controlled companies.

Metso Corporation - Board of Directors' report and financial statements 2025 |33

Claudia Genin

Chief Growth Officer

Nationality: Romanian

Born: 1986

Education: M.Sc. Finance, Aalto University and Hanken School of Economics,

2010

Member of Leadership Team since 2024

Key experience:

Vice President, Business Development and Sustainability, Services business

area, Metso Corporation, 2021–2024

Director, Business Development and Head of Business Analytics, Metso

Corporation, 2020–2021

Senior Manager, Group Strategy and M&A and Head of Business Analytics,

Outotec Corporation, 2018–2020

Several positions in Group Strategy, M&A and Integration at Outotec

Corporation 2010–2017

Key positions of trust: –

Shareholding on December 31, 2025*

1,389 Metso shares

Nina Kiviranta

General Counsel

Nationality: Finnish

Born: 1964

Education: Master of Laws, trained on the bench

Member of Leadership Team since 2020

Key experience:

General Counsel, Member of Outotec Executive Board, Outotec Corporation,

2013–2020

Head of Corporate Legal and Chief Compliance Officer, Nokia Networks,

2006–2013

General Counsel; Vice President, Legal;

Legal Counsel, M-real Corporation/Metsä Group, 1996–2006

Associate, Attorney at Law Ahola, Pentzin, Rantasila & Sokka Oy, 1994–1996

Finnish Attorney, Attorneys at Law Smith, Gambrell & Russell Ltd, 1992–1994

Key positions of trust: –

Shareholding on December 31, 2025*

60,518 Metso shares

* No Metso shares or share-based rights were held by controlled companies.

Metso Corporation - Board of Directors' report and financial statements 2025 |34

Sustainability

statement


How to read Metso's Sustainability statement ....................................	35
1. General information ............................................................................	36
1.1. Material sustainability-related impacts, risks and opportunities ..........	39
1.2. Basis for preparation ...............................................................................	39
1.3. Metso’s strategy, business model and value creation .........................	40
1.4. Sustainability governance ........................................................................	46
1.5. Stakeholder engagement .......................................................................	53
2. E – Environmental information ..........................................................	56
2.1. Metso Plus offering and innovations for our customers .....................	57
2.2. EU Taxonomy ............................................................................................	58
2.3. E1 Climate Change ...................................................................................	63
2.4. E3 Water and marine resources .............................................................	75
2.5. E4 Biodiversity and ecosystems .............................................................	78
2.6. E5 Resource use and circular economy .................................................	81
3. S – Social information .........................................................................	84
3.1. S1 Own workforce – Metso’s people .....................................................	85
3.2. S2 Workers in the value chain – Responsible supply chain ................	98
4. G – Governance information ............................................................	104
4.1. G1 Responsible business conduct ..........................................................	105
5. Annexes to the Sustainability statement .......................................	109
5.1 ESRS content index .................................................................................	109
5.2 Index of disclosure requirements and datapoints derived from other EU legislation .........................................................................................	115

Metso Corporation - Board of Directors' report and financial statements 2025 |35

How to read Metso's Sustainability statement

This guide is designed to help navigate Metso’s Sustainability statement 2025, understand its structure and

locate key information.

Metso’s Sustainability Statement 2025 outlines the company’s strategic approach, performance, value creation

and commitments across environmental, social and governance (ESG) topics. It is structured according to the

overall sections of the European Sustainability Reporting Standards (ESRS): "General," "Environment," "Social"

and "Governance" and integrates the TCFD framework. Most of the ESRS disclosures can be found in these

sections. However, some of the disclosures from the cross-cutting standard ESRS 2 are best suited for other

sections of the report and therefore have been incorporated by reference.

The structure of the statement

Section 1 "General information" covers Metso's strategy and business model, including an overview of Metso’s

sustainability agenda, integration of sustainability into the business strategy, and a description of the value

chain and global footprint. Additionally, it includes sustainability governance and stakeholder engagement

parts.

Sections 2–4 present material sustainability topics, aligned with ESRS, including:

• Environmental: Climate change, water and marine resources, biodiversity and ecosystems, resource use and

circularity, Metso Plus as an entity-specific topic as well as EU Taxonomy

• Social: Own workforce and workers in the value chain

• Governance: Responsible business conduct

Each topic includes the following information presented in the same order, where possible:

• Materiality assessment and impacts, risks and opportunities (IROs) throughout the value chain

• Processes to identify and assess material impacts, risks and opportunities (IROs)

• Targets and progress on targets

• Relevant policies

• Most impactful 2025 actions

• Future developments

• ESRS datapoints

• Reporting principles

Each material sustainability topic contains a visual summary that shows how identified impacts, risks and

opportunities (IROs) relate to Metso's business. This summary indicates whether the IRO is a positive or

negative impact, risk or opportunity, whether it is actual or potential, and where it occurs in the value chain.

The relevant time horizon (short, medium, or long term) is also presented. This helps in understanding how

sustainability topics are embedded in our operations and decision-making.

This statement includes forward-looking information based on disclosed current assumptions and

expectations. Actual outcomes may differ, as future events often unfold differently than anticipated. The data

draws on both internal and external sources and is continuously refined to enhance accuracy and

transparency. Metso remains committed to transparency and will keep its stakeholders informed about

progress on its sustainability journey. This statement has been externally assured by Ernst & Young following

ISAE 3000 (Revised) standards.

An index of the ESRS disclosure requirements and codes can be found from the Annexes to the Sustainability

statement and the definition of terms from the Abbreviations used in the Board of Directors' report and

financial statements.

Metso Corporation - Board of Directors' report and financial statements 2025 |36

Sustainability statement

1. General information

Metso, headquartered in Finland, has a global presence in around 50 countries and delivers sustainable

technologies, end-to-end solutions and aftermarket parts and services, for the aggregates, minerals

processing, and metals refining industries.

Metso has defined sustainability as a strategic priority. Specifically, Metso has committed to contribute to

limiting the increase in global average temperatures to 1.5 °C in alignment with the Paris Agreement. This is

reflected in Metso’s sustainability agenda that focuses on the key sustainability topics, as assessed in a 2023

double materiality assessment, reviewed in 2024 and updated in 2025. More details about the double

materiality assessment are available in section 1.1. Material sustainability related impacts, risks and opportunities

of this statement.

Metso’s sustainability agenda comprises the following focus areas: Metso Plus offering and innovations for our

customers, our people, environmental efficiency in own operations, and responsible supply chain. Responsible

business conduct is the foundation of Metso’s sustainability approach.

Metso is in the process of cascading its new sustainability agenda, based on a double materiality assessment,

throughout the organization and is evaluating the local impacts of climate change adaptation on its own

operations and the biodiversity impacts on its own and customers’ operations.

Metso's sustainability agenda

251015_Infographic - Sustainability agenda-all_languages-10-25-scaled.svg

*Fair employment includes adequate wages, working time, work-life balance, prevention of discrimination and harassment, as well

as freedom of association and collective bargaining.

Metso Corporation - Board of Directors' report and financial statements 2025 |37

Metso’s overriding priority in sustainability is on working together with its customers, suppliers and

communities to make aggregates and minerals processing more sustainable industries. This includes offering

solutions that advance the energy transition being at the core of Metso’s innovation.

Legislation and stakeholder expectations to reduce carbon emissions are driving the sustainable energy

transition. This shift demands large investments in renewable power generation, transmission infrastructure

and battery technologies. As a result, the supply of key metals, such as nickel, copper, lithium, zinc, and

manganese, must increase rapidly and significantly. Therefore, Metso’s focus on supporting its customer

industries in achieving significant and needed productivity improvements also supports their sustainability

agendas.

Metso's approach includes technological innovations, such as offering equipment that is more energy- and

water-efficient and designed to operate reliably with renewable electricity. Metso also focuses on retrofitting

and incorporating new technologies into existing minerals processing and aggregates flowsheets and on

decreasing the carbon footprint and use of virgin materials in consumables. In addition, circularity and carbon

capture methods are essential. In this regard, Metso focuses on providing technology and solutions, for

example, on efficient recycling of e-waste and construction waste.

Metso is committed to helping customers accelerate the development and adoption of sustainable solutions

across industries through close collaboration. The Metso Plus portfolio and the method of measuring and

providing proof of the sustainability performance of Metso’s offerings has proven to be a useful framework

for customers and other stakeholders. This portfolio emphasizes the potential value delivered to customers

through Metso’s products and services across the entire value chain.

Metso is committed to achieving the greenhouse gas emission reduction targets approved by the Science

Based Targets initiative (SBTi), with the goal of significantly decreasing the carbon footprint of its own

operations, as well as those of its customers and supply chain.

This Sustainability statement presents Metso’s approach and performance on material sustainability topics,

structured according to the ESRS reporting framework in sections 2–4 (Environmental, Social and Governance)

and summarized in the table below. In addition to the ESRS topics and subtopics, Metso has included

information on the entity-specific topic of Metso Plus offering and innovations for customers.

Metso Corporation - Board of Directors' report and financial statements 2025 |38

Material sustainability topics


Metso sustainability agenda theme	ESRS topic	ESRS subtopic	Materiality	Value chain element	Target set
Environmental efficiency in own operations Metso Plus offering and innovations for our customers	E1 Climate change	Climate change adaptation Climate change mitigation Energy	Impact and financial Impact and financial Impact and financial	Own operations Supply chain and Customers	Yes Yes Yes
Environmental efficiency in own operations Metso Plus offering and innovations for our customers	E3 Water and marine resources	Water (in own operations) Water (in customer operations)	Impact Impact and financial	Own operations and Customers	Yes No
Metso Plus offering and innovations for our customers	E4 Biodiversity and ecosystems	Direct impact drivers of biodiversity loss: Land-use change, fresh water-use change, sea-use change Impacts on the extent and condition of ecosystems Impacts and dependencies on ecosystem services	Impact Impact Impact	Customers	No No No
Metso Plus offering and innovations for our customers	E5 Resource use and circular economy	Resource outflows related to products and services	Financial	Customers	No

Metso's people	S1 - Own workforce	Working conditions: • Health and safety • Working time • Discrimination and harassment • Freedom of association and collective bargaining Equal treatment and opportunities for all: • Diversity • Training and skills development (Growth culture)	Impact and financial Impact Impact Impact Impact Impact	Own operations	Yes Yes Yes Yes Yes Yes

Responsible supply chain	S2 - Workers in the value chain	Working conditions: • Health and safety • Working time • Adequate wages • Secure employment • Work-life balance • Discrimination and harassment • Forced labor • Freedom of association and collective bargaining	Impact Impact Impact Impact Impact Impact Impact Impact	Supply chain	Yes Yes Yes Yes No Yes Yes Yes

Responsible business conduct	G1 - Business conduct	Corporate culture Corruption and bribery • Prevention and detection, including training • Incidents Protection of whistle-blowers Management of relationships with suppliers, including payment practices	Impact and financial Impact and financial Impact Impact	Own operations and Supply chain	Yes Yes Yes No

Metso Corporation - Board of Directors' report and financial statements 2025 |39

1.1. Material sustainability-related impacts, risks and opportunities

Metso updated its sustainability agenda in 2025 through a double materiality analysis. The purpose of the

analysis was to understand the evolving operational environment of customers and to assess stakeholder

expectations, covering impacts, risks and opportunities across the entire supply chain and all Metso’s global

operations. The assessment covered both financial materiality (environmental and societal impact on Metso’s

financial performance and value) as well as impact materiality (Metso’s impact on people, environment and

society) within its value chain. Surveys, interviews, meetings and reviews of current sustainability trends and

relevant sustainability frameworks were part of this assessment and are considered as the input parameters

according to ESRS 2 requirements. The stakeholders interviewed included Metso’s employees, customers,

investors, suppliers of goods and services, and NGOs.

In addition, the assessment incorporated the conclusions from a range of peer-reviewed and publicly

available climate change impact studies, as well as results from a high-level human rights impact assessment.

Based on the material collected, the impacts, risks and opportunities were prioritized in workshops that

included specialists from across Metso.

The financial materiality of risks and opportunities to Metso’s business was assessed based on potential

financial impact, as defined by Metso’s risk management process, and on their likelihood across short-term

(less than one year), medium-term (1–5 years), and long-term (over 5 years) horizons. Additionally, impact

materiality was assessed considering the scale, scope, remediability and likelihood of each event.

Topics with the highest scores were identified as Metso’s most material sustainability topics. These form the

foundation of Metso’s sustainability reporting and agenda. Descriptions of impacts, risks and opportunities

(IRO) are provided in this statement under each relevant standard. The IRO tables present Metso’s impact

assessment for all material topics, and, additionally, risks and opportunities for financially material topics.

While the assessment focused on individual risks, it should be noted that Metso’s diverse business portfolio

and global presence provide resilience, as risk impacts are expected to balance across Metso's different

business and market areas.

For the Metso Plus offering and innovations for customers, Metso considers climate change, circularity, water,

as well as health and safety in customer operations to be financially material. Climate change, health and

safety, prevention of corruption and bribery, and corporate culture are the financially material topics in

Metso’s own operations. Currently, Metso has not identified financially material topics within its supply chain.

The double materiality assessment was updated during the reporting year as part of Metso’s strategy process

for years 2026–2030. The most significant change was the recognition of the circular economy as a financially

material opportunity for Metso. Supporting circular economy is an important element in Metso’s sustainable

Metso Plus offering and innovations. This includes, e.g., recycling and reusing materials, providing equipment

and services to extend product lifetimes, and developing technologies to support upcycling. The assessment

results of the strategy work have been reviewed by the Metso Leadership Team and the double materiality

assessment has been approved by the Board of Directors.

In addition, Metso has conducted a high-level evaluation of its activities in order to identify pollution-related

impacts, risks and opportunities; no consultation was undertaken with local communities.

1.2. Basis for preparation

The scope of consolidation of this Sustainability statement is the same as for Metso’s Financial Statements.

The figures in this Sustainability statement are consistent with Metso’s Consolidated Financial Statements 2025

and are based on data prepared in accordance with IFRS Accounting Standards. A detailed description of

environmental data coverage is provided in section 2.3.10 Reporting principles.

The Sustainability statement is published annually covering the same reporting period as financial reporting,

from January 1 to December 31, and is released simultaneously with Metso’s financial information. This is the

Group's Sustainability statement.

Where applicable, Metso discloses regional figures, presented alongside metrics for specific topics. However,

business area-specific environmental or employee figures are not disclosed. All Metso subsidiaries are

included within the scope of this reporting.

Discontinued operations are not included in the Metso Plus sales or in the EU Taxonomy KPIs, and

comparative figures for 2024 and 2023 have been restated accordingly. Other figures in this statement, such

as environment, H&S and HR, include discontinued operations.

Possible restatements due to internal validation or due to changes in calculation methodology (Use of sold

products) have been indicated in the relevant tables of ESRS topics. Further details of changes are provided

in the relevant standards where restatements are indicated.

In compliance with ESRS 1 requirements, Metso has included disclosures pursuant to the EU Taxonomy

regulation as a separate section in this Sustainability statement under section 2.2. EU Taxonomy.

The ESRS 2 standard applies to several of Metso’s sustainability topics and has guided the structure of

sections 1.3. Metso’s strategy, business model and value creation, 1.4. Sustainability governance, and

1.5. Stakeholder engagement. References to cross-cutting topics and their locations in this statement are

provided in the ESRS index.

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This Sustainability statement also describes Metso’s climate change-related governance, strategy, and risk

management practices, aligned with the recommendations of the Task Force on Climate-related Financial

Disclosures (TCFD). It includes metrics and targets for measuring impacts.

Furthermore, Metso’s sustainability reporting incorporates indicators from the Global Reporting Initiative (GRI

standards) and industry-specific indicators from the Sustainability Accounting Standards Board’s (SASB)

Industrial Machinery & Goods Standard. The GRI and SASB information, along with any deviations and

omissions from requirements, are indicated in the GRI and SASB indexes published separately but

simultaneously with the report on the Metso website. These indexes provide further details about the

indicator-specific information.

This Sustainability statement and related sustainability claims have been externally assured (limited assurance)

by Ernst & Young, following international standards (ISAE 3000 Revised). The scope of assured information is

outlined in the independent assurance report. GRI indicators and the GRI index are not within the scope of

this sustainability reporting assurance.

1.2.1. Disclosures in relation to specific circumstances

1.2.1.2. Time horizons

Metso assesses material impacts, risks and opportunities over the short, medium and long term, when

feasible. Sustainability-related matters often unfold gradually, and their predictability depends on various

factors.

For topics other than climate change, Metso defines time horizons in this Sustainability statement according to

ESRS guidance as follows:

• Short term: 1 year

• Medium term: 1–5 years

• Long term: Over 5 years

In assessing climate change risks and opportunities, Metso follows TCFD guidance and has based its

assessment of the following time horizons:

• Short term: 0–3 years

• Medium term: 3–10 years

• Long term: Over 10 years

1.2.1.2. Metrics and estimations of uncertainty

The reporting principles for metrics related to each standard and material topic are described under the

relevant sections (Environment, Social and Governance), including accuracy levels and planned actions for

improvement. Specific indicator scopes are provided in the Reporting Principles section under each relevant

standard.

Metso’s entity-specific metrics that address impacts, risks and opportunities in Metso’s customers’ operations

are identified in the Targets and Progress in Targets tables. The ESRS index sets out any deviations, omissions,

and relevant explanations regarding the indicator-specific information.

A number of metrics in this statement are based on estimates, averages and assumptions. Data sources

include internal records and external data vendors. While Metso strives for accuracy, there is a risk of error in

the data, particularly in the completeness of data and where several data sources have been combined or

where data is manually processed.

Metso has not identified any metrics that are subject to a high level of measurement uncertainty. Metso’s

sustainability data is subject to continuous improvement. As sustainability-related regulations evolve,

standardized data availability will improve. Metso is committed to transparency and will disclose any relevant

changes in underlying data or assumptions in future Sustainability statements.

For each target disclosed in the Targets and Progress in Targets tables, Metso includes the methodologies

and significant assumptions used to define the targets, including, where applicable, the selected scenario,

data sources, alignment with national, EU or international policy goals, and how the targets consider the wider

context of sustainable development and/or a local situation in which the impacts occur.

1.3. Metso’s strategy, business model and value creation

Metso’s purpose is to enable sustainable modern life. Metso’s products and services are used in the

aggregates, minerals processing and metals refining industries that produce critical raw materials. Metso

launched a new 'We go beyond.' strategy for the 2026–2030 period in September 2025 including a new vision

'Industry benchmark'.

Metso's 2030 strategy, 'We go beyond.' drives transformation of the industry with the best customer value

and service through game-changing sustainable solutions and cutting-edge technologies. Focus areas of the

new strategy are Growth, Excellence and Metso #1.

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The new vision includes an aim to become the definitive standard in the industry. By consistently delivering

exceptional quality, innovations and reliability, Metso aspires to earn the trust of customers and other

stakeholders. It encapsulates the commitment to excellence in all parts of the operations and underscores

dedication to setting benchmarks that others strive to achieve.

The new strategy supports Metso's sustainability agenda through the sustainable Metso Plus offering and

innovations, environmentally efficient own operations, and responsible supply chain management. Being the

industry benchmark and sustainability frontrunner is particularly important, as the operations of Metso’s

customers in the aggregates and mining industries are energy and water intensive and typically have

significant land footprints, often in environmentally sensitive areas where land disturbance and pollution can

impact habitats and species, i.e. they may have biodiversity impacts.

Metso recognizes the rapid rate of change in its customer industries and has identified several megatrends

impacting its strategy and business model

• Deglobalization and geopolitics: Drives minerals and aggregates industries to build stronger, local supply

chains. While geopolitical risks may hinder investments they also offer opportunities for innovation and

resilience.

• Sustainability transformation: Electrification is driving demand for metals, and the focus on recycling and

sustainable construction is increasing. Decarbonization of operations drives demand for energy-efficient

equipment.

• Digitalization, AI and automation: Demand for digital and AI-enabled solutions is revolutionizing the

industry, impacting efficiency and innovation.

• Resource scarcity: Depleting ore grades and decreasing access to high-quality resources in optimal

locations is driving the industry to innovate and adapt.

Metso’s strategy aims to adapt and build on these trends, as set out in more detail below in section

1.3.1. Strategy.

1.3.1. Strategy

Metso is committed to going beyond past performance through three strategic key focus areas and four

strategic objectives aligned with stakeholder needs.

The three key focus areas are:

• Growth: Prioritizing through collaboration, focusing on segment thinking and investing in strategic priorities

with the greatest potential for differentiation, market share, profitability or sales.

• Excellence: Elevating customer experience by providing an end-to-end customer experience that prioritizes

quality, speed and responsiveness. This includes industry-leading service capabilities and presence with a

focus on early capability development for new regions.

• Metso #1: Metso's ambition is to be the number one choice for customers, partners as well as current and

future employees. Segment strategies for Aggregates and Minerals aim for industry leadership.

Strategic objectives in the 2030 strategy are: Best customer experience, increasing the aftermarket share,

achieving financial excellence, and striving to be the frontrunner in sustainability and safety. Aligned in the

strategy is the aim of being an industry frontrunner in sustainability and targeting net zero emissions in own

operations by 2030. In 2025, Metso further strengthened its existing Science Based climate targets throughout

the value chain, from suppliers to customers, and continued developing the Metso Plus offering that brings

significant advantages to customers by delivering enhanced operational efficiency, reduced environmental

impact and long-term cost savings.

Safety is an integral part of Metso's culture, and the new 'Start with safety' mindset focuses on preventing

injuries and continuously improving safety performance. Metso actively engages employees and promotes

stopping, talking and observing as well as sharing safety practices to foster proactivity in safety.

In addition to focus areas and objectives, the 2030 strategy has enablers that are people and culture related:

• Customer-centric growth culture includes:

– Growth culture with safety, inclusion and wellbeing at the core.

– Showing accountability, high ambition and collaboration to deliver quality and results to go beyond.

– Strong performance management.

• Engaged Metsonites includes:

– Employees who embrace a purpose-driven business agenda with an enterprise mindset and common ways

of working.

– Leaders who lead with courage, resilience and agility, enabling growth for the people and business in an

accelerated AI and digital era.

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• Industry-leading capabilities includes:

– Attracting and retaining talent.

– Building capabilities in the right locations.

– Development through continuous learning and excellence in training.

With the 2030 strategy launch, Metso also announced new financial targets including a new sales growth

target and an increased profitability target. These targets are to be achieved by the end of 2028:

• Annual sales growth (CAGR) of at least 7% (new target)

• Adjusted EBITA margin over 18% (previously over 17% over the cycle)

• Net debt to EBITDA ratio below 1.5 (new target replacing ‘maintain investment-grade rating’ target)

• Annual dividend of at least 50% of earnings per share (no change)

During recent years, Metso has successfully grown the business, strengthened its profitability and de-risked

the operations. The further improvement of Metso’s profitability towards the 18% EBITA margin target and 7%

annual sales growth are driven by the prioritized actions defined in the 'We go beyond.' strategy supported

by strong market outlook in both Minerals and Aggregates segments.

1.3.2. Business model

Metso has two reporting segments: Aggregates and Minerals. These segments are further organized into

business areas and market areas. In the reporting year, significant business events for Metso’s segments are

discussed under Reporting segments. The reporting segments’ financial performance in the reporting year is

discussed in the Notes to consolidated financial statements, especially under Segment information.

Metso's 'We go beyond.' strategy was developed with a strong customer segment focus and through a

collaborative effort involving customers, key stakeholders across business and market areas, as well as Group

functions. The strategy was designed from a cross-business area perspective to ensure end-to-end customer

focus and to maximize Metso's full potential.

In the Aggregates segment, the strategic choices include growing the aftermarket business, expanding

regionally, leading in quarries, contractors and aggregates aftermarket, and strengthening the position in

aggregates and infra-recycling. In the Minerals segment, the strategic choices include becoming the leading

player in energy transition minerals, delivering added value to meet customer needs, and focusing on

solutions that offer significant aftermarket business potential.

Metso’s business areas are accountable for their performance in terms of orders and sales, operating profit

and capital employed. They contribute to the company’s strategy, including the sustainability agenda, through

business-specific initiatives. The business areas, together with market area teams, are responsible for

managing customer relationships, and information on customer satisfaction is regularly gathered to further

improve customer processes and relationships.

Metso’s seven market areas – North and Central America, South America, Europe and Central Asia, Africa,

Middle East and India, Greater China, and Asia Pacific – facilitate effective cooperation between global and

local activities, guided by clear roles and governance. Metso has a multichannel approach to its markets, with

sales channels tailored for specific regions, customer industries and customer types. Metso’s direct sales

teams and experts provide competence in technologies and processes. Additionally, Metso works with

distributors to enhance local presence and maintains digital sales channels for accessibility and ease of doing

business.

Metso has a deep understanding of customer processes, product design and technology, and a

comprehensive service portfolio ranging from spares and wears to advanced lifecycle services. Metso’s value

chain encompasses upstream procurement and logistics, own operations and downstream customers. Metso’s

global manufacturing and logistics network includes both in-house and outsourced warehouses, as well as

production facilities across the main customer markets.

Key figures for 2025 include:

• Around 18,000 people in around 50 countries (the number of employees per country is described under

S1 – Own workforce

• Around 3,500 service experts, offering field and service expertize in more than 50 countries

• 17 service centers, including three Performance Centers

• Around 45 research and development or testing locations geographically distributed across main markets

• 5 own foundries and several selected partner foundries

• 9 rubber and Poly-Met wear parts factories

• 9 pump and slurry handling factories and/or assembly centers

• 6 screen assembly centers

• Three filtration technology centers and one ceramics plate factory

• 15 aggregates equipment factories

Metso operates in an environment significantly impacted by changing regulations, particularly due to the

energy, carbon, and water intensity of its customer industries. Metso’s sustainability agenda, along with

related action plans, targets and long-term goals, is therefore aligned with the United Nations Sustainable

Development Goals (SDGs). Five SDGs have been identified as the most relevant areas where Metso aims to

demonstrate impact during the 2026–2030 strategy period. This Sustainability statement also outlines Metso’s

progress toward these goals.

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In line with the SDGs, Metso’s offering helps its customers operate more sustainably by improving resource

efficiency and adopting cleaner and more environmentally efficient technologies (SDG 9), including actions to

combat climate change (SDG 13) through the use of Metso’s technologies. Metso also addresses wastewater

management in line with SDG 6 by increasing the efficiency of water use through the reduction of the

amount of freshwater needed in Metso’s operations and through increased recycling and the safe re-use of

water.

Metso provides employment opportunities for people of all genders and ages as well as for those with

disabilities, and applies standard employment practices across all locations. Furthermore, Metso is committed

to achieving equal pay for work of equal value, safeguarding labor rights, and promoting a safe and secure

working environment for all employees (SDG 8).

A significant portion of Metso’s manufacturing is outsourced, emphasizing the importance of responsible

procurement practices. By advocating sustainable practices throughout the supply chain, Metso also promotes

the wider adoption of responsible management practices and the reduction of waste generation (SDG 12).

Climate change, urbanization, electrification and infrastructure investments continue to drive long-term

commodity demand. Despite ongoing geopolitical and economic uncertainty, market fundamentals in Metso’s

customer industries present growth opportunities. Sustainability offers further opportunities within Metso’s

current and extended product portfolio. Rising raw material costs and availability challenges further increase

the need for sustainable and circular solutions. Within this broad context, Metso’s Minerals and Aggregates

reporting segments have clear strategic priorities aimed at further improving both financial and sustainability

performance. Metso is well-positioned in the fastest-growing metals and critical minerals, such as nickel,

copper, lithium, zinc and manganese, with a comprehensive equipment and aftermarket offering and strong

capabilities in full flowsheet offering.

In Minerals, the focus is on technology leadership in processing and smelting, particularly through Metso’s

sustainable equipment and aftermarket offering (Metso Plus offering). Metso’s offering and process expertise

cover the entire end-to-end mining process, from professional testing and piloting to early project support,

and solutions across the flowsheet, including crushing and grinding, separation and filtration, and advanced

tailings management.

Additionally, Metso’s minerals offering includes material handling equipment and slurry pumps, as well as an

extensive selection of spare and wear parts and services. Metso also provides comprehensive solutions and

services for maintaining and optimizing processes and equipment performance through advanced digital

solutions, intelligent automation and control systems. In the rapidly growing battery industry, Metso is well

positioned to offer sustainable technology and equipment, covering e.g. lithium and nickel production, with

project scopes ranging from equipment packages to complete plant deliveries, covering the entire value chain

from mine to battery materials, as well as black mass recycling.

For metals refining customers, Metso offers a comprehensive portfolio of modern smelting solutions for the

treatment of primary and secondary raw materials. For example, the Metso Plus flash smelting process is

currently the most widely used copper smelting method globally, delivering high metal recovery at the lowest

total cost of ownership as well as providing the most effective emissions control. The process enables high

sulfur recovery with only one continuous high-strength SO₂ stream to the acid plant.

Metso’s offering for aggregates customers includes crushers, screens, feeders, fixed and mobile crushing and

screening plants, track-mounted equipment, spare and wear parts, and a wide array of services. Research and

development activities concentrate on crushing technology, electrification of aggregates production, and

environmental performance. A significant share of sales in the Aggregates business is carried out through

distributors. The management and development of the global distributor network is the responsibility of a

dedicated distribution management organization (DMO). The Aggregates business consists of products sold

under the Metso brand, complemented by an additional product offering sold under the Diamond Z, Jonsson,

Lippman, McCloskey, McCloskey Environmental, MWS Equipment, Powertrack, Saimu, Screen Machine

Industries, Shaorui, Tedd Engineering and Tesab brands.

Metso places strong emphasis on the aftermarket and services, with a focus on customer experience and new

digital capabilities to support both organic and inorganic growth. Key growth areas include products with

high aftermarket captivity, the sustainable Metso Plus offering, automation, and digitalization. These are built

on extensive expertise and the reliability of Metso’s products, with additional benefits from synergies across a

broad portfolio of services. Across its customers' industries, there is a large installed base of Metso

equipment, and by introducing new digital services, Metso can serve the customers even better and provide

efficiency solutions for the existing installed base. Metso’s strategy leverages its aftermarket capacity to

mitigate the inherent cyclicality of its customer industries and expansion into third-party installed bases.

Metso has differentiated sustainability-related goals for its business and market areas, taking into account the

growth potential and possible business risks. Specific goals within each area contribute to achieving Group-

level objectives. Safety targets are established globally, serving as common benchmarks that guide the more

detailed target-setting process within each business area and market area. Targets are linked to external Key

Performance Indicators, such as Total Recordable Injury Frequency, and internal targets for all employees to

complete risk observations, safety conversations and several mandatory trainings. In addition, Metso sets

targets related to specific initiatives, such as the work carried out during 2023–2025 to analyze and address

gaps in the Group’s safety management systems. Metso also sets individual role-based safety targets.

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1.3.3. Value creation and value chain

Sustainability is an important value creation element for Metso. Metso’s sustainability agenda, presented under

1. General information, focuses on supporting the electrification and decarbonization of the mining and

aggregates industries, while ensuring rapid increase in the production of energy transition minerals. Metso

continuously develops its portfolio to meet its customers’ growing needs for energy and emissions reductions,

water resources management, resource efficiency, circularity and safety.

Metso's value chain

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Fundamental to Metso’s value creation are its strong technological know-how, global operations and aftermarket

footprint, as well as the competitive product offering, strong brand and continuous innovation. Digitalization serves as

an additional key driver, enabling the development of new business models, improving efficiency and enhancing

safety. Leveraging data and analytics allows Metso to optimize customers’ equipment, processes and flowsheets,

which can lead to significant productivity gains, cost savings and minimizing environmental impacts.

Metso’s sustainable Metso Plus offering, along with innovations to further develop this portfolio, creates value for

both Metso’s customers and other stakeholders. The customer-focused Metso Plus portfolio includes more than 100

products that are meaningfully more sustainable than market benchmark products or previous technological

generations, based on factors that also drive total lifetime cost of ownership, such as energy and water efficiency. As

a result, these products typically offer commercial benefits both for both Metso and its customers.

Metso’s technology strategy and R&D prioritize the development of products and services that can help customers

achieve their own sustainability targets, e.g. carbon, energy or water efficiency. Metso Plus drives R&D efforts through

a commitment to expand this portfolio. This work is built on the deep know-how of Metso’s around 18,000

employees and around 45 locations with research and development or testing capabilities as demonstrated by 7,962

national technology patents. A more detailed explanation of the various environmental and sustainability benefits of

Metso’s offering is presented under the relevant sections: E1 – Climate change, E3 – Water, E4 – Biodiversity and

E5 – Resource use and circular economy.

Metso’s Research and Development (R&D) is guided by a segment-level Technology Strategy, which directs business

area R&D plans. Each business area defines its R&D operating structure with dedicated R&D functions that manage

the R&D and productization portfolio, Intellectual Property Management, research teams in test centers, and

harmonization of engineering practices. Metso has a company-wide R&D process in place supported by tools to plan,

execute and monitor the fulfillment of sustainability requirements associated with R&D.

R&D activities also take place within business lines and product groups, which own the product portfolio, technology

and product roadmaps, as well as product engineering, support, and test centers. This operating model ensures a

focus on long-term research and the continuous release of new sustainable products.

In addition, Metso collaborates closely with customers for testing and joint development. Research and test services

include e.g. ore deposit evaluation, mineralogical characterization, feed material testing, sampling, materials selection,

analytical chemistry and flowsheet development.

For aggregates customers, R&D efforts focus on electrifying mobile crushing and screening equipment. In minerals

processing, the emphasis is on energy- and water-efficient solutions for preconcentration, comminution, separation,

and tailings management. Additionally, Metso prioritizes the development of smart and connected equipment and

processes. The sustainable development of metals-refining and smelting focuses especially on solutions for batteries,

low-carbon steel production, circular economy, and copper processing technologies.

Metso’s procurement spend was approximately EUR 3.6 billion in 2025 (2024: EUR 3.3 billion). Around 17,000

suppliers (2024: over 18,000) in 82 countries (2024: 98) benefit from long-term partnerships and Metso's responsible

business practices. Metso contributes to local communities through cooperation with universities and other research

institutes, as well as by participating in local community corporate social responsibility initiatives. In 2025, Metso paid

EUR 1,169 million in wages (2024: EUR 1,089 million), EUR 150 million in taxes (on accrual basis) (2024: EUR 163

million), and EUR 315 million in dividends to its shareholders (2024: EUR 298 million).

1.3.4. Revenue breakdown

Metso’s total sales in 2025 were EUR 5,240 million (2024: EUR 5,026 million). Minerals’ sales accounted for 76%

(2024: 76%) while the remaining 24% came from Aggregates (2024: 24%). Aftermarket businesses accounted for

54% of sales (2024: 57%). In 2025, Metso’s regional sales split was as follows:

• Europe: 21% (2024: 19%)

• Asia Pacific: 18% (2024: 21%)

• North and Central America: 21% (2024: 22%)

• South America: 20% (2024: 23%)

• Africa, Middle East and India: 20% (2024: 15%)

Metso is involved in activities related to chemicals production (including the manufacture of other rubber products),

and in 2025, sales were approximately EUR 279 million (2024: EUR 275 million). Metso does not operate in the

weapons manufacturing or tobacco cultivation and production sectors.

Metso continues to serve customers in the coal industry, for both brown- and greenfield projects and for thermal as

well as metallurgical coal. However, Metso will not make any investment in the research and development of products

and services specific to the coal industry. Metso acknowledges that the coal industry is entering a prolonged ramp-

down and phase-out in response to climate change initiatives. Metso’s sales to the coal industry are less than 2% of

total revenue (2024: less than 5%), and the emissions and impacts associated with this equipment are negligible in

comparison with the emissions and impacts of sales to mining and aggregates industries.

Metso is committed to supplying the best available equipment and services during the coal ramp-down phase so that

that the coal industry has access to safe and environmentally responsible technologies and solutions. A safe and

profitable ramp-down of the business is a socially responsible business approach that follows government guidelines

and recognizes that profits from the coal industry increasingly will be directed back to communities to support their

transition to alternative industries, such as energy generation from renewables. Metso’s sales from the fossil fuels

sector – encompassing coal, oil, and gas – are not significant at less than 2% of revenue (2024: less than 5%) and

therefore not reported. Metso’s approach to the coal, oil and gas industry is reviewed periodically.

Metso Corporation - Board of Directors' report and financial statements 2025 |46

1.4. Sustainability governance

This Sustainability statement provides information about Metso’s sustainability governance and outlines the

overarching governance processes, controls and procedures implemented to monitor and manage

sustainability matters at Metso. Further information about the general duties, composition, diversity and

experience of the administrative and supervisory bodies, as well as the processes of internal control, internal

audit and risk management, is available in the Corporate governance statement and Remuneration report

published simultaneously with this statement.

Metso’s administrative, management and supervisory bodies include:

• Metso’s Board of Directors: The Board oversees the company’s activities, and its two permanent

Committees regularly report on their work to the Board.

• Audit and Risk Committee (ARC): Responsible for addressing audit- and risk-related matters, including

sustainability reporting.

• Remuneration and HR Committee (RHRC): Focuses on remuneration and human resources topics.

• Metso Leadership Team: Comprises the President and CEO, business area presidents, Chief Financial

Officer, and corporate function heads, i.e. Chief Growth Officer, Chief People Officer and General Counsel

Sustainability governance at Metso

Metso Corporation - Board of Directors' report and financial statements 2025 |47

1.4.1. Roles and responsibilities

Metso’s Board of Directors, as the highest governing body for the Group, oversees Metso’s sustainability

governance and sustainability agenda execution. The Board approves the sustainability agenda, double

materiality analysis, sustainability targets and policies, and the annual Sustainability statement. In addition, the

Board oversees Metso’s overall enterprise risk management, and health and safety. Metso’s Board consists of

non-executives and doesn’t include representation of employees and other workers. The Board has delegated

review of sustainability risks and opportunities, including climate-related and environmental risks, as well as

oversights of the preparation of sustainability reporting to the Audit and Risk Committee.

The Board of Directors and Board Committees regularly review sustainability-related topics, presented by

subject matter experts in sustainability and Quality, Environment, Health and Safety (QEHS). The reviews

provide Board members with insights into Metso’s material sustainability impacts, risks and opportunities, and

the progress made against the company’s sustainability targets. The reviews also ensure that the Board’s

understanding and competence is up to date in sustainability matters.

Metso’s sustainability targets are considered in the Board of Directors’ decision-making on matters such as

investments. Metso’s Board approves all major investments, acquisitions, mergers and divestments.

Additionally, the Board of Directors reviews and approves significant sales transactions exceeding EUR 100

million and high-risk contracts valued above EUR 50 million, particularly those involving new technologies,

first-time applications, or significant country or customer risks. Trade-offs are carefully considered by the

Board when planning future sustainability-related actions and assessing their impacts, risks and opportunities.

The Audit and Risk Committee (ARC) reviews Metso’s annual Sustainability statement prior to submission to

the Board for final approval. In addition, the ARC monitors Metso’s human rights-related actions and

sustainability risks identified in Metso’s enterprise risk management framework. The ARC’s responsibilities, as

defined in its Charter, include:

• Reviewing Metso’s key policies and principles as well as changes in policies and practices relating to

sustainability reporting

• Reviewing internal controls and monitoring the effectiveness of Metso’s procedures for internal controls

over sustainability reporting

• Monitoring the assurance of the annual Sustainability statement and reviewing the results of the assurance

with the Sustainability statement assurance provider

• Reviewing Metso’s annual Sustainability statement before submission to the Board for final approval,

focusing particularly on:

– Areas that require judgment calls

– Significant adjustments resulting from Sustainability statement assurance findings

– Compliance with sustainability reporting standards

– Compliance with the requirements of applicable laws, regulations and stock exchange rules

The Remuneration and Human Resources Committee (RHRC) assists the Board in reviewing the programs

related to key people development, succession planning and talent development. These programs, linked with

the development of diversity and inclusion, mental wellbeing and fair employment, are integral to Metso’s

sustainability agenda and described in more detail in section 3.1 S1 Own workforce – Metso’s people and

culture.

In addition, the RHRC prepares the Remuneration Policy and Remuneration report, evaluates the performance

and compensation of the President and CEO, and, together with the Chair of the Board, prepares and makes

proposals to the Board on the appointment and compensation of the CEO. Based on the recommendation of

the CEO, the Committee also makes a proposal to the Board on the appointments of Metso Leadership Team

members. The RHRC also assists the Board in setting and reviewing management incentive targets, including

ESG-related metrics, which have been in use since 2021.

The shareholders' nomination board is a body comprised of representatives of Metso’s major shareholders

and is elected in accordance with its charter, available on Metso’s website. The nomination board must ensure

that the Board of Directors has a sufficient level and combination of competence and expertise for Metso’s

needs, and for this purpose prepares proposals for the Annual General Meeting on the election and

remuneration of the members of the Board of Directors.

The President and CEO, assisted by the Metso Leadership Team, is responsible for delivering on Board-

approved sustainability targets across the Group in accordance with applicable laws and regulations. The

President and CEO also provides regular reports to the Board on material sustainability-related impacts, risks,

and opportunities.

The Chief Growth Officer is responsible for sustainability at the Group level and chairs Metso’s cross-business

Sustainability Steering Committee. The Chief Growth Officer and the Sustainability team steer Metso’s Group-

level approach to material sustainability issues in cooperation with the business areas and other Group

functions. This includes the development of the overall sustainability agenda, execution of strategic

sustainability priorities, sustainability practices and sustainability communications, as well as the

implementation of sustainability-related corporate policies. The Sustainability team also contributes to

sustainability-related training, risk assessment and management, as well as external reporting in cooperation

Metso Corporation - Board of Directors' report and financial statements 2025 |48

with other Group functions. Additionally, the team proactively manages internal and external stakeholder

expectations.

The Sustainability Steering Committee is responsible for supporting business areas in their initiatives and

strategic plans, including considering sustainability impacts, risks and opportunities. The Sustainability Steering

Committee includes leaders and subject matter experts from different business areas and corporate functions

that provide expertise for the ARC and make proposals for review by the supervisory bodies.

The cross-business Sustainability Steering Committee meets once a month to assess overall progress related

to the sustainability agenda, review performance against targets, and collaborate with business areas and

market areas on sustainability matters, governance and action plans. The Human Resources Leadership and

Safety Leadership teams manage their respective people topics. The Internal Audit function ensures that

sustainability risks are managed according to the company’s overall risk management framework. Further

information on the governance of sustainability risks can be found in section 1.4.6 Risk management systems

and policies as well as under specific ESRS topics for environmental information (E1 Climate change, E3 Water,

E4 Biodiversity and E5 Circularity), social information (S1 and S2), and governance information (G1).

The Metso Leadership team (MLT) is responsible for executing Metso’s overall strategy and ensuring that the

strategy addresses sustainability impacts, risks and opportunities. The MLT oversees the implementation of the

sustainability agenda, regularly reviewing sustainability targets and monitoring the development of the Metso

Plus portfolio, including sales of Metso Plus solutions and services. Based on the Group’s sustainability targets,

each business area’s management team aligns their sustainability targets with the Group's targets and reports

performance against these targets to the Metso Leadership Team on a quarterly basis.

Business area presidents are responsible for the strategy, financial development and position, operational

performance, operating environment development, customer service, and competitive situation of their

respective business areas. They are also responsible for implementing Group initiatives, policies and

guidelines within their business areas, and for collaborating across business areas. Business area presidents

are accountable for sustainability matters within their domains. Metso’s extended leadership team includes

market area presidents. Day-to-day implementation of the sustainability agenda falls to line management in

the business areas, market areas, and corporate functions. All business areas have set sustainability targets for

the strategy period 2026–2030.

1.4.2. Sustainability expertise of the Board, its committees and the Metso

Leadership Team

According to the diversity principles defined by the nomination board, several factors influence the

composition of Metso’s Board. The overall aim is to ensure that the Board collectively possesses the necessary

knowledge and experience related to business, social and cultural conditions in the markets most significant

to Metso.

Furthermore, the members of the Board shall jointly have sufficiently diverse professional and educational

backgrounds, strong industry knowledge, strong experience in international business, strategy development

and implementation skills, experience in company leadership in various development phases, capital market

understanding, knowledge of ESG development, balanced geographical and nationality backgrounds,

sufficiently diverse age and gender distribution, an appropriate balance of decision-making capability, skills

and experience, as well as other personal capabilities, such as innovation and constructive questioning, and

sufficient time available for Board work.

Metso’s Board and its committees and the Metso Leadership Team may occasionally seek assistance from

internal or external subject matter experts. Preparatory sessions involving a broader group of stakeholders

may precede discussions, reviews, and decisions within the Board’s committees. However, the Board primarily

relies on Metso’s internal sustainability expertise, as explained in section 1.4.5. Internal controls over

sustainability and 1.4.6. Risk management systems and policies, and it has not engaged external experts other

than the sustainability assurance provider for sustainability matters in 2025.

Metso Corporation - Board of Directors' report and financial statements 2025 |49

Level of expertise by the Board of Directors


	Kari Stadigh	Klaus Cawén	Brian Beamish	Terhi Koipijärvi	Niko Pakalén	Reima Rytsölä	Anders Svensson	Eriikka Söder- ström	Arja Talma
Qualification and expertise
Board experience¹⁾	x	x	x	x	x	x		x	x
Executive committee experience ²⁾	x	x	x	x		x	x	x	x
Experience in mining and/or aggregates industry ³⁾	x	x	x				x
International experience ⁴⁾	x	x	x	x	x	x	x	x	x
Governance, compliance and auditing experience ⁵⁾	x	x	x	x	x			x	x
Experience in sustainability ⁶⁾	x	x	x	x	x		x	x	x

Additional information
Year of birth	1955	1957	1956	1967	1986	1969	1975	1968	1962
Gender	Male	Male	Male	Female	Male	Male	Male	Female	Female
Nationality	Finnish	Finnish	British, South African	Finnish	Finnish, Swedish	Finnish	Swedish	Finnish	Finnish

¹⁾The Board member has acted or is currently acting as a Chair or member of a Board (other than in Metso) in a public listed or

large (private) company. A company is considered large if its annual revenue is in excess of EUR 1.5 billion.

²⁾The Board member has acted or is currently acting as a CEO, CFO or a member of an Executive committee in a public listed

company or a large (private) company (as defined above).

³⁾The Board member has at least three years of experience within the past ten years from mining and/or aggregates industry as

part of a Board or an Executive committee in a listed or large (private) company (as defined above).

⁴⁾The Board member has acted in an international management position for at least three years.

⁵⁾The Board member has acted in a leading position in governance, compliance or audit for at least five years.

⁶⁾The Board member has at least three years of experience in sustainability, as part of a Board or an Executive committee in a

listed or large (private) company (as defined above).

The Metso Leadership Team reflects a diverse profile in terms of gender, backgrounds, and capabilities. In

2023, Metso set a new long-term target to increase the proportion of women in middle and senior

management positions. The target is to achieve a ratio of 30% female/70% male for middle and senior

management positions by the end of 2030. In 2025, the ratio was 19%/81%.

Sustainability-related expertise within the Metso Leadership Team includes:

• Social and people-related expertise and responsibility - Chief People Officer

• Governance expertise and responsibility - General Counsel

• Environmental, health and safety expertise and responsibility - Chief Growth Officer

Management diversity


Category		2025	2024	2023
Board of Directors	Executive members	0	0	0
	Non-executive members	9	9	9
	Independent of the company	100%	100%	100%
	Women to men ratio	0.5 : 1	0.5 : 1	0.5 : 1
Leadership Team	Executive members	8	9	9
	Non-executive members	0	0	0
	Women to men ratio	0.6 : 1	1.25 : 1	0.8 : 1

1.4.3. Sustainability focus areas in 2025

In 2025, the Board of Directors and its committees as well as the Metso leadership team undertook several

key activities to oversee and advance Metso’s sustainability agenda in alignment with strategic and regulatory

expectations.

The sustainability-related activities of the Board of Directors and its committees included:

• Approving the Metso 2026–2030 strategy which embeds sustainability and safety leadership as a core

strategic objective.

• Following up the execution of the 2023–2025 strategy, including progress against defined financial and

sustainability targets and key performance indicators (KPIs).

• Monitoring safety performance and related improvement initiatives.

• Ensuring compliance with evolving regulatory frameworks, specifically the Corporate Sustainability

Reporting Directive (CSRD), including approval of the double materiality assessment.

• Following up the development of Metso’s sustainability reporting capabilities to meet future disclosure

requirements.

• Monitoring activities related to compliance, ethical conduct and anti-corruption.

• Following up on employee engagement initiatives and culture-building actions.

The Metso Leadership Team's sustainability-related activities focused on the following:

• Approval of the safety execution plan 2026–2028, with initial deployment activities commencing in 2025.

The plan places high focus on fatal accident prevention.

• Defining Metso’s approach for safety conversations and risk observations, including the process for follow

up on high-risk near misses, including the risk mitigation actions for identified risks.

• Approval of the key sustainability focus areas and execution plans for the 2026–2030 strategy period,

ensuring alignment with long-term business objectives.

• Approval of updated sustainability targets, including new Science-Based Targets (SBTs) and associated net

zero transition roadmaps (Scope 1 and 2).

Metso Corporation - Board of Directors' report and financial statements 2025 |50

• Review of investments to improve sustainability performance throughout the company.

• Execution of various global and local activities related to employee engagement (eNPS).

• Improving customer engagement activities through Net Promoter Score (NPS) development.

• Approval of a forward-looking compliance plan to ensure continued alignment with evolving sustainability-

related regulatory requirements.

Safety and people topics are a standing agenda item at all Metso Leadership Team meetings, including

monthly safety follow-up that consists of reviewing accidents, analyzing root causes and sharing lessons

learned from incidents.

1.4.4. Integration of sustainability-related performance in incentive schemes

The Board of Directors is responsible for determining and overseeing Metso’s variable pay schemes, including

both short-term (STI) and long-term incentive (LTI) schemes. These schemes are aligned with Metso's

Remuneration Policy. Additionally, the Board sets and assesses the performance metrics for the STI and LTI

programs for the President and CEO, as well as other leadership team members. The Remuneration and HR

Committee reviews and updates global incentive schemes, ensuring alignment with strategy and sustainability

goals. The operational schemes for broader employee groups are overseen by executive and HR leadership,

following global governance principles.

Metso’s commitment to sustainability is embedded in its 2026–2030 strategy as well as its longer-term vision.

Metso actively supports customers to ensure equipment and/or service offerings take into consideration

environmental performance and that social aspects are taken care of. Metso has made a strategic decision to

incorporate ESG metrics into its LTI schemes, recognizing that sustainability is an ongoing responsibility. In

addition to sustainability targets, Metso’s LTI performance metrics include the company’s share price

development and profitability. Approximately 200 Metso executives and key employees, including the

President and CEO and the leadership team, participate in the rolling 3-year LTI program.

Since 2021, Metso has incorporated ESG metrics into its LTI schemes to reinforce sustainability ambition.

Beginning in 2022, Metso adopted a specific ESG performance metric focused on the sales growth of the

Metso Plus portfolio, with an aim to incentivize the development and commercialization of a broader and

more sustainable offering. It carries a 20% weighting within the overall LTI performance framework. The Metso

Plus performance metric measures the share of the Metso Plus portfolio’s overall sales and aims for a

significant year-on-year increase. The performance threshold is set at +3 percentage points above the

Group’s total sales growth, supporting a shift in the sales mix toward more sustainable solutions.

ESG metrics are currently not included in Metso’s STI programs, but sustainability-related targets may be

included among strategic or operational objectives, depending on the role and business area. However, STI

structures vary across employee groups, and financial metrics remain the primary focus.

Metso’s remuneration principles and the overall remuneration of the President and CEO are described in

more detail in the Remuneration report.

1.4.5. Internal controls over sustainability

The governance model for internal control is described in Metso’s Corporate governance statement,

published simultaneously with this Sustainability statement. Defining and adopting a full governance model

and documented control framework for sustainability reporting is an ongoing development area.

Metso’s Internal Control Policy, applicable across the organization and approved by the Board of Directors,

aims to ensure an adequate and effective internal control environment in all Metso’s operations. This includes

corporate standards, policies, guidelines and instructions. The President and CEO, the Metso Leadership Team

and the management of the business areas and market areas are responsible for compliance and maintaining

an effective and efficient control environment. These measures ensure that management directives are

effectively executed and that all necessary actions are taken to address sustainability risks. Additionally,

Metso’s sustainability reporting adheres to Group-level principles and processes for statutory reporting, risk

management and internal control.

Metso’s Code of Conduct, Supplier Code of Conduct, Anti-Corruption Policy, Human Rights Policy, and

Donation & Sponsorship Policy, as well as the Quality, Environment, Health and Safety (QEHS), and

Biodiversity Policies, as well as HR processes, described in more detail in section 3.1.4.1 People and culture,

define the basic requirements for meeting Metso’s environmental, social and economic responsibilities.

Detailed information about these policies and their relevance can be found under each relevant standard: E1

Climate change, E3 Water, E4 Biodiversity, E5 Circularity and resource use, S1 Own workforce and S2 Workers

in the value chain.

Relevant policies are presented under the most applicable ESRS standard. Where a policy is primarily

addressed in one standard, it is cross-referenced in others to ensure transparency and coherence. For

example, the Supplier Code of Conduct is referenced in ESRS G1, although its primary relevance lies within

ESRS S2. All policies are available on Metso’s intranet pages and all policies, excluding the Sponsorships and

Donations Policy, Consequences Directive, as well as the Diversity and Inclusion Strategy, are available also on

Metso’s external website.

Metso Corporation - Board of Directors' report and financial statements 2025 |51

Metso's policies referred to in this statement


	E1	E3	E4	E5	S1	S2	G1
Code of Conduct	x	x	x	x	x	x	x
Supplier Code of Conduct	x					x	x
Metso Procurement Policy				x		x
Metso Human Rights Policy					x	x	x
Metso Anti-Corruption Policy					x	x	x
Metso Enterprise Risk Management Policy	x	x	x	x	x	x	x
Metso Internal Control Policy					x		x
Metso QEHS Policy	x	x	x	x	x	x	x
Metso Biodiversity Policy			x
Metso D&I strategy					x

Metso’s Code of Conduct is the key corporate standard that outlines the fundamental principles, which are

further detailed in the company’s policies and guidelines. With the Code of Conduct, Metso commits to

proper business conduct, sustainability, and compliance across all operations. It summarizes in a single

document the topics that are important in terms of health and safety, human rights, sustainability, anti-

corruption, anti-bribery, trade compliance, information disclosure and other relevant compliance areas. It aims

to ensure that the same values and principles are followed wherever Metso has operations and that Metso’s

business partners follow the same principles. By adhering to these shared values and principles, Metso

strengthens its corporate culture, employee engagement, and reputation. Everyone at Metso is expected to

take ownership of compliance, ensuring that all business decisions and actions align and comply legally and

ethically with Metso’s Code of Conduct.

Metso’s Anti-Corruption Policy underlines Metso’s zero tolerance towards bribery and corruption. It commits

Metso to proper business conduct and integrity in all business interactions. This policy applies to all Metso

employees regardless of their position, responsibilities or location. Furthermore, Metso expects third parties to

adhere to similar principles and share Metso’s commitment to ethical business behavior.

The Metso Compliance Program seeks to ensure compliance with governance principles and the Code of

Conduct within Metso units. The program is designed to create a coherent control environment by

implementing appropriate internal control principles for business processes and sharing best practices related

to internal control.

Metso also places significant emphasis on safe operational practices and fair employment standards within its

supply chain. Ensuring continuous due diligence, risk identification and mitigation, and supporting the

implementation of various climate change actions taken by suppliers are among Metso’s priorities. In general,

responsible suppliers, from Metso’s perspective, prioritize and take action in alignment with Metso’s Supplier

Code of Conduct. Metso’s approach to its supply chain is based on a systematic and risk-based due diligence

process, which assesses partners' and suppliers' adherence to the Supplier Code of Conduct.

The sustainability reporting control environment reflects management’s commitment to sustainable and

responsible business conduct. The accuracy and completeness of information as well as the timing of the

reporting have been identified as risks. Possible sources of data errors in sustainability reporting have been

identified, and they are monitored during the process. They relate e.g. to data classification, weak estimates,

faulty or outdated conversion factors, IT system integrations, and undocumented processes. Existing controls

for data accuracy include e.g. indicator and time-based comparisons, IT system validation fields, data

completion reviews, as well as documentation and training. The sustainability reporting process includes

several layers of control in order to address these risks and to ensure that the disclosed information is

accurate, complete, and timely.

The Sustainability team, coordinates sustainability reporting and reports on the process to the Audit and Risk

Committee regularly (four times in 2025). Specialists in business operations, sustainability reporting, regulation,

data, finance, and communications contribute to producing accurate and comprehensive sustainability

reporting at Metso.

For sustainability reporting, indicators and key performance indicator owners at the Group level have been

identified. Each indicator has a named process owner who oversees and is responsible for data collection.

Systems used in data collection have built-in controls that enhance data integrity and thus the accuracy and

completeness of reporting. Reporting is often based on several data sources, including manual data input and

calculations. Therefore, indicator owners have a key role in ensuring the accuracy and completeness of the

information. In addition to reviews performed by indicator owners, there are multiple review steps at the

Group level to ensure the accuracy and completeness of disclosed information.

Metso has implemented new actions in 2025 to respond to increasing sustainability regulations and will

continue to improve its management of sustainability matters and ensure that it implements regulatory

changes to enhance its sustainability control framework.

1.4.6. Risk management systems and policies

The sustainability-related risks in this statement have been identified in accordance with the Finnish

Accounting Act and are distinct from the financial risks identified in note 4.1. of the Consolidated Financial

Statement.

Operating responsibly and promoting sustainability throughout the value chain is a high priority for Metso.

Environmental, social or governance misconduct can significantly impact the company’s reputation and lead

to long-term financial and other consequences, including business interruptions and lost work hours. Metso

Metso Corporation - Board of Directors' report and financial statements 2025 |52

takes a systematic approach to managing sustainability-related risks. This includes implementing the

appropriate policies, risk management practices, due diligence processes, and a risk-focused governance

system and organization, as well as considering potential risks in mergers and acquisitions, investments and

divestments.

The assessment of sustainability-related risks is part of Metso’s systematic risk management process. This

assessment encompasses, for example, regulatory, physical and climate-related risks across all operations. Risk

prioritization is done based on assessed severity and likelihood. In addition to evaluating the probability and

impact of these risks, the assessment also identifies opportunities. The aim of this process is to minimize the

adverse impacts from strategic, financial and operational risks, and to remove or mitigate hazards and

capitalize on opportunities.

A team of senior specialists across businesses and Group functions identifies risks, evaluates potential

impacts, and determines mitigation strategies annually. Sustainability risks are then incorporated in the

company’s overall risk assessment and the enterprise risk review results are reported annually to the Metso

Leadership Team, the Audit and Risk Committee and Metso’s Board of Directors.

Certain sustainability risks are assessed at the sales project level in alignment with Metso’s global project risk

management process. Regular audits of Metso’s main manufacturing sites evaluate business interruption risks,

including climate-related factors such as natural events. Business continuity plans incorporate strategies to

mitigate potential business interruptions, while the annual plan defines the activities and priorities for the

coming year. Business line management is operationally accountable for managing the most relevant risks as

part of their day-to-day activities.

1.4.7. Due diligence at Metso

Metso aligns its internal control practices with the risk management framework approved by the Board of

Directors. An audit framework, including for example quality, environmental, health and safety audits, as well

as supplier audits, is in place to support risk management by assessing compliance and facilitating continuous

business development. The Internal Audit function annually assesses the effectiveness of Metso’s operations

and the adequacy of risk management, and reports risks and weaknesses related to internal control processes

to management and to the Audit and Risk Committee. Metso’s integrated management system adheres to

international standards, with key units certified to ISO 9001 (quality), ISO 14001 (environment), and ISO 45001

(health and safety).

The company’s due diligence approach aligns with the UN Guiding Principles for Business and Human Rights.

Sustainability due diligence is embedded in Metso’s governance, strategy, and business model. It

encompasses the following aspects:

• Identifying, preventing, mitigating and accounting for potential negative impacts on people and the

environment, particularly those of a systemic nature, integrating findings across functions and processes to

take appropriate corrective action.

• Informing administrative, management and supervisory bodies about possible adverse sustainability impacts

and corrective actions taken or planned.

• Incentive schemes related to sustainability matters.

• Evaluating the effect of sustainability impacts, risks and opportunities on strategy and the business model.

Metso uses various screening and assessment methods as part of its due diligence, covering the full value

chain. This includes suppliers, logistics, own operations, business relationships, as well as Metso’s products

and services. Due diligence activities involve audits and inspections, conducted either as desktop assessments

or on-site physical inspections, which often include a visit to the production facilities by Metso or a third

party. Descriptions of Metso’s due diligence practices can be found under each relevant standard in this

statement.

Statement of due diligence


Core element of due diligence	Location in the Sustainability statement
Embedding due diligence in governance, strategy and business model	1.4.1. Roles and responsibilities 1.4.7. Due diligence at Metso
Engaging with affected stakeholders	1.5. Stakeholder engagement 3.1.5. Processes for engaging with own workers and workers’ representatives 3.2.5. Processes for engaging with value chain workers about impacts
Identifying and assessing adverse impacts	3.1.5. Processes for engaging with own workers and workers’ representatives 3.2.5. Processes for engaging with value chain workers about impacts
Taking action to address adverse impacts	3.1.6. Remediating negative impacts and feedback channels for own workers 3.2.6. Remediating negative impacts and feedback channels for value chain workers 3.2.7. Due diligence as part of Metso's sourcing process

Metso Corporation - Board of Directors' report and financial statements 2025 |53

1.5. Stakeholder engagement

Continuous interaction with stakeholders – entities or individuals that have an impact on Metso's business or

are affected by Metso's activities, products and services – is important in defining Metso’s approach to

sustainability and adapting it to stakeholder expectations. Active dialogue with stakeholders aligns social,

environmental and governance practices, enhancing decision-making and accountability for all parties

involved. Metso’s Chief Growth Officer, supported by the Sustainability team, is responsible for the proactive

management of internal and external stakeholders’ expectations. Metso’s CFO is responsible for managing

investor relations.

Metso has a systematic approach and processes for collecting, evaluating and processing employee,

customer and investor feedback. As part of the double materiality analysis conducted in 2023, Metso

redefined its key stakeholders, and the views of these stakeholders informed the definition of material topics.

These views are also an important input into the annual strategy development cycle, in particular by helping

to define investment priorities for reducing Metso’s environmental impact and developing value propositions

that address customers’ sustainability challenges. Going forward, Metso will continue to engage with external

stakeholders and consider their views as potential drivers for changes to the Group’s strategy. This

collaboration will improve the systematic identification and active engagement of key stakeholders, as well as

the collection and processing of stakeholder feedback.

The Audit and Risk Committee is informed about the views of Metso’s most important stakeholders, and these

views are taken into account when sustainability-related issues are considered. The Board is informed about

the views of stakeholders on a continued basis and more thoroughly when the CEO presents the strategy and

Business areas their execution plans once a year.

Metso is committed to long-term value creation for its shareholders, and its sustainability performance is an

important contributor to this. Metso follows the principle of equality in its investor communications by

providing accurate, sufficient, and timely information, including sustainability-related information, to all market

participants. The company’s Disclosure Policy, approved by the Board of Directors, complies with the Market

Abuse Regulation (MAR) and ensures consistent and reliable information dissemination.

Metso has active discussions with many of its customers to support them in reaching their sustainability

targets and works with customers to make improvements to their processes, products and own operations.

Metso regularly connects with its supplier base to support, advise and educate them on sustainability with an

aim to improve performance. Metso’s supplier base includes direct suppliers, indirect suppliers, field service

suppliers, logistics suppliers and IT suppliers.

Regarding media strategy, Metso aims to provide easy access to clear, accurate information, case studies, and

expert views through various channels. Metso also collaborates with several non-governmental organizations

(NGOs). Community projects are based on local needs, defined through discussions with local communities,

and aim to integrate volunteer work. Metso also collaborates with its customers on co-funded community

projects. Metso also engages with authorities, regulators and governments, and emphasizes cooperation with

universities and research institutes as a vital aspect of its sustainability and innovation approach.

Metso Corporation - Board of Directors' report and financial statements 2025 |54

Metso’s engagement with key stakeholders in 2025


How we engage	Key topics and concerns discussed in 2025	Actions in 2025	Connection to strategy and business model
CUSTOMERS
Metso has active discussions with many of its customers to support them in reaching their sustainability targets and works with customers to make improvements to their processes, products and own operations. Metso collaborates with customers in developing new sustainable technologies. More details about engagement are available under each relevant standard ( E1 Climate Change, E3 Water and E4 Biodiversity).	• Supply chain emissions • Carbon footprint data of sold products • Supplier (Metso's suppliers) sustainability performance • Code of Conduct and human-rights related topics • Products and services with sustainability benefits • Health and safety at Metso and in the supply chain, as well as product safety	2025 key actions are described in detail under each relevant standard (E1 Climate change , E3 Water and E4 Biodiversity).	• Improving customers' safety by providing safer solutions and services • Supporting customers to reduce their environmental impact and meet their sustainability goals
SUPPLIERS
Metso’s approach to responsible supply chain management is rooted in due diligence. Key to this effort are the signed Supplier Code of Conduct and frequent internal and third- party supplier sustainability audits, especially in ESG high-risk regions, and encouraging suppliers to set their own ambitious climate targets. More details about engagement under sections 3.2.5.-3.2.7. Responsible supply chain processes, remediation, metrics and actions.	• Climate change-related initiatives • Logistics and supply chain emissions • Scope 3 emissions data collection • Deforestation-related compliance • Human rights through audits • Health and safety	In 2025, Metso renewed its Supplier Code of Conduct and put more focus on the topic of human rights and regulatory compliance in the supply chain. Metso published key sustainability information in supply chain and pieces of supply chain legislations in Metso's scope externally on it's website. Key actions are described in more detail under section 3.2.8. Responsible supply chain metrics and actions.	Metso is seeking to decarbonize its supply chain as part of Metso's commitment to the 1.5-degree scenario aligned with the Paris Climate Agreement. Offering sustainable solutions starts with finding sustainably and responsibly produced components.
EMPLOYEES
Metso engages actively with employees locally through various formal and informal channels: town hall meetings between management and employees, various union and works council meetings in various countries. All employees have the opportunity to also give anonymous feedback to the company through the employee engagement survey. More details about engagement under S1 Own workforce.	• Safety, health and wellbeing at work • Diversity and inclusion • Proportion of women in the workforce • Psychological safety • Inclusive talent acquisition • Safety culture • Developing Metso's leaders • Internal collaboration • Scarcity of talent in particular expertise areas • Blue-collar worker engagement	Metso conducted four employee engagement surveys in 2025 : two full surveys for all employees, and two shorter pulse surveys for white-collar workers. The results are discussed, and actions agreed within teams quarterly. Key actions in 2025 are described in more detail in sections 3.1.7-3.1.8. Metso's people and culture, and Health and safety actions.	Metso’s people and culture are the driving forces behind the ambitious strategic objectives and the business strategy. Strong, inclusive, and growth-oriented culture is essential to achieving our goals of Growth, Excellence, and Metso #1. To become the frontrunner in sustainability and safety is one of Metso's strategic objectives. Metso aims to be a frontrunner in safety performance and ways of working with proactive safety management. Metso's business areas together with the market areas are accountable for the safety performance in all locations.
INVESTORS AND SHAREHOLDERS
Metso follows the principle of equality in its investor communications by providing accurate, sufficient, and timely information to all market participants through releases, in conference calls, meetings and Capital Market Days. This includes sustainability-related information.	•Metso's strategy •Organic and inorganic growth opportunities •Competitive environment •Financial and sustainability performance •Sustainable offering and value to customers •Shareholder returns	Key event in 2025 was the Capital Markets Day presenting Metso's new strategy. Other key actions in 2025 included releases, interim reports, analyst calls, investor roadshows and other meetings, investor seminars and conferences, site visits and investor website.	Sustainability is an essential part of Metso's equity story and a key part of Metso's strategy.

Metso Corporation - Board of Directors' report and financial statements 2025 |55


How we engage	Key topics and concerns discussed in 2025	Actions in 2025	Connection to strategy and business model
MEDIA
Regarding media strategy, Metso aims to provide easy access to clear, accurate information, case studies, and expert views through various channels. The company focuses on trade media for press coverage and maintains both local and global interactions with media representatives and established trade media outlets. Metso's experts regularly meet trade press representatives at exhibitions and conferences.	•Metso's strategy and sustainability initiatives •Product offering and expansion of service and manufacturing capabilities	2025 actions included e.g. CEO interviews with Finnish and international media, subject matter interviews with trade media and local media, as well as media visits to Metso locations.	Creating clarity to stakeholders in enabling sustainable modern life, and in creating solutions that accelerate sustainability in the industries Metso operates in.
NON-GOVERNMENTAL ORGANIZATIONS
Metso collaborates with several non-governmental organizations. Metso’s sponsorships and donations primarily focus on environmental protection and conservation, safety programs, and natural disaster relief. These priorities are set in the Sponsorships and Donations Policy.	•Green steel	2025 actions included continuing to work to assess the technical viability of green steel and to help the development of this new sector, including engagement with steel mills and customers. Metso's participation in the Climate Leadership Coalition and Finnish Business & Society (FIBS) continued in 2025.	Understanding NGO priorities helps Metso assess the materiality of our strategic sustainability priorities and collaborate in sector-wide sustainability development efforts.
LOCAL COMMUNITIES
As a responsible corporate citizen, Metso works closely with local communities around its operating sites and creates social value to local communities by providing employment opportunities and supporting corporate social responsibility projects that bring measurable benefits to them. Community projects are based on local needs, defined through discussions with local communities, and aim to integrate volunteer work. Metso also collaborates with its customers on co-funded community projects.	•Education for children and vocational education •School partnerships •Volunteer work •Support for local communities and indigenous people	Metso is committed to being socially accountable in the areas where it operates. In 2025 , Metso had various corporate social responsibility (CSR) programs and Metso Volunteers activities ongoing around the world, managed and sponsored by Metso's local organizations.	Local projects for community development support execution of Metso's sustainability agenda.
AUTHORITIES, REGULATORS AND GOVERNMENTS
Research and development collaboration with stakeholders occurs primarily through EU programs, Business Finland, and the EIT Raw Materials Knowledge and Innovation Community.	•Sustainable minerals and aggregates processing •Green energy transition and electrification •Resource efficiency •Automation and digitalized process optimization •Safety		Collaboration with regulators helps Metso assess the materiality of our strategic sustainability priorities and prepare for new sustainability requirements.
UNIVERSITIES AND RESEARCH INSTITUTES
This collaboration takes various forms, including projects, technical collaboration, school visits, apprenticeship training, internships, and dissertation positions.	Tightening collaboration with select technical universities; university and student collaboration is seen as important in tackling talent challenges such as: • Shortage of workforce • Acquiring new diverse skills • Increasing gender diversity	2025 actions centered around strengthening the collaboration with select universities in key talent markets and implementing global guidelines for university and student collaboration.	These actions support Metso's strategy by building a future talent pipeline and driving innovation through research. The partnerships also help align education with business needs and foster long-term competitiveness.

Metso Corporation - Board of Directors' report and financial statements 2025 |56

2. E – Environmental information

Metso’s transition plan to net zero is directly linked to the company’s

purpose of enabling sustainable modern life. Metso’s most significant

environmental impacts result from customer use of its products and

processes.

METSO PLUS

Suppliers with SBT targets,

CO2 emissions (Scope 1 and 2),

tCO2e

SALES

Metso Plus

EUR million

1,458

CUSTOMERS

E1 Climate

change

WITH

SBT TARGETS, %

15.1

Environmental information consists of:

EU Taxonomy

Chile-people-at-the-factory-(1)_cut-corner.png

E3 Water and

marine

resources

E4 Biodiversity

and

ecosystems

E5 Resource

use and

circularity

Metso Corporation - Board of Directors' report and financial statements 2025 |57

2.1. Metso Plus offering and innovations for our customers

Metso’s most significant environmental impacts result from customer use of its products and processes. The

Metso Plus offering and innovations are important in managing these impacts. It is essential for equipment

and services suppliers like Metso to support the mining and aggregates industries in the transition towards

more sustainable operations and decarbonization while enabling increased production of minerals, such as

copper, lithium and nickel, to support global electrification and the sustainable energy transition.

Metso’s customer industries will always have an environmental impact. The mining, metals refining, and

aggregates industries face increasing demands to reduce their use of energy and water resources, and to

mitigate dust, noise and biodiversity impacts, as well as to comply with increasingly stringent environmental

legislation. Developing innovative solutions that are more energy efficient is one of the key priorities for the

mining industry where the comminution process, consisting of crushing and grinding, is the most energy-

intensive stage of minerals production. Given the decreasing grade of ore bodies, which requires even more

processing of ore to achieve the same volume of metal, improving processing efficiency is vital.

Improvements in comminution efficiency and ore pre-sorting solutions can result in significant energy savings,

reduce plant operating costs, increase resource efficiency, and reduce greenhouse gas emissions.

Metso’s products, processes and services are designed to help customers operate safely, achieve higher

productivity, and reduce their resource intensity. The Metso Plus offering includes solutions that offer

improvements in reducing energy and carbon intensity, water use, pollution, and embedded carbon

compared to an industry baseline or benchmark technology. In addition, these products are required to

perform at the same or preferably higher level than the industry benchmark in terms of their health and

safety, pollution, and biodiversity impact. Electric solutions are an important part of the portfolio; Metso’s

offering for the mining and metals refining industries allows customers to choose renewable energy sources.

For example, Metso’s offering in aggregates is currently around 46% electric and includes dual power source

products such as the Lokotrack EC range. Though most of our mining offerings are purely electric today,

some industrial operations still primarily use fossil fuels. In those cases, we are developing cleaner alternatives.

Metso Plus sales in 2025 were EUR 1,458 million, which represents 28% of total sales. Metso aims to grow

Metso Plus sales faster than overall sales and to have a Metso Plus product in every part of the customer

value chain where Metso operates. To achieve this, Metso targets to spend 80% of its R&D spend on the

sustainable Metso Plus portfolio by 2030 and 100% of its annual R&D project spend on projects with

sustainability targets for energy efficiency, emissions reductions, water efficiency, circularity, or safety

improvements. In 2025, Metso Plus sales development was also part of Metso’s long-term management

incentive plans.

Metso's R&D program is the basis for future growth and competitive advantage – turning technology

breakthroughs into new or improved products. It also enables Metso to further support customers in

achieving their sustainability objectives, since these may require new technologies. In 2025, Metso spent

EUR 122 million on R&D in-house, in addition to participating in a number of joint technology ventures with

customers and external research partners, e.g. the below-mentioned DRI smelting pilot.

The Metso Plus offering related to the material environmental topics of climate change, water, biodiversity

and circularity are discussed in more detail in sections E1 Climate change, E3 Water, E4 Biodiversity and E5

Resource use and circular economy.

Key actions in 2025 related to the Metso Plus offering and innovations for customers included:

• The DRI Smelting Furnace test campaign in Pori, Finland, successfully completed hot commissioning of the

pilot furnace. This milestone contributed to the core process design and technology for the Green Metal

Project in Australia. The project aims to demonstrate the production of high-purity green metal using

renewable energy for hydrogen-based reduction and smelting technologies, enabling further downstream

steel processing. Metso is now in a good position to start more future customer trials with DRI smelting.

DRI smelting can replace traditional blast furnaces used in iron and steel making, which generate most of

the CO2 emissions in steel production.

• Metso Plus orders included complete flotation flowsheet beneficiation and dewatering equipment for a

copper-gold project in Pakistan, key equipment for the first greenfield copper concentrator of this scale in

Australia, a portable plug-and-play High Pressure Grinding Roll (HPGR) circuit for gold operation in

Australia, a comprehensive suite of minerals processing equipment for two strategic projects in Malaysia,

key process equipment for high-grade gold projects both in Co-operative Republic of Guyana (South

America) and Namibia (Africa), key process equipment for a greenfield iron ore concentrator plant and for

a copper concentrator plant in Oman as well as orders for key process equipment for a greenfield critical

minerals greenfield project in the US.

• Opening of a new separation laboratory and pilot area at Pori, Finland, that supports Metso’s strategy as a

leading partner in developing advanced flotation and beneficiation solutions for the global minerals

industry. The latest development at the Pori Research Center is the new coarse particle flotation (CPF) cell,

which introduces a novel deep-froth pneumatic design that eliminates the need for fluidized beds. It is set

for launch in 2026 following industrial-scale testing. Metso Plus technologies, such as the Concorde Cell

and FloatForce®+, were validated at Pori before their launch. Both are today referenced globally across a

range of commodities.

• Launch of 3rd generation OKTOP Cooling Tower developed to address key customer challenges in

demanding slurry and electrolyte cooling duties especially in brownfield installations. It minimizes downtime

and maintenance costs, and simplifies transportation and on-site assembly to reduce capital expenses.

Metso Corporation - Board of Directors' report and financial statements 2025 |58

2.2. EU Taxonomy

The EU Taxonomy is a classification system that translates the EU’s climate and environmental objectives into

criteria for assessing economic activities for investment purposes. Companies that fall under the scope of the

Corporate Sustainability Reporting Directive (CSRD) must disclose to what extent their activities meet the

criteria set out in the EU Taxonomy. This system gives an indication of the extent to which Metso is

succeeding in providing environmentally beneficial offerings to its customers, and the resources Metso has

allocated to this area.

The EU Taxonomy includes six environmental objectives: climate change mitigation, climate change

adaptation, sustainable use and protection of water and marine resources, transition to a circular economy,

pollution prevention and control, and protection and restoration of biodiversity and ecosystems. Economic

activities that make a substantial contribution to at least one of the Taxonomy’s environmental objectives are

recognized as environmentally sustainable, as long as they do not significantly harm any of the other

environmental objectives and they meet minimum social safeguards.

Metso, as a technology company serving the aggregates, minerals processing and metals refining industries,

aims to support its customer industries’ energy transition towards net zero and decarbonization in line with

the overall Taxonomy objectives. More specifically, Metso has assessed which of its activities are included in

the EU Taxonomy and have the potential to contribute to climate change mitigation, climate change

adaptation, sustainable use and protection of water and marine resources, transition to a circular economy,

pollution prevention and control, and protection and restoration of biodiversity and ecosystems objectives.

For the 2025 reporting period, the share of Taxonomy-eligible and Taxonomy-aligned activities (revenue,

capex and opex) as well as qualitative information for these objectives are disclosed.

2.2.1. Assessment of Taxonomy eligibility

For the eligibility assessment, Metso’s products mainly fall under the Taxonomy activities for Climate

mitigation ’3.6 Manufacture of other low-carbon technologies’ (mining and aggregates machinery), ’3.9

Manufacture of iron and steel’ (consumables), ’8.2 Data-driven solutions for GHG emissions

reductions’ (digital solutions), and ’9.1 Close to market research, development and innovation’ (test work and

technical services). In addition, some of Metso’s products fall under the Taxonomy activities for Circularity ‘3.3

Demolition and wrecking of buildings and other structures’ and ‘5.1 Repair, refurbishment and

remanufacturing’. These circularity activities fall below the newly introduced materiality threshold for revenue,

capex and opex and are therefore not assessed or reported in 2025.

Some services provided by Metso, whilst enabling process optimization and lifetime extensions through

modernizations and upgrades, fall outside the scope of activities included in the EU Taxonomy and are

therefore classified as non-eligible. When Metso sells parts purchased from a subcontractor without altering

or modifying them in any way or without owning the design of those parts, those parts also fall outside of the

scope of the EU Taxonomy.

2.2.2. Substantial contribution

In 2025, Metso assessed whether its eligible products meet the Taxonomy alignment criteria regarding

’substantial contribution,’ ’do no significant harm’ (DNSH) for Climate mitigation, as well as ‘minimum social

safeguards.’ The conclusion was that many of Metso’s products have the potential to substantially contribute

to the climate change mitigation objective of the EU Taxonomy. These products are considered to be

enabling activities, as they enable GHG emission reductions in other sectors of the economy (mining sector)

(products in activity 3.9 being transitional).

‘Substantial contribution’ was assessed on a product or product group level, while the DNSH criteria and

‘minimum social safeguards’ were assessed on a Group level (with some exceptions where DNSH criteria were

assessed on a product level). The ‘substantial contribution’ assessment of the share of Taxonomy-aligned

economic activities for each eligible activity was based on the Taxonomy technical screening criteria.

The alignment assessment of eligible products in activity ’3.6 Manufacture of other low-carbon technologies,’

which requires a life-cycle calculation of GHG emission, has been completed for several Metso Plus products

and will be continued in 2026. The results of this assessment are shown in the tables below. In 2025, 18% of

Metso’s products and aftermarket offering in terms of revenue were assessed as EU Taxonomy-aligned

activities.

2.2.3. Do no significant harm

Metso also assessed whether its eligible products that substantially contribute to Climate change mitigation

objective meet the DNSH criteria. Metso has concluded that its activities are in line with the criteria laid out in

the EU Taxonomy. Specifically, Metso has established and implemented procedures to minimize any adverse

impacts of its operations on the environment, and the company complies with all relevant environmental

requirements applicable to its operations. Key units of Metso are certified to the ISO 14001 (environment)

standard, and all required sites also have permits that comply with national legislation.

With regard to outsourced products, compliance with the criteria was justified based on Metso's Supplier

Code of Conduct, where Metso's suppliers are encouraged to have a systematic approach to protecting the

environment and to continually look for ways to minimize waste, emissions and discharge from their

operations, products and services, and to using energy and raw materials resources efficiently, including water

especially in water scarce regions, and preventing deforestation. Environmental practices and compliance with

Metso Corporation - Board of Directors' report and financial statements 2025 |59

laws and regulations are covered by Metso's third-party supplier audits, supplier self-assessments and Metso’s

internal supplier sustainability audits. Metso also confirmed compliance with the DNSH criteria for outsourced

products directly with the suppliers.

2.2.4. Minimum social safeguards

Metso has reviewed the EU Taxonomy’s ‘minimum social safeguards’ concerning human rights, corruption,

taxation and fair competition, and concluded that it meets the principles of each of the EU Taxonomy’s

‘minimum social safeguards.’ Specifically, Metso supports and operates according to the principles described

in the OECD Guidelines for Multinational Enterprises. In addition, Metso is committed to respecting human

rights and the United Nations (UN) Guiding Principles on Business and Human Rights. Metso is also

committed to the UN Global Compact Initiative and its principles, as well as to the principles of the Universal

Declaration of Human Rights, and the International Labor Organization’s Declaration of Fundamental

Principles and Rights at Work. Metso’s Code of Conduct, Supplier Code of Conduct, Human Rights Policy and

Anti-Corruption Policy are the key policies that define the required measures for Metso’s employees,

customers, agents, suppliers, distributors and other business partners. More information about human rights,

bribery and anti-corruption is provided in section 3.2. Workers in the value chain.

2.2.5. Revenue, Capex and Opex

Identification of Taxonomy-eligible and Taxonomy-aligned revenue was based on Group-level reporting, and

capital expenditure (capex) and operating expenditure (opex) are allocated as a percentage of sales of that

business area. In addition, revenue related to each aligned activity is based on reported external revenue and

is presented as relevant under only one contribution criteria and Taxonomy activity to avoid double counting.

Metso recognizes revenue from contracts with customers and reports under two segments: Minerals and

Aggregates. Revenue for 2025 was EUR 5,240 million, of which EUR 3,974 million is attributable to Minerals,

and EUR 1,266 million attributable to Aggregates. Taxonomy-aligned activities accounted for 18.0% of

turnover. The reported figures are in line with Metso’s 2025 Consolidated financial statements and have been

prepared in accordance with International Financial Reporting Standards (for further details, see note 1.2. Sales

in the Consolidated financial statements).

Capex includes investments in intangible assets and property, plant and equipment (EUR 196 million), as well

as in right-of-use assets (EUR 39 million). In total, taxonomy-aligned activities covered 12% of capex.

Taxonomy-aligned capex for 2025 includes additions of EUR 3.9 million in intangible assets, EUR 21.1 million in

property, plant, and equipment, as well as EUR 2.7 million in right-of-use assets. This included investments in

the new Aggregates Technology Center in Finland, as well as in new service centers in North America and a

manufacturing center in Romania. For the Taxonomy eligibility assessment, the capex of each business area is

allocated according to the eligible percentage of sales of that business area. In addition, for the Taxonomy

alignment assessment, the capex of each business area is allocated according to the aligned percentage of

sales of that business area. Metso has not identified any capex that would fall under categories c) or b) of

section 1.1.2.2 in the Delegated Acts, and therefore all Taxonomy-eligible capex is classified as a) “investments

in assets or processes associated with Taxonomy-eligible or Taxonomy-aligned economic activities.” The

reported figures are in line with Metso’s Consolidated financial statements 2025 and are based on data

prepared in accordance with IFRS Accounting Standards (for further details, see notes 3.1. Goodwill and

intangible assets, 3.2. Property, plant, and equipment, and 3.3. Right-of-use-assets in the Consolidated

financial statements.

Opex is defined as expenses related to research and development, building renovation measures, short-term

leases, maintenance and repair, and any other direct expenditures relating to the day-to-day servicing of

assets of property, plant and equipment as well as right-of-use assets that are necessary to ensure the

continued and effective functioning of such assets. All indirect costs, such as oil, electricity, real estate tax,

have been excluded. For the Taxonomy eligibility assessment, the opex of each business area is allocated

according to the eligible percentage of sales of that business area. In addition, for the Taxonomy alignment

assessment, the opex of each business area is allocated according to the aligned percentage of sales of that

business area. Taxonomy-aligned opex for 2025 includes EUR 79.4 million in research and development

expenditure, and EUR 19.1 million in other opex disclosed previously, accounting for 55% of total opex. This

included research and development expenditure in copper and battery minerals. Metso has not identified any

opex that would fall under categories c) or b) of section 1.2.3.2 in the Delegated Acts; therefore, all

Taxonomy-eligible opex is classified as a) “expenditure related to assets or processes associated with

Taxonomy-eligible or Taxonomy-aligned economic activities.” The reported figures are in line with Metso’s

Consolidated financial statements 2025 and are based on data prepared in accordance with IFRS Accounting

Standards.

Metso Corporation - Board of Directors' report and financial statements 2025 |60

Proportion of turnover, CapEx, and OpEx from products or services associated with Taxonomy-eligible or Taxonomy-aligned economic activities – summary KPIs


Financial year (N)	2025
KPI (1)	Total (2)	Proportion of Taxonomy eligible activities (3) ¹⁾	Taxonomy aligned activities (4)	Proportion of Taxonomy aligned activities (5)	Breakdown by environmental objectives of Taxonomy aligned activities						Proportion of enabling activities (12)	Proportion of transitional activities (13)	Not assessed activities considered non-material (14)	Taxonomy aligned activities in previous financial year 2024 (15)	Proportion of Taxonomy aligned activities in previous financial year 2024 (16)
KPI (1)	Total (2)	Proportion of Taxonomy eligible activities (3) ¹⁾	Taxonomy aligned activities (4)	Proportion of Taxonomy aligned activities (5)	Climate change mitigation (6)	Climate change adaptation (7)	Water (8)	Circular economy (9)	Pollution (10)	Biodiversity (11)	Proportion of enabling activities (12)	Proportion of transitional activities (13)	Not assessed activities considered non-material (14)
Text	EUR m	%	EUR m	%	%	%	%	%	%	%	%	%	%	EUR m	%
Turnover	5,240	87.8%	944	18.0%	18.0%	0.0%	0.0%	0.0%	0.0%	0.0%	9.9%	8.1%	0.2%	1,039	21.0%
CapEx	235	70.6%	28	11.8%	11.8%	0.0%	0.0%	0.0%	0.0%	0.0%	3.7%	8.1%	0.1%	31	13.0%
OpEx	179	88.8%	98	55.0%	55.0%	0.0%	0.0%	0.0%	0.0%	0.0%	43.3%	11.7%	0.2%	101	63.0%

¹⁾ Includes products where Metso owns the design of the products, although the products might be manufactured by subcontractors.

Proportion of turnover from products or services associated with Taxonomy-eligible or Taxonomy-aligned economic activities


Reported KPI		Turnover
Financial year (N)		2025
Economic activities (1)	Code (2)	Taxonomy eligible KPI (Proportion of Taxonomy eligible Turnover) (3) ¹⁾	Taxonomy aligned KPI (monetary value of Turnover) (4)	Taxonomy aligned KPI (Proportion of Taxonomy aligned Turnover) (5)	Environmental objective of Taxonomy aligned activities						Enabling activity (12)	Transitional activity (13)	Proportion of Taxonomy aligned in Taxonomy eligible (14)
Economic activities (1)	Code (2)		Taxonomy aligned KPI (monetary value of Turnover) (4)		Climate change mitigation (6)	Climate change adaptation (7)	Water (8)	Circular economy (9)	Pollution (10)	Biodiversity (11)	Enabling activity (12)	Transitional activity (13)	Proportion of Taxonomy aligned in Taxonomy eligible (14)
Text		%	EUR m	%	%	%	%	%	%	%	(E where applicable)	(T where applicable)	%
Manufacture of other low carbon technologies	CCM3.6	73.8%	313	6.0%	6.0%	0.0%	0.0%	0.0%	0.0%	0.0%	E		8.1%
Manufacture of iron and steel ²⁾	CCM3.9	9.5%	425	8.1%	8.1%	0.0%	0.0%	0.0%	0.0%	0.0%		T	85.3%
Close to market research, development and innovation	CCM9.1	3.9%	206	3.9%	3.9%	0.0%	0.0%	0.0%	0.0%	0.0%	E		99.8%
Sum of alignment per objective					18.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Total turnover		87.8%	944	18.0%	18.0%	0.0%	0.0%	0.0%	0.0%	0.0%	9.9%	8.1%	20.5%

¹⁾ Includes products where Metso owns the design of the products, although the products might be manufactured by subcontractors.

²⁾In its alignment assessment of the products allocated to Taxonomy activity 3.9, Metso included products where steel was manufactured in electric arc furnaces or in induction furnaces, which is a more energy-efficient technology than an electric arc furnace, and where the

steel scrap input relative to product output is not lower than 70% to produce high-alloy steel.

Metso Corporation - Board of Directors' report and financial statements 2025 |61

Proportion of CapEx from products or services associated with Taxonomy-eligible or Taxonomy-aligned economic activities


Reported KPI		CapEx
Financial year (N)		2025
Economic activities (1)	Code (2)	Taxonomy eligible KPI (Proportion of Taxonomy eligible Turnover) (3) ¹⁾	Taxonomy aligned KPI (monetary value of Turnover) (4)	Taxonomy aligned KPI (Proportion of Taxonomy aligned Turnover) (5)	Environmental objective of Taxonomy aligned activities						Enabling activity (12)	Transitional activity (13)	Proportion of Taxonomy aligned in Taxonomy eligible (14)
Economic activities (1)	Code (2)		Taxonomy aligned KPI (monetary value of Turnover) (4)		Climate change mitigation (6)	Climate change adaptation (7)	Water (8)	Circular economy (9)	Pollution (10)	Biodiversity (11)	Enabling activity (12)	Transitional activity (13)	Proportion of Taxonomy aligned in Taxonomy eligible (14)
Text		%	EUR m	%	%	%	%	%	%	%	(E where applicable)	(T where applicable)	%
Manufacture of other low carbon technologies	CCM3.6	59.8%	6	2.6%	2.6%	0.0%	0.0%	0.0%	0.0%	0.0%	E		4.4%
Manufacture of iron and steel ²⁾	CCM3.9	9.5%	19	8.1%	8.1%	0.0%	0.0%	0.0%	0.0%	0.0%		T	85.3%
Close to market research, development and innovation	CCM9.1	1.2%	3	1.1%	1.1%	0.0%	0.0%	0.0%	0.0%	0.0%	E		90.9%
Sum of alignment per objective					11.8%	0.0%	0.0%	0.0%	0.0%	0.0%
Total KPI (CapEx)		70.6%	28	11.8%	11.8%	0.0%	0.0%	0.0%	0.0%	0.0%	3.7%	8.1%	16.7%

¹⁾ Includes products where Metso owns the design of the products, although the products might be manufactured by subcontractors.

²⁾ In its alignment assessment of the products allocated to Taxonomy activity 3.9, Metso included products where steel was manufactured in electric arc furnaces or in induction furnaces, which is a more energy-efficient technology than an electric arc furnace, and where the

steel scrap input relative to product output is not lower than 70% to produce high-alloy steel.

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Proportion of OpEx from products or services associated with Taxonomy-eligible or Taxonomy-aligned economic activities


Reported KPI		OpEx
Financial year (N)		2025
Economic activities (1)	Code (2)	Taxonomy eligible KPI (Proportion of Taxonomy eligible Turnover) (3) ¹⁾	Taxonomy aligned KPI (monetary value of Turnover) (4)	Taxonomy aligned KPI (Proportion of Taxonomy aligned Turnover) (5)	Environmental objective of Taxonomy aligned activities						Enabling activity (12)	Transitional activity (13)	Proportion of Taxonomy aligned in Taxonomy eligible (14)
Economic activities (1)	Code (2)		Taxonomy aligned KPI (monetary value of Turnover) (4)		Climate change mitigation (6)	Climate change adaptation (7)	Water (8)	Circular economy (9)	Pollution (10)	Biodiversity (11)	Enabling activity (12)	Transitional activity (13)	Proportion of Taxonomy aligned in Taxonomy eligible (14)
Text		%	EUR m	%	%	%	%	%	%	%	(E where applicable)	(T where applicable)	%
Manufacture of other low carbon technologies	CCM3.6	72.0%	71	39.7%	39.7%	0.0%	0.0%	0.0%	0.0%	0.0%	E		55.2%
Manufacture of iron and steel ²⁾	CCM3.9	13.0%	21	11.7%	11.7%	0.0%	0.0%	0.0%	0.0%	0.0%		T	89.8%
Close to market research, development and innovation	CCM9.1	3.7%	6	3.6%	3.6%	0.0%	0.0%	0.0%	0.0%	0.0%	E		97.8%
Sum of alignment per objective					55.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Total KPI (OpEx)		88.8%	98	55.0%	55.0%	0.0%	0.0%	0.0%	0.0%	0.0%	43.3%	11.7%	61.9%

¹⁾ Includes products where Metso owns the design of the products, although the products might be manufactured by subcontractors.

²⁾ In its alignment assessment of the products allocated to Taxonomy activity 3.9, Metso included products where steel was manufactured in electric arc furnaces or in induction furnaces, which is a more energy-efficient technology than an electric arc furnace, and where the

steel scrap input relative to product output is not lower than 70% to produce high-alloy steel.

In addition to the activities listed in the previous tables, Metso also has products in Taxonomy activity ’8.2

Data-driven solutions for GHG emissions reductions.’ These products are often sold as part of another

product, and their sales are therefore not recorded or reported separately.

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2.3. E1 Climate Change

Metso’s transition plan to net zero is directly linked to the company’s purpose of enabling sustainable modern

life by creating manufacturing operations that have low or zero carbon emissions and by gradually paving the

way for products and solutions that make it possible for Metso’s customers to reduce or eliminate carbon in

their operations. Metso released a new strategy for 2026-2030 in September 2025. Being a sustainability

frontrunner is one of four key objectives for the next strategy period, as described in more detail in section

1.3. Metso’s strategy, business and value creation.

In 2025, Metso renewed its science-based targets (SBTs) and going forward continues to commit to reduce

absolute Scope 1 and 2 GHG emissions by 100% by 2030 from the 2019 base year. Metso also commits to

reduce Scope 3 GHG emissions from use of sold products by 51.6% per EUR value added by 2030 from the

2024 base year. Metso further commits that 40% of its customers by revenue, covering downstream

transportation and distribution and use of sold products, will have science-based targets by 2030 and that

40% of its suppliers by spend, covering purchased goods and services and upstream transportation and

distribution, will have science-based targets by 2030. In addition, Metso’s long term commitment for Scopes 1,

2 and 3 is to reach net zero by 2050. The Science Based Targets Initiative has validated these climate targets.

Previous science-based targets set in 2020 included also reducing emissions from logistics by 20% by 2025,

and the supplier engagement target was previously 30%. In 2021, Metso further strengthened its commitment

by setting a new target to reach net-zero CO2 emissions in its own operations by 2030 and this target is now

also Science Based Targets Initiative approved.

For Metso's own operations, achieving net-zero CO2 emissions by 2030 will mainly result from equipment

electrification, using renewable energy sources, and optimizing the energy, water consumption and waste

efficiency of individual production processes. For Metso’s value chain, net-zero CO2 emissions by 2050 will

mainly come from supplier engagement around climate change mitigation actions, working with logistics

service providers on transportation mode optimization towards decarbonization, and from helping customers

to decarbonize their production processes through the development and commercial availability of

sustainable products and solutions.

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2.3.1. Material impacts, risks and opportunities


Impacts	Actual / potential (+/-)	Risks	Opportunities	Time horizon	Key management methods
CLIMATE CHANGE MITIGATION
Metso’s operations and its value chain contribute to greenhouse gas emissions across Scope 1, Scope 2, and Scope 3, resulting in a negative environmental impact.	Actual (-)	Future sustainability-related requirements will influence market expectations and lead to completely new or alternative technology solutions and processes. Inability to meet these requirements threatens business continuity in the long term.	New services and products across the value chain will help the mining and metals refining industries respond to a more volatile environment and sustainability-related requirements with increasing demand for sustainability solutions. This will create new business opportunities for Metso.	Short Medium Long	• Metso has net-zero targets and a transition plan to achieve the targets, as described in more detail in section 2.3.5. Environmental efficiency in own operations. • Metso Plus offering – over 100 products and services that are more energy-efficient than an industry benchmark or a previous-generation product in the market. Metso aims to keep expanding and improving this offering to have the sustainable alternative in every part of its customers’ value chain. • Furthermore, Metso targets to spend 80% of its R&D spend on the sustainable Metso Plus portfolio by 2030 and 100% of its annual R&D project spend on projects with sustainability targets for energy efficiency, emissions reductions, water efficiency, circularity, or safety improvements. • Metso requires its suppliers to demonstrate continuous environmental improvement, such as developing CO2 emissions reduction plans and setting their own CO2 reduction targets.
Metso supports the transition to a low- carbon economy by providing technologies and services that enhance energy efficiency and reduce emissions in the mining and aggregates sectors.	Actual (+)	Climate change will impact the physical and business environment; emerging technologies and the transition to a lower carbon economy may change business models and customer demand. Shifts in customer demand and general market requirements may challenge companies to adapt to these changes. Inability to meet the new demand is a threat to business.	Electrification will increase the demand for certain metals, such as copper and other battery metals, which will strengthen the demand for minerals and hence the outlook for mining and Metso’s business.	Short Medium Long
CLIMATE CHANGE ADAPTATION
		Climate change impacts the physical environment. Metso will need to adapt its operations to deal with rising temperatures, water shortages, floods, storms, and other extreme weather. These changes will require additional resources.		Short Medium Long	•A high-level analysis of direct climate impacts on Metso’s manufacturing locations as well as the Group’s ability to adapt to changes now and in the coming 5-10 years.
ENERGY
Metso uses energy, and its production generates greenhouse gas emissions (Scope 1 and Scope 2).	Actual (-)	Availability of energy, especially clean energy, will become increasingly important. However, affordable access to clean energy might be restricted, particularly in remote customer locations, and with significant differences between countries. This can increase operating costs and decrease profitability.	Companies, such as Metso, developing and offering clean energy solutions and demonstrating increased energy efficiency will have a competitive edge in markets transitioning toward cleaner energy systems.	Short Medium Long	• Metso has a net-zero target for own operations and a transition plan to achieve the target, as described in more detail in section 2.3.5. Environmental efficiency in own operations . • Metso has solutions to track and reduce energy consumption of Metso’s products in customer operations.

Climate change-related impacts, risks and opportunities, as well as their potential financial impacts are described in more detail in section 2.3.7 Risks, opportunities and anticipated financial effects and in note 1.2. Sales in the

Consolidated financial statements.

2.3.2. Processes to identify and assess material impacts, risks and opportunities

Material impacts, risks and opportunities related to climate change have been identified in a double

materiality assessment. The materiality assessment is discussed in section 1. General information.

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2.3.3. Targets and progress on targets


Sustainability topic	Target for 2025	Long-term goal	2025	2024	Progress
CO₂e emissions: Scope 1 & 2 (market based)	Decrease CO₂e emissions by 76% compared to 2019 baseline (tCO2 e)	Net zero by 2030	38,159	37,657*	1% (-69%¹⁾)
CO2e emissions: Scope 1 & 2 (market based), with use of GAS- RECs	Decrease CO2e emissions by 76% compared to 2019 baseline (tCO2 e)	Net zero by 2030	30,111	30,399*	-1% (-76%¹⁾)
CO2e emissions: Logistics ²⁾	Decrease CO2e emissions by 20% compared to 2019 baseline (tCO2 e)	Decrease CO2e emissions from logistics by 20% by 2025	160,452	152,332	5% (-8%¹⁾)
Suppliers with CO2 targets	30% of direct procurement spend is with suppliers that have set an SBTi- approved CO2 e emission target ³⁾	30% of direct procurement spend is with suppliers that have a science-based CO 2 e emission target (SBTi-approved) by 2025 ⁴⁾	34.0%	29.1%*	Above target
Metso Plus portfolio ⁵⁾	Grow sales of Metso Plus portfolio faster than overall sales	Grow sales of Metso Plus portfolio faster than overall sales	EUR 1,458 million	EUR 1,418 million*	Below target
R&D projects with sustainability targets ⁵⁾	100% of R&D project spend on projects with energy efficiency, emissions, circularity, water or safety target	100% of R&D project spend on projects with energy efficiency, emissions, circularity, water or safety target	98.8%	97.5%	On target
R&D spend on Metso Plus portfolio development ⁵⁾	80% of R&D product development spend on Metso Plus portfolio	80% of R&D product development spend on Metso Plus portfolio by 2030	60.1%	78.1%	Below target
Customers with CO2 targets ⁶⁾	New target	40% revenue is with customers that have a science-based CO2e emission target (SBTi- approved or equivalent) by 2030	15.1%	5.8%	Not applicable, new target

* Restated due to internal validation.

¹⁾Compared to 2019 baseline.

²⁾ CO2 emissions from logistics have been calculated using VTT LIPASTO emission factors. With GLEC factors, CO2e emissions in

2025 were 153,937 tCO2e.

³⁾ Coverage of procurement spend available was 91.4% in 2024 and 75.4% in 2025 however reported figure is calculated from total

spend (100%), where 24.6% in 2025 has been scaled with 91.4% coverage. % of procurement spend for all suppliers that have

committed to SBT target was 33.9% (2024: 28.3%) and to SBT or equivalent target was 35.3% in 2025 (2024: 29.3%).

⁴⁾ New supplier target: 40% of all procurement spend is with suppliers that have a science-based CO 2e emission target

(SBTi-approved) by 2030.

⁵⁾Entity-specific disclosures.

⁶⁾ Coverage of revenue available in 2025 was 98.9% however reported figure is calculated from total revenue (100%).

Internal stakeholders, such as business area representatives, were consulted when setting the ambition level

for climate targets.

2.3.4. Policies

Metso’s policies on Quality, on Environment, Health and Safety (EHS), and on Biodiversity define the basic

requirements for meeting Metso’s environmental responsibilities, including climate change. Metso’s EHS Policy

states that Metso protects the environment throughout the value chain, aiming to minimize pollution, protect

biodiversity, and reduce the use of natural resources and energy. The policy outlines Metso’s commitment to

compliance with applicable laws and regulations and strives to exceed these by:

• Clear target setting for EHS

• Continuously developing management systems and ways of working to decrease Metso’s environmental

impact

• Actively consulting with employees regarding environmental topics and encouraging employees’ regular

participation in environmental activities

• Thoroughly managing hazards and reducing risks to provide environmentally efficient working conditions in

the value chain

While the President and CEO and the Metso Leadership Team are ultimately responsible for implementing

the EHS Policy, all employees work to apply it. By empowering everyone to speak up and take action, Metso

aims to ensure full compliance with the policy. The full EHS Policy is available on the Metso website.

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2.3.5. Environmental efficiency in own operations

Metso has committed to reach net zero in its own operations by 2030 for Scope 1 and 2, and progress is

closely monitored through key performance indicators (KPIs) as set out in section 2.3.3. Targets and progress

on targets.

Metso's climate change transition plan

Metso's Scope 1 and 2 CO2 reductions in 2019-2025 and a projection for 2026–2050

¹⁾ includes discontinued operations ²⁾ includes local renewable energy agreements, biofuels and green district heat

Metso’s climate change transition plan outlines the company's pathway toward net-zero Scope 1 and 2

emissions by 2030 and net-zero in whole value chain by 2050. The waterfall graphs illustrate our emissions

trajectory from the 2019 base year, through actions already taken by 2025, and projected future reductions.

Metso’s climate transition plan is aligned with EU Paris-aligned Benchmarks. Metso does not have any locked-

in emissions.

Metso's Scope 3 CO2 reductions in 2019–2025 and a projection for 2026–2050

To reach the net zero goal in its own operations, Metso is actively pursuing decarbonization initiatives across

its operations.

These actions fall under three main decarbonization lever types:

• Energy efficiency: Optimizing processes at manufacturing sites to reduce energy consumption and improve

overall efficiency

• Electrification: Electrifying equipment and transitioning to cleaner energy alternatives

• Renewable energy sourcing: Producing renewable energy on-site and securing local renewable energy

agreements

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These levers have already contributed to emission reductions. However, business growth during the same

period has led to a slight increase in overall emissions.

Progress toward Metso’s value chain net zero target requires advancements in three main areas: reducing

carbon embedded in products procured by Metso, reducing the carbon footprint of logistics, and reducing

the carbon emissions from Metso equipment used by customers. Reducing embedded carbon is pursued

largely through engaging with suppliers and encouraging them to set their own science-based emission

targets.

In 2020, Metso set a target to reduce absolute logistics related CO₂ emissions by 20% by 2025. While the

target was not fully met – primarily due to increased business volumes – substantial progress was made

through optimized transport modes, improved packaging design, and streamlined supply chain operations.

Work continues with logistics service providers to align with the Science Based Targets initiative, reinforcing

Metso’s long-term commitment to climate action.

Equipment-related Scope 3 decarbonization actions are tied to Metso’s energy- and carbon-efficient Metso

Plus offering as well as to Metso’s collaboration with its customers and other stakeholders in developing new

technologies. The Metso Plus offering and approach to innovations for the decarbonization of Metso’s

customer industries are described in section 2.1. Metso Plus offering and innovations for our customers.

When new decarbonization solutions emerge — such as those related to logistics and supply chains — Metso

is committed to promptly investigating their feasibility and aims to have the time and resources in place to

investigate the possibilities to implement them. However, Metso is dependent in this regard on policymakers

and energy market development in individual countries where Metso’s customers operate and where it has

suppliers.

Metso’s transition plans currently include offsetting 5% of Scope 1 and 2 emissions, and 10% of Scope 3

emissions. The approach for neutralizing residual greenhouse gas (GHG) emissions is annually reviewed and

evaluated by Metso based on available and scientifically sound commercial solutions. The review in 2025

identified several potential solutions for Metso's greenhouse gas offsetting in coming years, including

biodiversity objectives-aligned carbon sinks. However, it was identified that further assessment of these

options is required due to rapid development of the carbon offset market and related climate change

science.

2.3.6. Actions

Metso aims to allocate sufficient resources to deliver its Scope 1 and 2 decarbonization actions for its

transition plan. In 2025, Metso invested over EUR 1.4 million (2024: EUR 0.7 million) in capital projects to

reduce its CO2 emissions. Metso expects to spend around EUR 40-100 million during 2025–2030. The final

cost impact will depend on the current price level of the solutions used, the carbon market price, the

development of low-carbon technologies and the equation of solutions needed. In 2025, operational costs

associated with climate change mitigation were around EUR 423,000 (2024: EUR 275,000).

The achieved GHG reductions from actions implemented are presented below. As of 2025, the company

remains on track with its decarbonization transition plan. Key Performance Indicators as required under the

Commission Delegated Regulation (EU) 2021/2178 are available in section 2.2. EU Taxonomy.

Reduction of GHG emissions


Accumulated reduction of GHG emissions, tCO2 e	2025	2024	2023
Reduction of emissions Scope 1, tCO2e	18,309	17,101*	15,301
Reduction of emissions Scope 1, tCO2e with use of GAS-RECS	26,356	24,359*	23,979
Reduction of emissions Scope 2, tCO2e	68,990	61,149*	70,183*

* Restated due to internal validation.

GHG emissions from Scope 3 use of sold products per EUR gross profit was 35,920 tCO2e/EUR million in

2025.

Business area- and market area-specific environmental roadmaps were approved in 2025; going forward,

these roadmaps and budgets will be reviewed annually to ensure that timelines are met.

Metso’s most significant planned investments in decarbonizing its own operations focus on electrifying

foundries and metal casting processes within its facilities in China and India. Specific climate mitigation actions

completed in 2025 include:

• Energy-efficient upgrades to industrial furnaces and heating systems in Brazil, China and India

• Installations of solar panels at manufacturing locations in Australia, China and Mexico

• Change from diesel to electric tow-trucks and company vans in India and Ireland and installing electric

vehicle charging stations in Finland

• Installation of automated shutdown control for air conditioning to reduce energy and cooling gas waste in

Brazil

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Metso continues to develop its Life Cycle Services (LCS) contracts toward more sustainable solutions by

creating performance-based and product-as-a-service business models. These models deliver environmental

improvements e.g. by optimizing resource efficiency, increasing circularity and reducing material waste. In

addition, LCS contracts incorporate environmental initiatives such as electrifying on-site transportation and

optimizing routes, replacing diesel generators with solar panels or grid electricity, using biodegradable

solvents, as well as offering repair and exchange services. Recycling activities, including rubber and filter cloth

materials, are also part of the environmental initiatives in the LCS contracts.

2.3.7. Risks, opportunities and anticipated financial effects

Climate change affects many aspects of Metso’s business, and the company regularly analyzes climate

change-related risks and opportunities and their potential impact on the business. Transitional and physical

risks and opportunities resulting from climate change are reported in this Sustainability statement, in

accordance with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

As a company with a global presence, the impacts of climate change on Metso’s own operations as well as on

its customers’ and suppliers’ operations will not be the same everywhere. Regional variations in climate

change and the impacts on operations require individual assessment of issues to address them correctly and

effectively. An assessment of climate change-related risks and opportunities across various time horizons is

conducted as part of Metso’s regular corporate risk assessment process and is included in Metso’s strategy

work. In assessing climate change impacts, Metso considers a time horizon of 0–3 years to be the most

relevant for assessing the short term, 3–10 years the medium term, and 10 years and beyond the long term.

All climate change-related risks, with an estimate of their probability and possible impact relative to annual

sales, are noted and assessed.

The most significant risks and opportunities identified for Metso include the ability to develop environmentally

efficient products to meet customers’ future needs and the ability to operate in a changing business and

external environment. Additionally, environmental legislation, customer energy supply, the global regulatory

environment, and political and social unrest are considered material factors. The potential risks and

opportunities identified based on the assessment and their estimated potential financial impacts are

presented in the following tables.

Climate change related risks


Category	Description	Financial impact	Time horizon
Transitional risks
Technology	Future sustainability-related requirements will influence market expectations and lead to completely new or alternative technology solutions and processes. The inability to meet these requirements threatens business continuity in the long term.	High	Short – Long
Technology	Non-optimal choices in R&D expenditure may affect the speed and quality of the development of Metso’s product and services offering. Inability to develop the innovations needed for the increasing commodity supply required for the energy transition is a risk.	Intermediate	Medium
Markets	Climate change will impact the physical and business environment. Emerging technologies and the transition to a lower-carbon economy may change business models and customer demand. Shifts in customer demand and general market requirements may challenge companies to adapt to these changes. The inability to meet the new demand is a threat to business.	High	Short – Long
	The Metso Plus portfolio may be more sensitive to the business cycle than the overall portfolio, which may result in loss of value during industry downturns. Increased market volatility may result in value chain challenges.	Intermediate	Short – Medium
	The availability of energy, especially low-carbon energy, will become increasingly important. However, access to affordable low-carbon energy might be restricted, particularly in remote customer locations and with significant differences between countries. This can increase operating costs and decrease profitability.	Intermediate	Medium
Reputation	Stigmatization of the industry and a negative perception of companies may adversely affect Metso’s or its customers’ reputation and social acceptance.	Intermediate	Medium
Reputation	Metso’s or the industry’s negative reputation can adversely impact investors’ decisions. This may affect industry structures and Metso’s ability to serve carbon-intensive segments.	Intermediate	Medium
Policy & Legal	Climate change concerns are likely to generate new, stricter regulations and legislation. Environmental and emissions reporting obligations will increase.	Intermediate	Short

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Climate change related risks


Category	Description	Financial impact	Time horizon
Physical risks
Chronic	Customers’ access to inputs, e.g. water, can be hindered by chronic changes in the environment. For some customers, this may result in reduced business and, consequently, decreased sales. The increasingly visible impacts of climate change may lead to social and political disruption, which may affect Metso’s customers’ ability to operate.	Intermediate	Medium – Long
Chronic	Chronic risks, e.g. access to water, responding to higher temperatures and heatwaves, will require adaptations in Metso’s own operations.	Low	Short – Long
Acute	Increased frequency and severity of various natural hazards (floods, storms, heatwaves, etc.), including the follow-on social impacts. May cause disruption at Metso locations.	Low	Short – Long

Climate change-related opportunities


Category	Description	Financial impact	Time horizon
Products and services	New services and products across the value chain will help the mining and metals refining industries respond to a more volatile business environment with increasing demand for sustainability solutions. This will create new business opportunities.	High	Medium
Products and services	Continuous development of new environmentally efficient products or services, and optimizing existing products and services for increased energy, carbon and/or water efficiencies through R&D and innovation to meet customers’ future needs.	High	Short – Medium
Resilience	Global operations, with sufficient presence in all key regions, and strong business development capabilities enable a solid foundation to adapt to and profit from changes in the market environment.	Intermediate	Short – Medium
Resilience	Being the preferred partner with a good reputation and wide social acceptance will improve customer and investor confidence and financing opportunities.	Low	Medium
Energy source	Companies developing and offering clean energy solutions and demonstrating increased energy efficiency will have a competitive edge in countries that are still developing their green energy sectors.	Low	Short – Medium
Markets	Electrification will increase the demand for certain metals, such as copper and other battery metals, which will strengthen the demand for minerals and, consequently, the outlook for the mining industry and Metso’s business.	High	Short – Long
Markets	More stringent regulatory development may increase the demand for Metso Plus solutions.	Intermediate	Medium
Resource efficiency	Environmental efficiency, for example low-carbon raw materials and/ or a small footprint in own operations, will become increasingly important and can add to the attractiveness of Metso’s technologies.	Low	Short – Long

The previous tables largely highlight short- and medium-term risks and opportunities. To form a better

perspective on the long term, and as part of the TCFD reporting, Metso also analyzed the organization’s

strategy and resilience against different future scenarios:

• a future where the global average warming will be limited to 1.5 degrees, which is also Metso’s strategic

target (the ‘Right way’ scenario)

• a scenario where we risk warming of 4 degrees, i.e. where little has been done to fight climate change (the

‘No way’ scenario)

• a middle-of-the-road scenario describing a future between these two extremes (the ‘Half way’ scenario)

The initial analysis was conducted in 2021 and was updated in 2023 and 2024. The scenarios are based on the

information and data provided by widely recognized organizations, such as the Intergovernmental Panel on

Climate Change (IPCC), the International Energy Agency (IEA), and the World Bank.

In the ‘Right way’ scenario, tighter regulation favors Metso’s solutions for customers, enabling them to retain

their license to operate and to operate efficiently. Renewables and electrification would create strong

demand for copper and battery metals, and spending on infrastructure accelerates. In addition to this being

the best climate change outcome, the diversity of Metso’s businesses as well as its focus on and investment in

enabling technologies would likely result in increased business opportunities, and it is therefore considered to

be the most desirable future outlook for Metso. This also enables Metso to adjust or adapt its strategy and

business model to climate change.

In the ‘Half way’ scenario, tighter regulations are still expected to create greater demand for water recycling

and water efficiency solutions. Renewables and electrification would also create demand for copper and

battery metals, although to a lesser extent than in the ‘Right way’ scenario. In addition, opportunities would

arise from an increase in spending on highways, railways, and elevations for buildings and roads. As

discussed in more detail below, in this scenario adapting to the impacts of climate change becomes an

important driver of strategy.

By contrast, in the ‘No way’ scenario, significant spending on infrastructure would be expected as a response

to physical environmental hazards. Water scarcity may create difficulties, but at the same time it could also

result in increased demand for water-efficient technologies. The risks set out in the ‘No way’ scenario are the

most material for Metso, and additional measures and expenditure could be needed to ensure its resilience in

this scenario. Due to the diversity of Metso’s businesses, its technologies can provide solutions to tackle future

challenges in all these scenarios as well as maintain resilience.

Finally, given the reality of climate change that is already happening, Metso conducted a high-level analysis

of direct climate impacts on its manufacturing locations as well as of its ability to adapt to changes now and

in the coming 5–10 years. Based on external databases and interviews with local HSE managers, the most

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relevant impacts of current and future climate change were identified. Thirty manufacturing locations were

included in this assessment, which started in 2023 and was finalized in 2024. Key hazards that were identified

as likely to become significant issues in the future included:

• Heatwaves – several Metso locations are experiencing consequences of increased and prolonged

heatwaves. Mitigation actions and plans to cope with this hazard are already in place.

• Flooding (caused by increased precipitation) – several locations are in areas prone to flooding, and action

plans are in place.

• Water scarcity – several locations are in water scarce areas.

• Wildfires – wildfires are also relevant for several of Metso’s locations, though the impacts are not direct.

Additionally, several of Metso’s locations have already experienced the effects of climate change and have

implemented effective upgrades to manage related risks, such as increased heat stress and heatwave risks. In

response to the widespread nature of climate-related risks across our operations, Metso has initiated the

development of a standardized climate risk and adaptation assessment template to support location-level

self-assessments. This new template builds upon Metso’s existing risk assessment framework and integrates

insights from external research conducted during the 2024 risk assessment. It includes the most relevant

climate-related natural hazards with the potential to affect operations and encourages each location to

evaluate the specific risks these hazards may present locally, while also adding their own observations. The

risk assessment work will continue in the coming years.

The assessment so far identified potential gaps in Metso’s current management systems if climate change

goes beyond 1.5 degrees. Metso is in the process of integrating these findings into its risk management

system to develop plans for climate change adaptation.

2.3.8. Integration of sustainability-related performance in incentive schemes

Metso’s LTI performance metrics currently include metrics related to share-price development, profitability

and sustainability. The sustainability element of the current plan aims to incentivize the development of a

broader and more sustainable product and service offering for customers and to ensure that the share of

overall sales that come from the Metso Plus offering increases. For the 2023–2025 PSP, the performance

threshold for the Metso Plus portfolio has been set at Group sales growth of +3 percentage points. Detailed

information on the sustainability-related performance in incentive schemes is provided in section 1.4.4.

Integration of sustainability-related performance in incentive schemes.

2.3.9. Metrics

Energy consumption and mix


Energy consumption and mix	2025	2024	2023
(1) Fuel consumption from coal and coal products (MWh)	0	0	0
(2) Fuel consumption from crude oil and petroleum products (MWh)	40,431	40,764*	44,339
(3) Fuel consumption from natural gas (MWh)	134,078	117,835*	131,597*
(4) Fuel consumption from other fossil sources (MWh)	0	0	0
(5) Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh)	24,163	29,806*	27,743*
(6) Total fossil energy consumption (MWh) (calculated as the sum of lines 1 to 5)	198,671	188,404*	203,680*
Share of fossil sources in total energy consumption (%)	51%	52%	51%
(7) Consumption from nuclear sources (MWh)	7,322	10,126*	18,533
Share of consumption from nuclear sources in total energy consumption (%)	2%	3%	5%
(8) Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin, biogas, renewable hydrogen, etc.) (MWh)	1,016	1,865	7,922*
(9) Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh)	172,682	157,250*	164,589*
(10) The consumption of self-generated non-fuel renewable energy (MWh)	7,976	6,384	5,177
(11) Total renewable energy consumption (MWh) (calculated as the sum of lines 8 to 10)	181,673	165,499*	177,688*
Share of renewable sources in total energy consumption (%)	47%	45%	44%
Total energy consumption (MWh) (calculated as the sum of lines 6, 7 and 11)	387,667	364,029*	399,900*

* Restated due to internal validation. Total energy consumption increased less than 1%.

Energy intensity based on net revenue


	2025	2024	% Change
Total energy consumption from activities in high climate impact sectors per net revenue from activities in high climate impact sectors ¹⁾ (MWh / EUR million)	84.6	87.8*	-4%

¹⁾See note 1.2. Sales in the Consolidated financial statements.

* Restated due to internal validation. Energy intensity increased less than 1%.

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Gross Scopes 1, 2, 3 and Total GHG emissions


	Retrospective				Milestones and target years
	2025	2024	2019	% Change	2025	2030	Annual % target / Base Year
Scope 1 GHG emissions
Gross Scope 1 GHG emissions tCO2eq	36,442	33,245*	37,870	10%	Decrease Scope 1 & 2 CO 2 emissions by 76% compared to 2019	Net Zero Scope 1 & 2	12.7%
Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%)	Not applicable	Not applicable	Not applicable	Not applicable	Not applicable	Not applicable	Not applicable
Scope 2 GHG emissions
Gross location-based Scope 2 GHG emissions (tCO2 eq)	84,534	77,789*	81,632*	9%	Not applicable	Not applicable	Not applicable
Gross market-based Scope 2 GHG emissions (tCO2eq)	1,717	4,412*	85,954*	-61%	Decrease Scope 1 & 2 CO 2 emissions by 76% compared to 2019	Net Zero Scope 1 & 2	12.7%
Significant Scope 3 GHG emissions
Total Gross indirect (Scope 3) GHG emissions (tCO2eq)	61,301,358	62,452,170*	2,552,091*	-2%	Not applicable	Not applicable	Not applicable
Purchased goods and services	770,249	746,040*	688,000	3%	Not applicable	Not applicable	Not applicable
Fuel and energy-related activities (not included in Scope 1 or Scope 2)	32,527	29,350*	19,692*	11%	Not applicable	Not applicable	Not applicable
Business travel	27,884	26,603	29,000	5%	Not applicable	Not applicable	Not applicable
Upstream transportation ¹⁾	86,965	94,446	127,312	-8%	Decrease logistics CO2 emissions by 20% compared to 2019	Not applicable	3.3%
Downstream transportation ¹⁾	73,487	57,886	47,088	27%	Decrease logistics CO2 emissions by 20% compared to 2019	Not applicable	3.3%
Use of sold products	60,310,246	61,497,844*	1,641,000	-2%	Not applicable	Not applicable	Not applicable
Total GHG emissions
Total GHG emissions (location-based) (tCO2eq)	61,422,334	62,563,203*	2,671,593*	-2%	Not applicable	Not applicable	Not applicable
Total GHG emissions (market-based) (tCO2eq)	61,339,517	62,489,826*	2,675,916*	-2%	Not applicable	Not applicable	Not applicable

¹⁾CO2 emission factors used are VTT LIPASTO factors.

* Restated due to internal validation and changes in methodology. Total location-based GHG emissions increased by 58,437,881 tCO2e and total market-based GHG emissions increased by 58,436,848 tCO2e. The increase is mainly due to a change in the calculation

methodology of Use of sold products. For Scope 1, the difference was due to the wrong energy unit used by one site.

GHG intensity per net revenue


GHG intensity per net revenue	2025	2024	% Change
GHG intensity based on net revenue, tCO2e / EUR million (location-based) ¹⁾	11,722	12,867*	-9%
GHG intensity based on net revenue, tCO2e / EUR million (market-based) ¹⁾	11,706	12,852*	-9%

¹⁾See note 1.2. Sales in the Consolidated financial statements.

* Restated due to internal validation and changes in methodology. Location-based GHG intensity increased by 12,019 tCO2e and market-based GHG intensity increased by 12,018 tCO2e.

Metso Corporation - Board of Directors' report and financial statements 2025 |72

2.3.10. Reporting principles

Environmental data has been collected through Metso’s HSE24 reporting system. The principle applied in

defining the scope for which environmental data is collected is financial control, and leased assets are

included in the reported figures.

This data is available for Metso’s largest business units and has been collected from all our manufacturing

units, research centers, service centers, assembly shops and warehouses with more than 50 employees. It

includes energy use, water use, waste, and VOC emissions. In addition, energy data is collected from offices

with more than 100 employees.

Metso’s smallest offices, typically with fewer than 100 employees, and the smallest service centers, assembly

shops and warehouses with fewer than 50 employees, are not included in the environmental reporting. This is

because they are often located in large office facilities together with other companies. They typically pay a

monthly lump sum to the office space providers, and therefore it is not possible to determine their specific

electricity, heat or water consumption. We have estimated that the impact of these locations individually is not

material for Metso’s total figures. An estimate of emissions in locations excluded due to not having energy-

intensive operations has been added into reported emissions. The estimated emissions are based on emission

factor of emissions per headcount in Metso's largest office locations included in the energy reporting. Then

the headcount in locations excluded from the reporting has been multiplied with this emission factor. These

estimates have been added for all the reporting years and the historical figures are therefore restated.

Metso has set its emission reduction targets and calculated its Scope 1, 2, and 3 greenhouse gas emissions in

line with the GHG protocol methodology. The targets are fully aligned with the boundaries used in the GHG

inventory. Both the targets and the inventory are based on the same organizational and operational

boundaries and cover all relevant emission sources. In addition, the targets are validated by the SBTi, which

requires alignment between inventory boundaries and target boundaries. Close monitoring of environment-

related indicators enables Metso to continuously improve management of environmental data and

performance. The average annual percentage reduction is calculated using the target year of 2025 as the

reference and the 2019 baseline year as the starting point. The 2019 baseline was selected after the merger in

2020 when the new company first set SBTi targets. The baseline is aligned with Metso's SBTi commitment. For

the target to reduce Scope 3 GHG emissions from use of sold products by 51.6% per EUR value added by

2030 the base year is 2024.

In Metso’s case, the term ‘high-impact sector’ refers to the manufacturing sector. NACE codes were utilized to

allocate revenue from this ‘high-impact’ sector. For 2025, 87% of Metso’s total revenue originates from the

high-impact sector (2024: 85%). The total sales number was used as the overall revenue figure.

2.3.10.1. Scope 1 and 2 emissions

Scope 1 and Scope 2 emissions are calculated in accordance with the GHG Protocol. Reported emissions are

based on invoicing and are converted from MWh to CO2e emissions using standard conversion factors (SI).

The source for emission factors is the IEA “CO2 Emissions from Fuel Combustion” 2023 edition. In calculations

for Scope 2 market-based emissions, we used supplier-specific emission factors.

Renewable gas certificates are included in Scope 1 emissions (if specifically stated), and contractual

instruments (Renewable Energy Certificates (RECs) and Guarantees of Origin (GOs)) are included in Scope 2

market-based calculations. In 2025, contractual instruments covered 97% of Metso's Scope 2 electricity

consumption (2024: 95%). Out of the contractual instruments, 15% was bundled and 85% unbundled (2024:

15% and 85%). Metso's biogenic emissions totaled 259 tCO2/MWh for Scope 1 and 4,111 tCO2/MWh for Scope

2 (2024: 11 tCO2/MWh and 4,607 tCO2/MWh). The reduction of CO2e emissions includes accumulated

emission savings from environmental actions.

83% of electricity from nuclear sources has been estimated. The estimates are based on the information

provided in the energy providers' websites.

2.3.10.2. Other indirect (Scope 3) GHG emissions

Metso has conducted an analysis of all Scope 3 emission categories. Based on that analysis, six material

emission categories were identified: purchased goods and services, fuel-and energy-related emissions,

upstream transportation, business travel, downstream transportation, and use of sold products.

Metso has assessed its Scope 3 emissions based on the GHG Protocol’s Corporate Value Chain Accounting

and Reporting Standard. Metso refers to item, energy use, or emission data collected directly from the

emission source (for example, a supplier) as primary data. On the contrary, cases where Metso receives

production method information, logistics, or weight data directly from the supplier but uses emission factors

for calculations are considered secondary data.

Purchased goods and services Scope 3 emissions cover direct and indirect spend. The emissions are

calculated with a 100% secondary data (2024: 100%) using a weight-based approach, or a spend-based

approach when weight information is not available. The weight-based emissions are calculated based on the

weight and material of purchased goods using emissions factors from the Ecoinvent 3.7 database. The spend-

based emissions are based on the monetary value of purchased goods and services by supplier type and

country and is carried out using the environmentally extended input-output matrices from EXIOBASE. The

spend-based emissions covered 67% of total spend.

Fuel- and energy-related Scope 3 emissions include emissions that are not included in Scope 1 or Scope 2

(production of fuels and energy purchased: diesel, LPG, natural gas, electricity, steam, district heating). The

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calculations use a 100% secondary data (2024: 100%) and the coverage is 100% (2024: 100%). The emission

factor source is: www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2016.

Metso currently monitors and reports Scope 3 emissions stemming from business travel, covering 98.5%

(2024: 99.5%) of the workforce. The calculations are made with a 64% primary data directly sourced from

travel providers (2024: 61%).

Upstream transportation emissions are based on CO2 data provided by logistics service providers (LSPs), the

distance provided by the LSPs and gross weight. Coverage of primary data received from service providers is

72% (2024: 60%), and the remaining share is estimated based on extrapolation of this data. Upstream

transportation CO2 emissions take into account transportation between Tier-1 suppliers and own operations,

and transportation between Metso units.

Downstream transportation emissions are based on CO2 data provided by logistics service providers (LSPs),

the distance provided by the LSPs and gross weight. Coverage of primary data received from service

providers is 72% (2024: 60%) and extrapolation using spend is made for the remaining share. Downstream

transportation CO2 emissions take into account transportation of products from Metso units to customers and

transportation from suppliers to customers.

Use of sold products' emissions are calculated based on annual hours of operation and baseline operating

conditions per product. Emissions were calculated using IEA World average emission factors for electricity and

IPCC factors for fuels. An average lifetime of 20 years was used to estimated life cycle emissions. The data

used is 100% secondary (2024: 100%).

2.3.10.3. Metso Plus offering

Metso Plus products and aftermarket offering need to meet the sustainability performance criteria set by

Metso. The products and aftermarket offering included in the Metso Plus portfolio are distinctive from a

sustainability point of view, address Metso’s customers’ sustainability needs, and build on our competitive

advantages. Metso Plus products are demonstrably more energy or water efficient than the industry

benchmark or Metso’s previous generation of the product in the market, help our customers cut their CO2

emissions, and/or achieve other sustainability priorities such as reducing other emissions and waste.

Metso defines the required level of performance to qualify as a Metso Plus product or service. Metso Plus

qualification requirements and threshold levels for qualifying have been defined by looking for such

performance improvement level that would be consistent with Metso’s customers achieving their own publicly

stated climate change and other environmental targets, e.g. for reducing their carbon footprint. Metso

compares all Metso Plus products with industry benchmarks and uses concrete data as evidence of the

sustainability performance and related performance claims such as energy-efficiency improvements.

This evidence includes one or more of the following:

• Performance improvements compared to an industry benchmark or a previous generation product in the

market

• Performance analytics and simulations

• Comparisons using product calculators

To qualify for the Metso Plus label, a product must meet at least one of the set threshold levels in relation to

the market benchmark:

• Minimum above threshold level % more energy efficient

• Minimum above threshold level % reduction in use phase or total life cycle CO2 emissions

• Minimum above threshold level % less embedded carbon in the product (further information about the

metrics below)

• Minimum above threshold level % reduction in water usage or pollution

• Electric products where the market standard is non-electric

• Digital products – minimum above threshold level % improvement across the metrics listed above

• Services - minimum above threshold level % improvement across the metrics listed above

Embedded carbon in a product can be minimized in multiple ways, and the following factors are included in

the Metso Plus assessment:

• Less raw material for the same performance (% reduction)

• Increase in output for constant raw materials (% improvement)

• Decreased carbon raw material for the same performance (% reduction)

• Extending equipment life (% increase in average life)

• (%) recycled materials used as input (% compared to market average)

• Enabling recycling of waste output (% recycled)

• Lower logistics emissions (% reduction)

The Metso Plus designation for Services follows the same logic as for capital equipment and consumables.

When using services to improve existing equipment, it is an ongoing process to make incremental

improvements, i.e. there are many opportunities to progressively accumulate benefits over the lifetime of the

flowsheet. In addition, implementing sustainable upgrades to existing equipment reduces waste.

Additionally, a Metso Plus piece of equipment or consumable needs to be as good as, or preferably better

than, the industry benchmark product(s) in terms of health and safety, pollution, and biodiversity impact.

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Metso does not yet have metrics to measure and verify its biodiversity performance. A high-level biodiversity

assessment, conducted in 2024, as well as collaboration with customers to prevent biodiversity loss by

identifying products and solutions in the Metso Plus portfolio that may have a biodiversity risk-reducing

impact will help inform the definition of appropriate metrics and targets for biodiversity going forward. More

information is available in 2.5.5. Environmental efficiency in own operations – actions and 2.5.6. Metso Plus

offering and innovations to customers – actions.

If Metso Plus recognition is applied for a product, consumable or solution, the following steps are taken:

• R&D project manager fills in the Metso Plus assessment in the R&D reporting tool.

• R&D project manager notifies the sustainability team contact so that a review process can start.

• Sustainability team and project manager together with the team go through the case and evidence.

• Calculations are completed to confirm that the threshold levels for Metso Plus are met.

• Metso Plus product application is sent for approval to the Technology board.

• Technology board approves or rejects the product as a new Metso Plus product.

Metso Plus sales are recorded as part of Metso’s sales reporting. For projects that include components that

are not classified as part of the Metso Plus offering, the Metso Plus share of the sales is taken into account

using estimates or assumptions based on product prices or costs.

The results and the Metso Plus Performance Claims are based on average performance across multiple use

cases, and as such are intended as guidance only and not guaranteed. The Metso Plus Performance Claims

may not be applicable to specific configurations in some use cases, or the base data may have become out

of date and new calculations may be required. The actual performance of a Metso Plus product or service in a

specific application may be affected by external factors or circumstances that are unrelated to the technical

properties the Metso Plus Performance Claim is based on. Some Metso Plus products or aftermarket offering

may have limited availability or may not be available in some countries.

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2.4. E3 Water and marine resources

Metso’s operations can affect water resources, both directly at its manufacturing sites and indirectly through

its equipment when used by customers. Water management is a growing challenge for mines and quarries

because they are often located in water-scarce areas. In addition, energy transition and battery metals tend to

be water-intensive to produce. Finally, water quality is also important where mines return surplus water to the

environment. Water quality can also impact the recovery and grade of the metal concentrate produced. Using

lower quality water resources can create challenges for mineral processing. Therefore, technologies are

needed to ensure that commercially viable and sustainable mineral processing targets are achieved.

2.4.1. Material impacts, risks and opportunities


Impacts	Actual / potential (+/-)	Risks	Opportunities	Time horizon	Key management methods
WATER USE IN METSO'S OPERATIONS
Several of Metso’s locations are situated in water- scarce areas in India, China, Chile and Mexico, which increases demand for local water resources.	Actual (-)			Short Medium Long	• 8 of Metso’s locations are located in water-scarce areas (2024: 8). Metso’s operations are designed to minimize water withdrawal. Each of these locations has water management action plans in place to decrease water consumption. • Process development and the adoption of new technologies reduces water use and increases water recycling in the production process, decreasing the need to withdraw more raw water.
WATER USE AT CUSTOMER OPERATIONS
Customer sites are often located in water-scarce areas. In addition, energy transition and battery metals tend to be water-intensive to produce and therefore increase the burden on water resources.	Actual (-)	Customers’ access to inputs, e.g. water, can be hindered by chronic climate changes in the environment. For some customers, this may mean reduced business and therefore decreased sales. As the demand for demand for energy transition and battery metals increases, the demand for water will also increase.	Water scarcity may result in increased demand for Metso's water-efficient technologies.	Short Medium Long	• The Metso Plus offering has around 40 solutions that address water-related challenges and that are considered better than the market benchmark or previous-generation product. Metso aims to keep expanding and improving this offering to be able to offer water-efficient technologies to its customers. • All Metso’s R&D projects must have sustainability targets, and Metso targets 80% of the R&D spend is on Metso Plus portfolio development by 2030.
Mines located in areas subject to heavy rainfall and flooding are at risk of leakage from tailings ponds. Leakage from tailings ponds may cause environmental issues and damage to the surrounding areas.	Potential (-)			Short Medium Long	• Metso offers water- and energy-efficient products for dry tailings stacking and tailings dewatering by filtration. • Metso water treatment solutions help to keep process and effluent waters free of toxic elements.

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2.4.2. Processes to identify and assess material impacts,

risks and opportunities

The material impacts, risks and opportunities related to water have been identified in a double materiality

assessment. Marine resources have not been found to be material to Metso’s own operations. Additional

information about the materiality assessment is presented in section 1. General information.

2.4.3. Targets and progress on targets


Sustainability topic	Target for 2025	Long-term goal	2025	2024	Progress
Water index	To reduce annual water consumption per employee by 5% in water-scarce locations, compared to 2021 baseline (34.4 m³ per employee)	To reduce annual water consumption per employee by 15% in water-scarce locations, compared to 2021 baseline (34.4 m³ per employee)	23.8	26.8	-11% (-31%¹⁾)

¹⁾ Compared to 2021 baseline.

2.4.4. Policies

Metso’s Quality, Environment, Health and Safety (EHS), and Biodiversity policies define the basic requirements

for fulfilling the company’s environmental responsibilities.

The EHS Policy requires that Metso protects the environment throughout the value chain, aiming to minimize

pollution, protect biodiversity, and reduce the use of natural resources, including water and energy. Metso

consistently emphasizes high EHS standards when interacting with customers, suppliers and other

stakeholders, setting clear expectations for them to adhere to the same standards. Further information about

the EHS Policy is available in section 2.3.4. Policies. In the upcoming years, Metso aims to extend its EHS and

Biodiversity policies to more thoroughly address water treatment as well as prevention and abatement of

water pollution.

Metso is committed to ensuring its products meet all water-related customer requirements, regardless of

whether it’s a standard product or a customer-specific combination of technologies and/or services. Legal

requirements, standards and directives, such as EN ISO, OSHA and CE, underpin the approach to product

development that takes into account regulations, customer requirements, Metso’s product specifications, and

water safety risk analyses. These requirements also extend to procurement and manufacturing processes, as

well as product installation and commissioning. Final compliance checks are done at the customer site,

including those in water-scarce areas.

2.4.5. Environmental efficiency in own operations – actions

Metso is committed to reducing water consumption in its own operations in water-scarce locations and to

fulfilling all local environmental legislation requirements for water consumption and effluent quality

management in accordance with local environmental permits. Metso’s definition of water-scarce areas comes

from the Aqueduct water risk atlas, which identifies high-risk and extreme-risk regions. Metso uses this

information to guide its water management efforts. Metso does not currently hold consultations with affected

communities where it operates. Internal stakeholders have been involved in setting the water targets.

As a result of water efficiency measures, water consumption was reduced by approximately 36,000 m³ in

Metso’s operations in 2025.

Key actions in water-scarce locations in 2025 included:

• Reduced water waste by reusing filtered-out water from the purification system and relocating cooler to cut

pipeline losses in India

• Implementation of a rainwater harvesting solution in India

• Implementation of small-scale water-saving and water infrastructure maintenance measures across multiple

sites

2.4.6. Water-efficient offering for customers – actions

Metso’s products can help customers manage their water footprint, and water efficiency is one of the

qualifying criteria for the Metso Plus products and aftermarket offering portfolio. Metso defines the level of

performance needed to qualify to ensure that designated products and services in this portfolio can make a

meaningful contribution to customers’ efforts towards reaching their climate and other environmental targets,

including water conservation. Metso’s water-efficient solutions can address environmental, health and safety,

and societal risks in customer operations involving water. Water efficiency, increasing recoveries and

decreasing pollution can be managed through digitalization using sensors, analytics and optimization.

2.4.6.1. Tailings management solutions

Traditional tailings storage poses long-term environmental risks, including dam failures and water

contamination. Metso’s technologies can help de-risk tailings storages by minimizing water usage, and

thereby transforming existing mining operations.

Metso Tailings Management Solutions integrate dewatering, safe and sustainable slurry transportation,

material handling and reprocessing of existing tailings. Metso’s tailings filtration portfolio and approach

emphasizes dry stacking as an ecologically promising approach, challenging conventional cost assumptions

with filtered tailings and stacking. Reprocessing older tailings facilities can yield significant value from residual

minerals. This approach can transform tailings ponds from liabilities into revenue-generating assets, often

more cost-effectively than from processing virgin material. Metso’s dewatering technologies, such as paste

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thickening and filtration, can enhance water recovery from tailings. The same applies to technologies that

change the way the ore is processed, such as Metso’s ore sorting and separation processes that reduce the

proportion of fine tailings.

Metso’s solutions can reduce the industry’s water-related liabilities and minimize the financial risks associated

with potential environmental damage and costly cleanup efforts.

2.4.6.2. Filtration solutions

High-pressure filtration can reduce water content in tailings, decreasing storage volume and environmental

impact. Metso’s larger filters increase material processing capacity and therefore increase overall productivity.

Metso’s filtration expertise ensures reliable, efficient systems with minimal downtime and maintenance costs.

The thickener and clarifier feed system ensures low flocculant usage, bringing additional environmental and

cost efficiencies to customer operations. Water efficiency can also be improved by reducing the amount of

waste that is in contact with water. Metso offers a range of technologies to achieve this, such as dry

processing alternatives across many elements in plant production facilities.

Key actions in 2025 included:

• Celebration of 10 years of innovation at the Metso Dewatering Technology Center (DTC) in Lappeenranta,

Finland. Established in 2015, the DTC has grown into a unique hub for R&D, pilot testing, and process

optimization. The center’s work has contributed to more sustainable and efficient filtration practices across

industries - over 90% of Metso’s filters are part of the Metso Plus offering thanks to their energy, emissions

and water efficiency.

• Orders for the delivery of filtration technology to mining projects in Indonesia and India. These deliveries

include a total of 22 fast-opening Larox® FFP3512 filters equipped with membrane technology, hole-less

filter cloths, and corrosion-resistant components. These solutions enhance moisture reduction, operational

efficiency, and sustainability.

• Repeat orders in concentrate and tailings filtration, The majority of the orders are for filter modernizations

and upgrades. Orders in concentrate and tailings filtration modernizations total approximately EUR 60

million in 2025.

• Launch of Symons® HydroLoop upgrade that is designed to eliminate the open-loop water sealing method

used in traditional Symons crushers. This closed-loop recirculation system captures, filters and reuses over

99% of sealing water, helping operations dramatically reduce water waste, lower operating costs and

improve ESG performance.

2.4.7. Metrics

Water consumption


	2025	2024	2023
Total water consumption, m³	303,729	326,086*	372,823
Total water consumption in areas at water risk, including areas of high water stress, m ³	104,798	108,615*	94,436*
Total water recycled and reused in m ³	54,273	49,637	41,361
Water intensity based on net revenue, m³ / EUR million ¹⁾	58.0	67.1*	69.1

¹⁾See note 1.2. Sales in the Consolidated financial statements.

* Restated due to internal validation.

2.4.8. Reporting principles

Water consumption includes municipal, groundwater, tank truck, rainwater and surface water. Water

consumption is based on invoicing or other measurement data.

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2.5. E4 Biodiversity and ecosystems

Metso’s operations can affect biodiversity, both directly at its manufacturing sites and indirectly through the

use of its equipment by customers and in the manufacturing of raw materials and components used in

Metso’s equipment. However, the greatest opportunity for Metso to contribute to biodiversity is through its

customers, as Metso’s own biodiversity footprint is relatively small. Metso largely buys manufactured goods

from suppliers, and Metso’s equipment manufacturing sites, assembly and service workshops are typically

located in industrial parks zoned for industrial use. These areas have limited biodiversity sensitivity, and

compliance with environmental permits mitigates potential impacts on biodiversity and endangered species.

By providing solutions, products and services to its customers, Metso has the potential to minimize risks on

biodiversity. These solutions include, for example:

• Tailings management: Providing solutions that minimize harmful effects of tailings and decrease risks of

leakages

• Water conservation: Minimizing water consumption and pollution

• Noise and dust reduction: Mitigating noise and dust pollution in immediate surroundings of customer sites

2.5.1. Material impacts, risks and opportunities


Impacts	Actual / potential (+/-)	Risks	Opportunities	Time horizon	Key management methods
DIRECT IMPACT DRIVERS OF BIODIVERSITY LOSS (LAND-USE CHANGE, FRESH WATER-USE CHANGE AND SEA-USE CHANGE) IMPACTS ON THE EXTENT AND CONDITION OF ECOSYSTEMS IMPACTS AND DEPENDENCIES ON ECOSYSTEM SERVICES
Metso’s operations contribute to greenhouse gas emissions that drive global climate change, which affects biodiversity. Additionally, certain local emissions and waste generated by production activities may have direct impacts on surrounding ecosystems and species.	Actual (-)	Climate risks and opportunities are discussed in sections 2.3.1. Material impacts, risks and opportunities and 2.3.7. Risks, opportunities and anticipated financial effects.		Short Medium Long	• Metso has targets in place for sites to reduce water use and waste to landfill. • Management methods for climate change are discussed in section 2.3.1. Material impacts, risks and opportunities .
The operations of Metso’s customers in the aggregates and mining industries typically have significant land footprints, often in environmentally sensitive areas, where land disturbance and pollution can impact habitats and species. If not properly manufactured, used and maintained, Metso’s products have the potential to harm the biodiversity surrounding its customers’ sites. If the impacts are not well managed, Metso’s customers may be limited in their ability to operate in ecologically sensitive areas in future.	Actual (-)			Short Medium Long	• Metso designs and sells products and processes and collaborates with customers to develop new technologies to minimize the release of effluents and atmospheric emissions. • In addition, Metso’s solutions include products and services that may reduce the risk of negative impact on biodiversity in customer operations.
Tailings dam failures can have large impacts on biodiversity. Due to an increase in demand and reductions in ore grades, the footprint of copper and other energy transition materials is likely to increase rapidly. Decreasing ore grades will require larger operational footprints, resulting in larger amounts of tailings.	Potential (-)			Short Medium Long	• Metso’s solutions include dry processing, which reduces the risk of contamination and the resulting impacts on biodiversity. • Metso offers efficient solid-liquid separation with pressure filtration, which is needed to recover more water and increase the solid content of tailings streams.

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2.5.2. Processes to identify and assess material impacts,

risks and opportunities

The material impacts, risks and opportunities related to biodiversity and ecosystems were identified in a

double materiality assessment in 2023. In 2024, Metso also completed a high-level biodiversity assessment

that will help inform the definition of appropriate metrics and targets going forward. The materiality

assessment is discussed in section 1. General information.

2.5.3. Targets and progress on targets


Sustainability topic	Target for 2025	Long-term goal	2025	2024	Progress
Biodiversity	No target, evaluation of own operations’ dependencies and impacts on biodiversity	To set up a biodiversity framework in own operations and for products sold to Metso customers	-	-	Not applicable

2.5.4. Policies

Metso’s Quality, Environment, Health and Safety (EHS), and Biodiversity policies establish essential

requirements for achieving long-term biodiversity goals. These policies apply to operational sites owned,

leased, or managed by Metso near biodiversity-sensitive areas. Metso’s responsibility also includes

contractors, suppliers or other third parties visiting or working at its premises or working under Metso’s

supervision at customer sites.

The Biodiversity Policy approved by the Metso Leadership Team requires compliance with applicable legal

requirements and standards, as well as taking care of the company’s environmental, economic and social

responsibilities concerning biodiversity. Metso’s Biodiversity Policy outlines specific actions:

• Environmental protection: Minimizing air and noise pollution, reducing waste generation, and conserving

natural resources and energy

• Sustainable product and aftermarket offering: Helping customers mitigate or eliminate biodiversity impacts

resulting from their operations

• Risk management: Identifying and managing biodiversity-related environmental risks and opportunities at

Metso’s locations and throughout the Metso supply chain, particularly in areas of high ecological value, and

operating in a manner that prevents and minimizes biodiversity loss

• Awareness and training: Promoting biodiversity awareness and best practices

• Supplier collaboration: Striving to work with suppliers of raw materials, finished products and packaging

materials that demonstrate their commitment to good biodiversity management practices

Metso's top management is required to demonstrate leadership, accountability and active commitment

regarding Metso’s biodiversity impact. In 2025, Metso continued assessing the biodiversity impact in its own

operations, supply chain and those of its customers. This assessment has led to the development of Metso

Biodiversity roadmap for 2025–2030.

2.5.5. Environmental efficiency in own operations – actions

In 2024, Metso carried out an initial biodiversity assessment to gain a better understanding of the biodiversity

impacts across the value chain. Biodiversity loss affects Metso’s value chain differently based on geographic

locations, but, in general, the findings of the assessment were in line with Metso’s current sustainability

approach – reducing greenhouse gas emissions, efficient water use, and a sustainable product and services

offering for customers are all useful ways to address biodiversity challenges.

Within Metso’s own operations, the best way to improve biodiversity is indirectly, through effective

management of water use and waste. These management practices can significantly impact local biodiversity.

Therefore, Metso’s existing strategies and targets related to water efficiency and waste management serve as

the foundation for addressing biodiversity challenges in Metso’s own operations. All Metso sites comply with

local rules and regulations, operate under required environmental permits, and follow Metso’s general

principles to minimize environmental impacts in own operations, logistics and procurement. In addition,

all Metso sites must demonstrate compliance with local biodiversity regulations and good practices.

Metso regularly assesses the potential biodiversity impacts of its sites through the Natura 2000 network, Key

Biodiversity Areas (KBAs), and UNESCO natural heritage sites lists. As part of this ongoing assessment, an

analysis conducted in 2025 identified four sites located less than 1 kilometer from biodiversity-sensitive areas,

as well as 14 other manufacturing or office sites located within 1–5 kilometers of biodiversity-sensitive areas,

covering a total of approximately 23 hectares for all 18 locations. Currently, the material impacts of these sites

on biodiversity and ecosystems change have not been assessed or identified. Metso has also investigated, but

is currently not able to review own operations' proximity to biodiversity-sensitive areas through a hydrological

connection.

The four sites closest to biodiversity-sensitive areas have management methods in place to protect

biodiversity in accordance with local requirements. As Metso’s activities may negatively affect these areas,

Metso is currently evaluating its activities to identify any biodiversity-affecting issues and determine whether

further mitigation measures are needed. Metso does not currently use biodiversity offset instruments but is

evaluating its activities related to sites located in or near biodiversity-sensitive areas.

Metso Corporation - Board of Directors' report and financial statements 2025 |80

Metso's sites less than 1 km from a biodiversity-sensitive area


Location ¹⁾	Type of location	Surface area (ha)	Nearest biodiversity-sensitive area
Örnsköldsvik, Sweden	Manufacturing	6	Moälven river (Natura 2000 area)
Mâcon, France	Manufacturing	3.3	Val de Saône (KBA)
Kalajoki, Finland	Manufacturing	2.4	Rahja archipelago (KBA)
West Perth, Australia	Office	0.03	Northern Swan Coastal Plain (KBA)

¹⁾ 2024 locations: Örnsköldsvik, Sweden and Mâcon, France.

Key actions related to biodiversity in 2025 included:

• Developing a biodiversity roadmap for 2025–2030

• Review of Metso's own site locations, including new sites in 2025, in relation to biodiversity-rich or

protected areas

• Continued identification of Metso's key suppliers' sites that are located near biodiversity-rich or protected

areas for the planning of the next biodiversity-related actions in the value chain

• Piloting the TNFD framework LEAP approach for one location in Lappeenranta, Finland

Metso’s planned biodiversity-related actions for the upcoming years include the following:

• Training for employees on the topic of biodiversity impacts, risks and opportunities

• Updated site management policies, mainly facility management directives, to incorporate new biodiversity

considerations

• Collaboration with customers to support biodiversity loss prevention efforts by identifying the products and

solutions in the Metso Plus portfolio that may have a biodiversity risk-reducing impact

• Collaboration with suppliers to prevent biodiversity loss e.g. through scrap treatment, rubber and

polyurethane reuse, diverse and recyclable packaging materials, local energy production, and closing the

energy loop in processes

2.5.6. Metso Plus offering and innovations for customers – actions

As a responsible partner, Metso aims to support biodiversity loss prevention and mitigation actions taken in

its supply chain and by its customers. Metso does not support illegal mining activities or activities that violate

national or international nature conservation laws and regulations.

Biodiversity management is a high-priority issue for mining and aggregates companies. Mining can have an

impact on biodiversity across several dimensions and throughout the life of the mine, from exploration to

closure via deforestation, pollution to air, water and soil, dust and noise, as well as water scarcity.

Metso’s technological focus is on several areas related to customer biodiversity impacts, e.g. closed water

loops, raw material efficiency, tailings management, non-toxic processing options, and emissions management

systems. These technologies can help in reducing land-use impacts, preventing pollution, and reducing

groundwater consumption. They also contribute to minimizing the amount of raw materials needed as inputs

in customer operations.

Metso offers various solutions to help reduce biodiversity loss in customer industries:

• Tailings treatment and dry stacking

• Process water treatment and biotreatment of mine waters

• Stockpile remediation

• Recyclability of spare parts and process media

• Ore pre-sorting

• Energy-, water-, and chemical-efficient processing

• Liner and grinding media recycling

• SOx capture in sulfuric acid production

• Effluent quality-control analyzers

• Low-energy and electrical equipment

• Concentrator plants with small environmental footprints

Metso has determined that most of its Metso Plus portfolio could help reduce the risk of biodiversity loss in

customer operations. Future plans include defining a customer-specific biodiversity target linked to these

identified products and services. Before setting customer-specific biodiversity targets , Metso continues to

discuss the topic with customers and follow the progress of biodiversity-related reporting frameworks.

Key actions in 2025 included:

• Identification of Metso’s key customers’ sites that are located near biodiversity-rich areas for the planning of

the next biodiversity-related actions in the value chain

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2.6. E5 Resource use and circular economy

At Metso, the circular economy is not only a sustainability imperative, but also a strategic business

opportunity. Metso’s technologies and services help customers reduce waste, extend product lifetimes and

optimize resource use. Additionally in most cases Metso's circularity solutions also help customers to improve

their cost competitiveness. Global trends, such as urbanization, population growth and the sustainable energy

transition, increase resource demand, while resource scarcity drives more efficient use of raw materials.

Through circularity, Metso helps customers meet regulatory expectations, reduce environmental impact and

unlock long-term value. Circularity at Metso goes beyond recycling. It includes reuse, remanufacturing,

refurbishment, upgrades, predictive maintenance, and innovative business and commercial models such as

product exchange and service-based transactions. Circularity is also one of the core elements of Metso Plus

since this offering supports resource efficiency by optimizing energy and water use without compromising

performance, contributing to circularity by lowering resource intensity and ensuring more efficient use of

natural inputs across customer operations.

Metso’s own operations are designed to minimize waste and keep materials in circulation for as long as

possible. Metso’s resource outflows from the production processes include finished products, by-products

and waste streams such as metal scrap and foundry sand. Most materials leaving the production processes

are collected and reused in new manufacturing cycles.

In Metso’s foundry operations, more than 80% of all raw materials come from recycled sources, reflecting the

high circularity of the process. All metal scrap generated during production is recovered and remelted

internally. Likewise, used molding sand is continuously regenerated and reused, significantly reducing the

need for virgin materials. Only a limited fraction of sand is disposed of due to technical and operational

constraints, and all residual waste is managed in compliance with environmental standards. Disposed foundry

sand from Metso's foundries is mainly supplied to companies in the construction sector where it is reused for

example as ground cover material, such as filling uneven land.

2.6.1. Material impacts, risks and opportunities

Material opportunities arise through Metso's customer industries. Metso supports its customers in advancing circularity by enabling the recycling of waste materials, improving resource efficiency, and extending product life cycles.

These efforts contribute to reduce resource consumption and enhance sustainability performance throughout the value chain.


Impacts	Actual / potential (+/-)	Risks	Opportunities	Time horizon	Key management methods
CIRCULARITY IN CUSTOMER OPERATIONS
			Metso's customers increasingly demand value chain transparency, and there is increasing competitive pressure to offer recycled/circular products and recycling services. This provides a business opportunity for Metso.	Short Medium Long	• Metso has products and services supporting circular economy in its portfolio and circular economy is part of Metso Plus criteria • The circular economy is also an essential part of Metso's research and development work, which develops new solutions for resource efficiency, material recycling and extending the life cycle of products. In addition, the circular economy is taken into account in the development of the business model.

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2.6.2. Processes to identify and assess material impacts, risks and opportunities

The double materiality assessment was updated during the reporting year as part of Metso’s strategy process

for 2026–2030. The most significant change was the recognition of the circular economy as a financially

material opportunity for Metso.

Material impacts, risks and opportunities related to circularity have been identified in Metso's double

materiality assessment and in the strategy process during 2025. The circularity has not been found to be

material in Metso's own operations. The materiality assessment is discussed in section 1. General information.

2.6.3. Targets and progress on targets


Sustainability topic	Target for 2025	Long-term goal	2025	2024	Progress
Circularity	No target, evaluation of own operations’ dependencies and impacts on circularity	To set up a circularity framework in own operations and for products sold to Metso customers	-	-	Not applicable

Resource use and circularity are key focus areas for Metso, with initiatives underway across the operations to

enhance material efficiency and support the transition to a circular economy. While Metso recognizes the

importance of setting measurable targets, the topic remains complex due to the diversity of definitions,

methodologies and data availability. At present, Metso does not have Group-level targets specifically for

circularity and resource use.

However, Metso is actively developing its internal capabilities, including data collection, and expects to define

relevant and actionable targets in the coming years, aligned with evolving regulatory frameworks and

stakeholder expectations. As circularity is linked to multiple business areas, it is anticipated that several distinct

metrics will be required to monitor progress effectively.

2.6.4. Policies

Metso’s Procurement Policy outlines that all suppliers must meet acceptance criteria based on financial,

sustainability, and quality requirements. Metso’s approach to sustainability and quality in procurement is

grounded in regular monitoring of key and high-risk suppliers through audits, internal KPIs, and external

market data. While Metso's current procurement policy and Supplier Code of Conduct emphasize

environmental performance, including CO₂ reduction plans and certifications such as ISO 14001, it does not

yet explicitly address circularity or include provisions for sourcing raw materials based on circular economy

principles or the use of renewable resources.

The most senior level accountable for implementing Metso’s Procurement Policy are the heads of Business

Area Procurement and Indirect Procurement. Each are responsible for ensuring the policy is effectively

applied within their respective organizations. Oversight of procurement governance is provided by the

Procurement Leadership Team, which includes Business Area Procurement Heads, the Vice President

Corporate Procurement, and the Director of Procurement Excellence. The Policy is approved by the Metso

Leadership Team.

At present, Metso does not have a standalone circularity policy or a defined framework for transitioning away

from virgin resource use. Formal targets for increasing the share of secondary or recycled materials in

procurement are not yet established. These gaps have been identified as part of the ongoing CSRD readiness

work and are expected to be addressed in future policy updates.

The Environment, Health and Safety (EHS) Policy, discussed in more detail in section 2.3.4. Policies, while not

directly referencing circularity, includes several principles that are applicable to circular economy goals. These

include e.g.:

• Protecting the environment throughout the value chain

• Minimizing pollution, safeguarding biodiversity, and reducing the use of natural resources and energy

• Offering sustainable products and services

These principles provide a foundation for expanding the scope of circularity within Metso’s operational and

strategic frameworks. Metso’s responsible procurement guidelines already emphasize suppliers' environmental

performance, including CO₂ reduction plans. While these EHS Policy and procurement guidelines reflect a

growing emphasis on sustainability, they do not yet specify circularity-related procurement practices or

targets.

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2.6.5. Metso Plus offering and innovations for customers – actions

Circularity is a core element of the sustainable Metso Plus offering and innovations.

Metso's equipment is built from strong and durable materials, ensuring a long product life and minimizing the

environmental impacts during its lifetime. To support long-term use, Metso offers a comprehensive portfolio

of services and wear parts, including options for upgrading, repairing and refurbishing equipment with new

parts. Long-term planning of energy consumption, maintenance, repairs, reuse, remanufacturing,

refurbishment and recycling of parts are Metso's ways of minimizing the resources, waste and emissions

required in the customers’ processes.

Metso is also piloting in small scale with customers to recover worn-out parts such as mill and crusher liners,

pump casings and wear components. These are returned to Metso, processed, and used as raw material in

new castings, closing the material loop between Metso’s production and the customers’ operations in the

most optimal way when possible, by following the zero-waste concept.

For rubber-metal composite liners, new recycling methods have been piloted to separate and recover both

materials, diverting previously landfilled waste into valuable secondary materials. Metso is also in the initial

stages of exploring how to recover value from materials that are harder to recycle such as rubber-based

components.

Other examples of Metso's offering supporting circular economy include e.g. water treatment solutions for

minerals processing and crushing equipment for recycling demolition waste, construction waste and

infrastructure materials.

Metso’s circularity initiatives include the implementation of the Crushing as a Service model, which was

presented at the World Circular Economy Forum in Brazil in 2025. This model integrates equipment provision,

operations management and maintenance into a single contract, with Metso responsible for both the

machinery and labor. In practice, the model enables the reuse of equipment and components across multiple

contracts, reducing the consumption of virgin materials and minimizing waste. Some waste generated in these

operations is reprocessed in Metso’s foundry in Sorocaba, Brazil, contributing to closed-loop material flows.

Through Life Cycle Services (LCS) contracts, Metso can extend the lifetime of customer assets by combining

maintenance, refurbishment, and facilitating the reuse of parts and components as well as continuous

improvement programs. This reduces premature replacements and maximizes resource value, while

minimizing waste. As an example, in 2025 Metso’s Crushing as a Service operations in Brazil employed

approximately 300 people and produced an estimated 24 million tons during the year. The model has

demonstrated scalability and agility, with projects such as the LHG Mineração contract mobilized within 120

days and operating at an average capacity of 700 tons per hour. LCS contracts are also being considered for

other stages of ore processing, such as filtration for ore recovery.

Metso's unique mill liner recycling service provides a solution for the disposal of worn mill liners. Reducing the

amount of material sent to landfill and cutting CO2 emissions helps to improve environmental efficiency and

supports the industry’s shift toward circular practices. It is facilitated by innovative technology that enables

safe and efficient separation of different rubber and metal liner components, like cast inserts, wear plates,

and backing plates. Composite liners, like Megaliner™, Poly-Met™ liners, as well as rubber mill liners, can be

processed using this solution. At present, Metso provides mill liner recycling services in Chile.

The mill lining recycling service for worn mill liners was first piloted in Europe and extended to South

American markets in 2024. Strategically located in Concón, Chile, the milling wear parts manufacturing facility

features Metso's largest Poly-Met™ and Megaliner™ mill liner press in the world. The plant has an area of

48,000 square meters, in addition to 12,500 square meters in facilities. This infrastructure makes it possible to

supply the entire American market with mill linings and their recycling. It is strategically located close to the

2024 inaugurated distribution center, which allows optimal service to mining customers in the Americas.

In 2025, Metso signed an agreement to acquire Finland-based TL Solution’s recycling operations and

induction heating technology development capabilities. The acquired technology strengthens Metso's

recycling technology development capabilities based on induction heating and enables consistent delivery

of recycling services to mill lining service contract customers.

Metso Corporation - Board of Directors' report and financial statements 2025 |84

3. S – Social information

Metso fosters a strong, growth-oriented culture where safety, inclusion

and wellbeing of people are at the core. People and culture are the

driving forces behind the ambitious company strategy.

eNPS

People by geography

People by employee category

S1 Own

workforce -

Metso’s

people and

culture

People-at-Burlington-office-(12)_cut-corner.png

TRIF

2.5

Social information consists of:

S2 Workers in

the value

chain –

Responsible

supply chain

Metso Corporation - Board of Directors' report and financial statements 2025 |85

3.1. S1 Own workforce – Metso’s people

Metso’s own workforce consists of over 21,000 people ( 2024: over 20,000 ), including around 18,000

employees (2024: 16,800 ) and 3,200 non-employee workers (2024 : 3,700 ). Metso’s experts represent over 100

nationalities (2024: over 100 ) in around 50 locations (2024: 50 ). Their expertise ranges from engineering and

R&D to field service and technical support of customers’ production facilities and equipment, sales, and

factory operations. In 2025 , Finland, India, Chile, Brazil and China were Metso’s five biggest countries by

employment (2024: Finland, Chile, India, Brazil and China), representing 55% of the company’s total

headcount (2024: 56% ). In 2025, 15% of Metso’s own workforce consisted of external contractors ( 2024: 18%).

The employee categories were: 27% blue-collar workers (2024: 27%), 60% white-collar workers (2024: 59%),

and 13% management (2024 : 14%).

Metso is committed to providing a healthy and safe working environment for all its employees, contractors

and other partners. Health and safety at Metso is everyone’s responsibility – it is a requirement to understand

and comply with all relevant health and safety regulations and instructions. To support this, Metso has a

Safety execution plan outlining continuous actions to improve the safety of all employees, contractors and

other stakeholders. Metso aims to continuously and actively mitigate process and occupational safety risks in

its operations, with the focus on fatal accident prevention.

Metso’s Health and Safety Directives set out the minimum safety requirements for the company and are used

to develop local safety procedures, processes and work instructions. Metso’s Life-Saving Rules provide for all

employees and contractors those actions that need to be taken to protect themselves and their colleagues

from fatalities and severe injuries. These rules complement Metso’s Modus Operandi principles, which outline

the behavior required for safe working. Metrics and targets underpinning Metso’s health and safety approach

are explained in more detail in section 3.1.3. Targets and progress on targets.

Metso respects and is committed to operating consistently with internationally proclaimed human rights,

including the UN Universal Declaration of Human Rights, the UN Guiding Principles on Business and Human

Rights, the Ten Principles of the UN Global Compact, the ILO’s Declaration on Fundamental Principles and

Rights at Work, as well as the OECD Guidelines for Multinational Enterprises. All employees are entitled to be

treated fairly and with respect, and discrimination or harassment is not tolerated in any form. Metso does not

accept or use any form of compulsory, forced or child labor, and respects all applicable laws and regulations

regarding working hours and employee compensation. Metso offers work opportunities for all kinds of people

without placing limitations on origin, gender, age, skin color or disabilities. Furthermore, Metso aims to

achieve equal pay for work of equal value, as well as to respect labor rights and promote a safe and secure

working environment for all employees.

The Diversity and Inclusion Strategy aligns the priority diversity and inclusion actions for the company, which

increase diversity throughout the business, remove barriers and biases from its processes, and strengthen

psychological safety in teams.

Metso has a strong and healthy culture, where safety, inclusion and wellbeing of employees are at the core. In

September 2025, Metso published its new strategy for 2026-2030 and at the same time shared its ambition to

build and foster a customer-centric growth culture to best support the new strategy. The behavioral

foundation of the aspired culture starts with safety and is guided by common values, leadership principles,

and commitment to diversity and inclusion. In addition to the long-term cultural foundation, Metso will drive

cultural change through three key culture shifts aligned with the new strategy. These shifts represent the

biggest changes needed in our ways of working in order to reach our strategic objectives. The shifts build on

our strengths and focus on: customer value powering our business, crushing silos, rocking as one Metso, and

going beyond fast and fearlessly.

Metso publishes guidelines and policies on its intranet that is accessible by white-collar employees. Most

policies are available also on Metso’s external website. For blue-collar employees, the main communication

channels are at the site level, such as town hall meetings, face-to-face training, info screens, posters, and

shared computers.

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3.1.1. Material impacts, risks and opportunities


Impacts, risks and opportunities
Impacts	Actual / potential (+/-)	Risks	Opportunities	Time horizon	Key management methods
FAIR EMPLOYMENT (WORKING CONDITIONS): WORKING TIME, DISCRIMINATION AND HARASSMENT, FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING THE FOLLOWING IMPACTS, RISKS AND OPPORTUNITIES ARE REPORTED FOR EMPLOYEES
Actions promoting fair employment practices, such as working time, prevention of discrimination and harassment, freedom of association and collective bargaining, have a positive impact on employees’ engagement, wellbeing and ability to work. Inadequate employment conditions could weaken Metso’s employees’ quality of life, increase inequality, as well as reduce job satisfaction and commitment, resulting in a weakening in Metso’s employer brand and performance and could negatively impact customer relations. Potential discrimination, harassment, and violations of workers' rights could result in legal action against the company.	Actual (+) Potential (-)			Short Medium Long	• Local legislation is followed in all operating countries • Human Rights Policy • Code of Conduct • Diversity & Inclusion Strategy • Environment, Health & Safety Policy • Whistleblower channel available to all employees • Topic-specific trainings for organization
CORPORATE CULTURE
At Metso, company culture is a strategic priority, it is managed and developed systematically. Employees are more engaged in a culture where they are supported and encouraged to perform their best.	Actual (+)	Dissatisfied employees are more likely to leave the company, resulting in higher turnover rates. Dissatisfied employees often result in lower customer satisfaction, which can negatively affect business outcomes. A negative corporate culture makes it more challenging to attract top talent to the company. If Metso does not have skilled workers, development and production may face quality problems and delays.	Engaged employees are more likely to perform well and remain with the company. There is a strong correlation between engaged employees and satisfied customers, both correlate to good business results. Good employment conditions also strengthen Metso’s reputation and employer brand, enabling Metso to retain and attract the best talent, which has a positive impact on business performance.	Short Medium Long	• Strong, inclusive growth culture is essential for achieving strategic objectives.. • Engagement surveys are conducted four times a year, their results are discussed, and actions agreed within teams quarterly. • Metso tracks the employee Net Promoter Score (eNPS) and has set the long-term target to be in the top 10% of the industry benchmark.
DIVERSITY AND INCLUSION
At Metso, diversity and inclusion is embedded into the company culture, fostered and promoted; it increases engagement and promotes employee wellbeing. If diversity and inclusion would not be embedded, it could have a negative impact on employee engagement and wellbeing. It can impact hiring decisions, leading to a non-diverse workforce. It may also adversely impact a candidate’s willingness to join Metso.	Actual (+)			Short Medium Long	• Diversity & Inclusion embedded in Metso’s People and Culture agenda • Diversity and Inclusion Strategy • Target and KPI to increase the number of women in middle and senior management roles • Global inclusive talent acquisition practices • Inclusive talent acquisition training provided to all leaders

Metso Corporation - Board of Directors' report and financial statements 2025 |87


Impacts, risks and opportunities
Impacts	Actual / potential (+/-)	Risks	Opportunities	Time horizon	Key management methods
TRAINING AND DEVELOPMENT (GROWTH CULTURE)
At Metso, training and development opportunities are available, employees can learn and grow, take on new responsibilities, and develop their careers inside the company. If Metso doesn’t provide training and development opportunities, it can impact employees’ learning, growth and career development negatively. It can also impact Metso’s innovation and growth capabilities, and competitiveness. A lack of learning and development opportunities can lead to dissatisfaction among employees, and people may be more likely to seek job opportunities outside the company.	Actual (+) Potential (-)			Short Medium Long	• Internal hiring for open positions is promoted • Job rotation is provided and supported • Metso Academy offers Technical, Sales and Business, Distributor, Customer and People training • Learning Council • Growth dialogues between employee and manager • Strategic capability initiatives to identify critical skills needed for long-term business success • Local university collaboration and company's own trainee programs
HEALTH AND SAFETY
Metso operates in an industry where there are high safety risks. Inadequate health and safety conditions could lead to fatalities or serious incidents that can negatively impact employees’ physical and mental health. Safety is a key criterion in M&A evaluations. If the target company’s safety culture aligns with Metso’s, the impact is neutral; stronger safety practices may enhance Metso’s performance, while weaker standards can require significant investment or lead to cancellation of the deal. Metso’s safety requirements and practices can positively impact the health and work environment of employees.	Actual (-) Actual (+)	Inadequate health and safety conditions can seriously impact job satisfaction, psychological safety and commitment, as well as weaken performance and Metso’s image as a responsible employer.	Good safety management and active promotion of health and safety at the workplace can positively impact employees’ physical and mental health and working conditions. As a result, this can strengthen Metso’s image as a responsible employer and improve Metso’s performance.	Short Medium Long	• Environment, Health & Safety Policy • Safe working behavior model Modus Operandi • Fatality prevention program • Life-Saving Rules training program • Safety directives • ISO 45001 (health and safety) standard certification in key units • Long- and short-term safety targets • Global safety reporting tool and practices • Audits, inspections and management reviews • Safety systems investigated during due diligence process in M&A cases

3.1.2. Processes to identify and assess material impacts,

risks and opportunities

The material impacts, risks and opportunities related to own workforce have been identified in a double

materiality assessment. The materiality assessment is discussed in section 1. General information.

3.1.3. Targets and progress on targets

To measure employee engagement and performance, Metso conducted four employee engagement surveys

in 2025: two full surveys for all employees, and two shorter pulse surveys for white-collar workers. Metso uses

the Employee Net Promoter Score (eNPS) to track employee engagement and has witnessed a positive trend

throughout the years of measuring. The results are subsequently analyzed, teams discuss their respective

results and make actions plans to improve areas that show concerns. The Metso Leadership Team identifies

focus areas for each employee engagement survey and closely monitors the results.

With this systematic approach, Metso has been able to exceed its target and ranks in the top 5% compared

to the industry benchmark on eNPS (end of 2025). In addition, health and wellbeing were maintained at a

strong level in the engagement survey, remaining in the top 5% of the external benchmark. For inclusion, also

measured in the employee engagement survey, Metso is ahead of the KPI target (long-term target in top 10%

of industry benchmark) and ranks in the top 5%. In 2023, Metso set a new long-term target to increase the

proportion of women in middle and senior management roles to 30% by the end of 2030 (from 17% in 2023).

In 2025 Metso continued improving and the percentage was 19%.

Metso's engagement, inclusion and gender split targets are set annually with top management and are

aligned with Metso's strategy. Targets are monitored internally on a quarterly basis. Also workforce

representatives are systematically engaged throughout the target tracking and improvement processes

through HR planning, Works Council discussions, and employee surveys. Employee survey results are

regularly shared and discussed, and results and progress against targets are reviewed in a structured cadence

with the European Works Council and local representatives.

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In 2025, Metso participated in the International Women in Mining Mentoring Program, continued an internal

mentoring program for female talent, completed an Inclusive Language platform pilot, and introduced Life

Stages Campaign that explore the different phases of life and how these experiences shape our lives both in

and outside of work. The Metso Women’s Leadership Forum continued actively raising awareness in Metso’s

internal channels and hosted virtual events. Various diversity and inclusion themed webinars and events were

also organized at Metso locations around the world.

Internal stakeholders, such as business and market area representatives, were engaged when setting safety

targets for 2025. Safety targets are set annually and monitored internally on a monthly basis. Metso’s key

indicator for safety performance is total recordable injury frequency (TRIF), which was 2.5 in 2025, with a

target of 2.0 having been set for the year. The scope of TRIF reporting covers employees and contractors

working at Metso's premises and customer project sites under Metso's direct supervision.

All employees had a target to conduct safety conversations or make risk observations and to complete

assigned safety trainings which helps Metso to achieve safety performance targets. Progress was continuously

measured and communicated to leaders and employees. To align with industry standards, lost time injury

frequency was tracked internally but excluded from annual reporting, as TRIF covers lost time injuries. Metso

updated its long-term safety goal in the Safety execution plan (2026–2028), shifting from “Zero harm” to “Start

with safety,” reflecting a proactive mindset and a cultural commitment to embedding safety in everyday ways

of working.


Sustainability topic	Target for 2025	Long-term goal	2025	2024	Progress
Health and safety	Continuous improvement in total recordable injury frequency (TRIF) ¹⁾	Start with safety - safety embedded to ways of working	2.5	2.6*	In progress
Engagement	Employee Net Promoter Score (eNPS) to be in top 10% of the industry benchmark	Employee Net Promoter Score (eNPS) score in top 10% of the industry benchmark	Top 5%	Top 5%	Above target
Inclusion	Only long-term target	Inclusion score in top 10% of the industry benchmark (long-term target)	Top 5%	Top 5%	Above target
Gender split	Only long-term target	Gender ratio in middle and senior management to reach 30% female / 70% male by the end of 2030	19%/81%	18%/82%	In progress

¹⁾Includes employees and contractors.

* Restated due to internal validation.

3.1.4. Policies

3.1.4.1. People and culture

Metso’s Code of Conduct, approved by the Metso Leadership Team, is a globally applicable set of rules for

all Metso’s employees and business partners, ensuring consistent decision-making in the everyday working

environment and making Metso a responsible and trusted business partner. Metso’s Code of Conduct

summarizes in a single document the topics that are important in terms of anti-corruption and anti-bribery,

trade compliance, human rights, safety, sustainability, information disclosure and other relevant compliance

and ethics related areas. The document is available on Metso's intranet and external website to ensure all

stakeholders can access it. Additionally, Metso’s Code of Conduct is reviewed annually. All Metso employees

must complete the Code of Conduct training on an annual basis. 99.8% of Metso people completed the 2025

training by the year-end. Topic-specific compliance training on key risks is also conducted on a global and

targeted basis.

The Human Rights Policy, approved by the Board of Directors and reviewed annually by the Metso

Leadership Team, complements Metso’s Code of Conduct and related policies, including the Supplier Code

of Conduct. Metso is committed to operating in a way that human and labor rights are respected and

supported across the value chain, including our own operations, suppliers, agents, distributors, and other

business partners. This is clearly stated in Metso’s Code of Conduct and the Supplier Code of Conduct to

minimize the risk of forced and child labor in the value chain. Metso’s Human Rights Policy also clearly states

that the company does not use or tolerate any form of compulsory, forced or child labor, slavery or human

trafficking. In the Human Rights Policy, Metso states that the company does not tolerate any form of

discrimination, and the policy covers the grounds for discrimination. The most senior level accountable for

implementing Metso’s Code of Conduct and Human Rights Policy is Metso Leadership Team, which is

responsible for ensuring the policies are followed.

Metso’s Remuneration Policy is ratified at the Annual General Meeting, and it outlines the compensation

principles and framework for the President and CEO, as well as for the Board of Directors. This policy also

applies to any appointed Deputy CEO. Metso also has a Diversity and Inclusion Strategy that includes a

statement and actions regarding Metso’s commitment to promoting equal opportunities and fair treatment for

all employees. Metso's Consequences Directive provides a framework for managing consequences in

situations involving violations of Metso's Code of Conduct, health and safety, or IT security, and in which the

appropriate investigations have been conducted. The most senior level accountable for implementing Metso’s

Remuneration Policy, Consequences Directive, and Diversity and Inclusion Strategy is the Chief People Officer,

who is responsible for ensuring the policies are followed.

Metso also has clearly defined global processes, which ensure the equal treatment of its employees and that

discrimination is prevented through clear and transparent governance. These processes are evaluated

annually to ensure they support Metso’s people and culture processes and the growth of employees. Some

Metso Corporation - Board of Directors' report and financial statements 2025 |89

examples of these processes include a global job leveling model, a structured approach toward short-term

incentives, the Metso Growth dialogue (Metso’s approach to performance and development discussions), and

inclusive talent acquisition guidelines.

3.1.4.2. Health and safety

Metso’s commitment to work safety is set out in its EHS and Quality Policies for which the Metso Leadership

Team holds accountability. Both internal and external stakeholder interests were taken into consideration in

the drafting of the policies.

Metso’s EHS Policy applies to employees as well as contractors working at Metso premises or under Metso's

direct supervision. This policy states Metso’s intent to manage hazards and reduce risks to create a safe and

healthy workplace, and to respect the human rights of its own employees, contractors and customers. The

policy underlines Metso’s expectations for clear target setting for health and safety and for continuously

developing the management systems and ways of working to achieve better safety results. Local legal

requirements set the performance thresholds for each site, which Metso strives to exceed.

In addition, Metso is committed through its Quality Policy to prevent and minimize safety incidents and

environmental impacts at its own operations and from the products and services delivered to customers.

Metso’s integrated management system follows best international practices and ISO standards: ISO 9001

(quality), ISO 14001 (environmental) and ISO 45001 (health and safety). It integrates all Metso’s systems and

processes into a single framework, enabling Metso to work as a single unit with unified objectives. Metso is

externally audited by an independent third party on an annual basis to ensure that its operations meets legal,

regulatory, Metso internal and ISO standard requirements

3.1.5. Processes for engaging with own workers and workers’ representatives

3.1.5.1. People and culture

Metso engages actively with employees locally through various formal and informal channels: town hall

meetings between management and employees, as well as union and works council meetings in different

countries. Metso has agreements with its employees through the European Works Council and attends its

meetings. In addition to local engagement, employees are encouraged to join discussions in global channels

and forums via Teams and Viva Engage, as well as to take part in events and campaigns, such as Culture Talks

and various campaigns around diversity, inclusion and wellbeing.

All employees have the opportunity also to give anonymous feedback to the company through the employee

engagement survey; this feedback is reviewed regularly, both for positive comments and improvement ideas.

The results of the engagement survey are an important input when determining the priorities for Metso’s

people strategy. The employee engagement survey is discussed in more detail in section 3.1.3. Targets and

progress on targets.

The growth of every employee is a fundamental part of Metso’s culture. Metso’s model for supporting the

growth of its people, the Growth dialogue, combines the processes of leading performance and competence

development. The growth discussions take place throughout the year and focus on target setting,

performance evaluation, and identifying strengths and development opportunities. Metso encourages all

employees to have a minimum of four Growth dialogue discussions per year with their manager.

Metso measures the employees’ overall wellbeing and job satisfaction with an employee engagement survey

that is conducted four times per year. Questions related to mental wellbeing can provide insight into how

employees experience their work-life balance. As one of the work-life balance metrics, Metso also measures

the percentage of employees that are entitled to take family-related leave and the percentage of entitled

employees that took family-related leave.

In 2025, Metso continued enhancing its Talent Acquisition practices by strengthening its global talent sourcing

capabilities to enable a more proactive, inclusive and data-driven hiring process. Additionally, capabilities to

understand the labor market were strengthened.

Metso actively engages with employees through various local unions and works councils, including

collaboration with Metso’s European Works Council (EWC). In these meetings, topical business and people

updates and any employee-related change proposals or modifications are discussed and/or negotiated. This

forum also serves as a channel for employee representatives to present ideas, questions and concerns.

Typically, local business management is represented; in Finland, this usually involves representation from the

Metso Leadership Team. Heads of regional human resources are responsible for ensuring the local and

regional interaction with works councils.

3.1.5.2. Health and safety

Metso is committed to ensuring worker consultation and participation at all relevant levels and functions, in

alignment with the ISO 45001 standard. Metso emphasizes the importance of safety leadership and personal

commitment to safety. Safety-related programs are implemented with audience-specific materials and through

a train-the-trainer approach to ensure the entire organization is involved. The programs are part of local

procedures and practices, including reporting practices.

Consultation with stakeholders and interested parties is a crucial aspect of health and safety development at

Metso. Working groups, comprising employees from different functions and levels, focus on important health

and safety issues and drive Metso’s key safety initiatives. From internal safety forums and safety committees

to the global safety leadership team, collaboration and involvement across different organizational levels and

Metso Corporation - Board of Directors' report and financial statements 2025 |90

functions is ensured. The global safety leadership Team, led by the Vice President of Safety, holds operational

responsibility for ensuring employee engagement. The CEO, and the business and market area Presidents are

accountable for monitoring and promoting employee engagement across the organization. Health and safety

topics are also integrated into employee engagement surveys.

Risk observations are a proactive measure to prevent injuries in the workplace. To reinforce the importance of

these observations and to improve their quality, Metso has a mandatory company-wide training on risk

observation and management, with a focus on improving hazard identification skills and stronger situational

awareness. Training is available as eLearning for non-operational employees and face-to-face for operational

employees.

Safety conversations are another essential proactive tool to improve safety. Safety conversations enable

everyone to influence and build the safety culture in their teams. To support this, Metso has a mandatory

safety conversation training that focuses, e.g., on raising safety awareness, as well as on identifying and fixing

unsafe practices, procedures and conditions in a psychologically safe environment. The aim is to lead by

example and to acknowledge one’s own behavioral styles and biases. In addition to the training, in 2025, new

support materials were shared company-wide to help facilitate safety conversations about psychological

safety.

In 2025, all employees and managers were expected to complete risk observation and safety conversation

trainings unless they had already done so in 2024. In addition, all employees without subordinates were

expected to report four risk observations or safety conversations during the year. All managers with

subordinates were expected to complete eight risk observations or safety conversations during the year. By

year-end, 93% of employees and managers had completed the trainings. In addition, 79% of employees and

managers had reached their safety conversation and risk observation target.

3.1.6. Remediating negative impacts and feedback channels for own workers

3.1.6.1. People and culture

Metso’s business and governance model for human resources is based on a dual reporting structure, with

reporting lines both to the local business and to Metso Group. This structure makes it possible to take into

account local requirements and employment laws and ensure global compliance.

Metso has an external whistleblower channel enabling confidential reporting of any suspected violation of

Metso’s Code of Conduct that could cause direct or indirect financial or other damage to Metso or Metso’s

employees. The channel can be accessed from the main page of both Metso’s external website and intranet

and reports can be submitted using several methods, including web-based reporting, QR code access or

telephone numbers available in multiple countries. Global and local communication campaigns are organized

to increase awareness of the channel and the whistleblower process is a part of Metso's annual Code of

Conduct training. The awareness campaigns specifically highlight that the channel can be used for topics

including fraud or human rights-related matters such as safety, working conditions, harassment, and

discrimination. The whistleblower channel and how incidents are investigated and remediated are described

in more detail in section 4.1.6. Responsible Business Conduct and prevention and detection of corruption and

bribery as well as in section 3.2.6 Remediating negative impacts and feedback channels for value chain

workers. Over the past few years, whistleblower channel cases have tended to be related to financial and HR

issues. More recently, the whistleblower channel has been increasingly used to report issues other than

financial-related misconduct; the reported incidents are evaluated and investigated following a similar

process.

In the engagement survey, Metso regularly measures how confident the employees are of not being

discriminated against at Metso. In the engagement survey, employees can also leave anonymous comments

and questions, which can be addressed through the survey tool.

3.1.6.2. Health and safety

Metso's ways of working and processes allow all employees to raise safety concerns and show their personal

commitment to safety. All safety concerns or needs are reported into a global safety reporting system,

ensuring transparency and continuous improvement. Proactive measures, such as risk observations, are

expected at all levels of the organization with particular emphasis on blue-collar workers, who face the most

risks in their daily work. In addition, all employees are expected to have periodic safety conversations to

promote safety in a positive manner.

All employees and contractors not only have the right but also the obligation to refuse and to report any

unsafe work. The safety reporting tool is accessible via both a mobile application and a desktop version. Its

availability to blue-collar workers is through the use of QR codes and by providing digital tools for reporting.

The new mobile application enables employees also to report using their personal mobile devices. Feedback

on the tool's usability and trustworthiness is collected continuously. Awareness of the tool is monitored by

tracking the number of users. Reported events are followed and evaluated regularly. Metso emphasizes the

incident investigation process and corrective actions and follows the completion rate for both. All serious

accidents are reviewed by top management to ensure proper investigations and corrective actions are

completed. Internal and external audits to monitor the level of safety are also conducted.

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3.1.7. Metso's people and culture – actions

Metso’s People and Culture agenda has three focus areas that act as enablers for driving the business

strategy: Customer-centric growth culture, Engaged Metsonites, and Industry-leading capabilities. With these

focus areas, Metso is building a future-proof organization where its employees continuously learn and grow

and where Metso is able to attract and retain talent globally. Metso values good leadership and develops

leaders who role model the company’s leadership principles and support and enable the growth and success

of its employees and business.

Specific actions taken in 2025 include:

• Four employee engagement surveys

• Global employee engagement around the launch of the new Metso strategy in September 2025. Thousands

of employees joined the launch event virtually and celebrated at local watch parties in over 80 offices

around the world.

• Series of global virtual events, webinars and training sessions in safety, psychological safety, wellbeing,

diversity and inclusion, and culture development.

• Leadership programs offered to all Metso leaders.

• Company’s talent acquisition process strengthened; improving the speed, quality and cost-effectiveness of

recruitment.

3.1.8. Health and safety – actions

Metso improved its safety performance in 2025 compared to the previous year. Although the ambitious

targets set for the year were not reached, performance was closely monitored and supported by continuous

improvement initiatives. Improving safety performance remained as a cornerstone of Metso's long-term safety

ambition. For 2025, four safety focus areas were identified: safety culture, sharing best practices, contractor

safety, and safety directive gap analysis. The annual safety theme, "Humanizing Safety," was launched at an

internal event, which was attended by over 2,200 employees, and was cascaded throughout the company

with new supporting materials for safety conversations.

A new Safety execution plan for 2026-2028 was created together with key stakeholders. The new plan was

aligned with the new 'We go beyond.' strategy. The plan includes a new, proactive safety key message, "Start

with safety," which was also embedded as one of the key elements in Metso’s culture. The safety focus areas

for the next three years include projects and improvement initiatives aimed at fatal accident prevention,

learning from experience, enabled operational safety leaders, contractor safety, asset integrity reviews, and

continuous compliance.

One of the main focus areas of Metso’s health and safety approach is the ongoing Fatality prevention

program. The purpose of the program is to prevent fatalities and severe injuries through a standardized

approach to control critical safety risks. These risks are mitigated in a range of ways, including with safety

equipment and tools, working procedures, continuous training, and leadership involvement. The fatality

prevention program includes high-level safety directives that set out detailed health and safety requirements

for all businesses. In 2025, the work continued in identifying gaps between local operations and the

requirements of the health and safety directives. All identified gaps are required to have actions in place to

ensure compliance with directives. An ongoing review program is incorporated into Metso’s audit program,

and this work continues in 2026.

Metso's Life-Saving Rules are non-negotiable and specifically address ten identified critical operational risks.

All employees and relevant contractors are required to complete mandatory Life-Saving Rules training every 3

years.

Modus Operandi describes Metso’s safe way of working, setting out the core expected behaviors related to

health and safety, not only for employees, but also for supervisors, managers and the business itself. Modus

Operandi training is provided to all employees and contractors on a regular basis.

Metso verifies the performance and continuity of its safety management system through annual internal audits

conducted across the organization. In 2025, a total of 41 internal QEHS audits were carried out (2024: 50).

Findings were documented, analyzed and corrective actions defined. Management of the findings takes place

in a globally used QEHS reporting tool. Metso systematically monitors key risks and recurring issues through

the management review process.

The most important safety actions taken in 2025:

• Safety execution plan 2026–2028

• New safety key message "Start with safety" was introduced

• Safety theme for 2025: Humanizing safety

• Safety directive gap analysis

• Risk observation and safety conversation trainings and targets

Metso Corporation - Board of Directors' report and financial statements 2025 |92

3.1.9. Metrics

S1-6 – Characteristics of the undertaking’s employees by gender


	Number of employees (headcount)
Gender	2025	2024	2023
Male	14,318	13,410	13,867
Female	3,664	3,422	3,267
Other ¹⁾	0	0	0
Not reported	0	0	0
Total employees	17,982	16,832	17,134

¹⁾Gender as specified by the employees themselves.

S1-6 – Breakdown by country


	Number of employees (headcount)
Country	2025	2024	2023
Finland	2,991	2,881	2,790
India	1,911	1,778	1,659
Chile	1,898	1,909	2,353
Brazil	1,792	1,664	1,696
China	1,268	1,113	1,058

These five countries represent 55% of employees.

For the corresponding consolidated employee number, refer to the Consolidated financial statements, note

1.5. Personnel expenses and number of personnel.


		Reporting period
	Gender	2025	2024	2023
Number of employees (headcount)	Female	3,664	3,422	3,267
	Male	14,318	13,410	13,867
	Other ¹⁾	0	0	0
	Not disclosed	0	0	0
	Total	17,982	16,832	17,134
Number of permanent employees (headcount)	Female	3,235	3,058	2,923
	Male	12,786	12,238	12,417
	Other ¹⁾	0	0	0
	Not disclosed	0	0	0
	Total	16,021	15,297	15,340
Number of temporary employees (headcount)	Female	429	364	344
	Male	1,532	1,172	1,450
	Other ¹⁾	0	0	0
	Not disclosed	0	0	0
	Total	1,961	1,536	1,794
Number of non- guaranteed hours employees (headcount)	Female	0	0	63
	Male	5	7	137
	Other ¹⁾	0	0	0
	Not disclosed	0	0	0
	Total	5	7	200
Number of full-time employees (headcount)	Female	3,484	3,250	3,100
	Male	14,103	13,197	13,643
	Other ¹⁾	0	0	0
	Not disclosed	0	0	0
	Total	17,587	16,447	16,743
Number of part-time employees (headcount)	Female	180	172	104
	Male	215	206	87
	Other ¹⁾	0	0	0
	Not disclosed	0	0	0
	Total	395	378	191

¹⁾Gender as specified by the employees themselves.


Turnover	2025	2024	2023
Leavers (number of employees)	2,671	3,441	3,679
Turnover rate	15%	20%	21%

Total number of leavers, excluding divestments, divided by average monthly headcount.

Metso Corporation - Board of Directors' report and financial statements 2025 |93

S1-7 – Characteristics of non-employee workers in the undertaking’s own workforce


	2025	2024	2023
Workers who are not employees	3,224	3,720	4,776

Non-employee workers work for Metso and are supervised by Metso, but they do not have a work contract

with Metso and Metso does not pay their salary. Service providers who are not managed or supervised by

Metso are not included in non-employee workers.

S1-8 – Collective bargaining coverage and social dialogue


	Collective Bargaining Coverage		Social dialogue
Coverage rate	Employees – EEA* (For countries with >50 employees representing >10% total employees)	Employees – Non-EEA (Estimate for regions with >50 employees representing >10% total employees)	Workplace representation (EEA only) (For countries with >50 employees representing >10% total employees)
0-19%		Asia, Middle East, India (0%) North and Central America (14%)
20-39%		South America (39%)
40-59%	Rest of EEA (57%)
60-79%
80-100%	Finland (96%)	Asia Pacific (84%)	Finland

*European Economic Area (EEA)

Collective bargaining coverage globally 97%

In 2024, collective bargaining coverage for EEA employees was 96% for Finland and 58% for the rest of EEA.

The coverage for non-EEA employees was 88% for Asia Pacific, 39% for South America, 13% for North and

Central America, and 1% for Asia, Middle East, and India. Social dialogue workplace representation was

80-100% for Finland.

S1-9 – Diversity metrics


Category			2025	2024	2023
Board of Directors	By gender
	Female	Number	3	3	3
		% of total	33%	33%	33%
	Male	Number	6	6	6
		% of total	67%	67%	67%
	By age group
	<30	Number	0	0	0
		% of total	0%	0%	0%
	30-50	Number	1	1	1
		% of total	11%	11%	11%
	>50	Number	8	8	8
		% of total	89%	89%	89%
Metso Leadership Team	By gender
	Female	Number	3	5	4
		% of total	37%	56%	44%
	Male	Number	5	4	5
		% of total	63%	44%	56%
	By age group
	<30	Number	0	0	0
		% of total	0%	0%	0%
	30-50	Number	5	4	4
		% of total	63%	44%	44%
	>50	Number	3	5	5
		% of total	37%	56%	56%
Employees	By gender
	Female	Number	3,664	3,422	3,267
		% of total	20%	20%	19%
	Male	Number	14,318	13,410	13,867
		% of total	80%	80%	81%
	By age group
	<30	Number	2,715	2,527	2,685
		% of total	15%	15%	16%
	30-50	Number	11,640	10,930	10,738
		% of total	65%	65%	63%
	>50	Number	3,627	3,375	3,711
		% of total	20%	20%	22%

Metso Corporation - Board of Directors' report and financial statements 2025 |94

S1-13 – Training and skills development metrics

Percentage of employees receiving regular performance and career development reviews:


Category		2025	2024	2023
By gender	Female	97%	98%	97%
	Male	97%	96%	98%
	Other ¹⁾	0	0	0
By employee category	Professional	96%	95%	97%
	Middle management	98%	99%	99%
	Senior management	97%	100%	98%

¹⁾Gender as specified by the employees themselves.

Includes only white-collar employees.

Average hours of training per year per employee


Category		2025	2024	2023
By gender	Female	10.05	9.77	7.15
	Male	12.47	10.46	9.89
	Other ¹⁾	0	0	0
By employee category	Blue collar	7.15	4.95	4.81
	Professional	13.67	12.73	11.55
	Middle management	13.59	12.01	11.97
	Senior management	19.27	7.97	9.56
Total average hours		11.97	10.32	9.38

¹⁾Gender as specified by the employees themselves.

Includes global mandatory classroom trainings and eLearnings.

S1-14 – Health and safety metrics


	2025	2024	2023
% Employees covered by an occupational health and safety management system	100%	100%	100%
% Employees covered by an occupational health and safety management system that has been internally audited	100%	100%	100%
% Employees covered by an occupational health and safety management system that has been audited or certified by an external party	60%	62%*	54%

* Restated due to internal validation.

Includes own and external employees.

S1-14 Work-related injuries and fatalities

OWN EMPLOYEES


Fatalities		2025	2024	2023
	Number of fatalities	0	0	0


Total recordable injury frequency (TRIF)		2025	2024	2023
By region	Europe	1.8	2.0*	2.2
	North and Central America	1.8	4.8	2.1
	South America	1.7	1.9	1.7
	Asia-Pacific	3.4	3.4	5.5
	Africa, Middle East and India	0.4	1.5	1.2
	Total	1.8	2.5*	2.3

* Restated due to internal validation. Total TRIF increased around 2% from 2024.


Number of recordable injuries		2025	2024	2023
By region	Europe	19	21*	23
	North and Central America	8	20	9
	South America	14	17	16
	Asia-Pacific	16	15	22
	Africa, Middle East and India	2	7	5
	Total	59	80*	75

* Restated due to internal validation. Total number of injuries increased less than 2% from 2024.

The total number of fatalities for own and external employees was 0. The total recordable injury frequency

(TRIF) for own and external employees was 2.5. TRIF and number of recordable injuries include lost time,

restricted work, and medical treatment incidents. The total number of recordable injuries for own and external

employees was 106.

Metso Corporation - Board of Directors' report and financial statements 2025 |95


Number of days lost		2025	2024	2023
By region	Europe	245	323*	Not available
	North and Central America	4	1,000	Not available
	South America	438	677*	Not available
	Asia-Pacific	2	31	Not available
	Africa, Middle East and India	3	46	Not available
	Total	692	2,077*	Not available

* Restated due to internal validation. Total number of days lost increased less than 3% from 2024.

Number of days lost reflects the total number of calendar days lost due to injuries that resulted in an absence

of at least one workday.

NON-METSO EMPLOYEES – CONTRACTORS AND SUPERVISED WORKERS


Fatalities		2025	2024	2023
	Number of fatalities	0	0	0

Fatalities include also value chain workers working at Metso’s sites.


Total recordable injury frequency (TRIF)		2025	2024	2023
By region	Europe	6.9	4.0*	7.6
	North and Central America	6.7	6.2*	12.9
	South America	6.0	5.7*	5.8
	Asia-Pacific	14.9	1.7*	13.6*
	Africa, Middle East and India	2.2	2.1*	3.6*
	Total	4.7	3.3*	5.4*

* Restated due to internal validation. Total TRIF decreased around 17% from 2024 and increased around 2% from 2023.


Number of recordable injuries		2025	2024	2023
By region	Europe	11	5	12
	North and Central America	1	1	2
	South America	16	12	9
	Asia-Pacific	8	1	6
	Africa, Middle East and India	11	10*	17*
	Total	47	29*	46*

* Restated due to internal validation. Total number of recordable injuries increased around 4% from 2024 and around 2% from

2023.

Total recordable injury frequency (TRIF) and number of recordable injuries include lost time, restricted work,

and medical treatment incidents.


Number of days lost		2025	2024	2023
By region	Europe	155	310*	Not available
	North and Central America	0	21	Not available
	South America	273	119	Not available
	Asia-Pacific	2	0	Not available
	Africa, Middle East and India	11	377	Not available
	Total	441	827*	Not available

* Restated due to internal validation. Total number of days lost increased around 51% from 2024.

Number of days lost reflects the total number of calendar days lost due to injuries that resulted in an absence

of at least one workday.

Metso Corporation - Board of Directors' report and financial statements 2025 |96

S1-15 Work-life balance metrics


	2025		2024
Country	Percentage of employees entitled to take family- related leave	Percentage of entitled employees that took family- related leave	Percentage of employees entitled to take family- related leave	Percentage of entitled employees that took family- related leave
Finland	100%	7%	100%	7%
India	100%	4%	100%	4%
Chile	100%	5%	100%	3%
Brazil	100%	5%	100%	4%
China	100%	4%	100%	1%
United States	100%	13%	100%	6%
Australia	95%	37%	96%	31%
Peru	100%	3%	100%	5%
Mexico	100%	6%	100%	2%
Sweden	100%	20%	100%	16%
Canada	100%	5%	100%	3%
South Africa	100%	14%	100%	3%
United Kingdom	100%	0%	100%	3%
Lithuania	100%	66%	100%	71%
Germany	100%	3%	100%	2%
France	100%	22%	100%	23%
Indonesia	100%	6%	100%	3%
Kazakhstan	100%	2%	100%	3%
Saudi Arabia	100%	3%	100%	5%
Ghana	100%	18%	100%	2%
Türkiye	100%	29%	100%	15%
Poland	100%	26%	100%	3%
Romania	100%	0%	-	-
Norway	100%	2%	100%	2%
Czech Republic	100%	0%	100%	7%
Austria	100%	5%	100%	3%
United Arab Emirates	100%	0%	100%	10%
Switzerland	100%	0%	-	-
Spain	100%	8%	100%	0%
Zambia	100%	9%	-	-

Romania, Sambia and Switzerland are not included in 2023 reporting due to a small headcount (<20).

Family-related leaves reported in countries having over 20 employees at the end of 2025. Data is collected

from local HR.

S1-16 – Compensation metrics (pay gap and total remuneration)


	2025				2024
	Blue collar	Professional	Middle Management	Senior Management	Blue collar	Professional	Middle Management	Senior Management
Finland	0.96	0.93	1.00	0.95	0.95	0.97	0.95	1.01
Brazil	0.78	0.63	0.94		1.19	0.95	0.71
China	1.04	0.74	0.97		0.81	1.00	0.78
Chile	0.82	0.64	0.89		0.77	0.92	0.69
India		0.91	1.16			0.92	0.92

Ratio is not provided if the number of employees is small.

Gender pay gap per employee category in Metso’s five biggest countries. Finland, Chile, Brazil, India and

China are Metso’s five biggest countries by headcount. They represent about 55% of Metso’s total headcount

(2024: 56%). The figures reflect unadjusted pay gaps based on aggregate employee data, without controlling

for role or other factors. A value above 1 indicates that females are paid more than males.


	2025	2024	2023
Total remuneration ratio	24.4	35.3	Not available

The annual total remuneration ratio of the highest paid individual to the average annual total remuneration

for all employees. Total remuneration includes annual salary, performance and one-time bonuses.

S1-17 Incidents, complaints and severe human rights impacts

There was 1 incident of discrimination reported externally in 2025 (2024: 0). There were 25 complaints (2024:

27) related to discrimination and harassment reported through Metso's whistleblower channel in 2025. The

total amount of material fines, penalties and compensation for damages related to these complaints was

71,488 euros (2024: 0). See note 1.3 Selling, general, and administrative expenses in the Consolidated financial

statements. No severe human rights issues and incidents connected to Metso's own workforce occurred in

2025.

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3.1.10. Reporting principles

3.1.10.1. Metso’s people and culture

Metso’s people and culture data is collected from global systems used in all Metso companies or collected

from local HR if separately mentioned.

Data of employees and workers who are not employees is collected from the global HR master system

PeoplePoint, where Metso stores data on all employees and workers who are not employees. Data is

collected on the last day of the year and the numbers are reported as headcount.

Training data is collected from the global LearningPoint system, where data on global mandatory trainings

and e-learnings are stored and managed. Training data is mapped against employee background data from

the global HR master system. Training data covers the whole reporting year, from January 1 to December 31,

2025.

Employee engagement (eNPS) and inclusion data are collected from the Peakon tool, which is an employee

survey tool. Employee surveys are conducted and reviewed internally several times a year. The results

published in this statement are from a survey in November, which is the last survey of the year and targeted

for all Metso employees.

Industry benchmark is defined as a comparative standard that allows organizations to evaluate their employee

engagement and feedback metrics against similar companies within their industry. This benchmarking process

utilizes a vast dataset, drawing from over half a million data points, to provide insights into how Metso's

performance stacks up against its peers.

Incidents, complaints and severe human rights impacts are collected from the local HR. The number of

complaints is collected from Metso’s whistleblower channel.

3.1.10.2. Health and safety

Metso’s global safety reporting tool was changed in 2025 to another commonly used tool at Metso. The tool

is used to collect safety data and to monitor progress towards common health and safety targets across all

Metso operations. The safety management system and reported indicators cover employees as well as

workers who are not employees but whose work or workplace is controlled by Metso.

Metso has implemented a health and safety management system to comply with local statutory requirements

and to support an integrated management approach aligned with standards such as ISO 45001 and ISO 9001.

The system and reported indicators cover both employees and contractors engaged by Metso to perform

physical work at our locations or at customer sites.

All work-related injuries are reported in the safety reporting system. Each injury is investigated, with findings

documented and managed in the system. Incidents involving injuries are reviewed with management, and

appropriate corrective and preventive actions are identified during the investigation. All reported injuries are

classified as either a “lost-time incident,” “restricted work,” or “requiring medical treatment” and are included

as recordable injuries. Injuries requiring first-aid are also recorded. Fatalities are categorized separately.

If the number of external hours worked per month are not reported for the past 3 months, they are estimated

as the average of the past 14 months, given that hours are available for at least 3 out of the past 6 months

(else not estimated and remain 0). External hours for earlier months and years are not estimated but actual

reported is used. Hours worked are not made public but are used only to calculate frequency rates. Only the

rate is reported so that reporting is concise. Hours for non-employees are not reported because they are

business-sensitive information and would add little value to information about injury frequency rates.

Non-Metso employees includes supervised workers, contractors and workers in the value chain.

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3.2. S2 Workers in the value chain – Responsible supply chain

Metso’s workers in the value chain that could be impacted by Metso’s operations include workers both

upstream and downstream of the company. Upstream value chain workers include, for example, direct

suppliers, logistics providers and indirect service providers. Downstream value chain workers consist of

customers’ employees at customer sites, as well as distributors and logistics service providers responsible for

transporting products from Metso units to customers and from suppliers to customers.

Value chain workers are both blue- and white-collar workers. The most common roles of value chain workers

are technicians, blue-collar workers working for Metso subcontractors. White-collar workers are represented,

for example, by site managers and engineers involved in specific projects. In 2025, Metso’s procurement

spend was approximately EUR 3.6 billion (2024: EUR 3.3 billion), and the company collaborated with around

17,000 suppliers in 82 countries (2024: over 18,000 and 98).

The most vulnerable workers in Metso’s value chain are those not directly employed by Metso, i.e. contracted

workers in certain countries. These contracted workers may face the risk of sudden termination of contract

and may have limited opportunities to voice their concerns due to fear of non-renewal of contract.

Adherence to operational health and safety and fair employment practices in Metso’s supply chain,

continuous supplier due diligence and risk identification, as well as climate change actions taken by suppliers

are a priority for Metso. The main ways to address responsibility in the supply chain in 2025 focused on

obtaining more reliable data on most of the key suppliers and streamlining internal reporting for advanced

supply chain analysis.

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3.2.1. Material impacts, risks and opportunities


Impacts, risks and opportunities
Impacts	Actual / potential (+/-)	Risks	Opportunities	Time horizon	Key management methods
HEALTH AND SAFETY
Considering the nature of the industry, working at customer sites exposes workers to multiple health and safety risks. In many of the countries where Metso has suppliers, the enforcement of health and safety laws is poor, unsafe conditions are common, and the rate of accidents high. Especially among lower tiers of the supply chain, poor implementation of health and safety measures is common, as are unsafe conditions, lack of personal protective and safety equipment, inadequate knowledge, limited training, and poor hygiene. Inadequate health and safety requirements or their implementation may negatively affect the suppliers’ and customer’s employees’ physical and mental health, as well as increase accidents. Metso’s safety requirements and practices can positively impact the health and work environment of suppliers’ employees.	Actual (-) Potential (+)			Short Medium Long	• The Supplier Code of Conduct includes requirements for health and safety. Suppliers are expected to provide a safe and healthy working environment and to take all reasonable steps to prevent injuries, safety incidents, and health hazards. • Supplier sustainability audits • The Product Compliance Management process ensures that products designed and supplied by Metso worldwide meet all applicable safety requirements throughout the product life cycle. • Metso’s Quality Policy • Compliance training for suppliers including Metso's commitment to human rights and health and safety as part of that commitment.
WORKING CONDITIONS: WORKING TIME, ADEQUATE WAGES, SECURE EMPLOYMENT, WORK-LIFE BALANCE, DISCRIMINATION AND HARASSMENT, FORCED LABOR, FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
A violation of work-related rights in Metso’s supply chain may cause adverse human rights impacts and inequality. In some instances, Metso may unknowingly support operations that do not align with its values, principles and Supplier Code of Conduct, which may result in weaker working conditions, job satisfaction and commitment to Metso on the part of suppliers’ employees. Metso’s requirements for its suppliers and the control mechanisms in place may have a positive impact on the working conditions of suppliers’ employees.	Potential (-) Potential (+)			Short Medium Long	• Metso’s Supplier Code of Conduct includes requirements for fair employment practices. • Compliance with the Supplier Code of Conduct is ensured, e.g. through supplier sustainability audits and assessments. • The Human Rights Policy sets out Metso’s commitment to human rights. • The supplier onboarding process includes a range of internal controls, e.g. suppliers are required to sign the Supplier Code of Conduct. • Anonymous whistleblower channel. • Compliance training for suppliers including Metso's commitment to human rights.
Metso's supply chain extends to many low-income countries. Expansions of sourcing to low- income countries to improve cost-efficiency may increase the risk for wages that are not adequate. Workers in the supply chain might be required to work long shifts to meet production demands, and workers based in remote locations may be more vulnerable to exploitative practices, such as long working hours without sufficient rest, as these are subject to less oversight from inspection and monitoring. Metso purchases components from suppliers in some countries where there is a risk of forced labor. There is also a risk of child labor relating to procuring natural rubber in certain countries in Southeast Asia.	Potential (-)			Short Medium Long

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3.2.2. Processes to identify and assess material impacts,

risks and opportunities

The material impacts, risks and opportunities related to workers in the value chain have been identified in a

double materiality assessment. The materiality assessment is discussed in section 1. General information.

3.2.3. Targets and progress on targets


Sustainability topic	Target for 2025	Long-term goal	2025	2024	Progress
Responsible supply chain	146 supplier sustainability audits per year conducted in higher-risk areas	Continuous improvement and alignment with sustainable procurement initiatives	185	179	Above target
Corrective actions closing rate based on supplier sustainability audits	70%	To close all corrective actions identified in supplier sustainability audits	62%	61%	Below target

The previously reported '% of procurement spend with suppliers that have signed the Supplier Code of

Conduct' KPI is not included in the 2025 reporting. Metso will review its approach to supplier sustainability in

2026 and select the most appropriate KPI's for measuring this going forward.

Internal stakeholders, customers and investors were consulted when setting targets. Targets are set annually

and are monitored internally on a quarterly basis. If required, potential issues can be escalated to the

Procurement Leadership Team and the Sustainability Steering Committee.

3.2.4. Policies

Metso is committed to respecting human rights and the United Nations (UN) Guiding Principles on Business

and Human Rights. Metso also adheres to the UN Global Compact Initiative and its principles, as well as to

the principles of the Universal Declaration of Human Rights, and the International Labor Organization’s (ILO)

Declaration of Fundamental Principles and Rights at Work. These commitments are incorporated into Metso’s

Code of Conduct, Supplier Code of Conduct, and its Human Rights, HR, Quality, and EHS policies. In addition,

the Metso Modern Slavery Statement outlines practices and actions to mitigate the risk of modern slavery or

human trafficking in Metso’s own business and supply chain. Metso also supports and operates according to

the principles described in the OECD Guidelines for Multinational Enterprises. Metso does not accept any

form of compulsory, forced, or child labor, slavery or human trafficking, unlawful employment terms, unsafe

working conditions or unlawful environmental impacts within its own operations, including investment

decisions related to mergers, acquisitions, and divestments, and it has zero tolerance for any such activity in

its supply chain.

Due to the cyclical nature of its customer industries, Metso outsources a significant proportion of its

manufacturing. Metso expects its suppliers to follow its Supplier Code of Conduct, which is based on Metso’s

Code of Conduct and established international best practices. The Supplier Code of Conduct is aligned with

the published Human Rights Policy. Non-compliance with Metso’s Supplier Code of Conduct is addressed

with the supplier to agree on improvements and alignment with the expected commitments. During the

reporting period, no cases (2024: 0) of non-compliance with the UN Guiding Principles on Business and

Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, or the OECD Guidelines

for Multinational Enterprises involving value chain workers in our upstream or downstream value chain were

reported.

In 2023, Metso’s Board of Directors approved a Human Rights Policy that sets out Metso’s commitment to

human rights. Metso is committed to regularly reviewing its due diligence practices and human rights policies

and procedures. Metso requires that business partners, including suppliers and other stakeholders, also follow

similar standards. Processes to report any suspected misconduct or non-compliance are in place, such as an

anonymous whistleblower channel that is available to employees and external parties. Based on the

investigation outcome, appropriate improvement measures are implemented. As a last measure, Metso can

terminate the supplier agreement.

3.2.5. Processes for engaging with value chain workers about impacts

Human rights-related topics, including health and safety and labor rights, are regularly reviewed within

Metso’s own operations and through a risk-based approach in its supply chain. Human and labor rights,

environmental and safety practices, compliance with laws and regulations, and anti-bribery provisions are

covered by third-party supplier sustainability audits, supplier self-assessments and Metso’s internal supplier

sustainability audits. Key supplier requirements are also incorporated into contract obligations, and a contract

breach can result in consequences, such as follow-up on agreed improvements on action plans and, if not

addressed in a satisfactory manner, potential termination of a supplier relationship.

Heads of business areas are responsible for ensuring that non-conformities and findings are considered in

decision-making, and ongoing engagement with suppliers is maintained. Metso has established metrics

associated with supplier engagement on sustainability topics, with annual targets and monthly follow-up,

including the number of audits and closed corrective actions.

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Sustainability risk mapping within the existing supplier base allows a focus on suppliers with the highest

potential sustainability risks in their operations. This risk mapping is based on a country-level supplier

assessment of the following categories:

• child labor

• forced or involuntary labor

• discrimination in the workplace

• rule of law

• corruption risk index

• respect for property rights

• freedom of association and collective bargaining index

• health and safety risk as well as environmental regulatory framework

Onboarded suppliers and other business partners are screened and constantly monitored using a third-party

screening tool for compliance, adverse media, enforcements related to e.g. environmental or labor right

violations or sanctions. Following screenings, specific corrective actions are agreed with suppliers and

monitored within the agreed time schedule. Significant aspects that could not be rectified may lead to a

supplier potentially being excluded from consideration by Metso.

As part of Metso’s ongoing procurement processes, new supplier assessments evaluate all new direct

suppliers in high-risk countries against Metso’s sustainability criteria. Based on the assessments of existing and

new suppliers, the need for third-party or internal supplier sustainability audits as well as any further actions

are determined. Supplier sustainability audits are conducted in high-risk countries by both Metso procurement

teams and a third-party auditor. In 2025, 185 supplier sustainability audits were conducted, and all of them

included human rights topics in their scope. During the audit process, the supplier’s personnel could be

interviewed directly, and suppliers are expected to remedy any non-conformities identified without delay.

After an audit, suppliers receive the audit findings, and Metso follows up on the implementation of planned

corrective actions according to the agreed schedule. Subsequent re-audits may be conducted.

To further support its suppliers’ sustainability actions and create awareness, Metso educates and advises its

suppliers regarding to sustainability. Metso offers a variety of supplier e-learning courses about its supplier

sustainability expectations regarding, e.g., human rights, safety, Science Based Target (SBT) methodology, and

reducing CO2 emissions in the supply chain.

Metso’s general conditions of purchasing include specific compliance requirements, including those related to

modern slavery. Any breach of these requirements by the supplier entitles Metso to terminate the relevant

contractual relationship with immediate effect. Commitment to the Metso Supplier Code of Conduct is part of

Metso’s supplier onboarding process.

Metso actively engages in discussions with many of its customers to support them in reaching their

sustainability targets and proposes improvements to the customers’ processes. Additionally, Metso

collaborates on co-funded community projects with its customers. Metso strives to develop a shared

understanding with suppliers across the areas of innovation, cost efficiency, health and safety, quality and

sustainability to effectively manage risks associated with outsourcing.

3.2.6. Remediating negative impacts and feedback channels for value chain

workers

Supplier sustainability internal and third-party audits, corrective actions, the external whistleblower channel,

and case investigations are the primary methods to prevent, mitigate or remediate material negative impacts

on value chain workers. Metso acknowledges that the current approach largely represents a compliance level

of performance and this will be evaluated in the next 2–3 years.

Metso’s employees or any external party can confidentially report suspicions of financial or other misconduct,

including environmental, social or governance misconduct, via the anonymous whistleblower channel,

maintained by an independent third party. In cases of potential misconduct, Metso encourages its suppliers to

report it to their Metso contact person or to use the externally available whistleblower channel. Metso’s

Supplier Code of Conduct also requires suppliers to provide their employees with access to a protected

mechanism to report possible violations of the principles outlined in Metso’s Supplier Code of Conduct.

Metso’s Compliance and Risk function determines how matters of potential misconduct will be investigated

and reports the alleged misconduct to the Board’s Audit and Risk Committee. To ensure effective and

efficient investigation and remediation, roles and responsibilities are defined in an internal Metso directive.

Metso is committed to remediation and to implementing relevant improvement actions to prevent

reoccurrence. The responsible management executes the remediation measures with support from Human

Resources if the misconduct or non-compliance leads to employment-related actions. Furthermore, the

Compliance and Risk function monitors the remediation implementation. In 2025, there were 0 reported

severe human rights issues or incidents in Metso’s supply chain (2024: 0).

Currently, Metso does not regularly evaluate the efficiency of existing processes in remediating negative

impacts in the value chain. The plan for the coming years is to gradually increase understanding of externally

available ESG datapoints for Metso’s supplier base, focusing initially on filling in data gaps for key and direct

vendors with a risk-based approach. Based on data availability, a more effective process and remediation

approach will be developed.

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3.2.7. Due diligence as part of Metso's sourcing process

Metso works in close collaboration with suppliers to uphold clear sustainability standards and ensure

responsible sourcing practices. By prioritizing safety, quality and compliance across the global supply chain,

Metso aims to reduce risks, strengthen resilience, and create long-term value.

At Metso, each procurement organization tailors its strategy to the needs of each business area, while

remaining aligned with the company’s overall sustainability and operational goals. To ensure consistency and

accountability, all procurement activities are governed by the global Supplier Code of Conduct, standardized

contract templates and terms, and Metso's Procurement policy. These shared principles provide a strong

foundation for both long-term supplier strategy and daily purchasing decisions.

Metso's responsible sourcing model

As part of Metso's supplier onboarding process, detailed information is collected through standardized

questionnaires and compliance checks are conducted to ensure alignment with Metso's ethical, legal and

sustainability standards. In critical areas, such as direct procurement, audits for new suppliers are carried out

prior to approval. Any improvement needs identified during these audits must be addressed with corrective

actions before suppliers are accepted into Metso's supply base.

Sustainability and risk management are integrated into Metso's tendering (RFx) processes across business

areas, reinforcing the commitment to responsible sourcing and enabling assessment of suppliers’ ESG

performance and climate-related actions. This includes evaluating supplier emissions data and alignment with

climate targets, such as SBTi, in line with CSRD and CBAM requirements.

Each procurement organization monitors supplier performance through tailored reporting systems, using key

performance indicators to manage supplier performance and drive continuous improvement. This structured

approach strengthens supply chain resilience, reduces risks, and ensures that Metso delivers sustainable,

long-term value to the company itself as well as to its stakeholders.

3.2.8. Responsible supply chain – metrics and actions

Metso requires its suppliers to demonstrate continuous environmental improvement, such as developing CO2

emissions reduction plans and setting their own CO2 reduction targets. Metso especially encourages suppliers

to commit to the Science Based Targets initiative (SBTi) and climate-related target setting. Metso aims for 30%

of its direct procurement spend to be with suppliers who have committed to science-based emissions

reductions by 2025. In 2025, Metso renewed its science-based targets (SBTs) and going forward commits that

40% of its suppliers by spend will have science-based targets by 2030. Metso’s supplier engagement program

began in 2020; in 2025, 34.0% of the direct supplier spend was with those committed to SBTi.

In addition, to acknowledge the efforts of suppliers who have set ambitious climate targets not covered by

SBTi commitments, these are included in a separate KPI (0.9% in 2025). Some suppliers have highlighted that

they are already benefiting from energy consumption reductions and optimization of their operations. The

supplier engagement program is therefore mutually beneficial, especially for smaller companies that would

not have their own science-based emissions targets programs without Metso’s support. In addition, Metso has

interviewed customers in order to understand the requirements of upstream value chain emissions reporting

and to understand how value chain workers should be engaged for setting Metso’s supplier-related targets.

In 2025, Metso’s spend on suppliers that are local to the purchasing operations amounted to 73% of total

supply spend. Metso is committed to supporting local communities by sourcing products locally where

economically feasible, and by training and recruiting local people, and supporting local economic

development.

Through its Supplier Code of Conduct, responsible business practices, audits, and assessments of new direct

suppliers from high-risk countries, Metso aims to ensure that its practices do not cause or contribute to

material negative impacts on value chain workers. Metso is transparent about its requirements and

encourages safe working practices in the supply chain.

Based on the human rights impact assessment conducted in 2023, Metso assessed its existing human rights

due diligence processes and risks and identified priority areas, including health and safety and prevention of

discrimination and harassment across the whole value chain. Other focus areas identified are secure

employment, working time, adequate wages, freedom of association and collective bargaining, as well as

prevention of forced labor. These are areas where actual or potential impacts are recognized in several or

Metso Corporation - Board of Directors' report and financial statements 2025 |103

some parts of the value chain. The assessment identified different groups of value-chain workers that may be

particularly vulnerable to impacts.

In 2025 Metso evaluated the need to update the human rights impact assessment and determined that the

2023 human rights impact assessment findings are still relevant for Metso's value chain. In 2025, Metso

continued a risk-based focus on its supply chain with regard to human rights by, for example, conducting

supplier audits in the high-risk countries. Metso continued to improve its human rights governance and due

diligence processes by, e.g., providing trainings for internal and external stakeholders in high-risk countries,

internal communication, assessing and developing its grievance mechanisms, enhancing due diligence

governance in its own operations, and further developing and implementing risk-based due diligence and

human rights risk assessments for supply chain sustainability. In recognizing that the human rights impacts

may change over time as the operations and value chains evolve, Metso acknowledges that embedding

human rights due diligence across our business is an ongoing process.

An important safety priority is ensuring that products and services are safe to use and maintain; thus, the

safety of operation and maintenance is considered in the early phases of product development. The Product

Compliance Management process ensures that products designed and supplied by Metso worldwide meet all

applicable safety requirements.

Metso manages incidents, hazards, and development initiatives through its QEHS management and product

compliance management systems, as well as through customer feedback collected after each major delivery

and in customer surveys.

Key global actions in 2025 included:

• Supplier-related categorization and ESG data collection improvements

• Tracking supplier onboarding and Supplier Code of Conduct signage

• Active supplier engagement on climate change actions

• Monthly monitoring of supplier SBTi commitments

• Contract re-negotiations with logistics suppliers, prioritizing those with clear climate change mitigation

strategies and plans

• Improving visibility of supplier audit findings for management

• Awareness building on human rights in Metso’s procurement organizations in high-risk countries, including

training for suppliers

• Awareness building on Metso’s human rights impact through increased employee communication

Key local actions in 2025 included:

• Conducting 172 internal and 13 third-party supplier audits, and ensuring timely closure of identified

corrective actions with 62% e.g. in high ESG risk countries: Brazil, India, China, South Africa, Türkiye and

Mexico

• Engaging suppliers on the topic of the EU Deforestation Regulation (EUDR) and carrying out natural rubber

and wood supply chain due diligence activities

• Engaging suppliers on the topic of the Carbon Border Adjustment Mechanism (CBAM) and collecting in-

depth production-related CO2 emissions quantitative and qualitative data from suppliers importing to the

EU.

Metso will continue to strengthen human rights due diligence processes in 2026 with the following focus

areas:

• Ensuring the safety of own employees and those in the value chain remain a strategic priority

• Monitoring legislation and external requirements, and reviewing policies and guidelines to support robust

Human rights due diligence practices

• Designing a supplier management platform to enable risk-based supplier due diligence processes

• Developing and piloting a customer sustainability engagement framework

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4. G – Governance information

Metso endorses responsible business practices and complies with

national and international laws and regulations. The company has

zero tolerance for corruption.

SUPPLIER SUSTAINABILITY

AUDITS

185

CODE OF CONDUCT

TRAINING

Responsible

business

conduct

Chile-people-at-the-office-(6)_cut-corner.png

99.8%

Governance information consists of:

Metso Corporation - Board of Directors' report and financial statements 2025 |105

4.1. G1 Responsible business conduct

A strong growth culture is essential for achieving Metso’s strategic objectives, and ensuring responsible

business conduct. The focus areas for people and culture in the strategy period 2026-2030 are customer-

centric growth culture, engaged Metsonites and industry-leading capabilities. Corporate culture and the

agenda are discussed in more detail in section 3.1. Own workforce.

Metso endorses responsible business practices and complies with national and international laws and

regulations. The company has zero tolerance for corruption.

4.1.1. Material impacts, risks and opportunities


Impacts, risks and opportunities
Impacts	Actual / potential (+/-)	Risks	Opportunities	Time horizon	Key management methods
BUSINESS CONDUCT AND CORRUPTION AND BRIBERY
Insufficient processes and control mechanisms for preventing corruption and bribery could lead to non-compliance with Metso’s Code of Conduct and applicable laws.	Potential (-)	Corruption and bribery may have significant financial consequences and weaken Metso’s reputation and brand.	When stakeholders perceive Metso as a responsible and trusted partner, it improves Metso’s reputation, brand and competitiveness.	Short Medium Long	• Metso’s Code of Conduct, Supplier Code of Conduct, and Anti-Corruption Policy • A range of internal controls • Metso’s internally and externally available whistleblower channel • Mandatory and yearly Code of Conduct training
MANAGEMENT OF RELATIONSHIPS WITH SUPPLIERS AND PAYMENT PRACTICES
Metso's sourcing decisions can influence working conditions, human rights, and environmental performance in the supply chain. If Metso is not seen as a responsible partner, its relationships with its suppliers may suffer and therefore lead to loss of some of the long-term partnerships.	Potential (+) Potential (-)			Short Medium Long	• Supplier Code of Conduct • Supplier sustainability audits • Compliance checks on suppliers, customers and other business partners are conducted using third-party screening tools and data portals

4.1.2. Processes to identify and assess material impacts,

risks and opportunities

The material impacts, risks and opportunities related to business conduct and corporate culture have been

identified in a double materiality assessment. The materiality assessment is discussed in section 1. General

information. Corporate culture is discussed in more detail in section 3.1. Own workforce.

4.1.3 Targets and progress on targets


Sustainability topic	Target for 2025	Long-term goal	2025	2024	Progress
Code of Conduct training	All active employees, including blue-collar workers, trained annually in Code of Conduct. Excludes external workforce	All active employees (including blue-collar workers) trained annually on Code of Conduct every year. Excludes external workforce	99.8%	99.0%	On target

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4.1.4. Policies

Metso is committed to respecting human rights and the United Nations (UN) Guiding Principles on Business

and Human Rights. Metso is also committed to the UN Global Compact Initiative and its principles, as well as

to the principles of the Universal Declaration of Human Rights, the International Labor Organization’s

Declaration of Fundamental Principles and Rights at Work as well as the OECD Guidelines for Multinational

Enterprises. These commitments are incorporated in Metso’s Code of Conduct and Supplier Code of Conduct,

and in its Human Rights, HR, Quality and EHS Policies, described in more detail in section 3.1.4.1. People and

culture and section 2.3.4. Policies. In addition, Metso is registered in the European Union's Transparency

with relevant requirements.

4.1.5. The role of Metso’s administrative, management and supervisory bodies

The Board of Directors oversees the management and operations of Metso. It also decides on significant

matters related to strategy, investments, organizational structure and finances. The Audit and Risk Committee’s

task is to ensure that established principles for financial reporting, risk management and internal control are

followed. The Audit and Risk Committee reviews Metso’s annual Sustainability statement before submission to

the Board for final approval. The President and CEO, with assistance from the Internal Audit function, is

responsible for maintaining an effective control environment and for the ongoing work on internal control

regarding financial reporting.

Under the direction of the Board of Directors, Metso takes a systematic approach to managing sustainability

matters, including implementing appropriate policies, risk management, due diligence processes, governance

and organization. Metso’s Code of Conduct, approved by the Board of Directors, sets out the company’s

expectations for business conduct.

The expertise of the Board of Directors and its committees is described in section 1.4.1. Roles and

responsibilities.

4.1.6. Responsible business conduct and prevention and detection of corruption

and bribery

Metso works to prevent corruption in all its forms and requires its suppliers and business partners to follow the

same principles and to fully comply with all applicable anti-corruption laws. Metso’s Code of Conduct, Supplier

Code of Conduct, and Anti-Corruption Policy are the key policies that define the anti-corruption measures

required from Metso’s employees, customers, agents, suppliers, distributors and other business partners.

Metso conducts compliance checks on customers, suppliers, and other business partners through third-party

screening tools, data portals that are linked to Metso’s customer relationship management systems, and

supplier data management systems. All sales agents, distributors and other representatives are further required

to confirm their compliance with the company’s Code of Conduct requirements.

Metso's anti-corruption policy is publicly available to all stakeholders. Anti-corruption principles are also

embedded within Metso's Code of Conduct, where regular training is provided, alongside other compliance

trainings, where anti-corruption is one of the key components. This helps raise awareness and ensures a

shared understanding of Metso’s anti-corruption policy across the organization.

Anti-corruption training is also offered to third-party sales representatives such as distributors, agents and

other intermediaries, during the onboarding process. They are also required to sign an anti-corruption

certificate, committing to comply with Metso’s anti-corruption expectations, as a part of the due diligence

process. For suppliers, anti-corruption requirements are outlined in the Supplier Code of Conduct. The Metso

Leadership Team is accountable for the implementation of the policy

Metso’s employees have a responsibility for ensuring compliance with anti-corruption and anti-bribery

measures. A range of internal controls are in place, and employees are strongly encouraged to report any

suspected misconduct to their supervisors, to management, or to the Risk and Compliance team or to Internal

Audit. Additionally, Metso employees or any external party can report suspicions of financial and other

misconduct confidentially via the anonymous whistleblower channel, which is maintained by an independent

party. All reports are treated as confidential and anonymous, and Metso commits to ensuring that there are no

negative repercussions for the reporting person. The report can be submitted in several languages via the

Internet, by phone or by email, and anonymously, if necessary. Information about the whistleblower channel is

included in the Code of Conduct and in the mandatory annual training for the Code of Conduct. Other

mandatory training includes antitrust, cyber security and privacy e-learning courses, and depending on an

employees’ duties, they are further required to complete e-learning courses related to other policies such as,

procurement, contract and other legal training.

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The President and CEO, the Metso Leadership Team, and the management of the business areas, market areas

and Group companies are responsible for driving compliance. Suspected misconduct is investigated

thoroughly and confidentially without undue delay. The Risk and Compliance team determines how the matter

will be investigated and reports the alleged misconduct to the Audit and Risk Committee. The Legal &

Compliance and Human Resources functions together implement any measures resulting from possible

misconduct. The VP, Compliance and Risk Management regularly reports to the General Counsel and to the

Audit and Risk Committee regarding compliance cases and corrective actions taken.

To mitigate risks and to ensure compliance with the company’s Code of Conduct, Metso provides regular

compliance training. In 2025, the Code of Conduct training focused on anti-corruption and anti-bribery, ESG,

human rights, antitrust, and other relevant compliance areas. All third parties involved in sales are required to

complete specific anti-corruption training to ensure a common understanding of Metso’s zero-tolerance for

corruption and bribery. In addition, specific trade compliance training was arranged for business area and

market area sales and procurement teams.

Employees are required to complete the Code of Conduct training annually. 99.8% of employees had

completed the 2025 Code of Conduct training within the given timeframe. Metso’s Board of Directors also

completes the training annually, demonstrating a strong commitment from the top. The Code of Conduct

training is also a mandatory part of the induction program for new employees.

4.1.7. Incidents of corruption or bribery

In 2025, 58 reports of suspected financial misconduct (2024: 60) and 96 reports of suspected non-financial

misconduct (2024: 67) were received by Metso’s Compliance department. The cases of misconduct were

reviewed by the Audit and Risk Committee. None (0) (2024: 0) of the cases had a significant impact on

Metso’s financial results.

Several lawsuits, legal claims and disputes based on various grounds related to, among other things, Metso’s

products, projects, other operations, and customer receivables are pending against Metso in various countries.

There have been no (0) (2024: 0) judgments or fines for violation of anti-corruption or anti-bribery laws.

Appropriate actions have been identified to address and mitigate risks associated with breaches of anti-

corruption and anti-bribery procedures and standards.

4.1.8. Management of relationships with suppliers and payment practices

Metso expects its suppliers to follow its Supplier Code of Conduct, which is based on Metso’s Code of

Conduct, as well as established international best practices. The assessment of new suppliers is part of Metso’s

procurement function’s ongoing processes; the aim is to evaluate all new direct suppliers in high-risk countries

against Metso’s sustainability criteria.

Human and labor rights, environmental and safety practices, compliance with laws and regulations, and anti-

bribery provisions are verified through third-party supplier audits, supplier self-assessments, and Metso’s

internal supplier sustainability audits. Key supplier requirements are also incorporated into contract obligations,

and a contract breach can result in consequences, including potential termination of a supplier relationship.

The maturities of trade payables are largely determined by trade practices and individual agreements between

Metso and its suppliers. Metso has a Global Payment Directive that outlines the payment practices at Metso.

The objective of this directive is to establish global uniform instructions for internal and external payments

across all Metso legal entities. It also states that supplier invoices are paid once a week.

Due to Metso’s diverse business footprint and various types of business, it has a significant number of different

payment terms. The table below presents the average realized payment terms with and without a purchase

order for non-SMEs (small- and medium-sized enterprises) and SMEs. Metso applies, on average, payment

terms of 14-120 days in its contracts with suppliers and, as standard, payments are made according to the due

date. Contracts with suppliers and respective payment terms may vary due to Metso’s diverse geographical

business footprint and various types of business as well as suppliers. The percentage of payments aligned with

these standard terms cannot be calculated due to the variety of payment terms in use.

Average payment terms


	2025		2024
Average realized payment term in days	With purchase order	Without purchase order	With purchase order	Without purchase order
Non-SME	46	35	51	38
SME	54	37	57	34
Total	50	36	54	37

Metso was not party in any (0) legal proceeding due to late payments at the end of 2025 (2024: 1).

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4.1.9. Actions

Key actions in 2025 included:

• Annual Code of Conduct training

• Focused compliance training for business line and market area sales and procurement teams on selected

topics, including trade compliance, anti-corruption and human rights

• Implementing Regional Compliance & Ethics Committees in all market areas

• Continued development and systematic monitoring of compliance screening processes

• Development of internal investigation and grievance processes, including ensuring that remediation is

implemented in case of issues or gaps (ongoing)

• Defining the process for heightened due diligence in relation to human rights and other ESG-related matters

• Development of regulatory governance

4.1.10. Reporting principles

The supplier master data was used to identify active suppliers and to identify those classified as SMEs. The

realized payment term is calculated from the creation date, when the invoice has been received in Metso

invoice processing system, to the payment confirmation date, when the payment has been made and received.

An SME was defined as a company with fewer than 250 employees and an annual turnover of less than EUR 50

million or a balance sheet below EUR 43 million.

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5. Annexes to the Sustainability statement

The annexes published at the same time as the Sustainability statement include:

• ESRS content index

• Index of disclosure requirements and data points derived from other EU legislation

5.1 ESRS content index


ESRS	Disclosure requirement	Location	Additional information
ESRS 2 General disclosures
BP-1	General basis for preparation of the Sustainability statement	1.2. Basis for preparation 1.3.2. Business model
BP-2	Disclosures in relation to specific circumstances	1.2. Basis for preparation 1.2.1. Disclosures in relation to specific circumstances
GOV-1	The role of the administrative, management and supervisory bodies	1.4.1. Roles and responsibilities 1.4.2. Sustainability expertise of the Board, its committees and Metso Leadership Team 1.4.3. Sustainability focus areas in 2025 1.4.5. Internal controls over sustainability 1.4.6. Risk management systems and policies 1.4.7. Due diligence at Metso
GOV-2	Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies	1.4.1. Roles and responsibilities 1.5. Stakeholder engagement
GOV-3	Integration of sustainability-related performance in incentive schemes	1.4. 4. Integration of sustainability-related performance in incentive schemes 3.1.4.1. Policies - People and culture
GOV-4	Statement on due diligence	1.4.7. Due diligence at Metso
GOV-5	Risk management and internal controls over sustainability reporting	1.4.5. Internal controls over sustainability 1.4. 6. Risk management systems and policies
SBM-1	Strategy, business model and value chain	1.3.1. Strategy 1.3.2. Business model 1.3.3. Value creation and value chain 1.3.4. Revenue breakdown
SBM-2	Interests and views of stakeholders	1.4.2. Sustainability expertise of the Board, its committees and Metso Leadership Team 1.5. Stakeholder engagement
SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	1.1. Material sustainability-related impacts, risks and opportunities 1.3. Metso’s strategy, business model and value creation 1.3.1. Strategy 1.3.2. Business model 1.3.3. Value creation and value chain	SBM-3 48 d). No significant risks or material adjustments identified for the next year.

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ESRS	Disclosure requirement	Location	Additional information
IRO-1	Description of the process to identify and assess material impacts, risks and opportunities	1.1. Material sustainability-related impacts, risks and opportunities 1.2.1. Disclosures in relation to specific circumstances 1.4.5. Internal controls over sustainability 1.4.6. Risk management systems and policies 1.4.7. Due diligence at Metso 2.3.3. Targets and progress on targets 3.2.3. Targets and progress on targets
IRO-2	Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement	5.1. ESRS Content index 5.2. ESRS Appendix B index
E1 Climate change
E1-1	Transition plan for climate change mitigation	2.3. Climate change 2.3.3. Targets and progress on targets 2.3.6. Actions 2.3.5. Environmental efficiency in own operations 2.2. EU Taxonomy
E1-2	Policies related to climate change mitigation and adaptation	2.3.4. Policies
E1-3	Actions and resources in relation to climate change policies	2.3.6. Actions 2.3.5. Environmental efficiency in own operations 2.3.9. Metrics
E1-4	Targets related to climate change mitigation and adaptation	2.3.3. Targets and progress on targets 2.3.9. Metrics 2.3.7. Risks, opportunities and anticipated financial effects	E1-4 34 e), 16 a) Metso's greenhouse gas emission reduction targets are not derived using a sectoral decarbonization pathway.
E1-5	Energy consumption and mix	2.3.9. Metrics 2.3.10. Reporting principles
E1-6	Gross Scopes 1, 2, 3 and Total GHG emissions	2.3.9. Metrics 2.3.10. Reporting principles	E1-6 48 b) Metso does not engage in regulated emission trading schemes.
E1-9	Anticipated financial effects from material physical and transition risks and potential climate-related opportunities	2.3.7. Risks, opportunities and anticipated financial effects	More information will be reported in the upcoming years.
E1-GOV-3	Integration of sustainability-related performance in incentive schemes	2.3.8. Integration of sustainability-related performance in incentive schemes
E1-SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	2.3.1. Material impacts, risks and opportunities 2.3.7. Risks, opportunities and anticipated financial effects
E1-IRO-1	Description of the processes to identify and assess material climate-related impacts, risks and opportunities	2.3.2. Processes to identify and assess material impacts, risks and opportunities 2.3.7. Risks, opportunities and anticipated financial effects
E3 Water and marine resources
E3-1	Policies related to water and marine resources	2.4.4. Policies	Metso has a QEHS Policy that covers water management at a general level. No policy specifically for water management exists.
E3-2	Actions and resources related to water and marine resources	2.4.5. Environmental efficiency in own operations - actions 2.4.6. Water-efficient offering to customers - actions
E3-3	Targets related to water and marine resources	2.4.3. Targets and progress on targets 2.4.4. Policies	E3-3 23 a) Target not based on conclusive scientific evidence. E3-3 25) Metso's water-related target is not based on legislation.

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ESRS	Disclosure requirement	Location	Additional information
E3-4	Water consumption	2.4.7. Metrics 2.4.8. Reporting principles
E3-IRO-1	Processes to identify and assess material water and marine resources-related impacts, risks and opportunities	2.4.2. Processes to identify and assess material impacts, risks and opportunities 2.4.1. Material impacts, risks and opportunities	E3-IRO-1 8 b) Metso has not conducted consultations with affected communities on water and marine resources.
E4 Biodiversity and ecosystems
E4-1	Transition plan and consideration of biodiversity and ecosystems in strategy and business model	2.5. Biodiversity and ecosystems	E4-1 13 a) A study on the resilience of Metso’s business model and strategy in relation to biodiversity and ecosystems was done in 2025 as part of the development of Metso’s biodiversity roadmap.
E4-2	Policies related to biodiversity and ecosystems	2.5.4. Policies	E4-2 23 b, c) The Biodiversity Policy's relation to material biodiversity and ecosystems-related impacts, dependencies and material physical and transition risks and opportunities will be evaluated in 2026. E4-2 23 d) Metso does not currently have traceability of products, components and raw materials with significant actual or potential impacts on biodiversity and ecosystems along the value chain. In 2025, scoping work was conducted to prepare for upcoming sustainability regulations, including the EU Deforestation Regulation (EUDR). As a result, a suitable supply chain transparency IT solution has now been identified, with further implementation and evaluation planned for 2026. E4-2 23 f) Metso Biodiversity Policy currently does not address social consequences of biodiversity and ecosystems-related impacts. Further investigation on the topic is required as part of the biodiversity framework establishment for Metso.
E4-3	Actions and resources related to biodiversity and ecosystems	2.5.5. Environmental efficiency in own operations - actions 2.5.6. Metso Plus offering and innovations to customers - actions	E4-3 28 c) Local and indigenous knowledge and nature-based solutions have not been incorporated into biodiversity and ecosystems-related actions.
E4-4	Targets related to biodiversity and ecosystems	2.5.3. Targets and progress on targets	Metso is in the evaluation stage for biodiversity targets. Progress is expected in the coming years.
E4-5	Impact metrics related to biodiversity and ecosystems change	2.5.5. Environmental efficiency in own operations - actions	E4-5 38) Opening new sites and closing sites may have an impact on land-use change. The ecosystem impact of the openings and closings has not been assessed. In 2025, Metso did not open or close any sites.
E4-SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	2.5.1. Material impacts, risks and opportunities	E4-SBM-3 16 b, c) Metso has not identified material negative impacts related to land degradation, desertification or soil sealing, or impacts of its own operations on threatened species. E4-SBM-3 17 a, b) Identification and assessment of actual and potential impacts and dependencies on biodiversity and ecosystems and their services at own site locations and in the value chain is in progress.
E4-IRO-1	Description of processes to identify and assess material biodiversity and ecosystem related impacts, risks and opportunities	2.5.2. Processes to identify and assess material impacts, risks and opportunities 2.5.5. Environmental efficiency in own operations - actions	E4-IRO-1 17 c, d, e) A high-level biodiversity assessment was done in 2023 but Metso recognizes the need for further investigation of transitional and physical risks and opportunities related to biodiversity and ecosystems and systemic risks to Metso's own business model and to society.
E5 Resource use and circular economy
E5-1	Policies related to resource use and circular economy	2.6.4. Policies
E5-2	Actions and resources related to resource use and circular economy	2.6.6. Metso Plus offering and innovations for customers - actions
E5-3	Targets related to resource use and circular economy	2.6.3. Targets and progress on targets

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ESRS	Disclosure requirement	Location	Additional information
E5-5	Resource outflows	2.6.6. Metso Plus offering and innovations for customers - actions
E5-IRO-1	Description of the processes to identify and assess material resource use and circular economy-related impacts, risks and opportunities	2.6. E5 Resource use and circular economy
S1 Own workforce
S1-1	Policies related to own workforce	3.1.4. Policies
S1-2	Processes for engaging with own workers and workers' representatives about impacts	3.1.5. Processes for engaging with own workers and workers’ representatives	S1-2 27 d) Metso currently has no Global Framework Agreements in place. S1-2 28 Metso reviews feedback from its employees from several channels, including employee engagement survey and whistleblower channel, and has open dialog with employee representatives and government bodies to get insight of people in its own workforce that may be particularly vulnerable to impacts and (or) marginalized.
S1-3	Processes to remediate negative impacts and channels for own workers to raise concerns	3.1.6. Remediating negative impacts and feedback channels for own workers
S1-4	Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions	3.1.7. Metso’s people and culture – actions 3.1.8. Health and safety – actions
S1-5	Targets relating to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities	3.1.3. Targets and progress on targets
S1-6	Characteristics of the undertaking’s employees	3.1.9 Metrics 3.1.10. Reporting principles
S1-7	Characteristics of non-employee workers in the undertaking’s own workforce	3.1.9. Metrics 3.1.10. Reporting principles	For reporting year 2025, only the number of non-employees is reported. Other information regarding non-employees will be reported in the coming years.
S1-8	Collective bargaining coverage and social dialogue	3.1.9. Metrics	Information regarding non-employees will be reported when required.
S1-9	Diversity metrics	3.1.9. Metrics 3.1.10. Reporting principles
S1-10	Adequate wages	3.1. Own workforce - Metso's people and culture 3.1.9. Metrics 3.1.10. Reporting principles	Metso pays salaries through local payrolls; in each country, it is the responsibility of HR to ensure compliance with all legislation stipulating minimum salary levels. S1-10 71) Information regarding non-employees will be reported when required.

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ESRS	Disclosure requirement	Location	Additional information
S1-13	Training and skills development metrics	3.1.9. Metrics 3.1.10. Reporting principles
S1-14	Health and safety metrics	3.1.9. Metrics 3.1.10. Reporting principles	S1-14 88 b) The number of fatalities reported as a result of work-related ill health will be reported when required. S1-14 88 c) The number of work-related accidents due to work-related ill health will be reported when required. S1-14 88 d) The number of cases of recordable work-related ill health of employees will be reported when required. S1-14 88 e) Number of days lost to work-related ill health and fatalities from ill health related to employees will be reported when required.
S1-15	Work-life balance metrics	3.1.9. Metrics 3.1.10. Reporting principles
S1-16	Compensation metrics (pay gap and total compensation)	3.1.9. Metrics 3.1.10. Reporting principles
S1-17	Incidents, complaints and severe human rights impacts	3.1.9. Metrics
S1-SBM-2	Interests and views of stakeholders	1.5. Stakeholder engagement
S1-SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	3.1.1. Material impacts, risks and opportunities	Impacts on workers that may arise from transition plans not considered material. No impacts relate to specific groups of people.
S2 Workers in the value chain
S2-1	Policies related to value chain workers	3.2.4. Policies
S2-2	Processes for engaging with value chain workers about impacts	3.2.5. Processes for engaging with value chain workers about impacts	S2-2 22 a, c, e) Information currently not available. Plan to obtain information during coming years. S2-2 22 d) Metso currently has no Global Framework Agreements in place. S2-2 23) Perspectives of value chain workers that may be particularly vulnerable to impacts and/or marginalized are currently being evaluated
S2-3	Processes to remediate negative impacts and channels for value chain workers to raise concerns	3.2.6. Remediating negative impacts and feedback channels for value chain workers	S2-3 28) There is currently no process in place to assess whether value chain workers are aware of and trust structures or processes as a way to raise their concerns or needs and have them addressed. For a description of protection for individuals using the whistleblower channel, see section "Business conduct and prevention and detection of corruption and bribery."
S2-4	Taking action on material impacts, and approaches to mitigating material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions and approaches	3.2.6. Remediating negative impacts and feedback channels for value chain workers 3.2.7. Responsible supply chain – metrics and actions	S2-4 34 b) Material opportunities in relation to value chain workers have not been systematically assessed. Work expected to commence in the coming years. S2-4 35) Potential material negative impacts of own practices on value chain workers have not been systematically assessed. Work expected to commence in the coming years. S2-4 38) Metso has not allocated resources to manage material impacts. Topic will be evaluated in the coming years. S2-4 AR 43) Metso currently has no measures in place to integrate managing materials risks into existing risk management processes. Topic will be evaluated in the coming years.

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ESRS	Disclosure requirement	Location	Additional information
S2-5	Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities	3.2.3. Targets and progress on targets	S2-5 42) Metso is currently addressing the IT infrastructure required for supply chain data collection. In 2025, scoping work was conducted to prepare for upcoming sustainability regulations, including the EU Deforestation Regulation (EUDR). As a result, a suitable supply chain transparency IT solution has now been identified, with further implementation and evaluation planned for 2026.
S2-SBM-2	Interests and views of stakeholders	1.5. Stakeholder engagement
S2-SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	3.2.1. Material impacts, risks and opportunities	S2-SBM-3 13) Metso is planning an evaluation of for example security firms that survey our premises for human rights topics.
G1 Business conduct
G1-1	Business conduct policies and corporate culture	4.1.4. Policies 4.1.1. Material impacts, risks and opportunities 4.1.6. Responsible business conduct and prevention and detection of corruption and bribery	G1-1 10 h) Metso has not defined functions at risk with respect to corruption and bribery.
G1-2	Management of relationships with suppliers	4.1.8. Management of relationships with suppliers and payment practices 4.1.1. Material impacts, risks and opportunities
G1-3	Prevention and detection of corruption and bribery	4.1.6. Responsible business conduct and prevention and detection of corruption and bribery	G1-3 21 b) Metso Code of Conduct training is compulsory for all Metso employees regardless of function.
G1-4	Incidents of corruption or bribery	4.1.7. Incidents of corruption or bribery
G1-6	Payment practices	4.1.8. Management of relationships with suppliers and payment practices
G1-GOV-1	Role of the administrative, management and supervisory bodies	4.1.5. The role of Metso’s administrative, management and supervisory bodies
G1-IRO-1	Description of the processes to identify and assess material impacts, risks and opportunities	4.1.2. Processes to identify and assess material impacts, risks and opportunities
Metso's entity-specific indicators
Metso topic	Disclosure	Location
Metso Plus portfolio	Metso Plus sales R&D spend on Metso Plus portfolio development Percentage of R&D projects that include a sustainability target	2.1. Metso Plus offering and innovations for our customers 2.3.3. Targets and progress on targets 2.3.10. Reporting principles

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5.2 Index of disclosure requirements and datapoints derived from other EU legislation


Disclosure requirement and related datapoint	SFDR reference	Pillar 3 reference	Benchmark regulation reference	EU Climate Law reference	Location
ESRS 2 GOV-1 Board's gender diversity paragraph 21 (d)	Indicator number 13 of Table #1 of Annex 1		Commission Delegated Regulation (EU) 2020/1816, Annex II		1.4. Sustainability governance, Management diversity
ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e)			Delegated Regulation (EU) 2020/1816, Annex II		1.4. Sustainability governance, Management diversity
ESRS 2 GOV-4 Statement on due diligence paragraph 30	Indicator number 10 Table #3 of Annex 1				1.4.7. Due diligence at Metso
ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i	Indicator number 4 Table #1 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II		Not material
ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii	Indicator number 9 Table #2 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II		1.3.4. Sector revenue
ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii	Indicator number 14 Table #1 of Annex 1		Delegated Regulation (EU) 2020/181829, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II		Not material
ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv			Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II		Not material
ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14					2.3. Climate change 2.3.6. Actions 2.3.5. Environmental efficiency in own operations
ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g)			Delegated Regulation(EU) 2020/1818, Article12.1 (d) to (g), and Article 12.2		1.3.4. Revenue breakdown
ESRS E1-4 GHG emission reduction targets paragraph 34	Indicator number 4 Table #2 of Annex 1		Delegated Regulation (EU) 2020/1818, Article 6		2.3.3. Targets and progress on targets 2.3.9. Metrics, Gross Scopes 1, 2, 3 and Total GHG emissions
ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38	Indicator number 5 Table #1 and Indicator number 5 Table #2 of Annex 1				2.3.9. Metrics, Energy consumption and mix
ESRS E1-5 Energy consumption and mix paragraph 37	Indicator number 5 Table #1 of Annex 1				2.3.9. Metrics, Energy consumption and mix

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Disclosure requirement and related datapoint	SFDR reference	Pillar 3 reference	Benchmark regulation reference	EU Climate Law reference	Location
ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43	Indicator number 6 Table #1 of Annex 1				2.3.9. Metrics, Energy intensity based on net revenue
ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44	Indicators number 1 and 2 Table #1 of Annex 1		Delegated Regulation (EU) 2020/1818, Article 5(1), 6 and 8(1)		2.3.9. Metrics, Gross Scopes 1, 2, 3 and Total GHG emissions
ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55	Indicator number 3 Table #1 of Annex 1		Delegated Regulation (EU) 2020/1818, Article 8(1)		2.3.9. Metrics, GHG intensity based on net revenue emissions
ESRS E1-7 GHG removals and carbon credits paragraph 56					Not material
ESRS E1-9 Exposure of the benchmark portfolio to climate related physical risks paragraph 66			Delegated Regulation (EU) 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II		ESRS E1-9 will be reported in the coming years according to requirements.
ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c).					ESRS E1-9 will be reported in the coming years according to requirements.
ESRS E1-9 Breakdown of the carrying value of its real-estate assets by energy-efficiency classes paragraph 67 (c).	Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraph 34; Template 2: Banking book - Climate change transition risk: Loans collateralized by immovable property - Energy efficiency of the collateral				ESRS E1-9 will be reported in the coming years according to requirements.
ESRS E1-9 Degree of exposure of the portfolio to climate-related opportunities paragraph 69			Delegated Regulation (EU) 2020/1818, Annex II		ESRS E1-9 will be reported in the coming years according to requirements.
ESRS E2-4 Amount of each pollutant listed in Annex II of the E PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28	Indicator number 8 Table #1 of Annex 1, Indicator numbers 1, 2 and 3 Table #2 of Annex 1				Not material
ESRS E3-1 Water and marine resources paragraph 9	Indicator number 7 Table #2 of Annex 1				2.4.4. Policies
ESRS E3-1 Dedicated policy paragraph 13	Indicator number 8 Table #2 of Annex 1				2.4.1. Material impacts, risks and opportunities 2.4.4. Policies
ESRS E3-1 Sustainable oceans and seas paragraph 14	Indicator number 12 Table #2 of Annex 1				Not material
ESRS E3-4 Total water recycled and reused paragraph 28 (c)	Indicator number 6.2 Table #2 of Annex 1				2.4.7. Metrics, Water consumption
ESRS E3-4 Total water consumption in m3 per net revenue of own operations paragraph 29	Indicator number 6.1 Table #2 of Annex 1				2.4.7. Metrics, Water consumption
ESRS 2- SBM 3 - E4 paragraph 16 (a) i	Indicator number 7 Table #1 of Annex 1				2.5.5. Environmental efficiency in own operations - actions
ESRS 2- SBM 3 - E4 paragraph 16 (b)	Indicator number 10 Table #2 of Annex 1				2.5.2. Processes to identify and assess material impacts, risks and opportunities
ESRS 2- SBM 3 - E4 paragraph 16 (c)	Indicator number 14 Table #2 of Annex 1				2.5.2. Processes to identify and assess material impacts, risks and opportunities

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Disclosure requirement and related datapoint	SFDR reference	Pillar 3 reference	Benchmark regulation reference	EU Climate Law reference	Location
ESRS E4-2 Sustainable land/agriculture practices or policies paragraph 24 (b)	Indicator number 11 Table #2 of Annex 1				Not material
ESRS E4-2 Sustainable oceans/seas practices or policies paragraph 24 (c)	Indicator number 12 Table #2 of Annex 1				Not material
ESRS E4-2 Policies to address deforestation paragraph 24 (d)	Indicator number 15 Table #2 of Annex 1				Not material
ESRS E5-5 Non-recycled waste paragraph 37 (d)	Indicator number 13 Table #2 of Annex 1				Not material
ESRS E5-5 Hazardous waste and radioactive waste paragraph 39	Indicator number 9 Table #1 of Annex 1				Not material
ESRS 2- SBM3 - S1 Risk of incidents of forced labor paragraph 14 (f)	Indicator number 13 Table #3 of Annex I				Not material
ESRS 2- SBM3 - S1 Risk of incidents of child labor paragraph 14 (g)	Indicator number 12 Table #3 of Annex I				Not material
ESRS S1-1 Human rights policy commitments paragraph 20	Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex I				1.4.7. Due diligence at Metso 2.2.4. Minimum social safeguards 3.1. Own workforce - Metso's people and culture
ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organization Conventions 1 to 8, paragraph 21			Delegated Regulation (EU) 2020/1816, Annex II		3.1.4. Policies
ESRS S1-1 Processes and measures for preventing trafficking in human beings paragraph 22	Indicator number 11 Table #3 of Annex I				3.1.4. Policies 3.2.4. Policies
ESRS S1-1 workplace accident prevention policy or management system paragraph 23	Indicator number 1 Table #3 of Annex I				3.1.4.2. Policies, Health and safety
ESRS S1-3 Grievance/complaints handling mechanisms paragraph 32 (c)	Indicator number 5 Table #3 of Annex I				3.1.6. Remediating negative impacts and feedback channels for own workers
ESRS S1-14 Number of fatalities and number and rate of work- related accidents paragraph 88 (b) and (c)	Indicator number 2 Table #3 of Annex I		Delegated Regulation (EU) 2020/1816, Annex II		3.1.9. Metrics 3.1.10. Reporting principles
ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e)	Indicator number 3 Table #3 of Annex I				3.1.9. Metrics 3.1.10. Reporting principles
ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a)	Indicator number 12 Table #1 of Annex I		Delegated Regulation (EU) 2020/1816, Annex II		3.1.9. Metrics, Remuneration metrics (pay gap and total remuneration)
ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b)	Indicator number 8 Table #3 of Annex I				3.1.9. Metrics, Remuneration metrics (pay gap and total remuneration)
ESRS S1-17 Incidents of discrimination paragraph 103 (a)	Indicator number 7 Table #3 of Annex I				3.1.9. Metrics, Incidents, complaints and severe human rights impacts
ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD Guidelines paragraph 104 (a)	Indicator number 10 Table #1 and Indicator n. 14 Table #3 of Annex I		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art 12 (1)		3.1.9. Metrics, Incidents, complaints and severe human rights impacts
ESRS 2- SBM3 – S2 Significant risk of child labor or forced labor in the value chain paragraph 11 (b)	Indicators number 12 and 13 Table #3 of Annex I				3.2.1. Material impacts, risks and opportunities

Metso Corporation - Board of Directors' report and financial statements 2025 |118


Disclosure requirement and related datapoint	SFDR reference	Pillar 3 reference	Benchmark regulation reference	EU Climate Law reference	Location
ESRS S2-1 Human rights policy commitments paragraph 17	Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1				3.2.4. Policies
ESRS S2-1 Policies related to value chain workers paragraph 18	Indicator numbers 11 and 4 Table #3 of Annex 1				3.2.4. Policies
ESRS S2-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 19	Indicator number 10 Table #1 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1)		3.2.4. Policies
ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labor Organization Conventions 1 to 8, paragraph 19			Delegated Regulation (EU) 2020/1816, Annex II		3.2.4. Policies
ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36	Indicator number 14 Table #3 of Annex 1				3.2.6. Remediating negative impacts and feedback channels for value chain workers
ESRS S3-1 Human rights policy commitments paragraph 16	Indicator number 9 Table #3 of Annex 1 and Indicator number 11 Table #1 of Annex 1				Not material
ESRS S3-1 Non-respect of UNGPs on Business and Human Rights, ILO principles or OECD guidelines paragraph 17	Indicator number 10 Table #1 Annex 1		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1)		Not material
ESRS S3-4 Human rights issues and incidents paragraph 36	Indicator number 14 Table #3 of Annex 1				Not material
ESRS S4-1 Policies related to consumers and end-users paragraph 16	Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1				Not material
ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17	Indicator number 10 Table #1 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1)		Not material
ESRS S4-4 Human rights issues and incidents paragraph 35	Indicator number 14 Table #3 of Annex 1				Not material
ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b)	Indicator number 15 Table #3 of Annex 1				4.1.6. Responsible business conduct and prevention and detection of corruption and bribery
ESRS G1-1 Protection of whistleblowers paragraph 10 (d)	Indicator number 6 Table #3 of Annex 1				4.1.6. Responsible business conduct and prevention and detection of corruption and bribery
ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a)	Indicator number 17 Table #3 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II)		4.1.7. Incidents of corruption or bribery
ESRS G1-4 Standards of anti-corruption and anti-bribery paragraph 24 (b)	Indicator number 16 Table #3 of Annex 1				4.1.7. Incidents of corruption or bribery

• In addition the following are available on www.metso.com:

• GRI content index

• SASB content index

Metso Corporation - Board of Directors' report and financial statements 2025 |119

Shares and shareholders

Metso has one share series, and each share entitles its holder to one vote at a General Meeting and to an

equal amount of dividend. Metso’s shares are registered in the Finnish book-entry system maintained by

Euroclear.

Basic share information


Listed on	Nasdaq Helsinki
Trading code	METSO
ISIN code	FI0009014575
Industry	Industrials
Number of shares on December 31, 2025	828,972,440
Share capital on December 31, 2025	EUR 107,186,442.52
Market value on December 31, 2025	EUR 12,418.0 million
Listing date	October 10, 2006

Metso shares are also traded on alternative marketplaces like BATS CXE and BATS BXE.

Metso’s share and shareholders in 2025

On December 31, 2025, Metso’s share capital was EUR 107,186,442.52 and the total number of shares was

828,972,440, of which Metso Corporation held 1,211,683 shares, representing 0.15%. More information on the

past share capital changes is available on our website.

At the end of 2025, Metso had 84,770 shareholders in the book-entry system. The largest shareholder was

Solidium Oy with 123,477,168 shares, equaling 14.9 percent of the company’s shares. A total of 337,658,145

Metso shares were traded on the Nasdaq Helsinki during 2025, equivalent to a turnover of EUR 3,771.5 million.

At the year-end, the members of Metso’s Board of Directors and President and CEO Sami Takaluoma held a

total of 357,254 Metso shares, corresponding to 0.04 percent of the total number of shares and votes. More

information about management holdings is available in note 1.5.

Share key figures


	2025	2024
Share capital, at the end of year, EUR million	107	107
Number of shares, at the end of year, pcs
Number of outstanding shares, pcs	827,760,757	827,351,330
Own shares held by the Parent Company, pcs	1,211,683	1,621,110
Total number of shares, pcs	828,972,440	828,972,440
Average number of outstanding shares, pcs	827,672,141	827,100,625
Average number of diluted shares, pcs	828,523,814	827,984,984
Earnings/share, basic, EUR	0.51	0.40
Earnings/share, diluted, EUR	0.51	0.40
Net operative cash flow/share, EUR	0.94	0.40
Dividend/share ¹⁾, EUR	0.40	0.38
Dividend ¹⁾, EUR million	331	314
Dividend/earnings ¹⁾, %	78	96
Effective dividend yield ¹⁾, %	2.70	4.20
P/E ratio	29.4	22.5
Equity/share, EUR	3.22	3.14

¹⁾ The amount for year 2025 is Board of Directors' proposal to the Annual General Meeting.

Share performance and trading on Nasdaq Helsinki


	2025	2024
Closing price, December 31, EUR	14.98	8.98
Market capitalization, December 31, EUR million	12,418.00	7,444.2
Trading volume, NASDAQ OMX Helsinki Ltd, shares	337,658,145	333,947,455
% of shares ¹⁾	40.73%	40.30%
Trading volume, NASDAQ OMX Helsinki Ltd, EUR million	3,771.5	3,225.1
Average daily trading volume, pieces	1,350,633	1,330,468
Relative turnover, %	0.2%	0.2%
Share performance, %	66.8%	-2.1%
Highest share price, EUR	15.06	11.95
Lowest share price, EUR	7.49	7.93
Weighted average share price, EUR	11.16	9.66

¹⁾ Of the total amount of shares for public trading.

Metso Corporation - Board of Directors' report and financial statements 2025 |120

Largest shareholders on December 31, 2025


	Owner	Shares and votes	% of total shares and voting rights
1	Solidium Oy	123,477,168	14.90
2	Varma Mutual Pension Insurance Company	30,577,944	3.69
3	Ilmarinen Mutual Pension Insurance Company	27,875,945	3.36
4	Elo Mutual Pension Insurance Company	12,816,000	1.55
5	Nordea Funds	8,685,668	1.05
	Nordea Pro Finland Fund	2,073,209	0.25
	Nordea Finnish Stars Fund	1,540,911	0.19
	Nordea Finnish Passive Fund	1,032,471	0.12
	Nordea Life Assurance Finland Ltd.	642,689	0.08
	Nordea Nordic Fund	566,744	0.07
	Nordea Premium Asset Management Balanced Fund	561,238	0.07
	Nordea Bank ABP	531,263	0.06
	Nordea Premium Asset Management Moderate Fund	477,476	0.06
	Nordea Savings 50 Fund	365,675	0.04
	Nordea Premiun Asset Management Growth Fund	282,096	0.03
	Nordea Savings 75 Fund	266,415	0.03
	Nordea Säästö 30 Fund	229,732	0.03
	Nordea World Passive Fund	29,967	0.00
	Nordea Global Passive Fund	27,908	0.00
	Nordea Säästö 15 Fund	21,777	0.00
	Nordea European Passive Fund	20,511	0.00
	Nordea Premiun Asset Management Conservative Fund	15,586	0.00


	Owner	Shares and votes	% of total shares and voting rights
6	The State Pension Fund	7,400,000	0.89
7	OP-Finland Funds	7,100,105	0.86
	OP-Finland Fund	2,591,764	0.31
	OP-Finland Index Fund	1,918,773	0.23
	OP Life Assurance Ltd.	1,690,332	0.20
	Pohjola Insurance Ltd.	332,364	0.04
	OP Nordic Countries Index Fund	308,854	0.04
	OP-Europe Index Fund	117,669	0.01
	OP-Europe Small Cap fund	70,875	0.01
	OP-POHJOLA-Group Personnel Fund	48,405	0.01
	OP World Index Fund	20,849	0.00
	Pohjolan Rahoitus Oy	220	0.00
8	Veritas Pension Insurance Company Ltd.	3,330,039	0.40
9	Aktia Funds	2,456,768	0.30
	Aktia Capital	1,496,682	0.18
	Aktia Secura	330,000	0.04
	Aktia Nordic	250,000	0.03
	Aktia Nordic Small Cap	165,000	0.02
	Aktia Europe Fund	160,000	0.02
	Aktia Solida Fund	40,000	0.00
	Aktia Livförsäkring AB	15,086	0.00
10	Svenska litteratursällskapet i Finland r.f.	2,437,426	0.29
11	Sigrid Jusélius Foundation	2,426,098	0.29

Metso Corporation - Board of Directors' report and financial statements 2025 |121


	Owner	Shares and votes	% of total shares and voting rights
12	Säästöpankki Kotimaa Fund	2,370,248	0.29
13	Fund Seligson & Co	2,318,550	0.28
14	Evli Finland Select Fund	2,200,000	0.27
15	Samfundet folkhälsan i Svenska Finland rf	2,143,764	0.26
16	Oy Etra Invest Ab	2,000,000	0.24
17	Danske Bank Funds	1,827,027	0.22
	Danske Invest Finnish Equity Fund	1,706,807	0.21
	Danske Invest Europe High Devidend Fund	120,220	0.01
18	The Social Insurance Institution of Finland, KELA	1,704,158	0.21
19	QRT-Invest Oy	1,347,290	0.16
20	The Finnish Cultural Foundation	1,274,102	0.15
	20 largest owner groups in total	245,768,300	29.65

	Nominee-registered holders	436,927,111	52.71
	Other shareholders	146,242,801	17.64
	In the joint book-entry account	34,228	0.00
	Total	828,972,440	100.00

Breakdown of share ownership on December 31, 2025


Number of shares	Shareholders	% of shareholders	Total number of shares and votes	% of total shares and voting rights
1–100	23,204	27.38	1,030,499	0.12
101–1,000	40,684	48.00	17,153,904	2.07
1,001–10,000	18,959	22.37	53,915,071	6.50
10,001–100,000	1,744	2.06	42,392,224	5.11
100,001–1,000,000	131	0.16	36,924,638	4.45
1,000,001 and above	20	0.03	240,594,765	29.02
Total	84,753	100.00	392,011,101	47.29

Nominee-registered shares	11	0.01	436,927,111	52.71
In the joint book-entry account	0	0.00	34,228	0.00
Number of shares issued			828,972,440	100.00

Breakdown by shareholder category on December 31, 2025


Share, %	2025	2024
Nominee-registered and non-Finnish holders	53%	52%
Solidium Oy	15%	15%
Private investors	19%	21%
Finnish institutions, companies, and foundations	13%	12%
Total	100%	100%

Flaggings

Under the provisions of the Finnish Securities Markets Act, shareholders of listed companies have an

obligation to notify both the Finnish Financial Supervision Authority and the company of changes when their

holdings reach, exceed or fall below a certain threshold. Metso is not aware of any shareholders' agreements

regarding Metso shares or voting rights. All flagging notifications have been released as a stock exchange

release are available on our website.

Incentive plans

Metso’s share ownership plans are part of the management remuneration program. For further information,

see on our website and notes 1.5. and 1.6. Any shares to be potentially rewarded are acquired through public

trading, and therefore the incentive plans have no diluting effect on the share value.

Metso Corporation - Board of Directors' report and financial statements 2025 |122

Key figures


EUR million	2025	2024	2023	2022	2021
Sales	5,240	5,026	5,390	4,970	4,236
Operating profit (EBIT)	735	749	805	490	425
% of sales	14.0%	14.9%	14.9%	9.9%	10.0%
Profit before taxes	636	670	724	426	386
% of sales	12.1%	13.3%	13.4%	8.6%	9.1%
Profit for the period for continuing operations	486	506	537	318	294
% of sales	9.3%	10.1%	10.0%	6.4%	6.9%
Profit for the period for discontinued operations	-59	-177	8	-18	48
Profit for the period	427	330	546	301	342
% of sales	8.1%	6.6%	10.1%	6.0%	8.1%
Profit attributable to shareholders of the company	423	329	543	301	342

Amortization of intangible assets	81	66	65	63	72
Depreciation of tangible assets	60	56	53	51	51
Depreciation of right-of-use assets	46	38	35	35	38
Depreciation and amortization, total	186	160	153	149	161
% of sales	3.6%	3.2%	2.8%	3.0%	3.8%

EBITA	815	815	869	553	498
% of sales	15.6%	16.2%	16.1%	11.1%	11.7%
EBITDA	921	909	957	643	587
% of sales	17.6%	18.1%	17.8%	12.9%	13.8%


EUR million	2025	2024	2023	2022	2021
Finance income and expenses, net	99	80	80	63	39
% of sales	1.9%	1.6%	1.5%	1.3%	0.9%
Interest expenses	87	84	78	44	23
% of sales	1.7%	1.7%	1.4%	0.9%	0.6%
Interest cover	9.3x	11.4x	11.9x	10.1x	14.9x

Gross capital expenditure	196	198	169	113	91
% of sales	3.7%	3.9%	3.1%	2.3%	2.1%
Net capital expenditure	183	181	165	104	69
% of sales	3.5%	3.6%	3.1%	2.1%	1.6%
Net cash flow from operating activities before financial items and taxes	974	576	550	322	608
Cash conversion, %	106%	63%	57%	50%	104%

Research and development	109	106	66	55	66
% of sales	2.1%	2.1%	1.2%	1.1%	1.6%

The income statement items for year 2024 and 2025 are comparable. The income statement items for 2023

have not been re-presented for the parts of the Metals & Chemical Processing and Heat Transfer businesses

that were transferred to continuing operations in 2025 (see Note 5.5. Discontinued operations for further

details). No restatements have been made for earlier years.

Metso Corporation - Board of Directors' report and financial statements 2025 |123


EUR million	2025	2024	2023	2022	2021
Balance sheet total	7,215	7,015	7,156	6,754	5,830
Equity attributable to shareholders	2,663	2,601	2,608	2,342	2,250
Total equity	2,676	2,611	2,618	2,350	2,251
Interest-bearing liabilities	1,595	1,606	1,528	1,293	952
Net working capital (NWC)	908	1,045	990	596	254
% of sales	17.3%	20.8%	18.4%	12.0%	6.0%
Capital employed	4,252	4,156	4,078	3,643	3,173
Return on equity (ROE), %	16.3%	12.7%	21.8%	13.1%	16.0%
Return on capital employed (ROCE) before taxes, %	15.9%	14.5%	22.3%	13.8%	14.1%
Return on capital employed (ROCE) after taxes, %	12.4%	10.5%	17.0%	10.5%	11.7%
Net debt	1,092	1,173	884	684	470
Net debt / EBITDA	1.2	1.3	0.9	1.1	1.0
Gearing, %	40.8%	44.9%	33.8%	29.1%	20.9%
Equity to asset ratio, %	41.6%	41.5%	40.2%	39.2%	43.2%
Debt to capital, %	35.4%	35.9%	35.0%	33.3%	26.7%
Debt to equity, %	54.8%	56.1%	53.9%	50.0%	36.4%

Orders received	5,471	5,278	5,252	5,623	5,605
Order backlog, December 31	3,527	3,260	3,238	3,902	3,990

Personnel at end of year	17,982	16,832	17,134	16,705	15,630

Orders received present continuing operations and are comparable for years 2024–2025. Orders received for

year 2023 have not been re-presented for the parts of the Metals & Chemical Processing and Heat Transfer

businesses that were transferred to continuing operations in 2025 (see Note 5.5. Discontinued operations for

further details). Key figures for the earlier years have not been restated.

The comparative figures related to the consolidated balance sheet have not been restated. Order backlog

and personnel at end of year include continuing and discontinued operations.

Metso Corporation - Board of Directors' report and financial statements 2025 |124

Formulas for the key figures


Earnings before finance expenses, net, taxes and amortization, adjusted (adjusted EBITA)	=	Operating profit + adjustment items + amortization
	=	Operating profit + adjustment items + amortization

Earnings per share, basic	=	Profit attributable to shareholders
Earnings per share, basic	=	Average number of outstanding shares during the year

Earnings per share, diluted	=	Profit attributable to shareholders
Earnings per share, diluted	=	Average number of diluted shares during the year

Interest cover	=	EBITDA
Interest cover	=	Finance income and expenses, net

Net debt / EBITDA	=	Interest-bearing liabilities - loan and other interest-bearing receivables (current and non-current) - liquid funds
Net debt / EBITDA	=	Operating profit + depreciation + amortization

Cash conversion, %	=	Net cash flow from operating activities before financial items and taxes	x 100
Cash conversion, %	=	EBITDA	x 100

Return on equity (ROE), %	=	Profit for the year	x 100
Return on equity (ROE), %	=	Total equity (average for the period)	x 100

Return on capital employed (ROCE) before taxes, %	=	Profit before tax + finance expenses	x 100
Return on capital employed (ROCE) before taxes, %	=	Capital employed (average for the period)	x 100

Return on capital employed (ROCE) after taxes, %	=	Profit for the period + finance expenses	x 100
Return on capital employed (ROCE) after taxes, %	=	Capital employed (average for the period)	x 100

Gearing, %	=	Net interest-bearing liabilities	x 100
Gearing, %	=	Total equity	x 100

Equity to assets ratio, %	=	Total equity	x 100
Equity to assets ratio, %	=	Balance sheet total - advances received	x 100

Debt to capital, %	=	Interest-bearing liabilities – lease liabilities	x 100
Debt to capital, %	=	Total equity + interest-bearing liabilities – lease liabilities	x 100

Debt to equity, %	=	Interest-bearing liabilities – lease liabilities	x 100
Debt to equity, %	=	Total equity	x 100

Interest-bearing liabilities	=	Interest-bearing liabilities, non-current and current + lease liabilities, non-current and current


Net interest-bearing liabilities	=	Interest-bearing liabilities - loan and other interest-bearing receivables (current and non- current) - liquid funds

Gross capital expenditure	=	Investments in intangible assets and property, plant, and equipment, and associated companies

Net capital expenditure	=	Gross capital expenditure less divestment of intangible assets and property, plant, and equipment, and associated companies

Net working capital (NWC)	=	Inventories + trade receivables + other non-interest-bearing receivables + customer contract assets and liabilities, net - trade payables - advances received - other non- interest-bearing liabilities

Capital employed	=	Net working capital + intangible assets and tangible assets + right-of-use assets + non- current investments + interest-bearing receivables + liquid funds + tax receivables, net + interest payables, net

Net cash flow from operating activities	=	Net income + depreciation and amortization and other non-cash items - change in net working capital - interests and other financial items paid (net) - taxes paid

Net cash flow from operating activities / share, EUR	=	Net cash flow from operating activities
Net cash flow from operating activities / share, EUR	=	Outstanding shares at end of period

Effective dividend yield, %	=	Dividend per share	x 100
Effective dividend yield, %	=	Trading price at the end of the year	x 100

Price / earnings ratio (P/E)	=	Trading price at the end of the year
Price / earnings ratio (P/E)	=	Earnings per share

Equity / share	=	Equity attributable to shareholders
Equity / share	=	Number of outstanding shares at the end of the period

Metso Corporation - Board of Directors' report and financial statements 2025 |125

Board of Directors’ proposal on the use of profit

On December 31, 2025, the distributable equity of Metso Corporation was:


Invested non-restricted equity fund	EUR	436,912,971.87
Own shares	EUR	-9,945,723.14
Retained earnings	EUR	348,913,274.70
Net profit for the year	EUR	352,759,210.74
Distributable equity, total	EUR	1,128,639,734.17

The Board of Directors proposes that a dividend of EUR 0.40 per share be paid based on the balance sheet

to be adopted for the financial year, which ended December 31, 2025, and the remaining portion of the profit

be retained and carried forward in the Company’s unrestricted equity. These financial statements do not

reflect this dividend payable.


Dividend payment	EUR	331,104,302.80
Distributable equity after dividend payment	EUR	797,535,431.37

These financial statements were authorized for issue by the Board of Directors on February 11 , 2026, after

which, in accordance with Finnish Company Law, the financial statements are either approved, amended,

or rejected in the Annual General Meeting.

Metso Corporation - Board of Directors' report and financial statements 2025 |126

Financial

statements

Metso Corporation - Board of Directors' report and financial statements 2025 |127

Financial statements


Consolidated financial statements, IFRS .................................	128
Financial statements of the Parent company, FAS .................	196


Signatures of the Board of Directors’ report and financial statements 2025 .........................................................................	210
Auditor’s Report .........................................................................	211
Assurance Report On The Sustainability Statement .............	216
Independent Auditor’s Report on the ESEF Consolidated Financial Statements of Metso Corporation ...........................	218

Metso Corporation - Board of Directors' report and financial statements 2025 |128

Consolidated financial

statements, IFRS


Consolidated statement of income ..........................................	129
Consolidated statement of comprehensive income ..............	129
Consolidated balance sheet .....................................................	130
Consolidated statement of changes in shareholders’ equity	131
Consolidated statement of cash flows ....................................	132
Notes to the Consolidated financial statements ....................	133
Basic information ..............................................................................	134
1. Group performance ...................................................................	137
2. Operational assets and liabilities ..............................................	154
3. Intangible and tangible assets ..................................................	163
4. Capital structure and financial instruments .............................	171
5. Consolidation ..............................................................................	185
6. Other notes .................................................................................	195

Metso Corporation - Board of Directors' report and financial statements 2025 |129

Consolidated statement of income


			Restated¹
EUR million	Note	2025	2024
Sales	1.1., 1.2.	5,240	5,026
Cost of sales	1.5., 3.4.	-3,561	-3,356
Gross profit		1,679	1,669

Selling and marketing expenses	1.3., 1.5., 3.4.	-465	-435
Administrative expenses	1.3., 1.5., 3.4.	-402	-364
Research and development expenses	1.3., 1.5., 3.4.	-109	-106
Other operating income	1.4.	230	204
Other operating expenses	1.4.	-198	-219
Share of results of associated companies	5.3.	0	0
Operating profit		735	749

Finance income	1.7.	13	22
Foreign exchange gains/losses	1.7.	-4	4
Finance expenses	1.7.	-107	-105
Finance income and expenses, net		-99	-80

Profit before taxes		636	670

Income taxes	1.8.	-150	-163
Profit for the year for continuing operations		486	506

Profit from discontinued operations	5.5.	-59	-177
Profit for the year		427	330

Profit attributable to
Shareholders of the Parent company		423	329
Non-controlling interests		4	1

Profit from continuing operations attributable to
Shareholders of the Parent company		482	505
Non-controlling interests		4	1

Profit from discontinued operations attributable to
Shareholders of the Parent company		-59	-177
Non-controlling interests		–	–

Earnings per share, EUR ¹⁾	1.9.	0.51	0.40
Earnings per share, continuing operations, EUR ¹⁾	1.9.	0.58	0.61
Earnings per share, discontinued operations, EUR ¹⁾		-0.07	-0.21

¹⁾ Basic and diluted.

Consolidated statement of comprehensive income


			Restated¹
EUR million	Note	2025	2024
Profit for the year		427	330

Other comprehensive income
Cash flow hedges, net of tax	1.8., 4.4., 4.8.	-2	4
Currency translation on subsidiary net investment	1.8., 4.4.	-43	-37
Items that may be reclassified to profit or loss in subsequent periods		-44	-34

Defined benefit plan actuarial gains and losses, net of tax	1.8., 2.7.	-4	0
Items that will not be reclassified to profit or loss		-4	0

Other comprehensive income total		-49	-34

Total comprehensive income		378	296

Total comprehensive income attributable to
Shareholders of the Parent company		374	294
Non-controlling interests		4	1

Total comprehensive income from continuing operations attributable to
Shareholders of the Parent company		433	471
Non-controlling interests		4	1

Total comprehensive income from discontinued operations attributable to
Shareholders of the Parent company		-59	-177
Non-controlling interests		–	–

¹Further information is provided in Note 5.5. Discontinued operations .

Metso Corporation - Board of Directors' report and financial statements 2025 |130

Consolidated balance sheet

Assets


EUR million	Note	2025	2024
Non-current assets
Goodwill and intangible assets	3.1., 3.4.
Goodwill		1,277	1,123
Intangible assets		811	803
Total goodwill and intangible assets		2,088	1,927

Property, plant and equipment	3.2., 3.4.
Land and water areas		46	38
Buildings		152	159
Machinery and equipment		247	228
Assets under construction		164	124
Total property, plant and equipment		609	549

Right-of-use assets	3.3., 3.4.	123	136

Other non-current assets
Investments in associated companies	5.3.	0	3
Non-current financial assets	4.2.	1	2
Loan receivables	4.2.	–	0
Derivative financial instruments	4.8.	6	9
Deferred tax assets	1.8.	242	259
Other non-current receivables	2.3., 4.2.	30	27
Total other non-current assets		280	300

Total non-current assets		3,100	2,913

Current assets
Inventories	2.4.	1,903	1,900
Trade receivables	2.2.	1,051	900
Customer contract assets	1.2.	213	255
Loan receivables	4.2.	2	2
Derivative financial instruments	4.8.	25	34
Income tax receivables	1.8.	78	61
Other current receivables	2.3.	300	245
Liquid funds	4.3.	501	431
Total current assets		4,072	3,826

Assets held for sale	5.5.	42	276

TOTAL ASSETS		7,215	7,015

Equity and liabilities


EUR million	Note	2025	2024
Equity	4.4.
Share capital		107	107
Share premium fund		20	20
Cumulative translation adjustments		-257	-215
Fair value and other reserves		1,138	1,137
Retained earnings		1,655	1,551
Equity attributable to shareholders		2,663	2,601

Non-controlling interests		14	10

Total equity		2,676	2,611

Liabilities
Non-current liabilities
Borrowings	4.2., 4.5.	1,369	1,300
Lease liabilities	4.2., 4.5.	85	99
Post-employment benefit obligations	2.7.	85	88
Provisions	2.6.	45	62
Derivative financial instruments	4.8.	9	13
Deferred tax liabilities	1.8.	201	172
Other non-current liabilities	2.5.	1	5
Total non-current liabilities		1,796	1,739

Current liabilities
Borrowings	4.2., 4.5.	98	165
Lease liabilities	4.2.	42	42
Trade payables	2.5.	671	581
Provisions	2.6.	207	201
Advances received	1.2.	518	495
Customer contract liabilities	1.2.	267	232
Derivative financial instruments	4.8.	26	68
Income tax liabilities	1.8.	88	79
Other current liabilities	2.5.	802	587
Total current liabilities		2,720	2,451

Total non-current and current liabilities		4,515	4,190

Liabilities held for sale	5.5.	24	214

TOTAL EQUITY AND LIABILITIES		7,215	7,015

Metso Corporation - Board of Directors' report and financial statements 2025 |131

Consolidated statement of changes in shareholders’ equity


EUR million	Share capital	Share premium fund	Cumulative translation adjustments	Fair value and other reserves	Retained earnings	Equity attributable to share- holders	Non-controlling interests	Total equity
Jan 1, 2025	107	20	-215	1,137	1,551	2,601	10	2,611

Profit for the year	–	–	–	–	423	423	4	427

Other comprehensive income
Cash flow hedges, net of tax	–	–	–	-2	–	-2	–	-2
Currency translation on subsidiary net investments	–	–	-43	–	–	-43	–	-43
Defined benefit plan actuarial gains (+) / losses (-), net of tax	–	–	–	–	-4	-4	–	-4
Total comprehensive income	–	–	-43	-2	419	374	4	378

Dividends	–	–	–	–	-315	-315	0	-315
Share-based payments, net of tax	–	–	–	3	-3	0	–	0
Other items	–	–	–	–	1	1	1	2
Changes in non-controlling interests	–	–	–	–	1	1	-1	–
Dec 31, 2025	107	20	-257	1,138	1,655	2,663	14	2,676


EUR million	Share capital	Share premium fund	Cumulative translation adjustments	Fair value and other reserves	Retained earnings	Equity attributable to share- holders	Non- controlling interests	Total equity
Jan 1, 2024	107	20	-177	1,131	1,527	2,608	10	2,618

Profit for the year	–	–	–	–	329	329	1	330

Other comprehensive income
Cash flow hedges, net of tax	–	–	–	4	–	4	–	4
Currency translation on subsidiary net investments	–	–	-37	–	–	-37	–	-37
Defined benefit plan actuarial gains (+) / losses (-), net of tax	–	–	–	–	0	0	–	0
Total comprehensive income	–	–	-37	4	328	294	1	296

Dividends	–	–	–	–	-298	-298	0	-298
Share-based payments, net of tax	–	–	–	2	-8	-5	–	-5
Other items	–	–	–	0	0	1	0	1
Changes in non-controlling interests	–	–	–	–	1	1	-1	–
Dec 31, 2024	107	20	-215	1,137	1,551	2,601	10	2,611

For more information, please see note 4.4 Equity .

Metso Corporation - Board of Directors' report and financial statements 2025 |132

Consolidated statement of cash flows


			Restated ¹
EUR million	Note	2025	2024
Operating activities
Profit for the period, continuing operations		486	506
Profit for the period, discontinued operations		-59	-177
Adjustments
Depreciation and amortization	3.4.	186	165
Finance expenses, net	1.7.	99	80
Income taxes	1.8.	150	88
Other items		42	33
Change in net working capital	2.1.	70	-119
Net cash flow from operating activities before financial items and taxes		974	576
Interests paid		-80	-82
Interests received		10	20
Other financing items, net		26	1
Finance income and expenses paid, net		-44	-62
Income taxes paid	1.8.	-152	-183
Net cash flow from operating activities		779	332

Investing activities
Capital expenditures on intangible assets and property, plant, and equipment	3.1., 3.2.	-152	-188
Proceeds from sale of intangible assets and property, plant, and equipment	3.1., 3.2.	8	28
Proceeds from financial assets	4.6.	–	0
Business acquisitions, net of cash acquired	5.4.	-136	-60
Proceeds from sale of businesses, net of cash sold	5.4., 5.5.	0	-4
Increase in loan receivables	5.3.	0	0
Decrease in loan receivables	4.6.	1	1
Dividends received from associated companies	4.6.	1	–
Net cash flow from investing activities		-277	-224


			Restated ¹
EUR million	Note	2025	2024
Financing activities
Dividends paid		-315	-298
Proceeds from increases in non-current debt	4.5., 4.6.	373	379
Repayment of non-current debt	4.5., 4.6.	-378	-342
Proceeds from and repayment of current debt, net	4.5., 4.6.	-36	-16
Repayment of lease liabilities	4.5., 4.6.	-46	-38
Net cash flow from financing activities		-403	-315

Net change in liquid funds		98	-207
Effect from changes in exchange rates		-19	0
Liquid funds equivalents at beginning of year	4.3., 4.6.	431	638
Liquid funds at end of year	4.3., 4.6.	511	431
Of which continuing operations at the end of year		501	431
Of which discontinued operations at the end of year		10	–

¹Further information is provided in Note 5.5. Discontinued operations.

Metso Corporation - Board of Directors' report and financial statements 2025 |133

Notes to the Consolidated financial statements


Basic information .......................................................................	134
1. Group performance .............................................................	137
1.1. Reporting segments .................................................................	137
1.2. Sales ...........................................................................................	141
1.3. Selling, general, and administrative expenses ......................	144
1.4. Other operating income and expenses ................................	145
1.5. Personnel expenses and number of personnel ....................	145
1.6. Share-based payments ............................................................	147
1.7. Finance income and expenses ...............................................	149
1.8. Income taxes ............................................................................	150
1.9. Earnings per share ...................................................................	153
2. Operational assets and liabilities .......................................	154
2.1. Net working capital and capital employed ...........................	154
2.2. Trade receivables ....................................................................	154
2.3. Other receivables ....................................................................	155
2.4. Inventory ..................................................................................	156
2.5. Trade and other payables ......................................................	157
2.6. Provisions .................................................................................	158
2.7. Post-employment obligations ................................................	159
3. Intangible and tangible assets ...........................................	163
3.1. Goodwill and intangible assets ..............................................	163
3.2. Property, plant, and equipment .............................................	167
3.3. Right-of-use assets ..................................................................	169
3.4. Depreciation and amortization ..............................................	170


4. Capital structure and financial instruments ......................	171
4.1. Financial risk management .....................................................	171
4.2. Financial assets and liabilities by category ...........................	176
4.3. Liquid funds .............................................................................	178
4.4. Equity ........................................................................................	178
4.5. Borrowings and lease liabilities .............................................	180
4.6. Interest-bearing net debt reconciliation ...............................	181
4.7. Contingent liabilities and other commitments .....................	182
4.8. Derivative instruments ............................................................	182
5. Consolidation .......................................................................	185
5.1. Principles of consolidation ......................................................	185
5.2. Subsidiaries ...............................................................................	186
5.3. Associated companies and related party transactions .......	188
5.4. Acquisitions and business disposals .....................................	189
5.5. Discontinued operations .........................................................	191
5.6. New accounting standards ....................................................	194
5.7. Exchange rates used ...............................................................	194
6. Other notes ..........................................................................	195
6.1. Audit fees ..................................................................................	195
6.2. Lawsuits and claims .................................................................	195
6.3. Events after the financial year ...............................................	195

Metso Corporation - Board of Directors' report and financial statements 2025 |134

Basic information

Metso Corporation (the “Parent company”) with its subsidiaries (“Metso” or the “Group”) is a leading global

supplier of sustainable technologies, end-to-end solutions and services for the aggregates, minerals

processing, and metals refining industries. The Group has two reporting segments, Aggregates and Minerals.

More information about the segments is presented in note 1.1.

Metso Corporation is a publicly quoted company with its shares listed on Nasdaq Helsinki under the trading

symbol METSO. Metso Corporation is domiciled in Helsinki, Finland, and the address of the Group Head

Office is Rauhalanpuisto 9, 02230 Espoo, Finland.

Metso’s Consolidated financial statements were authorized for issue by Metso Corporation’s Board of

Directors on February 11, 2026, after which, in accordance with Finnish Companies Act, the financial

statements are either approved, amended or rejected at the next Annual General Meeting.

Basis of preparation

Consolidated financial statements have been prepared in accordance with IFRS Accounting Standards and related

IFRIC Interpretations as adopted by the European Union. The Consolidated financial statements have been prepared

on a historical cost basis, except for financial assets and liabilities classified as at fair value through profit and loss

accounts.

Metso has classified certain businesses to be as held for sale.More information is disclosed under Note 5.5.

Discontinued operations.

The financial statements are presented in euros, which is the Parent company’s functional currency and Metso’s

presentation currency. The figures presented have been rounded; consequently, the sum of individual figures might

differ from the presented total figure.

The detailed Metso’s accounting policies are disclosed under each relevant note of the Consolidated financial

statements.

Metso Corporation - Board of Directors' report and financial statements 2025 |135

Critical accounting estimates and judgments by Management

The preparation of financial statements, in conformity with the IFRS, requires management to make estimates and

assumptions and to exercise its judgment in the process of applying the Group’s accounting policies. These affect

the reported amounts of balance sheet items, the presentation of contingent assets and liabilities, and the income

and expenses for the financial year. Actual results may differ from the estimates made. The assets and liabilities

involving a higher degree of judgment or complexity, or areas where the assumptions and estimates are significant

to Metso’s Consolidated financial statements, are outlined as follows, and described more detailed in the related

notes.

Management estimates

The preparation of Metso’s consolidated financial statements requires the use of estimates affecting the reported

monetary amounts. These estimates are based on information available at the reporting date and are updated when

circumstances or expectations change. The areas in which such estimates are applied are listed below and further

described in the related notes

• 1.2. Sales

Estimating variable consideration and measuring revenue based on percentage‑of‑completion.

• 1.6. Share‑based payments

Estimating fair value by applying valuation model assumptions.

• 1.8. Income taxes

Estimating future taxable profits affecting the recoverability of deferred tax assets.

• 2.2. Trade receivables

Estimating expected credit losses.

• 2.4. Inventory

Estimating net realizable value, including assessments of obsolescence and slow‑moving inventory.

• 2.6. Provisions

Estimating the amount and timing of provisions.

• 2.7. Post‑employment obligations

Applying actuarial assumptions.

• 3.1. Goodwill and intangible assets

Estimating assumptions used in impairment testing, including useful lives, residual values, and impairment

indicators.

• 3.2. Property, plant & equipment

Estimating useful lives, residual values, and impairment indicators.

• 3.3. Right‑of‑use assets

Estimating the incremental borrowing rate and impairment assumptions.

• 5.4. Acquisitions & disposals

Measuring the fair value of acquired assets and liabilities.

• 5.5. Discontinued operations

Assessing classification as discontinued operations and measuring disposal groups at the lower of carrying amount

and fair value less costs to sell.

Management judgments

Management judgment is required in situations where the application of accounting policies involves interpretation.

The areas in which such judgments have been applied are listed below and further detailed in the respective notes.

• 1.2. Sales

Identifying distinct performance obligations, determining whether revenue is recognized over time or at a point in

time, and assessing whether contract modifications constitute separate contracts.

• 1.6. Share‑based payments

Classifying awards as equity settled or cash settled and determining whether performance conditions are market

or non market conditions.

• 1.8. Income taxes

Assessing the recognition of deferred tax assets and determining positions on uncertain tax treatments.

• 2.2. Trade receivables

Assessing whether a significant financing component exists and determining when receivables become credit

impaired.

• 2.3. Other receivables

Determining whether balances meet the IFRS 15 requirements for contract assets.

• 2.4. Inventory

Determining whether certain costs should be classified as inventory or expensed as incurred.

• 2.6. Provisions

Determining whether a present obligation exists, assessing the probability of an outflow of resources, and

determining whether a contract is onerous.

• 2.7. Post‑employment obligations

Determining whether a plan is classified as defined benefit or defined contribution and assessing the existence of

constructive obligations.

• 3.1. Goodwill and intangible assets

Identifying and allocating cash generating units and determining whether intangible assets have finite or indefinite

useful lives.

• 3.2. Property, plant and equipment

Identifying components for depreciation and assessing whether expenditures qualify for capitalization.

• 3.3. Right‑of‑use assets

Determining whether a contract contains a lease and assessing the likelihood of exercising extension or

termination options.

• 5.4. Acquisitions & disposals

Determining whether a transaction constitutes a business combination or an asset acquisition.

• 5.5. Discontinued operations

Assessing whether a disposal group meets the criteria to be classified as held for sale and whether a disposal

qualifies as discontinued operations.

Metso has reviewed the estimates and assumptions used in the preparation of the Consolidated financial statements

for the possible impacts of climate change. Metso has performance share plans which have an earning criteria based

on sustainable development (Note 1.6. Share-based payments).

Metso Corporation - Board of Directors' report and financial statements 2025 |136

Abbreviations used in the financial statements and Board of Directors' report,

including the Sustainability statement and Corporate governance statement


AGM	Annual General Meeting
AI	Artificial Intelligence
ARC	Audit and Risk Committee
Capex	Capital expenditure
CBAM	Carbon Border Adjustment Mechanism
CGU	Cash generating unit
CO2e	Carbon dioxide equivalent
CODM	Chief operating decision-maker
COSO	Committee of sponsoring organizations
CSR	Corporate social responsibility
CSRD	Corporate Sustainability Reporting Directive
D&I	Diversity and inclusion
DMA	Double materiality assessment
DMO	Distribution Management Organization
DNSH	Does not significantly harm
DRI	Direct reduced iron
EBIT	Earnings before net finance expenses and taxes (operating profit)
EBITA	Earnings before net finance expenses, taxes, and amortization
EBITDA	Earnings before net finance expenses, taxes, amortization, and depreciation
EGM	Extraordinary general meeting
EHS	Environment, health and safety
EMTN	Euro Medium Term Note program
EN ISO	International Organization for Standardization, European Norm
eNPS	Employee net promoter score
EPS	Earnings per share
ERM	Enterprise risk management
ERP	Enterprise resource planning
ESG	Environmental, social, and governance
ESRS	European Sustainability Reporting Standards


EUDR	European Union deforestation regulation
FAS	Finnish accounting standards
FIN-FSA	Finnish Financial Supervisory Authority
FVOCI	Fair value through Other comprehensive income
FVPL	Fair value through Profit and loss
GHG	Greenhouse gases
GRI	Global reporting initiative
H&S	Health and safety
HR	Human resources
HSE	Health, safety, and environment
IEA	International Energy Agency
IFRIC	Interpretations of International Accounting Standards
IFRS/IAS	International Accounting Standards
ILO	International Labor Organization
IPCC	Intergovernmental Panel on Climate Change
IROs	Impacts, risks and opportunities
ISDA	Master agreement of International Swaps and Derivatives Association
ISO	International Standardization Organization
KBA	Key biodiversity areas
KPI	Key performance indicator
LPG	Liquefied petroleum gas
LSP	Logistics service providers
LTI	Long-term incentive
MAR	Market Abuse Regulation
MLT	Metso Leadership Team
NACE	Nomenclature of economic activities
NGO	Non-governmental organization
NIS2	Network and Information Security Directive
NPS	National pension scheme
NWC	Net working capital


OCI	Other comprehensive income
OECD	Organization for Economic Co-operation and Development
OpEx	Operating expenditure
OSHA	Occupational Safety and Health Administration (US)
OTC	Over the counter
P/E	Price/earnings ratio
pCAM	Precursor cathode active material
PPE	Property, plant, and equipment
PSP	Performance share incentive plan
QEHS	Quality, environment, health, and safety
R&D	Research and development
RFR	Relief from royalty method
RHRC	Remuneration and HR Committee
ROCE	Return on capital employed
ROE	Return on equity
RSP	Restricted share incentive plan
SASB	Sustainability Accounting Standards Board
SBT	Science-based target
SBTi	Science-based targets iniative
SDG	Sustainable development goals
SME	Small- and medium-sized enterprises
STI	Short-term incentive
TCFD	Task Force on Climate-related Financial Disclosures
TRIFR	Total recordable injury frequency rate
TSR	Total shareholder return
VAT	Value-added tax
VOC	Volatile organic compounds
WACC	Weighted average cost of capital

Metso Corporation - Board of Directors' report and financial statements 2025 |137

1. Group performance

1.1. Reporting segments

Material accounting policies

Reportable segments of Metso are based on end customer groups, which are differentiated by both offering and

business model: Aggregates and Minerals. The segments are reported in a manner consistent with the internal

reporting provided to the Board of Directors, Metso’s chief operating decision-maker (CODM) responsible for

allocating resources and assessing the performance of the segments, deciding on strategy, selecting key employees,

as well as deciding on major development projects, business acquisitions, investments, organizational structure and

financing. The accounting principles applied to segment reporting are the same as those used in preparing the

Consolidated financial statements.

Segment performance is measured with operating profit/loss (EBIT). In addition, Metso uses alternative performance

measures to reflect the underlying business performance and to improve comparability between financial periods:

earnings before interest, tax and amortization (EBITA), adjusted and net working capital. Adjustment items comprise

capacity adjustment costs, acquisition costs, gains and losses on business transactions, administrative expenses

related to business acquisitions and disposals, as well as changes in the fair value of shares. Their nature and net

effect on cost of goods sold, selling, general and administrative expenses, as well as other income and expenses are

presented in the segment information. Alternative performance measures, however, should not be considered as a

substitute for measures of performance in accordance with the IFRS.

Corporate structure

Metso's business

Metso's strategy is built around four strategic objectives: providing the best customer experience, increasing

the share of aftermarket sales, being a pioneer in sustainability and safety, and achieving financial excellence.

These strategic priorities are included in the segment performance measures monitored by the chief

operating decision maker, which are primarily net sales and operating profit, as well as adjusted EBITA.

Metso's extensive equipment and aftermarket offering covers a wide range of equipment, parts and services

to effectively meet the needs of our customers all over the world. Metso drives profitable growth and

sustainable operations across its customer industries, in line with its 1.5-degree climate commitment, to create

value for its customers, shareholders and other stakeholders. Metso focuses on supporting the electrification

and decarbonization of the mining and aggregates industries, while ensuring rapid increase in the production

of energy transition minerals. This can be achieved through its extensive equipment and aftermarket offering

for its customers. Metso’s offering helps its customers to maintain and increase production, improve

productivity, and reduce operating costs, risks and environmental footprint. Metso continuously develops its

portfolio to meet its customers’ growing needs for energy and emissions reductions, water resources

management, resource efficiency, circularity and safety.

The reportable segments of Metso are Aggregates and Minerals. Aggregates serves quarry and contractor

customers by offering crushing and screening equipment to produce aggregates needed in construction and

infrastructure projects. Minerals serves mining industry customers by providing equipment, process islands

and plants for minerals processing, and hydrometallurgical and pyrometallurgical solutions for the recovery of

metals. Group Head Office and other is comprised of the Parent company with centralized group functions,

such as treasury, tax, legal and compliance, as well as the global business services and holding companies.

Finance income and expenses as well as income taxes are not allocated to segments but included in the

income statement of Group Head Office and other. The treasury activities of Metso are centralized into the

Group Treasury to benefit from cost efficiency obtained from pooling arrangements, financial risk

management, bargaining power, cash management, and other measures. Metso has a centralized Group tax

management function. The objective of Group tax management is to ensure tax compliance and an optimized

and predictable overall tax cost for Metso.

Segment net working capital assets comprises inventories and non-interest-bearing operating assets and

receivables. Segment net working capital liabilities comprise non-interest-bearing operating liabilities.

Non-cash write-downs include write-offs made to the value of receivables and inventories, and impairment

and other write-offs recognized to reduce the value of intangible assets or property, plant, and equipment

and other assets.

Gross capital expenditure comprises investments in intangible assets as well as property, plant, and

equipment, and associated companies.

Intra-group transactions are made on an arm’s length basis.

Figures in the tables comprise continuing operations if not otherwise stated. Comparative information for year

2024 has been re-presented. For more information, see Note 5.5. Discontinued operations.

Metso Corporation - Board of Directors' report and financial statements 2025 |138

Segment information


2025 EUR million	Aggregates	Minerals	Group Head Office and Other	Total
Sales, external	1,266	3,974	–	5,240
Sales, total	1,266	3,974	–	5,240

Earnings before interest, tax and amortization (EBITA)	191	671	-46	815
% of sales	15.1	16.9	–	15.6

Adjusted EBITA	196	680	-47	829
% of sales	15.5	17.1	–	15.8

Adjustment items and amortization of intangible assets
Adjustment items total	-5	-9	1	-14
Amortization of other intangible assets total	-21	-55	-4	-81

Operating profit / loss	169	616	-51	735
% of sales	13.4	15.5	–	14.0

Finance income and expenses, total			-99	-99

Income before taxes	169	616	-149	636

Adjustments items by category
Capacity adjustment costs	-5	-35	-3	-43
Business acquisitions	0	-1	4	3
Revaluation of shares	–	27	–	27
Profits on disposals, net	–	–	-1	-1
Wind-down of Russian business	–	0	–	0
Adjustments items, total	-5	-9	1	-14


2024, restated EUR million	Aggregates	Minerals	Group Head Office and Other	Total
Sales, external	1,207	3,819	–	5,026
Sales, total	1,207	3,819	–	5,026

Earnings before interest, tax and amortization (EBITA)	195	620	1	815
% of sales	16.2	16.2	–	16.2

Adjusted EBITA	198	665	-34	830
% of sales	16.4	17.4	–	16.5

Adjustment items and amortization of intangible assets
Adjustment items total	-3	-45	34	-14
Amortization of other intangible assets total	-16	-49	-1	-66

Operating profit / loss	179	570	0	749
% of sales	14.8	14.9	–	14.9

Finance income and expenses, total			-80	-80

Income before taxes	179	570	-80	670

Adjustments items by category
Capacity adjustment costs	-3	-43	1	-45
Acquisition costs	0	0	–	-1
Revaluation of shares	–	–	–	–
Profits on disposals, net	–	–	-4	-4
Wind down of Russian business	0	-2	37	35
Adjustments items, total	-3	-45	34	-14

Metso Corporation - Board of Directors' report and financial statements 2025 |139


2025 EUR million	Aggregates	Minerals	Group Head Office and Other	Total
Inventories	542	1,361	–	1,903
Trade receivables	283	767	–	1,051
Other non-interest bearing receivables	107	188	66	362
Customer contract assets and liabilities, net	11	-65	–	-54
Trade payables	-187	-479	-5	-671
Advances received	-72	-446	–	-518
Other non-interest-bearing liabilities	-161	-929	-75	-1,165
Net working capital	524	398	-14	908

2024 EUR million	Aggregates	Minerals	Group Head Office and Other	Total
Inventories	663	1,236	–	1,900
Trade receivables	232	668	–	900
Other non-interest bearing receivables	53	170	91	314
Customer contract assets and liabilities, net	10	12	–	22
Trade payables	-150	-396	-35	-581
Advances received	-91	-404	–	-495
Other non-interest-bearing liabilities	-166	-678	-172	-1,015
Net working capital	551	609	-115	1,045

Geographical information

Material accounting policies

Metso presents the geographical distribution of the segments’ sales by location of customers. Non-current assets

and gross capital expenditure are presented by location of assets.

Metso's businesses are present in more than 50 countries, providing strong diversification. The distribution of

sales is fairly uniform across various region: Europe 21%, North and Central America 21%, South America 20%,

Asia Pacific 18% and Africa, Middle East and India 20%. Metso has a global network of production units

located in key continents.

Sales to unaffiliated customers by destination


EUR million	2025	2024
Europe	1,111	969
North and Central America	1,081	1,088
South America	1,064	1,148
APAC	936	1,068
Africa, Middle East & India	1,048	754
Sales	5,240	5,026

Countries with a share of Metso's total sales exceeding 10% was the United States of America 13% or EUR 682

million. In 2024 countries exceeding 10% were the United States of America 13% or EUR 654 million and Chile

10% or EUR 512 million. Finland's share of sales was 2% or EUR 81 million (3% or EUR 145 million in 2024).

Metso Corporation - Board of Directors' report and financial statements 2025 |140

Metso's exports from Finland by destination, including intra-group sales


EUR million	2025	2024
Europe	545	418
North and Central America	233	227
South America	215	230
APAC	384	404
Africa, Middle East & India	604	382
Total	1,981	1,661

Non-current assets by location


EUR million	2025	2024
Europe	367	338
North and Central America	167	242
South America	136	121
APAC	122	142
Africa, Middle East & India	94	120
Non-allocated	1,966	1,682
Total	2,852	2,644

In 2025, only Finland’s share of Metso’s geographically allocated non‑current assets exceeded 10%, amounting

to 30% or EUR 266 million. In 2024, the threshold was exceeded by Finland with a share of 24% or

EUR 227 million, and by India with a share of 11% or EUR 106 million.

Non-current assets presented in the previous table comprise intangible assets and property, plant and

equipment, investments in associated companies, equity investments and other non-interest-bearing non-

current assets. Non-allocated assets include mainly goodwill and other assets arising from business

acquisitions that have not been recorded in the subsidiaries’ financial statements.

Gross capital expenditure by location


EUR million	2025	2024
Europe	113	76
North and Central America	26	45
South America	34	47
APAC	13	20
Africa, Middle East & India	10	11
Total	196	198

Gross capital expenditure comprises investments in intangible assets and property, plant, and equipment, and

associated companies. Right-of-use assets are not included in the gross capital expenditure calculation.

Metso Corporation - Board of Directors' report and financial statements 2025 |141

1.2. Sales

Material accounting policies

Metso applies IFRS 15 Revenue from Contracts with Customers. The principle is that sales are recognized at an

amount that reflects the consideration which Metso expects to receive in exchange for transferring goods or services

to a customer. Sales are recognized when the control of goods or services is transferred to a customer. Control is

transferred either at a point in time or over time.

When Metso provides standardized equipment and wear or spare parts to customers, sales are recognized at a point

in time when control for the goods is transferred, typically at the delivery of the goods or after commissioning. Sales

to distributors are recognized at delivery, when the distributor is not acting as an agent. If the distributor is acting as

an agent, sales are recognized only when delivered to an ultimate client.

When Metso provides customized engineered system deliveries, where the asset produced does not have alternative

use and Metso has enforceable right to payment for the performance completed to date, sales are recognized over

time. Sales recognition is based on estimated sales, costs and profit. Metso measures the progress using the cost-to-

cost method, where sales and profits are recorded after considering the ratio of accumulated costs to estimated

total costs to complete each contract. This method is considered to best reflect the satisfaction of the performance

obligation. The estimated sales, costs and profit, together with the planned delivery schedule of the contract, are

subject to regular revisions as the contract progresses to completion. Revisions in profit estimates as well as any

projected potential loss on contract are charged through the profit and loss account in the period in which they

become known.

Sales from providing services are recognized when the performance obligation is satisfied. For long-term fixed price

service contracts, sales are recognized over time, because the customer simultaneously receives and consumes the

services provided by Metso. The measure of progress is based on costs of actual services provided as a proportion

of the costs of total services to be rendered. The estimated sales, costs and profit, together with the planned

delivery schedule of the contract, are subject to regular revisions as the contract progresses to completion. Revisions

in contract estimates as well as any projected potential loss on contract are charged through the profit and loss

account in the period in which they become known.

For short-term service contracts with hourly fee based on valid price list, sales are recognized to the extent Metso

has the right to invoice the customer, and for service contracts with fixed hourly fee agreed in the contract, sales are

recognized based on invoicing.

Customer contracts may include promises such as volume-based rebates and liquidated damages attributable to, for

instance, delayed delivery or non-performance. The impact of these promises on the final consideration will be

estimated when recognition is started and systematically during the contract period. Sales will be recognized to the

extent that Metso is entitled to consideration. Also, creditworthiness of the client and collectability of the

consideration is assessed throughout the contract period. Extended warranties are treated as a separate

performance obligation and an appropriate transaction price is allocated to them and recognized in sales when

occurred.

Metso often requires advance payments from customers. Applying IFRS 15, advances received do not include a

financing component, because the payment schedule of them follows closely the timing of performance obligations

to be satisfied.

Estimates and assessments by Management

Sales recognized at a point in time may require judgment on facts and circumstances when the control is considered

to have passed to the client, affecting on timing of sales to be recognized. Transfer of the control is assessed mainly

based on terms of delivery in the contract and local legislation. Customer contracts including clauses on rebates, late

delivery penalties, right to return promises or extended warranties requires management judgment on the probability

of such clauses to have an effect on contracts sales. Judgments are based on earlier experience and market practice

when available.

Sales recognized over time is based on cost-to-cost method, which requires management to be able to estimate

total sales, costs, margin, and cash flow to complete the project. The assessment of the progress and margin to be

recognized as well as the total costs estimated to complete the contracts requires judgments by management

throughout the contract period. The most critical judgments are needed in case of a loss-making contract when

estimating the performance needed to be able to satisfy the contract. Changes in general market conditions and the

possible impact on the contracts needs to be predicted as well. The credit worthiness of the customer is verified, and

collectability of the consideration assessed before entering a contract. However, a risk of non-payment might arise

afterwards, and it requires management judgment on the impact on final sales recognition.

Hedging of foreign currency denominated firm commitments

Metso hedging policy requires business units to hedge their foreign currency risk when they become engaged in a

firm commitment denominated in a currency other than their functional currency. The Treasury Policy specifies

certain currencies and certain legal units, where the open exposures are left unhedged. Similarly open exposures

below certain euro nominated amount are left unhedged. When a firm commitment qualifies for overtime

recognition, the business unit applies hedge accounting and recognizes the effect of the hedging instruments in

other comprehensive income (OCI) until the commitment is recognized. Though Metso has defined the

characteristics triggering a firm commitment, the final realization of the unrecognized commitment depends also on

factors beyond management control, which cannot be foreseen when initiating the hedging relationship. Such

factors can be a change in the market environment causing the other party to postpone or cancel the commitment.

To the extent possible, management strives to include clauses in its contracts that reduce the impact of such adverse

events on its results.

Metso Corporation - Board of Directors' report and financial statements 2025 |142

Disaggregation of sales

Figures in the tables comprise continuing operations. Comparative information for the year 2024 has been re-

presented. For more information, see Note 5.5. Discontinued operations .

External sales by category


2025
EUR million	Aggregates	Minerals	Total
Aftermarket	403	2,402	2,805
Projects, equipment and goods	863	1,572	2,435
Sales total	1,266	3,974	5,240

2024
EUR million	Aggregates	Minerals	Total
Aftermarket	419	2,427	2,846
Projects, equipment and goods	788	1,392	2,180
Sales total	1,207	3,819	5,026

Metso’s sustainable offering portfolio is called Metso Plus, and it is central to Metso’s sustainability agenda

and the 1.5 °C journey. Metso’s products, processes and services are designed to help customers operate

safely, achieve higher productivity, and reduce their resource intensity. The Metso Plus offering includes

solutions that offer improvements in reducing energy and carbon intensity, water use, pollution, and

embedded carbon compared to an industry baseline or benchmark technology. In addition, these products

are required to perform at the same or preferably higher level than the industry benchmark in terms of their

health and safety, pollution, and biodiversity impact. Electric solutions are an important part of the portfolio;

Metso’s offering for the mining and metals refining industries allows customers to choose renewable energy

sources. Metso Plus sales in 2025 were EUR 1,458 million (EUR 1,418 million in 2024).

Metso Plus offering includes over 100 products and services that are more energy-efficient than an industry

benchmark or a previous-generation product in the market. Metso aims to keep expanding and improving

this offering to have the sustainable alternative in every part of its customers’ value chain. Metso Plus offering

is designed to deliver customers more performance where it’s most needed. Metso Plus delivers measurable

sustainability improvements such as resource optimization, enhanced energy and water efficiency, and lower

CO₂ emissions.

External sales by timing of sales recognition


2025
EUR million	Aggregates	Minerals	Total
At a point in time	1,232	2,746	3,978
Over time	34	1,228	1,262
Sales total	1,266	3,974	5,240

2024
EUR million	Aggregates	Minerals	Total
At a point in time	1,175	2,944	4,119
Over time	32	874	907
Sales total	1,207	3,819	5,026

External sales by destination


2025
EUR million	Aggregates	Minerals	Total
Europe	404	707	1,111
North and Central America	481	600	1,081
South America	90	974	1,064
APAC	142	794	936
Africa, Middle East & India	149	899	1,048
Sales total	1,266	3,974	5,240

2024
EUR million	Aggregates	Minerals	Total
Europe	347	622	969
North and Central America	460	628	1,088
South America	86	1,061	1,148
APAC	174	893	1,068
Africa, Middle East & India	140	614	754
Sales total	1,207	3,819	5,026

Metso Corporation - Board of Directors' report and financial statements 2025 |143

Contract balances


EUR million	2025	2024
Trade receivables	1,051	900
Customer contract assets	213	255
Customer contract liabilities	267	232
Advances received	518	495

Customer contract liabilities and advances received are annually recognized as sales mainly during the

following year.

When providing standardized equipment as well as wear and spare parts, invoicing takes place in general at

the delivery or after commissioning. In engineered system deliveries, and long-term service contracts

invoicing is based on the client contracts. Short-term service contracts are invoiced when service is rendered.

Trade receivables are based on the invoicing to customers and are generally on terms of 30–90 days.

Information about provision for expected credit losses on trade receivables is presented in note 2.2.

Engineered system, and long-term service contracts are mainly fixed priced contracts, where customers are

invoiced with fixed amounts based on contract schedule. In case the performance obligation satisfied exceeds

the invoiced payment from the customer, a contract asset is recognized. In case the invoiced payment from

the customer exceeds the performance obligation satisfied, a contract liability is recognized.

Advances received is the amount paid in advance to Metso by customers. Typically, Metso receives advance

payments in customized large scale engineered system and equipment delivery projects. Advances are

amounts Metso remains liable for reimbursement should it not be able to perform the agreed obligations

under the contract.

Changes in receivables from customers or liabilities to customers and advances received is typically the result

of changes in business volume in the current year compared to the previous year.

Unsatisfied performance obligations

The order backlog, amounting to EUR 3,527 million on December 31, 2025, corresponds to the aggregate

amount of the transaction price allocated to the performance obligations that are fully or partly unsatisfied at

the end of the reporting period. These performance obligations are expected to be materially satisfied in two

years.

Performance obligations

Metso’s sales consist of the sale of standardized equipment deliveries and services with wear or spare parts,

customized large-scale engineered system and/or equipment deliveries. Metso’s performance obligations are

described below.

Equipment, wear and spare parts deliveries

When Metso provides standardized equipment and wear or spare parts to customers, revenue will be

recognized at a point in time, when control of the goods is transferred, typically at the delivery of the goods

or after commissioning. These contracts may include promises, such as volume-based rebates and late

delivery penalties. The impact of these promises on the final consideration will be estimated and sales will be

recognized to the extent that Metso is entitled. Extended warranties are treated as a separate performance

obligation, and an appropriate transaction price is allocated to them and recognized in sales when occurred.

Metso cooperates with distributors especially in the aggregates business. Based on the current distributor

contracts, Metso recognizes sales at the delivery to a distributor. Promises on volume-based rebates and the

right to return goods are assessed and sales will be recognized to the extent that Metso is entitled.

Engineered system and equipment deliveries

With customized large-scale engineered system and equipment deliveries, where assets produced do not

have an alternative use for another client, and Metso has the right to payment for the performance

completed, revenue will be recognized over time. Each large-scale engineered system and equipment delivery

contract is assessed separately. These contracts usually have a customer-specific, one total performance

obligation agreed with the client.

These contracts may include promises, such as late delivery penalties, performance guarantees, and extended

warranties. The impact of these promises on the final consideration will be estimated and sales will be

recognized to the extent that Metso is entitled. Metso typically requires advance payments from clients, which

in general, do not include a financing component, because the payment schedule of advances follows closely

the timing of performance obligations to be satisfied.

Metso Corporation - Board of Directors' report and financial statements 2025 |144

Service contracts

Sales from providing services are recognized when the services are rendered. For long-term-fixed price

contracts, sales are recognized over time. The measure of progress is based on the costs of actual services

provided as a proportion of the costs of total services to be rendered. For short-term service contracts with

an hourly fee based on a valid price list, revenue is recognized to the extent Metso has the right to invoice

the customer, and for service contracts with a fixed hourly fee agreed in the contract, revenue is recognized

based on invoicing. Typical promises in service contacts are late delivery penalties and performance

guarantees.

Major customers

In 2025 nor in 2024, Metso did not have any single customer whose sales would have exceeded 10 percent of

consolidated sales.

1.3. Selling, general, and administrative expenses

Material accounting policies

Costs and expenses of different income statement items are assigned by the nature and relationship of the cost

incurred.

Cost of goods sold are either directly or indirectly linked to recognized or expected sales. Direct cost includes e.g.

materials, subcontracted engineering and logistics related to specific customer contracts. Indirect cost carries the

capacity cost of delivery resources as well as manufacturing units.

Marketing and selling expenses consist of cost related to activity of generating new sales and marketing of the

company and its product portfolio. As an example cost of regional sales organizations are reported under this item.

Research and development expenses arise from research and development activities related to new products and

technologies. Research and development expenses comprise salaries, administration costs, digital investments, and

depreciation and amortization of property, plant, and equipment and intangible assets and are mainly recognized as

incurred. Grants received are netted from the costs. When material development costs meet certain capitalization

criteria under IAS 38, they are capitalized and amortized over the expected useful life of the underlying technology.

Administrative expenses cover cost of company’s administrative activities such as general management as well as

support and group functions.

Figures in the tables comprise continuing operations. Comparative information for the year 2024 has been re-

presented. For more information, see Note 5.5. Discontinued operations.

Selling, general and administrative expenses


EUR million	2025	2024
Marketing and selling expenses	-465	-435
Research and development expenses, net	-109	-106
Administrative expenses	-402	-364
Selling, general and administrative expenses	-976	-905

Research and development expenses


EUR million	2025	2024
Research and development expenditure, total	-103	-106
Capital expenditure	13	12
Grants received	2	2
Depreciation and amortization	-21	-14
Research and development expenses, net	-109	-106

All Metso’s R&D projects must have sustainability targets. Furthermore, 80% of R&D expenditure should be on

products that are likely to be included in the Metso Plus portfolio (more information under sections 1.3.3. and

2.3.3. of the Sustainability statement).

Metso Corporation - Board of Directors' report and financial statements 2025 |145

1.4. Other operating income and expenses

Material accounting policies

Other operating income and expenses comprise income and expenses that do not directly relate to the operating

activity of businesses within Metso, or which arise from unrealized and realized changes in fair value of foreign

currency denominated financial instruments related to operations, including forward exchange contracts. Such items

include costs related to significant restructuring programs, gains and losses on disposal of assets, and foreign

exchange gains and losses, excluding those qualifying for hedge accounting and those which are reported under

finance income and expenses, net. Additionally, non-recoverable foreign taxes, which are not based on taxable

profits, are reported in other operating income and expenses, net. In particular, these include foreign taxes, and such

like payments not based on Double Taxation Treaties in force.

Figures in the table comprise continuing operations. Comparative information for the year 2024 has been re-

presented. For more information, see Note 5.5. Discontinued operations.


EUR million	2025	2024
Other operating income
Gain on sale of intangible and tangible assets	1	12
Rental income	0	1
Foreign exchange gains ¹⁾	192	156
Revaluation of subsidiary shares	27	–
Other income ²⁾	9	35
Other operating income total	230	204

Other operating expenses
Loss on disposed businesses	0	-4
Loss on sale of intangible and tangible assets	-2	-5
Impairment of intangible and tangible assets	-7	-9
Foreign exchange losses ¹⁾	-175	-186
Other expenses	-14	-16
Other operating expenses total	-198	-219

Other operating income and expenses, net	32	-15

¹⁾ Foreign exchange gains and losses include foreign exchange gains and losses resulting from trade receivables and payables and

related derivatives.

²⁾Other income from year 2024 includes gains related to old Brazilian social contribution and Chinese enterprise development

funds.

1.5. Personnel expenses and number of personnel

Personnel expenses

Figures in the table comprise continuing operations. Comparative information for the year 2024 has been re-

presented. For more information, see Note 5.5. Discontinued operations .


EUR million	2025	2024
Salaries and wages	-908	-866
Pension costs, defined contribution plans	-64	-66
Pension costs, defined benefit plans ¹⁾	-6	-7
Other post-employment benefits ¹⁾	-1	-1
Share-based payments ²⁾	-5	-6
Other indirect employee costs	-185	-143
Total	-1,169	-1,089

¹⁾ For more information on pension costs, see note 2.7.

²⁾For more information on share-based payments, see note 1.6.

Number of personnel


	2025	2024
Personnel at end of the year	17,982	16,832
Average number of personnel during the year	17,468	17,081

Metso Corporation - Board of Directors' report and financial statements 2025 |146

Board remuneration


EUR thousand	2025	2024
Serving Board members December 31, 2025:
Kari Stadigh	-198	-196
Klaus Cawén	-114	-116
Brian Beamish	-93	-95
Terhi Koipijärvi	-97	-100
Niko Pakalén	-90	-93
Reima Rytsölä	-98	-99
Anders Svensson	-80	–
Eriikka Söderström	-93	–
Arja Talma	-113	-115

Former Board members
Ian W. Pearce ¹⁾	-8	-105
Emanuela Speranza ¹⁾	-5	-103

Total	-987	-1,022

¹⁾ Metso Board member until April 24, 2025.

According to the resolution of the 2025 Annual General Meeting, the fixed annual fees paid to the Board

members are as follows: Chair of the Board EUR 176,500, Vice Chair of the Board EUR 88,300, and other

Board members EUR 71,500. An additional annual remuneration is paid to the member of the Board elected in

the position of Chair of the Audit and Risk Committee EUR 26,300, members of the Audit and Risk

Committee EUR 10,850, Chair of the Remuneration and HR Committee EUR 13,200, and members of the

Remuneration and HR Committee EUR 5,430.

In addition, the Annual General Meeting resolved to approve the following meeting fees for each Board and

committee meeting: EUR 900 for meetings requiring travel within the Nordic countries, EUR 1,800 for

meetings requiring travel within a continent, EUR 3,000 for meetings requiring intercontinental travel, and

EUR 900 for meetings with remote attendance.

Remuneration paid to Chief Executive Officer and other Leadership Team members


2025
EUR	Salary	Fringe benefits	Performance bonus paid	Share-based payment	Total
President and CEO	837,231	17,552	63,084	255,277	1,173,144
Other Leadership Team members	2,370,539	48,803	338,111	1,090,209	3,847,662
Total	3,207,770	66,355	401,195	1,345,486	5,020,806


2024
EUR	Salary	Fringe benefits	Performance bonus paid	Share-based payment	Total
President and CEO ¹⁾	911,713	6,219	807,937	2,736,437	4,462,306
Other Leadership Team members	2,700,184	69,299	1,230,575	4,634,490	8,634,548
Total	3,611,897	75,518	2,038,512	7,370,927	13,096,854

¹⁾ Pekka Vauramo between January 1 and October 31, 2024 and Sami Takaluoma between November 1 and December 31, 2024.

The remuneration paid to President and CEO Sami Takaluoma is presented in the table above. The President

and CEO participates in remuneration programs according to respective terms and conditions decided by the

Board. For more information on share-based payments, see note 1.6.

The President and CEO is entitled to participate in a supplementary defined contribution pension plan. The

supplementary pension contribution is equivalent to 20% of the annual salary. For years ended December 31,

2025, and December 31, 2024, these pension premium payments for the supplementary defined contribution

pension plan totaled approximately EUR 168 thousand and EUR 222 thousand respectively. The notice period

is six months. Severance pay is full monthly salary multiplied by twelve (12) if the agreement is terminated by

the company.

Metso has a subscribed supplementary pension plan for other Metso Leadership Team members. For the

years ended December 31, 2025, and December 31, 2024, these pension premium payments totaled

EUR 509 thousand and EUR 545 thousand, respectively.

Metso Corporation - Board of Directors' report and financial statements 2025 |147

Board share ownership in Metso


Shares (pcs)	2025
Kari Stadigh	89,258
Klaus Cawén	49,275
Brian Beamish	6,237
Terhi Koipijärvi	13,360
Niko Pakalén	6,172
Reima Rytsölä	9,904
Anders Svensson	3,110
Eriikka Söderström	3,582
Arja Talma	41,818
Total	222,716

Leadership Team share ownership in Metso


Shares (pcs)	2025
Sami Takaluoma	134,538
Claudia Genin	1,389
Piia Karhu	49,366
Saso Kitanoski	18,437
Nina Kiviranta	60,518
Pasi Kyckling	9,000
Heikki Metsälä	17,547
Markku Simula	93,207
Total	384,002

1.6. Share-based payments

Material accounting policies

Metso has share-based incentive plans for its key personnel.

The equity-settled share awards are valued based on the market price of the Metso share on the grant date and

recognized as an employee benefit expense over the vesting period with a corresponding entry in other reserves of

the equity. The historical development of the Metso shares, and the expected dividends have been taken into

account when calculating the fair value. The entire share incentive, including the cash-for-taxes portion, is recognized

in equity. Also the value of the cash portion is based on the grant date value. As a market condition, total

shareholder return of the Performance Share Plans will be taken into account when determining the fair value at

grant, and it will not be changed during the plan. The fair value of the cost estimate of the Performance Share Plans

will only be changed when service or non-market conditions are concerned.

At each balance sheet date, Metso revises its estimates on the amount of share-based payments that are expected

to vest. The impact of a revision to a previous estimate is accrued as an employee benefit expense with a

corresponding entry to equity. The historical development of Metso share price and the expected dividends have

been taken into account when calculating the fair value.

Estimates and assessments by Management

At each balance sheet date, management reviews its estimates for the number of shares that are expected to vest.

As part of this evaluation, Metso takes into account changes in the forecasted performance of the Group and its

reporting segments, expected turnover of the personnel benefiting from the incentive plan, and other pertinent

information impacting on the number of shares to be vested.

Current plans

Metso Performance and Restricted Share Plans

In June 2020, Metso's Board decided on long-term share-based incentive plans: Performance Share Plan (PSP)

and Restricted Share Plan (RSP). The commencement of each new PSP and RSP and the earnings criteria for

each new PSP plan will be subject to a separate decision by the Board. The PSP consists of an annually

commencing plan, each with a three-year earning period, and the complementary RSP consists of an annually

commencing plan, each with a three-year vesting period. The possible rewards are paid partly in Metso’s

shares and partly in cash.

If the participant’s employment or service ends for reasons relating to the participant before the reward

payment, no reward will be paid from the long-term incentive plans.

Metso Corporation - Board of Directors' report and financial statements 2025 |148

Performance Share Plan 2025–2027

The earning criteria for the PSP 2025–2027 is based on the total shareholder return of Metso's share, earnings

per share and an ESG measure linked to sales growth of Metso Plus portfolio. At the end of 2025, there were

185 participants in the plan, and the potential reward corresponds to a maximum of 2,015,620 Metso shares,

out of which the Metso Leadership Team can receive a maximum reward of 504,000 shares. The potential

reward will be paid in 2028.

Restricted Share Plan 2025–2027

At the end of 2025, there were 3 participants in the RSP plan, and the potential reward corresponds to a

32,000 Metso shares. The potential reward will be paid in 2028.

Performance Share Plan 2024–2026

The earning criteria for the PSP 2024–2026 is based on the total shareholder return of Metso's share, earnings

per share and an ESG measure linked to sales growth of Metso Plus portfolio. At the end of 2025, there were

172 participants in the plan, and the potential reward corresponds to a maximum of 1,532,234 Metso shares,

out of which the Metso Leadership Team can receive a maximum reward of 347,000 shares. The potential

reward will be paid in 2027.

Performance Share Plan 2023–2025

The earning criteria for the PSP 2023–2025 is based on the total shareholder return of Metso's share, earnings

per share and an ESG measure linked to sales growth of Metso Plus portfolio. At the end of 2025, there were

163 participants in the plan, and the potential reward corresponds to a maximum of 1,578,334 Metso shares,

out of which the Metso Leadership Team can receive a maximum reward of 277,700 shares. The potential

reward will be paid in 2026.

Completed plan periods

Performance Share Plan 2022–2024

The earning criteria for the PSP 2022–2024 was based on the total shareholder return of Metso's share,

earnings per share and an ESG measure linked to sales growth of Metso Plus portfolio. A total of 376,802

treasury shares were paid to 148 employees and executives, out of which the Metso Leadership Team

received total of 57,887 shares. The reward was paid in March 2025.

Restricted Share Plan 2022–2024

A total of 32,625 Metso treasury shares were used to pay reward to 15 participants in March 2025.

Performance Share Plan 2021–2023

The earning criteria for the PSP 2021–2023 was based on the total shareholder return of Metso's share,

earnings per share and an ESG measure linked to sustainable development. A total of 984,288 Metso treasury

shares were paid to 144 key employees and executives, out of which the Metso Leadership Team received

total of 317,918 shares. The reward was paid in March 2024.

Restricted Share Plan 2021–2023

A total of 38,851 Metso treasury shares were used to pay reward to 18 participants in December 2024.

Beneficiaries of and granted shares under the share ownership plan


December 31, 2025	Beneficiaries total	Shares total
Plan PSP 2022–2024
Granted 2025	148	376,802

Plan RSP 2022–2024
Granted 2025	15	32,625

Costs recognized for the share ownership plans


EUR million	2025	2024
Plan PSP and RSP 2021–2023	–	-1
Plan PSP and RSP 2022–2024	0	-2
Plan PSP 2023–2025	0	-2
Plan PSP 2024-2026	-2	-2
Plan PSP and RSP 2025-2027	-3	–
Total	-5	-6

The number of shares granted during the year from current plans was 2,207,020 shares and the weighted

average fair value of shares granted during the year was EUR 10.63 (1,854,634 shares and EUR 9.73 in 2024).

Metso Corporation - Board of Directors' report and financial statements 2025 |149

1.7. Finance income and expenses

Material accounting policies

Finance income and expenses include interest income and expenses, foreign exchange differences related to

financing activities, and fair value changes of derivatives and other financial instruments used for financing. For more

information, also see notes 2.7. Post-employment obligations, 3.3. Right-of-use assets, 4.1. Financial risk management ,

4.2. Financial assets and liabilities by category , 4.5. Borrowings and lease liabilities, 4.8. Derivative instruments, as well

as 5.1. Principles of consolidation.

Figures in the table comprise continuing operations.


EUR million	2025	2024
Finance income
Dividends received	0	0
Interest income	10	19
Other finance income	3	2
Finance income	13	22

Foreign exchange gains/losses	-4	4

Finance expenses
Interest expenses from financial liabilities at amortized cost	-71	-71
Interest expenses from interest rate swaps	-10	-9
Interest expenses on lease liabilities	-5	-5
Other finance expenses	-21	-21
Finance expenses	-107	-105

Finance income and expenses, net	-99	-80

Metso Corporation - Board of Directors' report and financial statements 2025 |150

1.8. Income taxes

Corporate income taxes

Material accounting policies

Income taxes in the consolidated income statement include taxes of subsidiaries and the parent company based on

taxable income for the current period, tax adjustments for previous periods, and the changes in deferred taxes. The

other comprehensive income statement (OCI) includes taxes on items presented in the OCI. Deferred taxes are

determined for temporary differences arising between the tax base of assets and liabilities and their financial

statements carrying amounts, measured using substantially enacted tax rates.

Estimates and assessments by Management

Metso is subject to income tax in its operating countries. Metso’s management is required to make certain

assumptions and estimates in preparing the annual tax calculations for which the ultimate tax consequence is

uncertain. Annually, Metso has tax audits ongoing in several subsidiaries and recognizes tax liabilities for anticipated

tax audit issues based on an estimate of whether additional taxes will be due. Where the final outcome of these

issues is different from the estimated amounts, the difference will impact the income tax in the period in which such

determination is made.

Components of income taxes

Figures in the table comprise continuing operations. Comparative information for the year 2024 has been re-

presented. For more information, see Note 5.5. Discontinued operations.


EUR million	2025	2024
Income taxes for current year	-139	-197
Income taxes for prior years	-4	7
Change in deferred tax asset and liability	-7	27
Income taxes	-150	-163

Differences between income tax expense computed at the Finnish statutory rate and income tax

expense provided on earnings

Figures in the table comprise continuing operations. Comparative information for the year 2024 has been re-

presented. For more information, see Note 5.5. Discontinued operations.


EUR million	2025	2024
Profit before taxes	636	670

Income tax at Finnish statutory tax rate of 20.0%	-127	-134
Effect of different tax rates in foreign subsidiaries	-22	-27
Non-deductible expenses	-5	-17
Tax exempt income or tax incentives	17	8
Foreign non-creditable withholding taxes	-3	-5
Deferred tax liability on undistributed earnings	-17	-5
Income tax for prior years	-4	7
Other	11	10
Income taxes	-150	-163

Tax effects of components in other comprehensive income


	2025			2024
EUR million	Before taxes	Deferred taxes	After taxes	Before taxes	Deferred taxes	After taxes
Cash flow hedges	-2	1	-2	5	-1	4
Defined benefit plan actuarial gains (+) / losses (-)	-3	-1	-4	0	0	0
Currency translation on subsidiary net investments	-43	–	-43	-37	–	-37
Total comprehensive income (+) / expense (‑)	-48	0	-48	-33	-1	-33

Metso Corporation - Board of Directors' report and financial statements 2025 |151

Pillar 2 legislation effects

Pillar 2 legislation has been enacted or substantively enacted in certain jurisdictions Metso operates. The

legislation is effective for Metso’s financial year beginning 1 January 2024. Metso is in the scope of the

enacted or substantively enacted legislation and has performed an impact assessment of the possible

exposure to Pillar 2 income taxes.

Based on the impact assessment, the Pillar 2 effective tax rates in most of the jurisdictions in which Metso

operates are above 15%. During financial year 2025, Metso has widely applied transitional safe harbor reliefs

and has not recognized any material top-up taxes for the financial year.

Considering the complexity of the Pillar 2 legislation, changes in transitional safe harbor reliefs and the fact

that all jurisdictions have not yet enacted the legislation, Metso will continue assessing the impact of Pillar 2

during financial year 2026.

Metso has applied the mandatory exception in IAS 12 related to recognizing and disclosing deferred tax

assets and liabilities arising from Pillar 2 income taxes.

Deferred taxes

Material accounting policies

The deferred tax asset or liability is determined for temporary differences arising between the tax bases of assets

and liabilities and their financial statements carrying amounts using the substantially enacted tax rates expected to

apply in future years. Typical temporary differences arise from provisions, depreciation and amortization expense,

inter-company inventory margins, defined benefit plans, and tax loss carry-forwards. Deferred tax liabilities are

recognized in the balance sheet in full, and the deferred tax assets are only recognized if it is probable there will be

taxable income in the future against which deferred tax assets can be used. Deferred tax assets are offset against

deferred tax liabilities if they relate to taxes levied by the same taxation authority on the same taxable entity.

Estimates and assessments by Management

In determining deferred tax assets and liabilities, Metso is required to make certain assumptions and estimates on, in

particular, future operating performance and the taxable income of subsidiaries, recoverability of tax loss carry-

forwards and potential changes in tax laws in jurisdictions where Metso operates. A deferred tax liability based on

foreign subsidiaries’ undistributed earnings has been provided only where Metso’s management has elected to

distribute such earnings in the coming years and the distribution is subject to taxation. Because tax consequences

are difficult to predict, deferred tax assets and liabilities may need to be adjusted in future financial years, which may

have an impact in the period in which such determination is made

Unused tax losses

Deferred tax assets are recognized for unused tax losses to the extent that it is probable to be utilized against

the future taxable profit. Significant management judgment is required to determine the amount of deferred

tax assets that can be recognized, based upon the likely timing and the level of future taxable profits,

together with future tax planning strategies.

In certain cases, the losses are related to subsidiaries that have losses which may neither expire nor may be

used to offset taxable income elsewhere in the Group. The subsidiaries have neither any taxable temporary

difference nor any tax planning opportunities available that could partly support the recognition of these

losses as deferred tax assets. On this basis, in certain jurisdictions the Group has determined that it cannot

recognize deferred tax assets on the tax losses carried forward.

Deferred tax liability on undistributed retained earnings in subsidiaries will be recognized when the dividend

distribution is probable in the future, and it will cause a tax impact. At the end of year 2025 and 2024 there

were no substantial undistributed earnings in subsidiaries from which a deferred tax liability is not booked.

Figures in the tables comprise continuing operations if not otherwise stated.

Metso Corporation - Board of Directors' report and financial statements 2025 |152

Reconciliation of deferred tax balances



2025 EUR million	Jan 1	Charged to income statement	Charged to shareholders’ equity	Acquisitions and disposals	Translation differences and Group items	Dec 31
Deferred tax assets
Tax losses carried forward	48	-3	–	0	-5	39
Intangible assets and property, plant and equipment	15	-4	–	0	0	11
Inventory	86	-17	–	0	-1	69
Provisions	53	3	–	0	-1	54
Accruals	41	8	–	0	-3	46
Pension related items	5	10	-1	0	0	14
Right-of-use assets	32	-4	–	1	0	29
Other	20	-14	1	–	-2	5
Total deferred tax assets	300	-20	0	1	-13	268
Offset against deferred tax liabilities	-33	–	–	–	8	-25
Assets held for sale	-7	7	–	–	–	0
Net deferred tax assets	259	-13	0	1	-5	242

Deferred tax liabilities
Purchase price allocations	156	-10	–	-3	6	148
Intangible assets and property, plant and equipment	15	-1	–	0	0	14
Right-of-use assets	34	-4	–	1	0	30
Other	22	10	1	–	0	33
Total deferred tax liabilities	227	-6	1	-2	6	226
Offset against deferred tax assets	-33	–	–	–	8	-25
Liabilities held for sale	-22		–	–	22	0
Net deferred tax liabilities	172	-6	1	-2	36	201

Deferred tax assets (+) / liabilities (-), net	87	-7	-1	3	-41	42



2024 EUR million	Jan 1	Charged to income statement	Charged to shareholders ’ equity	Acquisitions and disposals	Translation differences and Group items	Dec 31
Deferred tax assets
Tax losses carried forward	7	39	–	0	2	48
Intangible assets and property, plant and equipment	20	-5	–	0	–	15
Inventory	91	-5	–	0	–	86
Provisions	59	-3	–	0	-3	53
Accruals	49	-8	–	0	–	41
Pension related items	6	0	–	0	–	5
Right-of-use assets	28	3	–	2	–	32
Other	18	7	-1	0	-4	20
Total deferred tax assets	276	27	-1	2	-5	300
Offset against deferred tax liabilities	-28	–	–	–	-5	-33
Assets held for sale	-14	7	–	–	0	-7
Net deferred tax assets	234	34	-1	2	-10	259

Deferred tax liabilities
Purchase price allocations	160	-12	–	8	0	156
Intangible assets and property, plant and equipment	16	0	–	0	0	15
Right-of-use assets	29	3	–	2	–	34
Other	30	15	0	0	-22	22
Total deferred tax liabilities	234	6	0	10	-23	227
Offset against deferred tax assets	-28	–	–	–	-5	-33
Liabilities held for sale	-24	2	–	–	0	-22
Net deferred tax liabilities	182	8	0	10	-28	172

Deferred tax assets (+) / liabilities (-), net	51	27	-2	-8	18	87

Metso Corporation - Board of Directors' report and financial statements 2025 |153

1.9. Earnings per share

Comparative information for the year 2024 has been re-presented. For more information, see Note 5.5.

Discontinued operations.

Basic

Basic earnings per share is calculated by dividing the profit attributable to shareholders of the company by

the weighted average number of shares issued and outstanding for the year, excluding own shares held by

the Parent company.

Earnings per share


	2025	2024
Profit attributable to shareholders of the company, EUR million	423	329
Weighted average number of shares issued and outstanding (in thousands)	827,672	827,101
Earnings per share, basic, EUR	0.51	0.40

Earnings per share, continuing operations


	2025	2024
Profit attributable to shareholders of the company, continuing operations, EUR million	482	505
Weighted average number of shares issued and outstanding (in thousands)	827,672	827,101
Earnings per share, basic, EUR	0.58	0.61

Diluted

Shares to be potentially issued in the future are treated as outstanding shares when calculating the diluted

earnings per share if they have a dilutive effect. Own shares held by Metso are reissued within the terms of

the share ownership plans to key personnel, if the targets defined in the plans are met. Diluted earnings per

share are calculated by increasing the weighted average number of outstanding shares by the number of

shares that, would be distributed to the beneficiaries based on the results achieved, if the conditional

earnings period ended at the end of the financial period in question. On December 31, 2025, Metso held

1,211,683 own shares to be used as consideration under share ownership plans.

Earnings per share, diluted


	2025	2024
Profit attributable to shareholders of the company, EUR million	423	329
Weighted average number of shares issued and outstanding (in thousands)	827,672	827,101
Adjustment for potential shares distributed (in thousands)	852	884
Weighted average number of diluted shares issued and outstanding (in thousands)	828,524	827,985
Earnings per share, basic, diluted, EUR	0.51	0.40

Metso Corporation - Board of Directors' report and financial statements 2025 |154

2. Operational assets and liabilities

2.1. Net working capital and capital employed

Balance sheet values in the tables comprise continuing operations.

Net working capital


	Balance sheet value		Cash flow effect
EUR million	2025	2024	2025	2024
Inventories	1,903	1,900	-88	41
Trade receivables	1,051	900	-192	-65
Other non-interest bearing receivables	362	314	-75	-20
Customer contract assets and liabilities, net	-54	22	52	6
Trade payables	-671	-581	101	-111
Advances received	-518	-495	39	173
Other non-interest bearing liabilities	-1,165	-1,015	233	-142
Net working capital	908	1,045	70	-119

Capital employed


EUR million	2025	2024
Net working capital	908	1,045
Intangible assets	2,088	1,927
Property, plant and equipment	609	549
Right-of-use assets	123	136
Non-current investments	1	5
Interest bearing receivables	2	2
Liquid funds	501	431
Tax payables and receivables, net	31	68
Interest payables, net	-11	-8
Capital employed	4,252	4,156

2.2. Trade receivables

Material accounting policies

Trade receivables are invoiced receivables from customers related to Metso’s ordinary business transactions. General

payment terms are typically from 30 days to 90 days, and they are non-interest-bearing receivables. Trade

receivables are initially recognized at transaction price and subsequently valued at amortized cost. If, exceptionally

an over 360 day payment term was offered to a client, the invoiced amount is discounted to its fair value.

In measuring expected credit losses, Metso applies the IFRS 9 simplified approach, which uses a lifetime expected

loss allowance to be assessed and recognized regularly. Credit loss risk related to customer contract assets is

covered mainly by the advance payments received from the clients.

Based on an analysis of the previous year’s credit losses by aging category and nature, as well as the

macroeconomic outlook in the near future, Metso recognizes a credit loss allowance from 0.1% to 5% on trade

receivables undue or less than 180 days overdue. For trade receivables more than 180 days overdue, the impairment

is assessed individually, but without any credit guarantee, collateral, or similar assurance on the recoverability, a

minimum credit loss provision of 25% (over 180 days overdue) and 100% (over 360 days overdue) will be recognized.

Trade receivables are written off when there is no reasonable expectation of recovery. Probability of bankruptcy,

other financial reorganization, or a similar situation indicating insolvency of the client triggers a final write-off.

Estimates and assessments by Management

Estimates on expected credit losses and credit loss provisions to be recognized are based on management’s best

judgment. The judgment is based on experience with past years’ credit losses, current economic outlook, and client

segment and location information. Trade receivables are collected actively, and possible impairment analyzed

regularly by the businesses and Metso legal units, and the necessary actions to secure receivables are made by

management. When a credit loss provision of a trade receivable is assessed individually, collateral, credit guarantees,

financial position of the client, and earlier payment behavior are taken into consideration.


EUR million	2025	2024
Trade receivables	1,038	890
Trade receivables for sale	13	10
Total	1,051	900

Classified as held for sale
Non-current	–	7
Current	0	13
Total	1,051	920

Metso Corporation - Board of Directors' report and financial statements 2025 |155

Provision on trade receivables by aging category


	2025		2024
EUR million	Trade receivables, gross	of which provided	Trade receivables, gross	of which provided
Undue	726	5	609	7
Overdue 1–30 days	113	0	131	0
Overdue 31–180 days	179	3	152	2
Overdue 181–360 days	40	6	27	5
Overdue over 360 days	51	43	52	37
Total, gross	1,109	58	972	52
Total, net	1,051		920

Realized write-offs amounted to EUR 5 million in 2025 (EUR 2 million in 2024).

Provision for impairment of trade receivables


EUR million	2025	2024
Accumulated provision, January 1	52	52
Impact of exchange rates	-1	-1
Acquisitions	0	–
Additions to reserve	11	3
Used reserve and other changes	-4	-3
Accumulated provision, December 31	58	52

2.3. Other receivables

Material accounting policies

Other non-interest-bearing receivables are recognized in the balance sheet at original fair value which can be

subsequently written down due to impairment. The impairment is expensed under selling, general and administrative

expenses.

Estimates and assessments by Management

The group policy is to calculate an impairment loss based on the best estimate of the amounts that are potentially

uncollectable at the balance sheet date. Metso management actively monitors the amount of receivables past due

globally and initiates action as necessary.

Figures in the table comprise continuing operations.

Non-interest-bearing receivables


	2025			2024
EUR million	Non- current	Current	Total	Non- current	Current	Total
Derivative instruments	6	25	31	9	34	43
Deferred tax assets	242	–	242	259	–	259
Income tax receivables	–	78	78	–	61	61

Other receivables
Prepaid expenses and accrued income	–	90	90	–	64	64
VAT, payroll tax and social charge receivables	–	185	185	–	143	143
Pension assets	6	–	6	4	–	4
Other receivables	25	26	50	23	37	60
Other receivables total	30	300	330	27	245	272

Non-interest-bearing receivables total	279	403	682	295	339	634

Other non-interest-bearing receivables included EUR 13 million in 2025 (EUR 15 million in 2024) of Brazilian tax

credits arising from delivery of goods and transfer of services (ICMS) recognized by local subsidiaries. Of that

amount EUR 4 million in 2025 (EUR 3 million in 2024) was classified as long-term.

Metso Corporation - Board of Directors' report and financial statements 2025 |156

2.4. Inventory

Material accounting policies

Inventories are valued at the lower of historical cost calculated or net realizable value. Costs are measured on a

weighted average cost basis and include purchase costs as well as transportation and processing costs. The costs of

finished goods include direct materials, wages, and salaries plus employer social contributions, subcontracting and

other direct costs, as well as a portion of production and project administration overheads. Net realizable value is the

estimated amount that can be realized from the sale of the asset in the normal course of business less costs to sell.

Inventories are shown net of a provision for obsolete and slow-moving inventories. Metso's policy is to maintain a

provision for slow-moving and obsolete inventory based on the best estimate of such amounts at the balance sheet

date. An obsolescence provision is charged to income statement in the period in which the obsolescence is

determined. Estimates are based on a systematic, on-going review and evaluation of inventory balance.

Estimates and assessments by Management

Inventory valuation requires management to make estimates and judgments particularly relating to obsolescence and

expected selling prices and sales costs in different market conditions. It also entails management's assessment of the

general market trends in global markets.


EUR million	2025	2024
Materials and supplies	276	292
Work in process	750	620
Finished products	884	1,047
Total	1,910	1,959
Classified as held for sale	-7	-59
Inventories	1,903	1,900

The cost of inventories recognized as expense for continuing operations amounted to EUR 3,471 million in

2025 (EUR 3,272 million in 2024)

Changes in provision for inventory obsolescence


EUR million	2025	2024
Balance at beginning of year	110	93
Impact of exchange rates	-6	-1
Additions charged to expense	29	24
Used reserve	-6	-11
Deductions / other additions	6	5
Balance at end of year	133	110

Metso Corporation - Board of Directors' report and financial statements 2025 |157

2.5. Trade and other payables

Material accounting policies

The fair values and carrying amounts of trade and other payables are considered to be the same, due to the short-

term maturities. The maturities of the current non-interest-bearing liabilities rarely exceed six months. The maturities

of trade payables are largely determined by trade practices and individual agreements between Metso and its

suppliers.

Accrued personnel costs, including holiday pay, are settled in accordance with local laws and regulations.


	2025			2024
EUR million	Non-current	Current	Total	Non-current	Current	Total
Trade payables	–	671	671	–	581	581
Classified as held for sale	–	1	1	–	16	16
Total	–	671	671	–	598	598

Derivative instruments	9	26	35	13	68	80

Other payables
Accrued interests	–	11	11	–	8	8
Accrued personnel costs	–	194	194	–	172	172
Accrued project costs	–	403	403	–	251	251
VAT, payroll tax and social charge payables	–	85	85	–	53	53
Other payables	1	109	110	5	102	107
Other payables	1	802	803	5	587	592
Classified as held for sale	–	7	7	–	26	26
Total	1	809	810	5	612	617

Supply chain finance program

Metso has a supplier finance program where supplier utilizes the buyer’s credit rating when selling its

receivables to bank. Participation in the arrangement is at the suppliers’ own discretion. Participating suppliers

will receive early payment on invoices sent to the Metso from the external finance provider. If supplier choose

to sell the receivable to bank, they pay a fee to bank, to which Metso is not party. In order for the finance

provider to pay, the invoices have first to be approved by Metso. Payment to supplier ahead of the invoice

due date are processed by the finance provider and, in all cases, the Metso settles the invoice by paying the

finance provider in line with the original invoice maturity date.

Liabilities under supplier finance arrangements are average 60–180 days after invoice date. Comparable trade

payables that are not part of the supplier finance arrangements are average 30–90 days after invoice date.

Based on above Metso determines that the financial liabilities arising from the arrangement have similar

nature and function to trade payables and therefore are classified as trade and other payables.


EUR million	2025	2024
Carrying amount of trade payables that are part of a supplier finance arrangement	108	103
Of which suppliers have received payment	95	97

Metso Corporation - Board of Directors' report and financial statements 2025 |158

2.6. Provisions

Material accounting policies

Provisions are recognized when the Group has a legal or constructive obligation as a result of a past event, and it is

probable that financial benefits will be required to settle the obligation and a reliable estimate of the amount of the

obligation can be made.

Provisions, for which settlement is expected to occur more than one year after the initial recognition, are discounted

to their present value and adjusted in subsequent closings for the time effect.

Warranty and guarantee provisions

Metso issues various types of contractual product warranties under which it generally guarantees the performance

levels agreed in the sales contract, the performance of products delivered during an agreed warranty period and

services rendered for a certain period or term. The provision for estimated warranty costs is based on historical

realized warranty costs for deliveries of standard products and services in the past. The typical warranty period is 12

months from the accepted delivery. The adequacy of provisions is assessed periodically on a case by case basis.

Restructuring and capacity adjustment costs

A provision for restructuring and capacity adjustment costs is recognized only after management has approved,

committed to and started to implement a formal plan. Employee termination benefits are recognized after the

representatives of employees or individual employees have been informed of the intended measures in detail and

the related compensation packages can be reliably measured. The costs included in a provision for capacity

adjustment are those costs that are either incremental or incurred as a direct result of the plan or as the result of a

continuing contractual obligation with no continuing economic benefit to Metso or a penalty incurred to cancel the

contractual obligation. Restructuring and capacity adjustment expenses are recognized in either cost of goods sold

or in selling, general and administrative expenses depending on the nature of the restructuring expenses.

Restructuring costs can also include other costs, which are recorded under other operating income and expenses,

net, incurred as a result of the plan, such as asset write-downs.

Environmental remediation costs

Metso recognizes provisions associated with environmental remediation obligations when there is a present

obligation as a result of past events, an outflow of resources is considered probable, and the obligation can be

estimated reliably. Such provisions are adjusted as further information develops or circumstances change. Recoveries

of environmental remediation costs from other parties are recorded as assets when their receipt is deemed virtually

certain.

Provision for loss making projects

A provision for loss making projects is booked when the costs needed to settle the performance obligations of the

contract exceed the consideration to be received. Such a provision for the unrecognized portion of the loss is

recognized immediately when these conditions have been met and is revised according to the progress of the

project.

Estimates and assessments by Management

Provisions booked require management to estimate the future costs needed to settle the obligations and to estimate

the possible outcomes of claims or lawsuits. The outcome depends on future development and events, so the final

costs needed and the timing to settle the obligation may differ from the initial provision estimated.

For larger and long-term delivery projects and sales involving new technology, additional warranty provisions can be

established on a case by case basis to take into account the potentially increased risk.

Figures in the tables comprise continuing operations.

Provisions


	2025			2024
EUR million	Non-current	Current	Total	Non-current	Current	Total
Warranty and guarantee provision	8	118	126	1	126	126
Project loss provisions	–	52	52	27	33	61
Restructuring provision	3	3	6	3	5	8
Environmental remedial provision	–	–	–	0	0	0
Other provisions ¹⁾	34	35	69	30	38	68
Total	45	207	253	62	201	263

¹⁾ Includes provisions related to lawsuits, personnel, and Russia wind-down liabilities.

Changes in provisions


2025
EUR million	Warranty and guarantee provision	Project loss provisions	Restructurin g provision	Environmental remediation provision	Other provisions	Total
Carrying value at January 1	126	61	8	0	68	263
Impact of exchange rates	-3	0	0	0	-1	-5
Addition charged to expense	30	6	2	–	12	50
Used reserve	-18	0	-3	0	-9	-30
Reversal of reserve / other changes	-12	-18	-1	–	-2	-32
Classification as held for sale	3	4	0	–	0	7
Carrying value at December 31	126	52	6	–	69	253

Metso Corporation - Board of Directors' report and financial statements 2025 |159

2.7. Post-employment obligations

Material accounting policies

Metso has several different pension schemes in accordance with local regulations and practices in countries where it

operates. In certain countries, the pension schemes are defined benefit plans with retirement, disability, death, and

other post-retirement benefits, such as health services, and termination income benefits. The retirement benefits are

usually based on the number of service years and the salary levels of the final service years. Metso has both defined

contribution and defined benefit schemes. The schemes are generally funded through payments to insurance

companies or to trustee-administered funds. Other arrangements are unfunded with benefits being paid directly by

Metso as they fall due. All arrangements are subject to local tax and legal restrictions in their respective jurisdictions.

In the case of defined benefit plans, the liability recognized from the plan is the present value of the defined benefit

obligation as of the balance sheet date less the fair value of the plan assets. Independent actuaries calculate the

defined benefit obligation by applying the projected unit credit method under. The present value of the defined

benefit obligation is determined by discounting the estimated future cash flows using the interest rates of high-

quality corporate bonds that are denominated in the currency in which the benefits will be paid and having maturity

approximating to the terms of the related pension obligation. The cost of providing retirement and other post-

retirement benefits to personnel is charged to profit and loss concurrently with the service rendered by personnel.

Net interest is recorded through finance income and expenses in the income statement. Actuarial gains and losses

arising from experience adjustments and changes in actuarial assumptions are recognized through OCI in

shareholders' equity in the period in which they arise. Past service costs, gains and losses on curtailments or

settlements are recognized immediately in the income statement.

The contributions to defined contribution plans and multi-employer and insured plans are charged to profit and loss

concurrently with the payment obligations.

Estimates and assessments by Management

The present value of the pension obligations is based on annual actuarial calculations, which use several assumptions

such as the discount rate and expected return on assets, salary and pension increases and other actuarial factors. As

a result, the liability recorded on Metso's balance sheet and cash contributions to funded arrangements are sensitive

to changes. Where the actuarial experience differs from those assumptions gains and losses result, which are

recognized in OCI. Sensitivity analyses on the present value of the defined benefit obligation have been presented

in the tables. Assets of Metso's funded arrangements are managed by external fund managers. The allocation of

assets is reviewed regularly by those responsible for managing Metso’s arrangements based on local legislation,

professional advice and consultation with Metso, based on acceptable risk tolerances.

Metso’s pension and other post-employment plans

Pension arrangements in Germany, the US, the UK and Canada together represent 81% of Metso’s Defined

Benefit Obligation and 69% of its pension assets. These arrangements provide retirement income, which is

substantially based on salary and service at or near retirement.

The German plans are unfunded with benefits paid directly by the company as they fall due. In the US and

Canada, annual valuations are carried out to determine whether cash funding contributions are required in

accordance with local legislation. In the UK, Metso’s defined benefit pension scheme is closed for future

accrual. Over 2025, the trustees of the UK scheme completed the second phase of a buy-in contract with an

insurance company. The buy-in covers substantially all future benefit payments due to members of the

scheme. The primary obligation for the benefits remains with Metso. The plan asset value of the buy-in

contract is set equal to the corresponding DBO in accordance with IAS 19.

Assets of Metso's funded arrangements are managed by external fund managers. The allocation of assets is

reviewed regularly by those responsible for managing Metso’s arrangements based on local legislation,

professional advice and consultation with Metso, based on acceptable risk tolerances.

The expected contributions to plans in 2026 are EUR 9 million. Metso paid contributions of EUR 14 million to

defined benefit plans in 2025.

Figures presented in this disclosure include both continuing and discontinued operations.

Metso Corporation - Board of Directors' report and financial statements 2025 |160

Amounts recognized as of December 31 in the balance sheet


	2025			2024
EUR million	Pension benefits	Other post- employment benefits	Total	Pension benefits	Other post- employment benefits	Total
Present value of funded obligations	82	–	82	83	–	83
Fair value of plan assets	-84	–	-84	-85	–	-85
Total	-2	–	-2	-2	–	-2

Present value of unfunded obligations	65	25	90	68	27	96
Unrecognized asset	1	–	1	0	–	0
Total	64	25	89	66	27	94

Amounts in the balance sheet
Liabilities	67	25	92	69	27	96
Assets	-3	–	-3	-3	–	-3
Liabilities classified as held for sale	-6	–	-6	–	–	–
Net liability	58	25	82	66	27	93

Movements in the net liability recognized in the balance sheet (total)


EUR million	2025	2024
Net liability at beginning of year	93	98
Adjustments due to business combinations	0	–
Net expense recognized in the income statement	8	9
Employer contributions	-14	-12
Gain (+) / loss (-) recognized through OCI	3	-2
Translation differences	-2	0
Net liability at end of year	89	93

Amounts recognized through the income statement


		2025			2024
EUR million	Pension benefits	Other post- employment benefits	Total	Pension benefits	Other post- employment benefits	Total
Employer's current service cost	2	2	4	1	2	3
Net interest on net surplus (+) / deficit (-)	2	1	3	2	2	4
Settlements	–	-1	-1	–	0	0
Gain (-) / loss (+) recognized in income statement	1	0	1	1	0	1
Recognition of past service cost (+) / credit (-)	0	–	0	–	–	–
Administration costs paid by the scheme	2	–	2	1	–	1
Expense (+) / income (-) recognized in income statement	6	3	8	5	4	9

Amounts recognized through OCI


		2025			2024
EUR million	Pension benefits	Other post- employment benefits	Total	Pension benefits	Other post- employment benefits	Total
Return on plan assets, excluding amounts included in interest expense (+) / income (-)	6	–	6	6	–	6
Actuarial gain (-) / loss (+) on liabilities due to change in financial assumptions	-6	0	-6	-7	0	-7
Actuarial gain (-) / loss (+) on liabilities due to change in demographic assumptions	2	-1	1	0	–	0
Actuarial gain (-) / loss (+) on liabilities due to experience	0	1	1	–	–	–
Gain (-) / loss (+) as result of asset ceiling	1	–	1	0	–	0
Total gain (-) / loss (+) recognized through OCI	3	0	3	-1	0	-2

Metso Corporation - Board of Directors' report and financial statements 2025 |161

Changes in the value of the defined benefit obligation


		2025			2024
EUR million	Pension benefits	Other post- employment benefits	Total	Pension benefits	Other post- employment benefits	Total
Defined benefit obligation at beginning of year	151	27	178	158	30	187
Employer's current service cost	2	2	4	1	2	3
Interest cost	6	1	7	6	2	8
Settlements gain (-) / loss (+)	–	-1	-1	–	0	0
Business combinations	6	–	6	–	–	–
Actuarial gain (-) / loss (+) due to change in financial assumptions	-6	0	-6	-7	0	-7
Actuarial gain (-) / loss (+) on liabilities due to change in demographic assumptions	2	-1	1	0	–	0
Actuarial gain (-) / loss (+) due to experience	1	1	2	1	0	1
Past service cost (+) / credit (-)	0	–	0	–	–	–
Plan participant contributions	0	–	0	–	–	–
Benefits paid from the arrangement	-8	–	-8	-6	–	-6
Benefits paid direct by employer	-4	-4	-8	-4	-5	-9
Translation differences	-3	-2	-5	3	-1	2
Defined benefit obligation at end of year	147	25	172	151	27	178

Changes in the fair value of the plan assets during the year


	2025	2024
EUR million	Pension and other post-employment benefits total
Fair value of assets at beginning of year	85	90
Interest income on assets	4	4
Return on plan assets excluding interest income	-6	-6
Business combinations	6	–
Employer contributions	14	12
Plan participant contributions	0	–
Benefits paid from the arrangements	-8	-6
Benefits paid direct by employer	-8	-9
Administration expenses paid from the scheme	-2	-1
Translation differences	-3	3
Fair value of assets at end of year	84	85

Major categories of plan assets as a percentage of total plan assets as of December 31


		2025			2024
%	Quoted	Unquoted	Total	Quoted	Unquoted	Total
Equity securities	3%	0%	3%	2%	0%	2%
Bonds	1%	0%	1%	9%	0%	9%
Property	1%	0%	1%	0%	0%	0%
Cash	2%	0%	2%	7%	0%	7%
Insurance contracts	0%	88%	88%	0%	64%	64%
Other	5%	0%	5%	3%	16%	19%
Total	12%	88%	100%	20%	80%	100%

As of December 31, 2025, there were no plan assets invested in affiliated or property occupied by affiliated

companies.

Metso Corporation - Board of Directors' report and financial statements 2025 |162

Principal actuarial assumptions on December 31 expressed as weighted averages


%	2025	2024
Benefit obligation
Discount rate	4.55%	4.40%
Rate of salary increase	3.21%	3.10%
Rate of pension increase	2.42%	2.47%
Expense in income statement
Discount rate	4.40%	4.09%
Rate of salary increase	3.10%	3.37%
Rate of pension increase	2.47%	2.49%

The calculated life expectancy of persons covered by defined benefit plans is based on regularly updated

local mortality tables. These are shown in the table below.

Weighted average life expectancy used for the major defined benefit plans


	2025		2024
Life expectancy at age of 65 for a male member, who is	currently aged 65	currently aged 45	currently aged 65	currently aged 45
Germany	21.0	23.7	20.9	23.6
United States	20.9	22.4	20.8	22.3
United Kingdom	22.4	22.9	21.6	22.2
Canada	22.2	23.2	22.1	23.1

Life expectancy is allowed for in the assessment of the defined benefit obligation using mortality tables which

are generally based on experience within the country in which the arrangement is located with (in many

cases) an allowance made for anticipated future improvements in longevity.

Sensitivity analyses on present value of defined benefit obligation in the next table presents the present value

of the defined benefit obligation when major assumptions are changed while others held constant.

Sensitivity analyses


	2025			2024
%	Pension	Other	Total	Pension	Other	Total
Discount rate
Increase of 0.25%	-3.9	-0.5	-4.4	-4.2	-0.6	-4.8
Decrease of 0.25%	4.1	0.5	4.6	4.4	0.6	5.0

Salary increase rate
Increase of 0.25%	0.1	0.2	0.3	–	0.2	0.2
Decrease of 0.25%	-0.1	-0.2	-0.3	–	-0.2	-0.2

Pension increase rate
Increase of 0.25%	2.5	n/a	2.5	1.3	n/a	1.3
Decrease of 0.25%	-2.3	n/a	-2.3	-1.3	n/a	-1.3

Medical cost trend
Increase of 1.00%	n/a	0.8	0.8	n/a	0.8	0.8
Decrease of 1.00%	n/a	-0.7	-0.7	n/a	-0.7	-0.7

Life expectancy
Increase of one year	5.1	0.5	5.6	5.6	0.8	6.4
Decrease of one year	-5.1	-0.4	-5.5	-5.5	-0.9	-6.4

Weighted average duration of defined benefit obligation expressed in years


	2025			2024
In years	Pension	Other	Total	Pension	Other	Total
On December 31	11.6	8.6	11.2	11.7	9.1	11.3

Metso Corporation - Board of Directors' report and financial statements 2025 |163

3. Intangible and tangible assets

3.1. Goodwill and intangible assets

Material accounting policies

Goodwill and intangible assets with an indefinite useful life

Goodwill represents the excess of acquisition costs over the fair value of net identified assets acquired and liabilities

assumed and the fair values of previously owned interests and non-controlling interests. Goodwill is allocated to

cash generating units (CGUs), which are the reportable segments Aggregates and Minerals. If Metso reorganizes its

reporting structure, goodwill is reallocated to the cash generating units affected based on their relative fair values at

the time of the reorganization. The carrying value of goodwill is tested with the CGU’s value in use or the CGU’s fair

value less costs of disposal, when appropriate. Previously recognized impairment losses on goodwill are not

reversed.

Intangible assets with an indefinite useful life, such as brand values, are not amortized. Currently, such assets are

tested for impairment annually as part of the appropriate CGU tested for impairment. Previous losses on impairment

are only reversed to the extent that the new carrying amount of the assets does not exceed the carrying amount the

asset would have had, if the asset had not been impaired.

Intangible assets

Intangible assets with a definite useful life, mainly trademarks, patents, licenses, IT software, or acquired order

backlog are measured at cost less accumulated amortization and impairment losses.

Amortization of intangible assets

Amortization of intangible assets with a definite useful life is calculated on a straight-line basis over the useful life of

the assets as follows:

• Patents and licenses 5–10 years

• Computer software 3–5 years

• Technology 3–20 years

• Customer relationships 3–20 years

• Other intangible assets < 1–20 years

The probable useful lives of assets are reviewed annually. If material deviations from previous estimates arise, useful

lives are reassessed. The carrying value of intangible assets subject to amortization is reviewed for impairment

whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. A

previously recognized impairment loss may be reversed if there is a significant improvement of the circumstances

having initially caused the impairment, but not to a higher value than the carrying amount, that would have been

recorded had there been no impairment in prior years.

Research and development expenses comprise salaries, administration costs, depreciation, and amortization of

property, plant, and equipment and intangible assets, and they are mainly recognized as incurred. When material

development costs meet certain capitalization criteria under IAS 38, they are capitalized and amortized during the

expected useful life of the underlying technology.

Gains and losses on the disposal of intangible assets and possible impairments are recognized in other operating

income and expenses.

Metso Corporation - Board of Directors' report and financial statements 2025 |164

Goodwill and intangible assets


2025
EUR million	Goodwill	Patents and licenses	Capitalized software	Other intangible assets	Goodwill and intangible assets total
Acquisition cost at beginning of year	1,165	103	38	1,166	2,472
Translation differences	-8	0	0	-6	-15
Business acquisitions	132	44	0	6	183
Capital expenditure	–	3	6	19	27
Reclassifications	–	3	15	-19	–
Other changes	–	-31	-1	-16	-48
Acquisition cost at end of year	1,289	121	58	1,151	2,619

Accumulated depreciation at beginning of year	–	-82	-14	-369	-465
Translation differences	–	0	0	5	5
Other changes	–	30	1	12	43
Impairment losses	–	0	0	-6	-7
Amortization charges for the year	–	-7	-8	-66	-81
Accumulated depreciation at end of year	–	-59	-20	-425	-504

Classified as held for sale	-12	-1	0	-15	-27

Net book value at end of year	1,277	62	38	712	2,088
Goodwill and other intangible assets classified as held for sale have been impaired, see note 5.5.


2024
EUR million	Goodwill	Patents and licenses	Capitalized software	Other intangible assets	Goodwill and intangible assets total
Acquisition cost at beginning of year	1,138	103	29	1,108	2,379
Translation differences	-1	0	-1	1	-1
Business acquisitions	28	1	0	32	61
Capital expenditure	–	4	9	34	47
Reclassifications	–	-1	1	0	–
Other changes	–	-4	0	-9	-13
Acquisition cost at end of year	1,165	103	38	1,166	2,472

Accumulated depreciation at beginning of year	–	-81	-13	-317	-411
Translation differences	–	–	1	-1	–
Other changes	–	2	2	9	13
Impairment losses	–	–	0	–	0
Amortization charges for the year	–	-3	-3	-60	-66
Accumulated depreciation at end of year	–	-82	-14	-369	-465

Classified as held for sale	-41	-4	0	-35	-80

Net book value at end of year	1,123	17	24	763	1,927

Metso Corporation - Board of Directors' report and financial statements 2025 |165

Impairment testing

Material accounting policies

Goodwill and other intangible assets with an indefinite useful life are tested for impairment annually. The testing of

goodwill and other intangible assets with an indefinite useful life is performed at the cash generating unit level. If the

carrying value of goodwill exceeds the recoverable value, an impairment is recognized in the income statement

under depreciation and amortization. Impairment losses on goodwill are not reversed. Currently, Metso’s

management has defined two separate CGUs: Aggregates and Minerals, to which goodwill has been allocated.

The recoverable amounts of CGUs are based on value in use calculations, where the estimated future cash flows of

CGUs are discounted to their present value. The cash flows are derived from the current year’s last-quarter estimate

and the approved strategy for the next five years, beyond which cash flows are calculated using the terminal value

method. The terminal growth rate used is based on management’s judgment of average long-term growth. Cash

flows include only normal maintenance investments and exclude any potential investments that enhance the CGU’s

performance and acquisitions.

Estimates and assessments by Management

Value in use calculations are inherently judgmental and highly susceptible to change from period to period because

they require management to make assumptions about future supply and demand related to its individual business

units, future sales prices, profit margins, and achievable efficiency savings over time. The value of benefits and

savings expected from the efficiency improvement programs are inherently subjective. As part of the future business

assessments, management also evaluates business risks and the possible impact on future cash flows. The possible

effects of climate change on Metso’s business is assessed as part of this overall risk assessment. Due to the impact

of uncertainties related to impact assessment, in the Board of Directors’ report the possible effects of climate change

on the company’s operating environment and business have been described in more detail with scenarios. A

balanced approach considering the base line for the short and medium term as well as long-term climate-related

risks and opportunities has been used in the value in use calculations. Metso management estimates sales growth

rate and EBITDA development for the testing period as well as the discount factor used. The present value of the

cash generating units is discounted using the CGU’s weighted average cost of capital (WACC) calculated by Metso.

WACC calculations include judgments regarding, among other things, relevant beta factors, peer companies, and

capital structure to use.

Metso performs impairment testing annually, or whenever there is an indication of impairment. Typical triggering

events are material deterioration in the global economy or political environment, observed significant under-

performance relative to projected future performance, and significant changes in Metso’s strategy.

Expected useful lives and remaining amortization periods for other intangible assets are reviewed annually by

management. Acquisitions, disposals, and restructuring actions typically generate a need for reassessment of

recoverable amounts and remaining useful lives of assets. When other intangible assets are measured at fair value,

less costs of disposal, the selling price, incremental costs, and selling costs need to be estimated by management.

Metso assesses the effects of climate change to the future cash flows while performing the impairment calculations.

Upon initial acquisition, Metso uses readily available market values to determine the fair values of acquired net assets

to be allocated. However, when this is not possible, the valuation is based on past performance of such an asset and

expected future cash generating capacity, which requires management to make estimates and assumptions of the

future performance and use of these assets. Any change in Metso’s future business priorities may affect the

recoverable amounts.

Goodwill allocation to cash generating units


EUR million	2025	2024
Balance at the beginning of year	1,123	1,097
Translation differences	-8	-1
Transfer from discontinued operations to continuing operations	29	–
Acquisitions and disposals	132	28
Balance at the end of year	1,277	1,123


EUR million	Minerals	Aggregates	Total
Balance at the end of year	1,030	247	1,277

Annual impairment test in 2025

On December 31, 2025, goodwill totaled EUR 1,277 million. In accordance with the Metso reporting structure,

goodwill is allocated to the reportable segments, Aggregates and Minerals. The cost of centralized Group

services was allocated to the CGUs based on their proportional share of sales volume.

Given that the recoverable amounts of both CGUs significantly exceeded the carrying value of goodwill and

other tested assets, no indication of impairment was found in 2025. The value in use calculations were derived

from estimates, budgets, and strategy figures reviewed by Metso’s management and approved by the Board

of Directors.

The key assumptions used in assessing the recoverable amount are the profitability and growth rate in the

estimate period, long-term average growth in the terminal period and discount rate. The key values used

were the following:


%	Minerals	Aggregates
Sales growth in five years estimate period	12.7%	9.7%
EBITDA % range in five years estimate period	18.6-21.6%	17.1%-19.1%
Growth rate in the terminal period	2.0%	2.0%
WACC after tax	10.1%	10.1%
WACC before tax	12.7%	12.8%

Metso Corporation - Board of Directors' report and financial statements 2025 |166

Values assigned to key assumptions reflect past experience and the management’s expectations on the future

sales and production volumes, which are based on the current structure and production capacity of the

CGUs. The seasonality and current market situation of the cash generating units have been considered

separately. In addition, data on growth, demand, and price development, provided by various research

institutions, have been utilized. The growth rate of 2.0% for the terminal period is based on the long-term

expectations on the growth in Metso’s market environment, considering the current interest rate environment

and overall financial market situation.

Future sustainability-related requirements will influence market expectations and lead to completely new or

alternative technology solutions and processes. Climate change will also impact the physical and business

environment. New business opportunities will be created as new solutions across the value chain help the

mining and metals industries to respond to a more volatile business environment with increasing demand for

sustainability solutions. Electrification will increase the demand for certain metals, such as copper and other

battery metals, which will strengthen the demand for minerals and, consequently, the outlook for the mining

industry and Metso’s business.

WACC before tax is used as a discount factor in the calculations. It takes into account the expected return on

both debt and equity and has been derived from the WACC on comparable peer industry betas, capital

structure, and tax rates. CGU WACCs are evaluated annually for testing, and CGU-specific risk is

incorporated through individual beta factors from the market data of the segment’s peer companies.

Sensitivity analysis

The sensitivity to impairment of the calculations of both cash generating units was tested in the following

scenarios:

• Scenario 1: increasing WACC by 2.0 percentage points

• Scenario 2: reducing the terminal growth rate from 2.0% to 1.5%

Impact to the value in use of the CGUs in the sensitivity analysis


%	WACC increase by 2 p.p.	Terminal growth from 2% to 1.5%
Minerals	-22%	-5%
Aggregates	-21%	-4%

The sensitivity analysis also includes several cash projections on break-even levels of EBITDA %, WACC, and

sales growth, based on a reasonable change in the future performance of the CGU. However, the impact on

the present value obtained is limited, as long as there is no permanent weakening expected for the business,

which would affect the terminal value. Based on these sensitivity analyses, management believes that no

reasonably possible change of the key assumptions used would cause the carrying value of any CGU to

exceed its recoverable amount. In 2025, the sensitivity analyses did not indicate risks of impairment.

Metso Corporation - Board of Directors' report and financial statements 2025 |167

3.2. Property, plant, and equipment

Material accounting policies

Property, plant, and equipment (PPE) are stated at historical cost, less accumulated depreciation, and write-downs, if

any. The property, plant, and equipment of acquired subsidiaries are measured at their fair value at the acquisition

date.

Depreciation is calculated on a straight-line basis over the expected useful lives of the assets as follows:

• Buildings 15–40 years

• Machinery and equipment3–20 years

• Land and water areas are not depreciated.

Expected useful lives are reviewed at each balance sheet date and, if they differ significantly from previous

estimates, the remaining depreciation periods are adjusted accordingly.

Subsequent improvement costs related to an asset are included in the carrying value of such asset or recognized as

a separate asset, as appropriate, only when the future economic benefits associated with the costs are probable and

the related costs can be separated from normal maintenance costs.

Metso reviews tangible assets to be held and used by the company for impairment whenever events and changes in

circumstances indicate that the carrying amount of an asset may not be recoverable. Gains and losses on the

disposal of property, plant, and equipment and possible impairments are recognized in other operating income and

expenses. A previously recognized impairment loss may be reversed if there is a significant improvement in the

circumstances having initially caused the impairment, however not to a higher value than the carrying amount that,

would have been recorded had there been no impairment in prior years.

Metso reviews the climate change related matters which may affect the estimated residual value, expected useful

lives of assets and the possible reflected changes in the recognized amount of depreciation or amortization.

Capitalized interests

Interest expenses of self-constructed property, plant, and equipment are capitalized in Metso's financial statements.

The capitalized interest expense is amortized over the estimated useful life of the underlying asset.

Government grants

Government grants relating to additions to property, plant, and equipment are deducted from the acquisition cost of

the asset and they reduce the depreciation charge of the related asset. Other government grants are deferred and

recognized as profit and presented as a net of expenses concurrently with the costs they compensate.

Estimates and assessments by Management

Acquisitions, disposals and restructuring actions typically generate a need for reassessment of the recoverable values

and remaining useful lives of assets. When property, plant, and equipment are valued at fair value less costs of

disposal, the selling price, incremental costs and selling costs need to be estimated by management.

Metso announced on June 3, 2024, that it will invest approximately EUR 150 million in Aggregates Technology

Center in Tampere, Finland. In year 2025 the cumulative recorded investment amount was EUR 55 million

(EUR 11 million in 2024) and it is presented in the assets under construction. More information available on

note 4.5. Borrowings.

Metso Corporation - Board of Directors' report and financial statements 2025 |168

Property, plant, and equipment


2025
EUR million	Land and water areas	Buildings	Machinery and equipment	Assets under construction	PPE total
Acquisition cost at beginning of year	38	273	652	119	1,083
Translation differences	-1	-14	-28	-1	-45
Business acquisitions	–	0	6	0	6
Capital expenditure	8	11	52	98	169
Reclassifications	2	7	38	-47	0
Divestments and other changes	-1	-6	-28	-5	-40
Acquisition cost at end of year	46	271	691	164	1,173

Accumulated depreciation at beginning of year	0	-115	-425	-2	-541
Translation differences	0	5	16	–	21
Business acquisitions	–	–	-3	–	-3
Divestments and other changes	0	2	26	2	30
Write-downs	0	0	0	–	0
Depreciation charges for the year	–	-11	-48	–	-60
Accumulated depreciation at end of year	0	-119	-434	–	-553

Classification as held for sale	–	0	-10	–	-10

Net book value at end of year	46	152	247	164	609


2024
EUR million	Land and water areas	Buildings	Machinery and equipment	Assets under construction	PPE total
Acquisition cost at beginning of year	39	252	658	91	1,041
Translation differences	0	-1	-19	-6	-26
Business acquisitions	–	0	8	–	9
Capital expenditure	–	12	52	88	152
Reclassifications	0	30	22	-52	0
Divestments and other changes	-1	-20	-69	-1	-92
Acquisition cost at end of year	38	273	652	119	1,083

Accumulated depreciation at beginning of year	–	-121	-447	–	-568
Translation differences	–	0	13	–	13
Business acquisitions	–	0	-5	–	-5
Divestments and other changes	0	22	63	-2	84
Write-downs	–	-5	-4	–	-9
Depreciation charges for the year	–	-11	-45	–	-56
Accumulated depreciation at end of year	0	-115	-425	-2	-541

Classification as held for sale	–	–	1	6	7

Net book value at end of year	38	159	228	124	549

Metso Corporation - Board of Directors' report and financial statements 2025 |169

3.3. Right-of-use assets

Material accounting policies

Metso recognizes a right-of-use asset in the balance sheet for lease agreements which give the right to use the

asset during the lease period and the lease liability based on the lease payment obligation. The right-of-use assets

and corresponding lease liabilities are recognized at present value. Lease liabilities include the following payments:

• fixed payments, less any lease incentives provided by the lessor;

• variable payments that depend on an index or a rate;

• expected payments under residual value guarantees;

• the exercise price of purchase options when exercise is estimated to be reasonably certain; and

• penalties for terminating the lease if the lease term reflects the exercise of a termination option.

Lease payments are discounted by using the implicit interest rate in the lease to the extent it can be readily

determined. Otherwise the currency specific incremental borrowing rate is used as the discount rate. Interest

expenses are recognized in the income statement as finance expense.

Right-of-use assets are measured at cost. The cost comprises the following:

• lease liability;

• lease payments made at or before the commencement of the lease, less lease incentives received;

• initial direct costs; and

• estimated dismantling and restoration costs.

Subsequently, right-of-use assets are measured at cost and depreciated over the shorter of estimated useful life and

the lease term. Metso’s right-of-use assets consist primarily of operative and office premises in the category of

buildings, and cars, operative machinery, and equipment in the category of machinery and equipment. The

depreciation of right-of-use assets are recognized in the in the income statement in cost of sales and selling and

administrative expenses.

Metso uses practical expedients provided for leases. Lease payments for leases of low value assets and short-term

leases (shorter than twelve months) are expensed on a straight-line basis. Low value assets comprise IT equipment

and other small office items.

The lease payments are presented in the cash flow from financing activities, and the interest related to leases are

presented in the cash flow from operating activities. Lease payments related to short-term leases and low-value

assets are presented in the cash flow from operating activities.

Modifications to lease agreements may result in adjustments to existing right-of-use assets and lease liabilities. A

gain or loss arising from a modification, or a termination of a lease agreement is recognized as other operating

income or other operating expenses in the income statement.

A number of lease contracts include extension and termination options. Such options have been taken into account

when determining the lease term. A period covered by Metso’s option to extend the lease is included in the lease

term if such option is sufficiently likely to be exercised. Further, a period covered by Metso’s option to terminate the

lease is included in the lease term if it is reasonably certain that such option will not be exercised.

Estimates and assessments by Management

The most significant management judgment relates to lease agreements that include extension or early termination

options for Metso. For these contracts, management needs to assess the probability of exercising such option, which

may significantly affect the estimated length of the lease term, and consequently, the amounts of right-of-use asset

and lease liability, as well as the related depreciation and interest expense. Management judgment is also applied in

defining the incremental borrowing rate used to calculate the present value of the future lease payments.

Amounts recognized in balance sheet


2025
EUR million	Land and water areas	Buildings	Machinery and equipment	Right-of-Use assets total
Acquisition cost at beginning of year	5	192	43	240
Translation differences	-1	-8	-1	-9
Business acquisitions	–	3	–	3
Additions	–	27	12	39
Derecognition	0	-25	-11	-36
Acquisition cost at end of year	4	190	44	237

Accumulated depreciation at beginning of year	0	-83	-19	-102
Translation differences	0	3	0	4
Accumulated depreciations for derecognized contracts	0	22	9	31
Depreciation charges for the year	0	-33	-13	-46
Accumulated depreciation at end of year	0	-91	-23	-114

Classification as held for sale	–	-1	0	-1

Net book value at end of year	4	98	21	123

Metso Corporation - Board of Directors' report and financial statements 2025 |170


2024
EUR million	Land and water areas	Buildings	Machinery and equipment	Right-of-Use assets total
Acquisition cost at beginning of year	5	171	36	212
Translation differences	0	1	-1	0
Business acquisitions	–	10	–	10
Additions	–	37	14	51
Derecognition	0	-28	-6	-34
Acquisition cost at end of year	5	192	43	240

Accumulated depreciation at beginning of year	0	-81	-15	-97
Translation differences	0	0	0	0
Accumulated depreciations for derecognized contracts	0	27	6	33
Depreciation charges for the year	0	-28	-10	-38
Accumulated depreciation at end of year	0	-83	-19	-102

Classification as held for sale	–	0	-1	-1

Net book value at end of year	5	109	23	136

Amounts recognized in profit and loss


EUR million	2025	2024
Operating profit
Depreciation expense on right-of-use assets	-46	-38
Rental expense relating to leases of low-value assets	-1	-2
Rental expense relating to leases of short-term assets	-4	-6
Finance expenses
Interest expense on lease liabilities	-5	-5
Total amount recognized in profit and loss	-56	-51

The total cash outflow for leases including short-term leases and leases of low-value assets in 2025 was

EUR 56 million (EUR 50 million in 2024). A maturity analysis of lease liabilities is presented in note 4.5 .

3.4. Depreciation and amortization

Figures in the tables comprise continuing operations. Comparative information for the year 2024 has been re-

presented. For more information, see Note 5.5. Discontinued operations.

Depreciation and amortization by asset class


EUR million	2025	2024
Intangible assets
Intangible assets from acquisitions	-60	-54
Other intangible assets	-21	-12
Property, plant and equipment
Buildings	-11	-11
Machinery and equipment	-48	-45
Right-of-use assets
Land areas	0	0
Buildings	-33	-28
Machinery and equipment	-13	-10
Total	-186	-160

Depreciation and amortization by function


EUR million	2025	2024
Cost of goods sold	-92	-85
Selling, general and administrative expenses	-95	-75
Total	-186	-160

Metso Corporation - Board of Directors' report and financial statements 2025 |171

4. Capital structure and financial instruments

4.1. Financial risk management

As a global company, Metso is exposed to a variety of business and financial risks. Financial risks are

managed centrally by the Group Treasury under annually reviewed written policies approved by the Board of

Directors. Treasury operations are monitored by the Treasury Management Team chaired by the CFO. Group

Treasury identifies, evaluates, and hedges financial risks in close cooperation with the operating units. Group

Treasury functions as counterparty to the operating units, manages centrally external funding, and is

responsible for the management of financial assets and appropriate hedging measures. The objective of

financial risk management is to minimize potential adverse effects on Metso’s financial performance.

Sensitivity analysis

Sensitivity analysis figures presented in connection with different financial risks are based on the risk

exposures at the balance sheet date. The sensitivity is calculated by assuming a change in one of the risk

factors of a financial instrument, such as interest or currency. It is not likely that the future volatility of a risk

factor will develop in accordance with the test assumptions and that only one factor would be impacted.

When calculating the sensitivity, Metso has chosen to use market conventions in assuming a one percentage

point (100 basis points) variation in interest rates, and a 10 percent change in foreign exchange rates because

this provides better comparability from one period to another and information on volatility to users of

financial statements. Metso is aware that such assumptions may not be realistic when compared to past

volatility and they are not intended to reflect the future. Metso has chosen not to use past volatility as this

could mislead the users of financial statements to assume the analysis reflects management’s view on future

volatility of the financial instruments.

Liquidity and refinancing risk and capital structure management

Liquidity or refinancing risk arises when a company is not able to arrange funding at terms and conditions

corresponding to its creditworthiness. Sufficient cash, short-term investments, and committed and

uncommitted credit facilities are maintained to protect short-term liquidity. Diversification of funding among

different markets and an adequate number of financial institutions is used to safeguard the availability of

liquidity at all times. Group Treasury monitors bank account structures, cash balances and forecasts of the

operating units, and manages the utilization of the consolidated cash resources.

The liquidity position of Metso remained strong supported by the healthy operative cash flow, maturity

structure of the funding, and available back up credit facilities. Liquid funds, consisting of cash and cash

equivalents, amounted to EUR 501 million (EUR 431 million in 2024), and there were no deposits or securities

with a maturity more than three months (EUR 0 million in 2024).

In addition, Metso has a committed and undrawn syndicated EUR 700 million revolving credit facility with a

maturity in 2030. At the end of the period the facility was undrawn. The company also has a EUR 600 million

Finnish commercial paper program which was not utilized at the end of December.

Metso had bonds outstanding EUR 1,060 million at carrying value the end of December (EUR 892 million at

the end of December 2024).

Metso’s refinancing risk is managed by balancing the proportion of short-term and long-term debt as well as

the average remaining debt maturity. The tables below analyze the repayments and interests on Metso’s

liabilities by the remaining maturities from the balance sheet date to the contractual maturity date. The net

interest payments of interest-rate swaps hedging long-term loans are included in the long-term debt

repayment figures.

Maturities of debts


	2025			2024
EUR million	<1 year	1–5 years	> 5 years	<1 year	1–5 years	> 5 years
Long-term borrowings
Repayments	–	1,025	300	–	948	360
Interests	50	123	23	–	123	14
Short-term borrowings
Repayments	98	–	–	165	–	–
Interests	2	–	–	52	–	–
Trade payables	671	–	–	581	–	–
Total	821	1,147	323	798	1,071	374

Detailed information on balance sheet items is presented in other notes to the Consolidated financial

statements. Capital structure is assessed regularly by the Board of Directors and managed operationally by

Group Treasury.

Metso Corporation - Board of Directors' report and financial statements 2025 |172

Capital structure management in Metso comprises both equity and interest-bearing debt. As of December 31,

2025, the equity attributable to shareholders was EUR 2,663 million (EUR 2,601 million in 2024), and the

amount of interest-bearing debt excluding lease liabilities was EUR 1,467 million (EUR 1,465 million in 2024).

Metso has a target to have net debt to EBITDA ratio below 1.5. Moody’s Investor Service has assigned a ‘Baa2’

long-term issuer rating with positive outlook to Metso.

There are no financial covenants in Metso’s financing agreements.

A part of the Metso’s trade payables are included in the supplier finance arrangement and are, thus, with a

few counterparties rather than individual suppliers. These payables are settled at the maturity date with these

counterparties rather than with suppliers directly. Management does not consider the supplier finance

arrangement to result in excessive concentrations of liquidity risk. Please refer to note 2.5 for further

disclosures about the arrangement.

Interest rate risk

Interest rate risk arises when changes in market interest rates and interest margins influence finance costs,

returns on financial investments and valuation of interest-bearing balance sheet items. Interest rate risks are

managed by balancing the ratio between fixed and floating interest rates and by managing the duration of

debt and investment portfolios. Additionally, Metso may use derivative instruments, such as forward rate

agreements, swaps, options, and futures contracts, to mitigate the risks arising from interest-bearing assets

and liabilities. The interest rate risk is managed and controlled by the Group Treasury and measured using

sensitivity analysis and duration of debt. The duration of interest-bearing debt, excluding lease liabilities and

the Aggregates Technology Center financing arrangement, was 2.5 years as of December 31, 2025 (1.9 years

in 2024).

At the end of 2025, the balance sheet items exposed to interest rate risk were interest-bearing assets of EUR

503 million (EUR 433 million in 2024), and interest-bearing debt excluding lease liabilities amounted to EUR

1,467 million (EUR 1,465 million in 2024).

The basis for the interest rate sensitivity analysis is an aggregate group-level interest exposure, composed of

interest-bearing assets, interest-bearing debt, and financial derivatives, such as interest rate swaps and

options, which are used to hedge the underlying exposures. For all interest-bearing current debt and assets

to be fixed during the next 12 months, a one percentage point move upwards or downwards in interest rates

with all other variables held constant would have an effect on Metso’s net interest expenses, net of taxes, of

EUR -/+0.2 million (EUR -/+1.8 million in 2024).

For financial assets valued at fair value, a one percentage point change upwards or downwards in all interest

rates with all other variables held constant would have the following effects, net of taxes, in the income

statement and equity:


EUR million	2025	2024
Effects in
Income statement	+/-2.2	+/-4.1
Equity	+/-1.5	+/-0.0

The effect in the income statement comprises the changes in the fair value on the financial instruments, which

are measured at fair value through profit and loss. The effect in equity is comprised of the changes in the fair

value on the financial instruments, which are measured at fair value through other comprehensive income,

such as derivatives under hedge accounting. Calculation method has changed compared to previous year

calculation and is now calculated based on aggregate position including interest payments and repayments of

the loans.

Foreign exchange risk

Metso operates globally and is exposed to foreign exchange risk in several currencies, although the

geographical diversity of operations decreases the significance of any individual currency. About 76 percent

of Metso’s sales originate from outside the euro zone; the main currencies being euro, US dollar, Australian

dollar, Chilean peso and Chinese yuan.

Metso Corporation - Board of Directors' report and financial statements 2025 |173

Transaction exposure

Foreign exchange transaction exposure arises when an operating unit has commercial or financial transactions

and payments in other than its own functional currency and when related cash inflow and outflow amounts

are not equal or concurrent.

In accordance with the Metso Treasury Policy, legal entities are required to hedge in full the foreign currency

exposures on balance sheet and other firm commitments. Treasury Policy specifies certain currencies and

certain legal entities, where the open exposures are left unhedged. Similarly open exposures below certain

euro nominated amount are left unhedged. Future cash flows denominated in a currency other than the

functional currency of the unit are hedged with internal foreign exchange contracts with the Group Treasury

for periods that usually do not exceed two years. Operating units also do some hedging directly with banks in

countries where regulation does not allow group internal cross-border foreign exchange hedging contracts.

Group Treasury monitors the net position of each currency and decides to what extent a currency position is

to be closed. Group Treasury is, however, responsible for entering into an external forward transaction

whenever an operating unit applies hedge accounting. Metso Treasury Policy defines upper limits on the

open currency exposures managed by the Group Treasury; limits have been calculated on the basis of their

potential profit impact. To manage the foreign currency exposure, Group Treasury may use forward exchange

contracts and foreign exchange options.

Total amount of foreign currency exposures


EUR million	2025	2024
Operational items	577	566
Financial items	1,075	1,140
Hedges	-1,629	-1,682
Total exposure	22	25

This aggregate group-level currency exposure is the basis for the sensitivity analysis of foreign exchange risk.

This exposure, net of respective hedges, is composed of all assets and liabilities denominated in foreign

currencies, projected cash flows for unrecognized firm commitments, both short- and long-term sales and

purchase contracts, and anticipated operational cash flows to the extent their realization has been deemed

highly probable and therefore hedged. This analysis excludes net foreign currency investments in subsidiaries

together with instruments hedging these investments.

If the euro were to appreciate or depreciate ten percent against all other currencies, the impact on cash

flows, net of taxes, derived from the year-end net exposure as defined above, would be EUR +5.9/-3.9 million

(EUR +5.4/-4.1 million in 2024). Transaction exposure is spread to about 40 currencies and as of December 31,

2025, the biggest open exposures were in the South African rands, US dollars and British pounds

(approximately 44 percent).

A sensitivity analysis of financial instruments as required by IFRS 7, excludes the following items: projected

cash flows for unrecognized firm commitments, advance payments, both short- and long-term purchase

contracts, and anticipated operational cash flows. The next table presents the effects, net of taxes, of a -/+10

percent change in EUR foreign exchange rates:


				2025	2024
EUR million	USD	CNH	Other	Total	Total
Effects in
Income statement	+/-27.6	+/-7.5	+/-4.7	+/-24.7	+-14.9
Equity	+/-5.1	+/-0.0	+/-1.0	+/-6.1	+/-3.3

The effect in equity is the fair value change in derivatives contracts qualifying as cash flow hedges for

unrecognized firm commitments. The effect in the income statement is the fair value change for all other

financial instruments exposed to foreign exchange risk including derivatives, which qualify as cash flow

hedges, to the extent the underlying sales transaction, recognized over time, has been recognized as

revenue.

Translation or equity exposure

Foreign exchange translation exposure arises when the equity of a subsidiary is denominated in currency

other than the functional currency of the Parent company. The major translation exposures are in Indian

rupee, Canadian dollar, Mexican peso, Chinese yuan and Australian dollar, which altogether comprise

approximately 52 percent of the total equity exposure. Metso is currently not hedging any equity exposure.

Metso Corporation - Board of Directors' report and financial statements 2025 |174

Credit and counterparty risk

Credit or counterparty risk is defined as the possibility of a customer or a financial counterparty not fulfilling

its commitments towards Metso. The operating units of Metso are primarily responsible for credit risks

pertaining to sales and procurement activities. The units assess the credit quality of their customers, by taking

into account their financial position, past experience, and other relevant factors. When appropriate, advance

payments, letters of credit, and third-party guarantees, or credit insurance are used to mitigate credit risks.

Group Treasury provides centralized services related to customer financing and seeks to ensure that the

principles of the Treasury Policy are adhered to with respect to terms of payment and required collateral.

Metso has no significant concentrations of credit risks.

The maximum credit risk equals the carrying value of trade and loan receivables. The credit quality is

evaluated both on the basis of aging of the trade receivables and on the basis of customer specific analysis.

The aging structure of trade receivables is presented in note 2.2.

Counterparty risk arises also from financial transactions agreed upon with banks, financial institutions and

corporates. The risk is managed by careful selection of banks and other counterparties, by counterparty-

specific limits determined in the Treasury Policy, and netting agreements, such as ISDA (Master agreement of

International Swaps and Derivatives Association). The compliance with counterparty limits is regularly

monitored.

Credit risk exposure relates to the carrying value of financial assets valued at amortized cost, such as trade

receivables, interest-bearing receivables, other receivables, deposits and security investments, and cash and

cash equivalents, and customer contract assets.

Impairment on cash on hand, bank accounts, deposits, and interest-bearing investments is assessed regularly,

but deemed minor because of their high investment grade and short duration. Group Treasury makes a

financial analysis of corporate counterparties regularly. In addition, the investments are constantly monitored

by Group Treasury, and Metso does not expect any future credit losses from these investments.

For trade receivables and customer contract assets, Metso applies the IFRS 9 simplified approach to

measuring expected credit losses, which uses a lifetime expected loss allowance to be assessed and

recognized regularly, see note 2.2.

Fair value estimation

For those financial assets and liabilities that have been recognized at fair value in the balance sheet, the

following measurement hierarchy and valuation methods have been applied:

Level 1Unadjusted quoted prices in active markets at the balance sheet date. The market prices are readily

and regularly available from an exchange, dealer, broker, market information service system, pricing service,

or regulatory agency. The quoted market price used for financial assets is the current bid price. Level 1

financial instruments include fund investments classified as fair value through profit and loss.

Level 2The fair value of financial instruments in Level 2 is determined using valuation techniques. These

techniques utilize observable market data readily and regularly available from an exchange, dealer, broker,

market information service system, pricing service, or regulatory agency. Level 2 financial instruments include:

• Over-the-counter derivatives classified as financial assets/liabilities at fair value through profit and loss or

qualified for hedge accounting

• Debt securities classified as financial instruments at fair value through profit and loss

• Fixed-rate debt under fair value hedge accounting

Level 3A financial instrument is categorized into Level 3 if the calculation of the fair value cannot be based

on observable market data. Metso had no such instruments in 2025 nor in 2024.

Metso Corporation - Board of Directors' report and financial statements 2025 |175

Financial assets and liabilities measured at fair value


	Dec 31, 2025			Dec 31, 2024
EUR million	Level 1	Level 2	Level 3	Level 1	Level 2	Level 3
Assets
Financial assets at fair value through profit and loss
Derivatives not under hedge accounting	–	20	–	–	25	–
Financial assets at fair value through other comprehensive income
Derivatives under hedge accounting	–	11	–	–	18	–
Total	–	31	–	–	43	–

Liabilities
Financial liabilities at fair value through profit and loss
Derivatives not under hedge accounting	–	19	–	–	58	–
Financial liabilities at fair value through other comprehensive income
Derivatives under hedge accounting	–	15	–	–	23	–
Total	–	35	–	–	80	–

Metso Corporation - Board of Directors' report and financial statements 2025 |176

4.2. Financial assets and liabilities by category

Material accounting policies

Under IFRS 9, Metso classifies financial assets and liabilities in measurement categories according to contractual

terms of the cash flows and Metso’s business model to manage the investment at the inception. Reclassification of

the categories will be made only if the business model for managing those assets changes. Financial assets and

liabilities are classified as non-current items when the remaining maturity exceeds 12 months and as current items

when the remaining maturity is 12 months or less. Financial assets and liabilities are classified as follows:

At amortized cost

Financial assets

Financial assets valued at amortized cost are investments in debt instruments or receivables, that are held to maturity

and for the collection of contractual cash flows, where those cash flows are solely payments of principal and/or

interest. These are recognized at fair value, less transaction costs, and subsequently measured at amortized cost

using the effective interest method. Interest income is recognized in finance income in the income statement.

Financial assets at amortized cost include deposits, commercial papers, interest-bearing loans and receivables, trade

receivables, and non-interest-bearing receivables. Impairment is assessed regularly, and when the carrying value

exceeds the recoverable value of discounted cash flows, the appropriate impairment is recognized in the income

statement.

For trade receivables, Metso applies the IFRS 9 simplified method, which requires expected lifetime losses to be

recognized from the initial recognition of the receivables. See more in note 2.2. Trade receivables.

Financial liabilities

Issued bonds and withdrawn loan facilities from financial institutions as well as trade and other liabilities are valued at

fair value, net transaction costs, and subsequently measured at amortized cost using the effective interest method.

Trade and other receivables are non-interest-bearing short-term unpaid debts.

The difference between the debt amount, net transaction costs of bonds and loans from financial institutions and the

redemption amount is recognized in the income statement as an interest expense over the period of the borrowings

using the effective interest method. Fees paid on the establishment of loan facilities are recognized in the income

statement as other finance expenses over the period of the facility, or if withdrawal of the loan is probable, as part

of the transaction cost.

At fair value through other comprehensive income (FVOCI)

Financial assets

Financial assets valued at fair value through other comprehensive income are debt instruments or receivables, which

are held for collection of contractual cash flows or held for selling the assets, and where contractual cash flows are

solely payments of principal and/or interest. Interest income is recognized in the income statement using the

effective interest method. Change in fair value is recognized in other comprehensive income (OCI). At derecognition,

the cumulative previously booked gains and losses in OCI are released from equity to the income statement. Metso

includes in this measurement category derivatives under hedge accounting, trade receivables for sale, and security

investments with a maturity of less than three months.

At fair value through profit and loss (FVPL)

Financial assets

Financial assets valued at fair value through profit and loss are equity investments, investments in funds, derivatives

used in fair value hedging and derivatives not under hedge accounting. Change in fair value and gain or loss at

derecognition will be recognized in the income statement. The change in fair value includes the valuation of

impairment risk as well.

The fair value of listed equity shares or investments in funds is the quoted market price on the balance sheet date.

Unlisted shares are valued at cost less impairment, if any.

Financial liabilities

Financial liabilities valued at fair value through profit and loss include derivatives used in fair value hedging and

derivatives not under hedge accounting. Change in fair value and gains or losses at derecognition are recognized in

the income statement.

Metso Corporation - Board of Directors' report and financial statements 2025 |177

Financial assets and liabilities by category


2025	At fair value through profit and loss	At fair value through other comprehensive income	At amortized cost	Carrying value	Fair value
EUR million	At fair value through profit and loss	At fair value through other comprehensive income	At amortized cost	Carrying value	Fair value
Non-current assets
Non-current financial assets	1	–	–	1	1
Derivative financial instruments	6	–	–	6	6
Other non-current receivables	–	–	25	25	25
Total	7	–	25	31	31

Current assets
Trade receivables	–	–	1,038	1,038	1,038
Trade receivables, for sale	–	13	–	13	13
Loan receivables	–	–	2	2	2
Derivative financial instruments	14	11	–	25	25
Deposits and securities	–	–	143	143	143
Cash on hand and in bank accounts	–	–	357	357	357
Liquid funds total	–	–	501	501	501
Total	14	24	1,541	1,578	1,578

Non-current liabilities
Bonds ¹⁾	–	–	1,060	1,060	1,058
Loans from financial institutions	–	–	309	309	309
Borrowings total	–	–	1,369	1,369	1,367
Lease liabilities	–	–	85	85	85
Derivative financial instruments	9	–	–	9	9
Other non-current liabilities	–	–	1	1	1
Total	9	–	1,455	1,464	1,462

Current liabilities
Current portion of non-current debt	–	–	98	98	98
Loans from financial institutions	–	–	0	0	0
Borrowings total	–	–	98	98	98
Lease liabilities	–	–	42	42	42
Trade payables	–	–	671	671	671
Derivative financial instruments	10	15	–	26	26
Total	10	15	811	836	836

For more information on derivative financial instruments, see note 4.8.


2024	At fair value through profit and loss	At fair value through other comprehensive income	At amortized cost	Carrying value	Fair value
EUR million	At fair value through profit and loss	At fair value through other comprehensive income	At amortized cost	Carrying value	Fair value
Non-current assets
Non-current financial assets	2	–	–	2	2
Derivative financial instruments	9	–	–	9	9
Other non-current receivables	–	–	23	23	23
Total	11	–	23	34	34

Current assets
Trade receivables	–	–	927	927	927
Trade receivables, for sale	–	10	–	10	10
Loan receivables	–	–	2	2	2
Derivative financial instruments	24	10	–	34	34
Deposits and securities	–	–	43	43	43
Cash on hand and in bank accounts	–	–	388	388	388
Liquid funds total	–	–	431	431	431
Total	24	20	1,360	1,404	1,404

Non-current liabilities
Bonds ¹⁾	–	–	892	892	894
Loans from financial institutions	–	–	408	408	408
Borrowings total	–	–	1,300	1,300	1,303
Lease liabilities	–	–	99	99	99
Derivative financial instruments	13	–	–	13	13
Other non-current liabilities	–	–	5	5	5
Total	13	–	1,405	1,417	1,420

Current liabilities
Current portion of non-current debt	–	–	128	128	128
Loans from financial institutions	–	–	7	7	7
Commercial papers	–	–	29	29	29
Borrowings total	–	–	165	165	165
Lease liabilities	–	–	42	42	42
Trade payables	–	–	581	581	581
Derivative financial instruments	58	10	–	68	68
Total	58	10	788	856	856

¹⁾The bonds have been measured at amortized cost, adjusted by the fair value to the extent of the hedged risk.

Metso Corporation - Board of Directors' report and financial statements 2025 |178

4.3. Liquid funds

Material accounting policies

Cash and cash equivalents, which Metso refers to as liquid funds, consist of cash on hand and bank accounts,

deposits, and interest-bearing investments, which can be readily converted into a known amount of cash.

Cash on hand, bank accounts, deposits, and interest-bearing investments are measured at amortized cost.

Impairment on cash on hand, bank accounts, deposits, and interest-bearing investments is assessed regularly, but

deemed minor because of their high investment grade and short duration.


EUR million	2025	2024
Cash and cash equivalents
Deposits and securities, maturity three months or less ¹⁾	143	43
Cash on hand and bank accounts	357	388
Cash and cash equivalents, continuing operations	501	431
Cash and cash equivalents, discontinued operations	10	–
Liquid funds total	511	431

¹⁾All deposits and securities meet the IAS 7 definition of cash equivalents.

Average returns for deposits and securities


%	2025	2024
With maturity three months or less	7.00%	9.91%

4.4. Equity

Material accounting policies

Issue of new shares and own shares

Transaction costs directly attributable to the issue of new shares or options are shown net of their tax effect in equity

as a deduction from the proceeds.

Own shares held by the Parent company valued at the historical acquisition price are deducted from equity. Should

such shares be subsequently sold or reissued, the consideration received, net of any directly attributable transaction

costs and related income tax, is recorded in equity.

Translation difference

The translation differences arising from subsidiary net investments and non-current subsidiary loans without agreed

settlement dates are recognized through Other Comprehensive Income (OCI) to cumulative translation adjustments

under equity. When Metso hedges the net investment of its foreign subsidiaries with foreign currency loans and with

financial derivatives, the translation difference is adjusted by the currency effect of the hedging instruments which

has been recorded, net of taxes, through OCI in equity. When a foreign entity is disposed of, the respective

accumulated translation difference, including the effect from qualifying hedging instruments, is reversed through OCI

and recognized in the consolidated statements of income as part of the gain or loss on the sale. If the equity of a

subsidiary denominated in a foreign currency is reduced by a return of capital, the translation difference relating to

the reduction is reversed through OCI and recognized in the consolidated statements of income.

Dividends

Dividends proposed by the Board of Directors are not recognized in the financial statements until they have been

approved by the shareholders in the Annual General Meeting.

Metso Corporation - Board of Directors' report and financial statements 2025 |179

Share capital and number of shares

Metso Corporation's registered share capital, which is fully paid, was EUR 107,186,442.52 on December 31,

2025, and December 31, 2024. Metso's shares have no nominal value.


	2025	2024
Number of outstanding shares at beginning of year	827,351,330	826,328,191
Shares granted from share ownership plans	409,427	1,023,139
Number of outstanding shares at end of year	827,760,757	827,351,330
Own shares held by the Parent Company	1,211,683	1,621,110
Total number of shares at end of year	828,972,440	828,972,440

As of December 31, 2025, the acquisition price of 1,211,683 own shares held by the Parent company was

EUR 9,945,723.14 and was recognized in treasury shares.

Dividend proposals

The Board of Directors proposes that a dividend of EUR 0.40 per share be paid based on the balance sheet

to be adopted for the financial year, which ended December 31, 2025,and the remaining portion of the profit

be retained and carried forward in the Company’s unrestricted equity.These financial statements do not

reflect this dividend payable of EUR 331 million.

Fair value and other reserves

The hedge reserve includes the fair value movements of derivative financial instruments which qualify as cash

flow hedges.

The fair value reserve includes the change in fair values of trade receivables for sale as well as share-based

payments.

The legal reserve consists of restricted equity, which has been transferred from distributable funds under the

Articles of Association, local company act, or by a decision of the shareholders.

The other reserves consist of the distributable fund and the invested non-restricted equity fund held by the

Parent company.

Changes in fair value and other reserves


EUR million	Treasury shares	Hedge reserve	Fair value reserve	Legal reserve	Other reserves	Total
January 1, 2025	-13	1	14	0	1,136	1,137
Cash flow hedges
Fair value gains (+) / losses (-), net of tax	–	-8	–	–	–	-8
Transferred to profit and loss, net of tax
Sales	–	-1	–	–	–	-1
Cost of goods sold / Administrative expenses	–	7	–	–	–	7
Share-based payments, net of tax	3	–	-2	–	–	2
Other	–	–	–	–	1	1
December 31, 2025	-10	-1	12	0	1,137	1,138


EUR million	Treasury shares	Hedge reserve	Fair value reserve	Legal reserve	Other reserves	Total
January 1, 2024	-23	-3	22	0	1134	1131
Cash flow hedges
Fair value gains (+) / losses (-), net of tax	–	-9	–	–	–	-9
Transferred to profit and loss, net of tax
Sales	–	2	–	–	–	2
Cost of goods sold / Administrative expenses	–	10	–	–	–	10
Share-based payments, net of tax	9	–	-8	–	–	1
Other	–	–	–	0	2	2
December 31, 2024	-13	1	14	0	1,136	1,137

Cumulative translation adjustments included in shareholders’ equity


EUR million	2025	2024
Cumulative translation adjustment at beginning of year	-215	-177
Currency translation, change	-43	-37
Cumulative translation adjustment at end of year	-257	-215

Metso Corporation - Board of Directors' report and financial statements 2025 |180

4.5. Borrowings and lease liabilities

Material accounting policies

Long-term debt is initially recognized at fair value, net of transaction costs incurred, and subsequently measured at

amortized cost using the effective interest method. The difference between the debt amount recognized and the

redemption amount is recognized in the income statement as an interest expense over the period of the borrowings.

The fair value changes in borrowings covered by fair value hedge are, in respect of hedged risk, recognized through

profit and loss. A portion of long-term debt is classified as short-term debt when the settlement of the liability is due

within 12 months from the balance sheet date. Borrowings are derecognized only if the contractual obligation is

discharged, cancelled, or expired.

Fees paid on the establishment of loan facilities are recognized in the income statement as other finance expenses

over the period of the facility, or, if withdrawal of the loan is probable, as part of the transaction cost. Transaction

costs arising from modification to debt instruments are included in the carrying value of the debt and amortized

using the effective interest method over the remaining period of the modified liability, provided that the new

conditions obtained through the modification do not substantially differ from those of the original debt. Modification

gains or losses are recognized in the income statement at the time of non-substantial modification.


	2025		2024
EUR million	Carrying values	Fair values	Carrying values	Fair values
Long-term interest-bearing debt
Bonds	1,060	1,058	892	894
Loans from financial institutions	309	309	408	408
Total long-term borrowings	1,369	1,367	1,300	1,303

Lease liabilities	85	85	99	99
Total long-term interest-bearing debt	1,455	1,452	1,399	1,402

Short-term borrowings
Loans from financial institutions, current portion	98	98	128	128
Loans from financial institutions	0	0	7	7
Commercial papers	–	–	29	29
Total short-term borrowings	98	98	165	165

Lease liabilities	42	42	42	42
Total short-term interest-bearing debt	140	140	207	207

Total interest-bearing debt	1,595	1,592	1,606	1,609

Bonds


2025
EUR million	Nominal interest rate	Effective interest rate	Outstanding original loan amount	Outstanding carrying value
Public bond 2020–2028	0.875%	1.03%	300	290
Public bond 2022–2027	4.875%	4.96%	170	171
Public bond 2023–2030	4.375%	4.52%	300	301
Public bond 2025-2032	3.750%	3.86%	300	298
Bonds total			1,070	1,060


2024
EUR million	Nominal interest rate	Effective interest rate	Outstanding original loan amount	Outstanding carrying value
Public bond 2020–2028	0.875%	1.04%	300	287
Public bond 2022–2027	4.875%	4.98%	300	302
Public bond 2023–2030	4.375%	4.54%	300	303
Bonds total			900	892

Metso had EUR 1,060 million (EUR 892 million in 2024) bonds outstanding at carrying value at the end of

2025.

Metso maintains a committed syndicated revolving credit facility of EUR 700 million, maturing in 2030. This

facility incorporates sustainability performance targets that influence borrowing costs. As of the end of the

year, the facility remained undrawn. Additionally, the company operates a EUR 600 million Finnish commercial

paper program, which was not utilized at the end of December.

During 2025, the company made several funding transactions:

• New EUR 700 million sustainability-linked revolving credit facility agreement maturing in 2030 which

refinanced EUR 600 million facility

• The company structured its maturity profile by purchasing EUR 130 million of the outstanding bond

maturing in 2027 through a voluntary tender offer. At the same time the company issued a new EUR

300 million bond with a coupon of 3.75% and maturity in 2032.

Metso Corporation - Board of Directors' report and financial statements 2025 |181

On December 31, 2025 the average interest rate of loans and derivatives was 3.3% (3.8%), the duration of

interest-bearing debt, excluding lease liabilities and the Aggregates Technology Center financing

arrangement, was 2.5 years (1.9 years) and the average maturity 3.6 years (3.3 years).

Short-term loans from financial institutions consist of bank loans withdrawn by Metso subsidiaries to fund

local operations in local currency. The weighted average interest rate applicable to the short-term borrowing

on December 31, 2025, was 8.50% (6.34% in 2024). In 2026, interest amounting to EUR 0.0 million is expected

to be paid concurrently with respective principals on the short-term debt.

On June 3, 2024 Metso announced that it will build a modern Aggregates Technology Center in Tampere,

Finland. The new technology center will enable transferring current operations in Tampere city center into

modern and sustainable manufacturing premises. Construction work started in July 2024, and the first phase

investment of approximately EUR 150 million is expected to be completed in 2027. The new technology center

is expected to be fully completed by the mid-2030s. In year 2025 the cumulative recorded investment amount

was EUR 55 million (EUR 11 million in 2024). The financing arrangement of the project has been presented in

other long-term debt. The amount of interest directly attributable to the construction and capitalized in the

balance sheet in 2025, was EUR 1.2 million (EUR 0.2 million in 2024).

Maturities of interest-bearing debt at nominal value


2025
EUR million	Borrowings	Repayments	Interests	Lease liabilities ¹⁾
2026	150	98	52	46
2027	382	338	44	35
2028	350	320	30	20
2029	45	20	25	15
2030	376	352	25	9
Later	374	350	24	15
Total	1,676	1,477	198	139


2024
EUR million	Borrowings	Repayments	Interests	Lease liabilities ¹⁾
2025	217	165	52	47
2026	267	218	49	36
2027	433	393	40	23
2028	339	318	20	15
2029	33	19	14	12
Later	374	360	14	24
Total	1,662	1,473	189	157

¹⁾ Future lease payments at nominal value.

The maturities of derivative financial instruments are presented in note 4.8 .

4.6. Interest-bearing net debt reconciliation

Net interest-bearing liabilities


EUR million	2025	2024
Borrowings, non-current	1,369	1,300
Borrowings, current portion	98	128
Borrowings, non-current total	1,467	1,428
Lease liabilities, non-current	85	99
Lease liabilities, current portion	42	42
Lease liabilities total	127	141
Borrowings, current	0	37
Loan receivables	-2	-2
Liquid funds	-501	-431
Net interest-bearing liabilities	1,092	1,173

Metso Corporation - Board of Directors' report and financial statements 2025 |182

Changes in net interest-bearing liabilities


2025 EUR million	Balance at beginning of year	Cash flows	Acquisitions	Translation differences	Other non-cash movements	Classification as held for sale	Balance at end of year
Borrowings, non-current	1,428	-5	–	–	45	–	1,467
Lease liabilities	141	-46	3	-5	34	–	127
Borrowings, current	37	-36	–	-1	–	–	0
Loan receivables	-2	1	-1	0	0	–	-2
Liquid funds	-431	-62	-36	19	–	10	-501
Net interest-bearing liabilities	1,173	-149	-34	13	79	10	1,092


2024 EUR million	Balance at beginning of year	Cash flows	Acquisitions	Translation differences	Other non-cash movements	Classification as held for sale	Balance at end of year
Borrowings, non-current	1,371	37	5	0	16	–	1,428
Lease liabilities	118	-38	10	1	50	–	141
Borrowings, current	39	-16	13	–	–	–	37
Loan receivables	-6	4	0	0	–	–	-2
Liquid funds	-638	208	-1	–	–	–	-431
Net interest-bearing liabilities	884	195	27	2	66	–	1,173

4.7. Contingent liabilities and other commitments

Material accounting policies

Guarantees have been given for obligations arising in the ordinary course of business of Metso Group companies.

Guarantees have been given by financial institutions or by Metso Corporation on behalf of Group companies. These

guarantees have typically been given to secure a customer’s advance payments or to secure commercial contractual

obligations, or given as counter guarantees to banks, which have given commercial guarantees to a Group company.


EUR million	2025	2024
Guarantees
External guarantees given by parent and group companies	1,268	1,470
Other commitments
Other contingencies	–	0
Total	1,268	1,470

More information about lawsuits and claims is presented in note 6.2.

4.8. Derivative instruments

Material accounting policies

Derivatives are initially recognized in the balance sheet at fair value and subsequently measured at their fair value at

each balance sheet date. Derivatives are designated at inception either as hedges of firm commitments or

forecasted transactions (cash flow hedge) or as hedges of fixed-rate debt (fair value hedge), or as hedges of net

investment in a foreign operation (net investment hedge), or as derivatives at fair value through profit and loss that

do not meet the hedge accounting criteria.

In hedge accounting, Metso documents at inception the relationship between the hedging instruments and the

hedged items in accordance with its risk management strategy and objectives. Metso also tests the effectiveness of

the hedge relationships at hedge inception, and quarterly, both prospectively and retrospectively.

Derivatives are classified as non-current assets or liabilities when the remaining maturities exceed 12 months and as

current assets or liabilities when the remaining maturities are less than 12 months.

Metso Corporation - Board of Directors' report and financial statements 2025 |183

Cash flow hedge

Metso applies cash flow hedge accounting to certain interest rate swaps, foreign currency forward contracts and to

electricity forwards.

Metso designates only the currency component of the foreign currency forward contracts as the hedging instrument

to hedge foreign currency-denominated firm commitments. The interest component is recognized under other

operating income and expenses, net. The gain or loss relating to the effective portion of the currency forward

contracts is recognized in the income statement concurrently with the underlying in the same line item. The effective

portion of foreign currency forwards hedging sales and purchases is recognized in the sales and the cost of goods

sold, respectively. The gain or loss relating to the effective portion of interest rate swaps hedging variable rate

borrowings is reversed from the hedge reserve through other comprehensive income (OCI) to the income statement

within financial items concurrently with the recognition of the underlying liability. Both at hedge inception and at

each balance sheet date, an assessment is performed to ensure the continued effectiveness of the designated

component of the derivatives in offsetting changes in the fair values of the cash flows of hedged items.

The effective portion of the derivatives is recognized through OCI in the hedge reserve under equity and reversed

through OCI to be recorded through profit and loss concurrently with the underlying transaction being hedged. The

gain or loss relating to the ineffective portion of the derivatives is reported under other operating income or

expenses, net or under financial items when contracted to hedge variable rate borrowings. Should a hedged

transaction no longer be expected to occur, any cumulative gain or loss previously recognized under equity is

reversed through OCI to profit and loss.

Fair value hedge

Metso applies fair value hedge accounting to certain fixed-rate loans. The change in fair value of the interest rate

swap hedging the loan is recognized through profit and loss concurrently with the change in value of the underlying.

Both at inception and quarterly, the effectiveness of the derivatives is tested by comparing their change in fair value

against those of the underlying instruments.

Derivatives at fair value through profit and loss

Certain derivative instruments do not qualify for hedge accounting. These instruments, which have been contracted

to mitigate risks arising from operating and financing activities, comprise foreign exchange forward contracts,

currency and interest rate options and interest rate swaps.

Changes in the fair value of interest rate swaps are recognized in interest expenses under finance expenses or in

other comprehensive income. Both realized interest payments and unrealized changes in fair value of interest rate

swap contracts recognized at fair value through profit or loss are recorded in the same income statement item,

'Interest expenses from interest rate swaps.' Changes in the fair value of foreign exchange forward contracts are

mainly recognized in other operating income and expenses. However, when the foreign exchange forwards have

been contracted to mitigate the exchange rate risks arising from foreign currency-denominated cash and from

financial instruments used for cash management, the changes in fair value of the derivatives are recognized in

finance income and expenses. Changes in the fair value of other derivative instruments, such as commodity

instruments, are recognized in other operating income and expenses.

Fair value estimation of derivative instruments

The fair value of the foreign currency forward contracts is determined by using forward exchange market rates at

the balance sheet date. The fair value of the interest rate swaps is calculated as the present value of the estimated

future cash flows based on observable yield curves. The fair value of options is determined using the Black-Scholes

valuation model.

Notional amounts and fair values of derivative financial instruments on December 31


2025 EUR million	Notional amount	Fair value, assets	Fair value, liabilities	Fair value, net
Forward exchange contracts ¹⁾	3,346	25	26	-1
Interest rate swaps	455	6	9	-3
Total	3,801	31	35	-4

2024 EUR million	Notional amount	Fair value, assets	Fair value, liabilities	Fair value, net
Forward exchange contracts ¹⁾	3,515	34	68	-34
Interest rate swaps	505	9	13	-4
Total	4,020	43	80	-37

¹⁾ Some 11 percent of the notional amount at the end of 2025 qualified for cash flow hedge accounting (some 21 percent in 2024).

The notional amounts indicate the volumes in the use of derivatives, but do not indicate the exposure to risk.

Derivative financial instruments recognized in the balance sheet at the end of year


	2025		2024
EUR million	Assets	Liabilities	Assets	Liabilities
Interest rate swaps - cash flow hedges	1	–	1	–
Interest rate swaps - fair value hedges	4	9	7	13
Interest rate swaps - non-qualifying hedges	1	–	1	–
Interest rate swaps total	6	9	9	13

Forward exchange contracts - cash flow hedges	6	6	10	10
Forward exchange contracts - non-qualifying hedges	19	19	24	58
Forward exchange contracts total	25	26	34	68

Derivatives total	31	35	43	80

In 2025 and 2024, there was no ineffectiveness related to the cash flow hedges. As of December 31, 2025, the

fixed interest rates of swaps varied from -0.38 percent to 3.09 percent (from -0.38 percent to 3.09 percent as

of December 31, 2024).

Metso Corporation - Board of Directors' report and financial statements 2025 |184

Maturities of financial derivatives on (expressed as notional amounts)


December 31, 2025
EUR million	2026	2027	2028	2029	2030 and later
Forward exchange contracts	3,344	2	–	–	–
Interest rate swaps	–	100	150	25	180

Notional and carrying amounts of financial derivatives applying hedge accounting


2025 EUR million	Notional amount	Fair value, assets	Fair value, liabilities	Fair value, net
Forward exchange contracts	664	6	6	0
Interest rate swaps	430	5	9	-4
Total	1,094	11	15	-4

2024 EUR million	Notional amount	Fair value, assets	Fair value, liabilities	Fair value, net
Forward exchange contracts	751	10	10	0
Interest rate swaps	480	8	13	-5
Total	1,231	18	23	-5

Forward exchange contracts hedge commercial cash flows of projects applying hedge accounting. The hedge

ratio is 1:1. 100% of hedged cash flows mature in year 2026, 0% in year 2027.

Impact of cash flow hedge in the statement of financial position


2025 EUR million	Notional amount	Hedging gain / loss recognized in OCI, net of tax	Amount reclassified from OCI to P/L	Cost of hedging recognized in P/L
	3,346	-2	1	1

Metso applies fair value hedge accounting to the bonds maturing in 2027, 2028 and 2030 and cash flow

hedge accounting to one bank loan maturing 2030. The hedge accounted total notional value is EUR 430

million (EUR 480 million in 2024). The terms of the interest rate swap match the terms of the fixed rate bonds

(maturity date, interest fixing and payments dates). Fair values of cash flows of interest rate swap and bond

are compared when measuring hedge accounting effectiveness. Credit margin is added to the discount curve

of the bond.

Bonds applying fair value hedge accounting at end of year


Notional amount of loan, EUR million	Carrying value of loan, EUR million	Hedge ratio	Maturity date of loan	Fair value of loan, EUR million	Notional amount of interest rate swap	Maturity date of interest rate swap	Fair value of interest rate swap, EUR million
170	171	59%	December 7, 2027	-1	100	December 7, 2027	1
300	290	50%	May 26, 2028	9	150	May 26, 2028	-9
300	301	43%	November 22, 2030	-3	130	November 22, 2030	3

Metso Corporation - Board of Directors' report and financial statements 2025 |185

5. Consolidation

5.1. Principles of consolidation

Subsidiaries

The Consolidated financial statements include the financial statements of the Parent company and each of

those companies over which Metso exercises control. Control is achieved when Metso is exposed, or has

rights, to variable returns from the investee and has the ability to affect those returns through its power over

the investee. The companies acquired during the financial period have been consolidated from the date

Metso acquired control. Subsidiaries sold or distributed to the owners have been included up to their date of

disposal.

All intercompany transactions, balances, and gains or losses on transactions between subsidiaries are

eliminated as part of the consolidation process. Non-controlling interests are presented in the consolidated

balance sheet within equity, separate from equity attributable to shareholders. Non-controlling interests are

separately disclosed in the consolidated statement of income.

Acquisitions of businesses are accounted for using the acquisition method. The purchase consideration of an

acquisition is measured at fair value over the assets given up, shares issued, or liabilities incurred or assumed

at the date of acquisition. For each acquisition, the non-controlling interest in the acquiree, if any, can be

recognized either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net

assets. The excess acquisition price over the fair value of net assets acquired is recognized as goodwill and/

or intangible assets. If the purchase consideration is less than the fair value of the Group’s share of the net

assets acquired, the difference is recognized directly through profit and loss.

When Metso ceases to have control, any retained interest in equity is re-measured to its fair value at the date

when control is lost, with the change in carrying amount recognized in profit or loss. The fair value is the

initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate,

or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect

of that entity is accounted for as if the Group had directly disposed of the related assets or liabilities.

Non-controlling interest

Transactions with non-controlling interests are regarded as transactions with equity owners. In the case of

purchases from non-controlling interests, the difference between any consideration paid and the relevant

share of the carrying value of net assets acquired in the subsidiary is recorded in shareholders’ equity. Gains

or losses on disposal to non-controlling interests are also recorded directly in shareholders’ equity.

Non-current assets or disposal group held-for-sale

Metso classifies a non-current asset or disposal group as held for sale if its carrying amount will be recovered

principally through a sale transaction rather than through continuing use. These assets are valued at the lower

of its carrying value and fair value, less costs to sell, and assets subject to depreciation or amortization are no

longer amortized. Assets related to non-current assets, or a disposal group classified as held-for-sale are

disclosed separately from other assets, but financial statements for prior periods are not reclassified.

Foreign currency translation

The financial statements are presented in euros, which is the Parent company’s functional currency and

Metso’s presentation currency.

Transactions in foreign currencies are recorded at the rates of exchange prevailing at the date of the

transaction. At the end of the reporting period, unsettled foreign currency transaction balances are valued at

the rates of exchange prevailing at the balance sheet date. Trade-related foreign currency exchange gains

and losses are recorded in other operating income and expenses, unless the foreign currency-denominated

transactions are subject to hedge accounting, in which case the related exchange gains and losses are

recorded in the same line item as the hedged transaction. Foreign exchange gains and losses associated with

financing are entered as a net amount under finance income and expenses.

The statement of income of a subsidiary with a functional currency different from the presentation currency is

translated into euros at the average month end exchange rate for the financial year, and the balance sheet is

translated at the exchange rate in effect on the balance sheet date. This exchange rate difference is recorded

through other comprehensive income (OCI) within cumulative translation adjustments under equity.

Metso Corporation - Board of Directors' report and financial statements 2025 |186

The translation differences arising from subsidiary net investments and long-term subsidiary loans without

agreed settlement dates are recognized through OCI within cumulative translation adjustments under equity.

When Metso hedges the net investment of its foreign subsidiaries with foreign currency loans and financial

derivatives, the translation difference is adjusted by the currency effect of hedging instruments that has been

recorded, net of taxes, through OCI under equity. When a foreign entity is disposed of, the respective

accumulated translation difference, including the effect from qualifying hedging instruments, is reversed

through OCI and recognized in the consolidated statement of income as part of the gain or loss on the sale.

If the equity of a foreign currency-denominated subsidiary is reduced by reimbursement of invested funds,

the translation difference relating to the reduction is reversed through OCI and recognized in the

consolidated statement of income.

Net investment hedge

The equity of subsidiaries reporting in certain currencies can be hedged mainly by foreign currency loans and

foreign currency forward contracts. Both realized and unrealized exchange gains and losses measured on

these instruments are recorded, net of taxes, through OCI in a separate component of equity against the

translation differences arising from consolidation to the extent these hedges are effective. The interest

portion of derivatives qualifying as hedges of net investment is recognized under finance income and

expenses.

5.2. Subsidiaries


		Ownership
Country	Company name	2025
Algeria	Metso Algerie EURL	100.0%
Argentina	Metso Argentina SA	100.0%
Australia	Brouwer Engineering Pty Ltd	100.0%
	Jindex Pty Ltd	100.0%
	Metso Australia Ltd	100.0%
	Metso Metals Australia Pty Ltd	100.0%
	Outotec Pty. Ltd.	100.0%
	Q&R Industrial Holdings Pty Ltd	100.0%
	Q&R Industrial Hoses Pty Ltd	100.0%
	Swiss Tower Mills Minerals Australia Pty. Ltd.	100.0%
Austria	KMF STM Production GmbH	50.0%
	Metso Austria GmbH	100.0%
Brazil	Metso Brazil Indústria e Comércio Ltda	100.0%
	Outotec Tecnologia Brazil Ltda	100.0%
Bulgaria	Metso Bulgaria EOOD	100.0%


		Ownership
Country	Company name	2025
Canada	McCloskey International Limited	100.0%
	Metso Canada Inc.	100.0%
Chile	Metso Chile SpA	100.0%
	Metso Industrial Services SpA	100.0%
	Swiss Tower Mills Minerals SpA	100.0%
China	Metso (Tianjin) Investment Co., Ltd.	100.0%
	Metso Heavy Industries (Quzhou) Co., Ltd.	100.0%
	Metso Heavy Industries (Tianjin) Co., Ltd.	100.0%
	Metso Machinery Heavy Industries (Suzhou) Co., Ltd.	100.0%
	Metso Metals (Suzhou) Co., Ltd.	100.0%
	Metso Outotec New Material Technology (Shanghai) Co., Ltd.	100.0%
	Powertrack Machinery (Jiangsu) Co., Ltd	100.0%
	Saimu Technology (Shenyang) Co., Ltd	100.0%
	Shaorui Heavy Industries (Guangdong) Co. Ltd	100.0%
	SISUPER Machinery Heavy Industry (Suzhou) Co Ltd	100.0%
Czech Republic	Metso Czech Republic s.r.o.	100.0%
Ecuador	Metso Ecuador S.A.	100.0%
Egypt	Metso Outotec Egypt Company LLC	100.0%
Finland	Ab A. Häggblom Oy	100.0%
	International Project Services Ltd. Oy	100.0%
	Metso (Ceramics) Oy	100.0%
	Metso Finland Oy	100.0%
	Metso Metals Oy	100.0%
	Outotec International Holdings Oy	100.0%
	Rauma Oy	100.0%
France	Metso France SAS	100.0%
Germany	Metso Germany GmbH	100.0%
	Outotec Deutschland GmbH	100.0%
	Outotec FHT GmbH	100.0%
	Outotec GmbH & Co KG	100.0%
	Outotec Holding GmbH	100.0%
Ghana	Metso Ghana Ltd	100.0%
	Outotec (Ghana) Limited	100.0%
Greece	Metso Greece Single Member IKE	100.0%
Hong Kong	Metso International (Hong Kong) Co. Ltd	100.0%
India	Metso India Private Ltd	100.0%
	Metso Outotec Metals India Private Limited	100.0%
	Outotec India Private Ltd.	100.0%

Metso Corporation - Board of Directors' report and financial statements 2025 |187


		Ownership
Country	Company name	2025
Indonesia	PT Metso Technology Solutions ¹⁾	99.9%
	PT Outotec Technology Solutions	100.0%
Iran	Outotec Iranian Minerals and Metals Processing ³⁾	100.0%
Italy	Metso Italy Srl	100.0%
Japan	Metso Japan Godo-Kaisha	100.0%
Kazakhstan	Metso Kazakhstan LLP	100.0%
	Metso Management LLP	100.0%
Lithuania	Metso Global Business Services UAB	100.0%
	Metso Lithuania UAB	100.0%
Macedonia	Metso Dooel Skopje	100.0%
Morocco	Metso Minerals Morocco LLC	100.0%
	Metso Outotec Morocco LLC	100.0%
Mexico	Metso Mexico SA de CV	100.0%
Mongolia	Metso Mongolia LLC	100.0%
Namibia	Metso Technologies Namibia (Pty) Ltd	100.0%
Netherlands	Metso Netherlands B.V.	100.0%
	Outotec B.V.	100.0%
Norway	Metso Norway A/S	100.0%
Panama	Metso Central America SA	100.0%
Papua New Guinea	Metso PNG Limited	100.0%
Peru	Metso Perú SA	100.0%
Poland	Metso Poland Sp. z o.o.	100.0%
Portugal	Metso Portugal, Lda	100.0%
Qatar	Kempe International Properties W.L.L ²⁾	49.0%
	Outotec Trading & Contracting WLL ²⁾	49.0%
Russia	OOO Metso Outotec³⁾	100.0%
Romania	Metso Romania S.R.L.	100.0%
Saudi Arabia	Metso LLC	100.0%
	Outotec Technology Saudi LLC	100.0%
Serbia	Metso d.o.o. Beograd	100.0%
Singapore	Metso Outotec Asia Pacific Pte Ltd	100.0%
South Africa	Metso South Africa Pty Ltd	74.9%
	Metso South Africa Sales Pty Ltd	100.0%
	Outotec Africa Holdings (Pty) Ltd	100.0%
	Outotec Biomin (Pty) Ltd	100.0%


		Ownership
Country	Company name	2025
Spain	Metso Espana SA	100.0%
Sweden	AB P. J. Jonsson och Söner	100.0%
	Häggblom Sverige AB	100.0%
	Larox AB	100.0%
	Metso Outotec Metals Sweden AB	100.0%
	Metso Sweden AB	100.0%
Switzerland	Swiss Tower Mills Minerals AG Switzerland	100.0%
	Vertical Power Mills Technology AG	100.0%
Thailand	Metso Outotec (Thailand) Limited	100.0%
Turkey	Metso Maden Teknolojileri Anonim Sirketi	100.0%
United Arab Emirates	Metso FZCO	100.0%
United Kingdom	McCloskey International Ltd	100.0%
	Metso Captive Insurance Limited	100.0%
	Metso UK Ltd	100.0%
	Tedd Engineering Ltd	100.0%
	Tesab Engineering Ltd	100.0%
United States	DZ Grinders LLC	100.0%
	Metso McCloskey USA LLC	100.0%
	Metso USA Inc	100.0%
	Outotec USA Inc	100.0%
	Screen Machine Industries LLC	100.0%
Uzbekistan	FE Metso LLC	100.0%
Vietnam	Metso Vietnam Co. Ltd	100.0%
Zambia	Metso Zambia Ltd	100.0%
	Outotec (Zambia) Limited	100.0%

¹⁾ Has been 100% consolidated due to the control established.

²⁾ Has been 70% consolidated due to the control established.

³⁾ Non-operative and dormant.

Metso Corporation - Board of Directors' report and financial statements 2025 |188

5.3. Associated companies and related party transactions

Material accounting policies

The equity method of accounting is used for investments in associated companies in which the investment provides

Metso the ability to exercise significant influence over the operating and financial policies of the investee company.

Such an influence is presumed to exist for investments in companies in which Metso’s direct or indirect shareholding

is between 20 and 50 percent of the voting rights or if Metso is able to exercise significant influence. Investments in

associated companies are initially recognized at cost after which Metso’s share of their post-acquisition retained

profits and losses is included as part of investments in associated companies in the consolidated balance sheets.

Under the equity method, the share of profits and losses of associated companies is presented separately in the

consolidated statements of income.

Associated companies


	2025		2024
Company	Ownership	Carrying value	Ownership	Carrying value
Enefit Outotec Technology Oü	40.0%	2	40.0%	3
Sidvin Outotec Engineering Private Ltd	25.1%	0	25.1%	1
Total		3		3

Movements in the carrying value of investments in associated companies


EUR million	2025	2024
Investments in associated companies
Acquisition cost as of January 1	2	2
Acquisition cost as of December 31	2	2

Equity adjustments in investments in associated companies
Equity adjustments as of January 1	1	1
Share of results	1	1
Dividends received	-1	-1
Equity adjustments as of December 31	1	1

Shares classified as held for sale	-2	-3

Carrying value at end of year	0	1

Metso's share of the assets and liabilities, sales and results of the associated companies which have

been accounted for using the equity method


EUR million	2025	2024
Assets	3	4
Liabilities	0	0
Sales	2	2
Profit	1	1

Related party transactions

Transactions carried out and related balances with associated companies


EUR million	2025	2024
Sales	0	1
Purchases	-1	-2
Receivables	–	–
Payables	–	–

Metso Board of Directors, Chief Executive Officer and other Executive Team members

Information on remuneration of the Board as well as Chief Executive Officer and other Executive Team

members can be found in note 1.5.

Metso Corporation - Board of Directors' report and financial statements 2025 |189

5.4. Acquisitions and business disposals

Acquisitions in 2025

Metso completed the acquisition of Swiss Tower Mills Minerals AG (STM) on April 1, 2025 by acquiring an 85%

share of the company. Previously Metso had a 15% minority ownership in the company, which had been

classified as a non-current financial asset. In connection with the acquisition, this interest was valued at fair

value through Other income (see note 1.4) following the transaction. STM’s expertise in vertical grinding mills

strengthens Metso’s leading comminution solutions portfolio for the mining industry, playing a vital role in

energy-efficient solutions for the diverse needs of customers and enabling Metso to provide enhanced

service levels to customers using stirred mill technology. The acquired business was consolidated into the

Minerals segment. Sales of the acquired business in the financial year that ended in December 2024 were

approximately EUR 25 million. This sales figure does not reflect the full scope of STM's business operations, as

Metso has for years held exclusive rights to sell and service STM's grinding mills.The business employed about

30 people at the time of acquisition.

Metso completed the acquisition of Saimu Technology (Shenyang) Co., Ltd (Saimu). on July 3, 2025 by

acquiring a 100% share of the company. The acquisition will further enriches Metso’s product portfolio and

strengthens its competitiveness and market position in the screening business. The acquired business was

consolidated into the Minerals segment. Sales of the acquired business in the financial year that ended in

December 2024 were approximately EUR 13 million. The business employed about 180 people at the time of

acquisition.

Metso completed the acquisition of Q&R Industrial Hoses Pty Ltd on October 1, 2025 by acquiring a 100%

share of the company. The acquisition will strengthen Metso's offering in comprehensive, end-to-end slurry

handling solutions and services. Acquired business was consolidated into the Minerals segment. Sales of the

acquired business in the financial year that ended in December 2024 were approximately EUR 2 million. The

business employs about 20 people.

Assets and liabilities recognized as a result of the acquisitions


EUR million	2025
Fixed assets	57
Inventory	5
Receivables	14
Liquid funds	36
Liabilities	-43
Net identifiable assets acquired at fair value	69
Goodwill	132
Purchase consideration	201
Contingent consideration	-1
Previously owned shares at fair value	-29
Cash consideration paid	172

Goodwill is mainly attributable to synergies. The goodwill is not deductible for tax purposes. The initial

calculation of goodwill generated is based on the result of the acquired company, adjusted by changes in

accounting principles and effects from the fair value adjustment of acquired assets and related tax

adjustments.

Net cash flow impact of the acquisitions


EUR million	2025
Cash consideration paid	-172
Cash and cash equivalents acquired	36
Net cash flow for the year	-136
Contingent consideration	-1
Cash considerations, total	-137

Acquisition costs of EUR 1.6 million related to the acquisitions were expensed and included in administrative

expenses in the income statement and in operating cash flow in the statement of cash flows.

Metso Corporation - Board of Directors' report and financial statements 2025 |190

Acquisitions in 2024

Metso completed the acquisition of Diamond Z and Screen Machine Industries on October 1, 2024 by

acquiring a 100% share of the companies. Diamond Z increases Metso’s offering in mobile equipment for the

organic recycling markets. Screen Machine Industries broadens Metso’s portfolio in the North American

mobile crushing and screening markets. Acquired businesses were consolidated into the Aggregates segment.

The companies' sales in the financial year that ended in December 2023 were approximately EUR 71 million.

Together, the companies employ approximately 190 people.

Metso acquired a 100% share of Jindex Pty Ltd on August 1, 2024. Jindex is an Australian company with

extensive expertise in valve technology and control equipment, as well as in many types of slurry valve

projects. The acquired business was consolidated into the Minerals segment. Jindex's sales in the financial

year that ended in June 2024 were approximately EUR 9 million. The company employs about 25 people.

Assets and liabilities recognized as a result of the acquisitions


EUR million	2024
Fixed assets	45
Inventory	23
Receivables	3
Liquid funds	1
Liabilities	-40
Net identifiable assets acquired at fair value	32
Goodwill	28
Purchase consideration	60

Goodwill is mainly attributable to synergies. The goodwill is not deductible for tax purposes. The initial

calculation of goodwill generated is based on the result of the acquired company, adjusted by changes in

accounting principles and effects from the fair value adjustment of acquired assets and related tax

adjustments.

Net cash flow impact of the acquisitions


EUR million	2024
Cash consideration paid	-60
Cash and cash equivalents acquired	1
Net cash flow for the year	-60
Cash considerations, total	-60

Acquisition costs of EUR 0.6 million related to the acquisitions were expensed and included in administrative

expenses in the income statement and in operating cash flow in the statement of cash flows.

Business disposals

There were no business disposals in years 2025 and 2024. In 2022, Metso announced the completion of the

divestment of the Metal Recycling business line to Mimir, a Swedish investment company. The final cash

settlement of the disposal was completed in 2024.

Metso Corporation - Board of Directors' report and financial statements 2025 |191

5.5. Discontinued operations

Material accounting policies

Discontinued operations is a component of an entity that either has been disposed of or is classified as held for sale

and represents a separate major line of business or geographical area of operations, is part of a single coordinated

plan to dispose of a separate major line of business or geographical area of operations, or is a subsidiary acquired

exclusively with a view to resale. The result from discontinued operations is shown separately in the consolidated

statement of income, and the comparative figures are restated accordingly.

Non-current assets and assets and liabilities related to discontinued operations are classified as held for sale if their

carrying amounts are expected to be recovered primarily through sale rather than through continuing use.

Classification as held for sale requires that the following criteria are met: the sale is highly probable, the asset is

available for immediate sale in its present condition – subject to usual and customary terms, the management is

committed to the sale, and the sale is expected to be completed within one year from the date of classification.

Prior to classification as held for sale, the assets or assets and liabilities related to a disposal group in question are

measured according to the respective IFRS standards. From the date of classification, non-current assets held for sale

are measured at the lower of the carrying amount and the fair value, less costs to sell, and the recognition of

depreciation and amortization is discontinued. Non-current assets held for sale are presented in the statement of

financial position separately from other items. The comparative figures for statement of financial position are not

restated.

Metals & Chemical Processing and Ferrous & Heat Transfer businesses

In year 2023 Metso decided to initiate the divestment of the Metals & Chemical Processing and Ferrous &

Heat Transfer businesses, and these businesses were classified as discontinued operations starting from

September 30, 2023. On May 30, 2025, Metso announced the sale of its Ferrous business to SMS group, and

the divestment was completed on January 5, 2026. Metso decided to retain the businesses not included in the

transaction, and as a result, these operations were reclassified as continuing operations as of July 1, 2025. As a

result, related assets and liabilities as well as income statement items have been reclassified into continuing

operations, and comparative income statement figures have been restated accordingly. The reclassified assets

included EUR 29 million of goodwill, EUR 26 million of intangible assets, EUR 1 million of other non‑current

assets, EUR 13 million of inventories, and EUR 57 million of trade and other current receivables, as well as EUR

74 million of current liabilities. Depreciation and amortization of fixed assets and right-of-use assets have

resumed, with the cumulative impact from October 1, 2023, to June 30, 2025, recognized through the income

statement and adjusted on the balance sheet under continuing operations. The amount of resumed

amortization and depreciation was EUR 3 million. These reclassifications to continuing operations are reflected

in segment reporting under the Minerals segment. The assets and related liabilities of the Ferrous business

held for sale continue to be presented on separate lines in the balance sheet, and the income statement

items are presented separately from continuing operations. Goodwill and intangible assets, total value of EUR

23 million, associated with the operations to be discontinued have been impaired in year 2025.

Waste-to-energy business

The result of discontinued operations also includes the income statement items related to the Waste-to-

energy business, which has been reported as part of discontinued operations in Outotec since December

2019 and in Metso since 2020, following the merger of Metso Minerals and Outotec. On September 4, 2024,

Metso announced the termination of its waste-to-energy business and settled remaining legal processes

concerning historic projects. As a result, Metso booked a one-time expense of EUR 250 million in the results

of its discontinued operations in 2024. The impact of this expense on the net cash flow from operating

activities in 2024 was EUR 275 million.

Metso Corporation - Board of Directors' report and financial statements 2025 |192

Condensed consolidated statement of income statement



2025 EUR million	Continuing operations	Discontinued operations	Metso total
Sales	5,240	37	5,277
Cost of sales	-3,561	-40	-3,602
Gross profit	1,679	-3	1,675

Selling and marketing expenses	-465	-5	-470
Administrative expenses	-402	-13	-415
Research and development expenses	-109	-2	-112
Other income and expenses, net	32	-36	-4
Share of results of associated companies	0	0	1
Operating profit	735	-59	676

Finance income and expenses, net	-99	–	-99
Profit before taxes	636	-59	577

Income taxes	-150	0	-150
Profit for the period	486	-59	427

Profit attributable to
Shareholders of the Parent Company	482	-59	423
Non-controlling interests	4	–	4

Earnings per share, EUR	0.58	-0.07	0.51

Condensed consolidated balance sheet



2025 EUR million	Continuing operations	Discontinued operations	Metso total
Non-current assets	3,100	15	3,116
Inventories	1,903	7	1,910
Trade and other receivables	1,668	10	1,678
Cash and cash equivalents	501	10	511
Total assets	7,173	42	7,215

Non-current liabilities	1,796	6	1,802
Current liabilities	2,720	17	2,737
Total liabilities	4,515	24	4,539

Condensed consolidated statement of cash flows



2025 EUR million	Continuing operations	Discontinued operations	Metso total
Profit for the period	486	-59	427
Adjustments to profit for the period	454	24	478
Change in net working capital	74	-4	70
Cash flow from operations	1,014	-39	974

Financing items, net	-44	–	-44
Income taxes paid	-152	0	-152
Net cash flow from operating activities	818	-40	779

Net cash flow from investing activities	-277	0	-277

Net cash flow from financing activities	-403	–	-403

Net change in liquid funds	138	-40	98

Metso Corporation - Board of Directors' report and financial statements 2025 |193

Condensed consolidated statement of income statement, comparison period



2024 EUR million	Continuing operations	Discontinued operations	Metso total
Sales	5,026	51	5,076
Cost of sales	-3,356	-44	-3,400
Gross profit	1,669	7	1,677

Selling and marketing expenses	-435	-10	-445
Administrative expenses	-364	-5	-369
Research and development expenses	-106	-4	-109
Other income and expenses, net	-15	-242	-257
Share of results of associated companies	0	1	1
Operating profit	749	-252	497

Finance income and expenses, net	-80	0	-80
Profit before taxes	670	-252	417

Income taxes	-163	76	-88
Profit for the period	506	-177	330

Profit attributable to
Shareholders of the Parent Company	505	-177	329
Non-controlling interests	1	0	1

Earnings per share, EUR	0.61	-0.21	0.40

Condensed consolidated balance sheet, comparison period



2024 EUR million	Continuing operations	Discontinued operations	Metso total
Non-current assets	2,913	92	3,005
Inventories	1,900	58	1,958
Trade and other receivables	1,496	125	1,621
Cash and cash equivalents	431	–	431
Total assets	6,739	276	7,015

Non-current liabilities	1,739	30	1,769
Current liabilities	2,451	184	2,635
Total liabilities	4,190	214	4,405

Condensed consolidated statement of cash flows, comparison period



2024 EUR million	Continuing operations	Discontinued operations	Metso total
Profit for the period	506	-177	330
Adjustments to profit for the period	443	-78	365
Change in net working capital	-63	-56	-119
Cash flow from operations	886	-310	576

Financing items, net	-62	–	-62
Income taxes paid	-183	0	-183
Net cash flow from operating activities	642	-310	332

Net cash flow from investing activities	-225	1	-224

Net cash flow from financing activities	-315	–	-315

Net change in liquid funds	102	-309	-207

Metso Corporation - Board of Directors' report and financial statements 2025 |194

5.6. New accounting standards

New and amended accounting standards effective in 2025

The following new or revised IFRS accounting standards have been adopted from January 1, 2025, in these

Consolidated financial statements.

Amendments to IAS 21 - Lack of Exchangeability

The amendments in IAS 21 specify how to assess whether a currency is exchangeable and how it should

determine a spot exchange rate when exchangeability is lacking. The amendments also require disclosure of

information that enables users of its financial statements to understand how the currency not being

exchangeable into the other currency affects, or is expected to affect, financial performance, financial

position and cash flows. The amendments have not material impact on Metso's financial statements.

New and amended accounting standards to be applied

Metso has not applied the following new and revised IFRS Accounting Standards that have been issued but

are not yet effective [and (in some cases) have not yet been adopted by the EU (marked with *)]:

• IFRS 18 - Presentation and Disclosure in Financial Statements (IASB effective date January 1, 2027) *

• IFRS 19 - Subsidiaries without Public Accountability: Disclosures (IASB effective date January 1, 2027) *

• Amendments to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity (IASB effective

date January 1, 2026)

• Amendments to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments (IASB effective

date January 1, 2026)

• Annual Improvements Volume 11 (IASB effective date January 1, 2026)

• Amendments to IAS 21 - The Effects of Changes in Foreign Exchange Rates: Translation to Hyperinflationary

Presentation Currency (IASB effective date January 1, 2027) *

• Amendments to IFRS 19 - Subsidiaries without Public Accountability: Disclosures (IASB effective date January

1, 2027) *

Metso is currently working to identify all impacts IFRS 18 will have on the primary financial statements and

notes to the financial statements. The directors do not expect that the adoption of the other Standards and

amendments listed above will have a material impact on the financial statements of Metso in future periods.

5.7. Exchange rates used


		Average rates		Year-end rates
		2025	2024	2025	2024
USD	US dollar	1.1243	1.0826	1.1750	1.0389
SEK	Swedish krona	11.0728	11.4226	10.8215	11.4590
GBP	Pound sterling	0.8546	0.8469	0.8726	0.8292
CAD	Canadian dollar	1.5744	1.4820	1.6088	1.4948
BRL	Brazilian real	6.2973	5.8500	6.4364	6.4253
CNY	Chinese yuan	8.0693	7.7793	8.2262	7.5833
AUD	Australian dollar	1.7484	1.6424	1.7581	1.6772
CLP	Chilean peso	1,071.1612	1,021.1669	1,057.9400	1,035.0050
INR	Indian rupee	98.0741	90.6243	105.5965	88.9335

Metso Corporation - Board of Directors' report and financial statements 2025 |195

6. Other notes

6.1. Audit fees


EUR million	2025	2024
Audit services	-3.9	-3.7
Assurance services	-0.4	-0.4
Tax services	0.0	-0.1
Other services	0.0	0.0
Total	-4.4	-4.3

The above table discloses fees to Metso’s auditor Ernst & Young Oy.

6.2. Lawsuits and claims

Several lawsuits, legal claims and disputes based on various grounds are pending against Metso in various

countries related, among other things, to Metso’s products, projects, other operations, and customer

receivables. Metso’s management assesses to the best of its present understanding that the outcome of these

lawsuits, claims, and legal disputes would not have a material adverse effect on Metso in view of the grounds

presented for them, provisions made, insurance coverage in force, and the extent of Metso’s total business

activities. It should be noted, however, that outcomes of pending lawsuits, legal claims, and disputes are

beyond the direct influence of Metso’s management and may, therefore, materially deviate from

management’s current assessment.

6.3. Events after the financial year

On January 5, 2026 Metso announced that it has completed the divestment of its Ferrous business to SMS

group, a global company providing technology and services in plant construction and mechanical engineering

for the metals industry. Approximately 180 employees, primarily based in Germany, India and China, have

transferred to the SMS group in connection with the divestment. Ferrous business has been reported as

discontinued operations since September 30, 2023. The divestment does not have material financial impact on

Metso.

On 2 February 2026, Metso acquired all shares of Multiskilled Resources Australia Pty Ltd. The company

specializes in providing engineering, automation, and software solutions for bulk material handling operators

and it is a leading provider of automation and digitalization technology solutions for ports and terminals

worldwide. MRA Automation is an Australian company based in Newcastle, NSW, Australia with approximately

60 employees. The acquisition has no material impact on Metso’s financials.

Metso Corporation - Board of Directors' report and financial statements 2025 |196

Financial statements of

the Parent company, FAS


Statement of income of the Parent company .........................	197
Balance sheet of the Parent company ....................................	198
Cash flow statement of the Parent company .........................	199
Notes to the financial statements of the Parent company ...	200
1 Accounting principles ....................................................................	200
2 Sales ................................................................................................	201
3 Other operating income ...............................................................	201
4 Personnel expenses ......................................................................	201
5 Depreciation and amortization ....................................................	201
6 Other operating expenses ...........................................................	201
7 Audit fees .......................................................................................	201
8 Finance income and expenses ....................................................	202
9 Appropriations ...............................................................................	202
10 Income taxes ................................................................................	202
11 Fixed assets ...................................................................................	203
12 Investments ...................................................................................	204
13 Shareholdings ...............................................................................	204
14 Specification of receivables ........................................................	205
15 Statement of changes in shareholders' equity ..........................	206
16 Long-term liabilities .....................................................................	206
17 Short-term liabilities ......................................................................	207
18 Other contingencies ....................................................................	207
19 Derivative instruments .................................................................	208
List of account books used in Parent company ............................	209

Metso Corporation - Board of Directors' report and financial statements 2025 |197

Financial statements of the Parent company, FAS

Statement of income of the Parent company


EUR	Note	2025	2024
Sales	2	25,053,475.34	24,505,603.90
Other operating income	3	18,280,665.79	336,788.03
Personnel expenses	4	-22,640,341.91	-23,687,086.59
Depreciation and amortization	5	-126,882.16	-193,391.48
Other operating expenses	6	-28,266,119.40	-23,648,007.85
Operating profit / loss		-7,699,202.34	-22,686,093.99

Financial income and expenses, net	8	206,179,171.22	116,227,188.84
Profit before appropriations and taxes		198,479,968.88	93,541,094.85

Appropriations	9	193,700,000.00	166,000,000.00
Profit before taxes		392,179,968.88	259,541,094.85

Income taxes	10
Current tax expense		-39,388,052.67	-28,852,161.65
Change in deferred taxes		-32,705.47	99,078.24
Profit for the year		352,759,210.74	230,788,011.44

Metso Corporation - Board of Directors' report and financial statements 2025 |198

Balance sheet of the Parent company


Assets
EUR	Note	2025	2024
Non-current assets
Intangible assets	11	106,911.39	233,793.55
Tangible assets	11	218,363.42	218,363.42
Investments	12
Shares in Group companies		1,250,466,871.28	1,250,466,871.28
Other investments		845,851,523.82	897,757,775.84
Total non-current assets		2,096,643,669.91	2,148,676,804.09

Current assets
Long-term receivables	14	6,330,362.10	9,151,779.39
Short-term receivables	14	1,036,155,977.32	1,078,783,840.99
Securities		107,101,733.95	–
Bank and cash		165,592,858.42	205,060,310.91
Total current assets		1,315,180,931.79	1,292,995,931.29

Total assets		3,411,824,601.70	3,441,672,735.38


Shareholders' equity and liabilities
EUR	Note	2025	2024
Shareholders' equity	15
Share capital		107,186,442.52	107,186,442.52
Share premium fund		20,180,000.00	20,180,000.00
Treasury shares		-9,945,723.14	-13,380,644.79
Invested non-restricted equity fund		436,912,971.87	435,804,850.76
Reserve for cash hedges		868,675.00	482,261.00
Retained earnings		348,913,274.70	432,674,350.92
Profit for the year		352,759,210.74	230,788,011.44
Total shareholders' equity		1,256,874,851.69	1,213,735,271.85

Liabilities
Long-term liabilities	16	1,345,121,821.30	1,302,408,965.27
Current liabilities	17	809,827,928.71	925,528,498.26
Total liabilities		2,154,949,750.01	2,227,937,463.53

Total shareholders' equity and liabilities		3,411,824,601.70	3,441,672,735.38

Metso Corporation - Board of Directors' report and financial statements 2025 |199

Cash flow statement of the Parent company


EUR thousand	2025	2024
Cash flows from operating activities
Profit for the year	352,759	230,788
Adjustments to profit for the year
Depreciation and amortization	127	193
Unrealized exchange gains and losses	-6,251	1,026
Financial income and expenses	-206,179	-116,227
Gains / losses on sale	-26	-7
Group contributions	-193,700	-166,000
Taxes	39,421	28,753
Other non-cash items	1,234	2,816
Total adjustments to profit for the year	-365,375	-249,444

Increase / decrease in short-term non-interest-bearing trade receivables	51,057	-28,084
Increase / decrease in short-term non-interest-bearing debt	-64,361	57,804
Change in working capital	-13,305	29,720

Interest paid	-88,442	-66,495
Other financial expenses paid	-8,352	-14,673
Dividends received	202,312	122,161
Interest received	-15,111	15,942
Income taxes paid	-43,784	-43,021
Net cash provided by operating activities	20,703	24,977


EUR thousand	2025	2024
Cash flows from investing activities
Divestments in tangible and intangible assets	26	8
Investments in subsidiary shares	–	-5,235
Long-term loans granted	-536,997	-785,757
Repayments of long-term loans	611,518	343,877
Short-term loans granted	-613,644	-532,715
Repayments of short-term loans	632,800	563,641
Withdrawal of long-term loans	21,300	–
Withdrawals and repayments of short-term loans, net	81,378	-53,664
Purchase of other investments	-107,102	159,000
Interest received from investments	81,277	60,382
Net cash used in investing activities	170,555	-250,463

Cash flows from financing activities
Invested non-restricted equity fund	–	603
Sales from treasury shares to subsidiaries	3,309	7,850
Changes of short term loans, net	-29,464	29,464
Withdrawal of long-term loans	372,582	374,314
Repayments of long-term loans	-378,176	-336,593
Dividends paid	-314,974	-298,012
Change in Group pool accounts	-50,003	144,009
Group contributions	166,000	260,000
Net cash provided by / used in financing activities	-230,726	181,635

Net increase / decrease in bank and cash	-39,467	-43,851
Bank and cash on January 1	205,060	248,912
Bank and cash on December 31	165,593	205,060

Metso Corporation - Board of Directors' report and financial statements 2025 |200

Notes to the financial statements of the Parent company

1 Accounting principles

The Parent Company Financial Statements have been prepared in accordance with the Finnish Generally

Accepted Accounting Principles. The financial statements are presented in euros.

Foreign currency translations

Transactions in foreign currencies are recorded at the rates of exchange prevailing at the date of the

transaction. At the end of the accounting period, monetary items are valued at the rate of exchange

prevailing at the end of period.

Tangible and intangible assets

Tangible and intangible assets are valued at historical cost, less accumulated depreciation according to plan.

Land and water areas are not depreciated.

Depreciation and amortization is calculated on a straight-line basis over the expected useful lives of the assets

as follows:

Computer software3–5 years

Other intangibles10 years

Buildings20–25 years

Machinery and equipment3–5 years

Other tangible assets 20 years

Financial instruments

Metso’s financial risk management is carried out by a central treasury department (Group Treasury) under the

policies approved by the Board of Directors. Group Treasury functions in cooperation with the operating units

to minimize financial risks in both the Parent Company and the Group. Long-term debt is initially recognized

at fair value, net of transaction costs incurred. In subsequent periods, they are valued at amortized cost using

the effective interest rate method. The fair value changes in borrowings covered by fair value hedge are, in

respect of hedged risk, recognized through financial income and expenses. Transaction costs arising from

issuance of bonds are recognized over the life of the bond using the effective yield method. The

unrecognized portion as of the balance sheet date is presented as a decrease in liabilities. Derivatives outside

hedge accounting are valued at fair value through profit and loss according to the Finnish Accounting

Act 5:2 a §. Forward exchange contracts are measured at fair value. The change in fair value is recognized as

income or expense in the income statement. The fair value of forward exchange contracts is determined

using forward exchange market rates at the balance sheet date. Bank and cash, as well as securities, consist

of cash in bank accounts and investments of liquid funds in interest-bearing instruments. Financial assets are

measured at historical cost, less possible impairment loss.

Provisions

Provisions are unrealized costs, for which the company is committed, and which will not provide any income

in the future, and which are likely to occur. Provision changes are included in profit and loss.

Leases

Leases of assets, where the lessor retains all the risks and benefits of ownership, are classified as operating

leases. Payments made under operating lease agreements are expensed on a straight-line basis over the

lease periods.

Income taxes

Income tax expense includes taxes calculated for the financial year, adjustments to prior year taxes, and

changes in the deferred taxes. Deferred tax liability or asset has been determined for all temporary

differences in between the tax bases of assets and liabilities and their amounts in financial reporting, using

the enacted tax rates effective for the future years. Deferred tax liabilities are recognized in the balance sheet

in full, and deferred tax assets are recognized when it's probable that there will be sufficient taxable profit

against which the asset can be utilized.

Metso Corporation - Board of Directors' report and financial statements 2025 |201

2 Sales


EUR thousand	2025	2024
Sales	25,053	24,506
Total	25,053	24,506

Sales consists of service fees from subsidiaries.

3 Other operating income


EUR thousand	2025	2024
Gain on sale of fixed assets	26	7
Foreign exchange gains	17,778	–
Other	477	330
Total	18,281	337

4 Personnel expenses


EUR thousand	2025	2024
Salaries and wages	-18,642	-20,584
Pension costs	-3,101	-2,706
Other indirect employee costs	-898	-397
Total	-22,640	-23,687

Remuneration paid to Chief Executive Officer and Board members


EUR thousand	2025	2024
Chief Executive Officer	-1,173	-4,462
Board members	-989	-1,022
Total	-2,162	-5,484

Remuneration of the CEO, the leadership team and the Board is presented in note 1.5 of the Consolidated financial statements.

Number of personnel


	2025	2024
Personnel at end of year	169	145
Average number of personnel during the year	157	144

5 Depreciation and amortization

Depreciation and amortization expenses


EUR thousand	2025	2024
Capitalized software	-127	-173
Other intangible assets	–	-14
Machinery and equipment	–	-6
Total	-127	-193

6 Other operating expenses


EUR thousand	2025	2024
Foreign exchange losses	–	-1,081
Other	-28,266	-22,567
Total	-28,266	-23,648

7 Audit fees


EUR thousand	2025	2024
Audit	-728	-578
Assurance services	-403	-436
Total	-1,132	-1,014

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8 Finance income and expenses


EUR thousand	2025	2024
Dividends received from
Group companies	202,312	122,161
Total	202,312	122,161

Interest income from investments from
Group companies	81,277	60,382
Total	81,277	60,382

Other interest and financial income from
Group companies	28,279	34,796
Others	6,929	12,373
Fair value change in derivatives	1,172	–
Total	36,380	47,169

Interest and financial income, total	319,969	229,712

Interest expenses to
Group companies	-11,703	-13,137
Others	-92,527	-84,931
Total	-104,229	-98,068

Other financial expenses
Fair value change in derivatives	–	-743
Exchange rate differences	-383	-7,929
Others	-9,178	-6,745
Total	-9,561	-15,416

Interest and other financial expenses, total	-113,790	-113,485

Financial income and expenses, net	206,179	116,227

9 Appropriations


EUR thousand	2025	2024
Group contributions received	193,700	166,000

10 Income taxes


EUR thousand	2025	2024
Income taxes on operating activities	-39,465	-29,458
Income taxes for prior years	77	606
Change in deferred taxes	-33	99
Total	-39,421	-28,753

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11 Fixed assets


2025
EUR thousand	Patents and licenses	Capitalized software	Other intangible assets	Intangible assets total	Land areas	Buildings and structures	Machinery and equipment	Tangible assets total	Total
Acquisition cost Jan 1	1,539	2,374	289	4,203	156	733	133	1,022	5,225
Acquisition cost Dec 31	1,539	2,374	289	4,203	156	733	133	1,022	5,225

Accumulated depreciation Jan 1	-1,539	-2,140	-289	-3,969	–	-733	-70	-804	-4,772
Depreciation for the period	–	-127	–	-127	–	–	–	–	-127
Accumulated depreciation Dec 31	-1,539	-2,267	-289	-4,096	–	-733	-70	-804	-4,899

Net carrying value Dec 31	–	107	–	107	156	–	63	218	325


2024
EUR thousand	Patents and licenses	Capitalized software	Other intangible assets	Intangible assets total	Land areas	Buildings and structures	Machinery and equipment	Tangible assets total	Total
Acquisition cost Jan 1	1,539	2,374	289	4,203	156	733	334	1,223	5,425
Decreases	–	–	–	–	–	–	-201	-201	-201
Acquisition cost Dec 31	1,539	2,374	289	4,203	156	733	133	1,022	5,225

Accumulated depreciation Jan 1	-1,539	-1,967	-275	-3,781	–	-733	-264	-997	-4,778
Accumulated depreciation of decreases	–	–	–	–	–	–	199	199	199
Depreciation for the period	–	-173	-14	-188	–	–	-6	-6	-193
Accumulated depreciation Dec 31	-1,539	-2,140	-289	-3,969	–	-733	-70	-804	-4,772

Net carrying value Dec 31	–	234	–	234	156	–	63	218	452

Metso Corporation - Board of Directors' report and financial statements 2025 |204

12 Investments


2025
	Shares in Group companies	Other shares	Receivables from Group companies	Other investments total
Acquisition cost at Jan 1	1,250,467	594	897,164	897,758
Additions	–	–	1,015,117	1,015,117
Decreases	–	–	-1,067,024	-1,067,024
Acquisition cost Dec 31	1,250,467	594	845,258	845,852

Net carrying value at Dec 31	1,250,467	594	845,258	845,852

2024
	Shares in Group companies	Other shares	Receivables from Group companies	Other investments total
Acquisition cost at Jan 1	1,245,232	594	510,001	510,595
Additions	5,235	–	1,122,925	1,122,925
Decreases	–	–	-735,762	-735,762
Acquisition cost Dec 31	1,250,467	594	897,164	897,758

Net carrying value at Dec 31	1,250,467	594	897,164	897,758

13 Shareholdings

Subsidiaries on December 31, 2025


Subsidiary	Domicile	Ownership, %
International Project Services Ltd. Oy	Finland	44.50
Metso Canada Inc.	Canada	100.00
Metso Captive Insurance Limited	United Kingdom	100.00
Metso Chile S.A.	Chile	24.75
Metso Finland Oy	Finland	100.00
Metso France SAS	France	100.00
Metso Metals Oy	Finland	100.00
Metso Mexico SA de CV	Mexico	10.10
Metso Outotec Morocco LLC	Morocco	100.00
Metso Outotec New Material Technology (Shanghai) Co., Ltd.	China	100.00
Metso Ecuador S.A.	Ecuador	99.90
Metso Perú SA	Peru	10.18
Metso Poland Sp. z o.o.	Poland	46.30
Metso South Africa Pty Ltd	South-Africa	15.30
Metso USA Inc	United States	100.00
Metso Zambia Ltd	Zambia	16.70
Outotec Africa Holdings (Pty) Ltd	South-Africa	100.00
Outotec Holding GmbH	Germany	100.00
Outotec International Holdings Oy	Finland	100.00
Outotec Tecnologia Brazil Ltda	Brazil	83.82
Rauma Oy	Finland	100.00

Metso Corporation - Board of Directors' report and financial statements 2025 |205

14 Specification of receivables

Long-term receivables


EUR thousand	2025	2024
Deferred tax asset	160	193
Derivatives	6,170	8,959
Long-term receivables total	6,330	9,152

Short-term receivables


EUR thousand	2025	2024
Trade receivables from
Group companies	38,087	50,179
Others	–	1,445
Total	38,087	51,624

Loan receivables from
Group companies	642,969	745,854
Total	642,969	745,854

Prepaid expenses and accrued income from
Group companies	302,574	227,969
Others	52,512	51,634
Total	355,086	279,603

Other receivables
VAT receivable	–	1,676
Other receivables	15	27
Total	15	1,702

Short-term receivables total	1,036,156	1,078,784

Specification of prepaid expenses and accrued income


EUR thousand	2025	2024
Prepaid expenses and accrued income from Group companies
Group contribution receivables	193,700	166,000
Accrued interest income	64,936	34,289
Accrued derivatives	24,173	26,682
Other accrued items	19,765	997
Total	302,574	227,969

Prepaid expenses and accrued income from others
Accrued derivatives	24,554	33,500
Other accrued items	27,958	18,134
Total	52,512	51,634

Metso Corporation - Board of Directors' report and financial statements 2025 |206

15 Statement of changes in shareholders' equity


EUR thousand	2025	2024
Share capital on Jan 1	107,186	107,186
Share capital on Dec 31	107,186	107,186

Share premium fund on Jan 1	20,180	20,180
Share premium fund on Dec 31	20,180	20,180

Treasury shares on Jan 1	-13,381	-22,515
Change	3,435	9,134
Treasury change on Dec 31	-9,946	-13,381

Invested non-restricted equity fund on Jan 1	435,805	434,272
Change	1,108	1,533
Invested non-restricted equity fund on Dec 31	436,913	435,805

Reserve for cash hedges on Jan 1	482	–
Change	386	482
Reserve for cash hedges on Dec 31	869	482

Retained earnings on Jan 1	663,462	730,507
Dividend distribution	-314,549	-297,832
Retained earnings on Dec 31	348,913	432,674

Profit for the year	352,759	230,788

Total shareholders' equity on Dec 31	1,256,875	1,213,735

Statement of distributable funds on December 31


EUR	2025	2024
Invested non-restricted equity fund	436,913	435,805
Treasury shares	-9,946	-13,381
Retained earnings	348,913	432,674
Profit for the year	352,759	230,788
Total distributable funds	1,128,640	1,085,887

At the end of the year 2025, Metso Oyj held 1,211,683 own shares (1,621,110 at the end of the year 2024).

16 Long-term liabilities


EUR thousand	2025	2024
Bonds	1,059,836	892,165
Loans from financial institutions	254,545	397,540
Loans from Group companies	21,300	–
Deferred tax liability	217	121
Derivatives	9,223	12,584
Total	1,345,122	1,302,409

The key principles of bonds are presented in the note 4.5 of the Consolidated financial statements.

Debt maturing after more than in five years


EUR thousand	2025	2024
Bonds	300,000	300,000
Loans from financial institutions	–	50,000
Total	300,000	350,000

Presented at nominal value.

Metso Corporation - Board of Directors' report and financial statements 2025 |207

17 Short-term liabilities


EUR thousand	2025	2024
Current portion of long-term liabilities
Loans from financial institutions	97,998	127,682
Total	97,998	127,682

Short-term interest-bearing debt
Loans from financial institutions	–	29,464
Group pool accounts	295,236	369,639
Total	295,236	399,102

Trade payables to
Group companies	14,387	28,310
Others	3,249	2,466
Total	17,636	30,776

Accrued expenses and deferred income to
Group companies	21,989	33,292
Others	46,534	80,005
Total	68,523	113,298

Other short-term non-interest-bearing debt to
Group companies	327,543	253,576
Others	2,891	1,095
Total	330,434	254,670

Short-term liabilities total	809,828	925,528
Short-term liabilities to Group companies total	659,155	684,817

Specification of accrued expenses and deferred income


EUR thousand	2025	2024
Accrued expenses and deferred income to Group companies
Accrued interest expenses	663	7,682
Accrued derivatives	20,931	25,126
Other accrued items	394	484
Total	21,989	33,292

Accrued expenses and deferred income to others
Accrued interest expenses	11,388	7,599
Accrued derivatives	25,996	67,664
Accrued salaries, wages and social costs	4,575	4,535
Other accrued items	4,574	208
Total	46,534	80,005

18 Other contingencies

Guarantees and mortgages


EUR thousand	2025	2024
Corporate guarantees on behalf of group companies	447,799	571,118
Bank guarantees on behalf of group companies	646,619	707,065
Total	1,094,418	1,278,183

Lease commitments


EUR thousand	2025	2024
Payments in the following year	389	224
Payments later	55,226	10,775
Total	55,615	10,998

Metso Corporation - Board of Directors' report and financial statements 2025 |208

19 Derivative instruments


EUR thousand	2025	2024
Net fair values

Contracts made with financial institutions
Foreign exchange forward contracts	-1,446	-33,807
Interest rate swaps	-3,053	-3,625

Contracts made with subsidiaries
Foreign exchange forward contracts	1,915	2,361

Total	-2,584	-35,071

Nominal values

Contracts made with financial institutions
Foreign exchange forward contracts	3,336,766	3,515,028
Interest rate swaps	455,000	505,000

Contracts made with subsidiaries
Foreign exchange forward contracts	2,431,909	2,403,483

Total	6,223,675	6,423,511

Metso Corporation - Board of Directors' report and financial statements 2025 |209

List of account books used in Parent company


Account book	Voucher class
General journal and general ledger
Specifications of accounts receivable and payable
Bank vouchers	16,26,43 / DZ, KZ, SB
Sales invoices	RV,10,11,17 / DR, DA, NZ
Purchase invoices	KR,20,27,69 / KR, KA, NZ, SR
Payroll accounting with vouchers	33 / 21
Journal entries	01,02,03,04,05,10,21,22,23,30,32,39,54,55,60,64,76,79 / AA, AF, DA, 21, 22, 23, AB, 32, M6, S5, SR, UE
Journal entries	34,35, 36, SR
Notes vouchers

All above mentioned account books are archived in electronic format.

Metso Corporation - Board of Directors' report and financial statements 2025 |210

Signatures of the Board of Directors’ report and financial statements 2025

This financial statement has been prepared in accordance with applicable accounting regulations and it gives

a true and fair view of the assets, liabilities, financial position, and profit and loss of both Metso Corporation

and its subsidiaries included in the consolidated financial statements. The report of the Board of Directors

gives a truthful summary of the development and result of Metso Group’s business, as well as a description of

the most significant risks, uncertainties, and other aspects of the company. The sustainability report included

in the Board of Directors' report has been prepared in accordance with the reporting standards referred to in

Chapter 7 of the Finnish Accounting Act and Article 8 of the Taxonomy Regulation.

Espoo, February 11, 2026


Kari Stadigh	Klaus Cawén	Brian Beamish
Chair of the Board	Vice Chair of the Board	Member of the Board

Terhi Koipijärvi	Niko Pakalén	Reima Rytsölä
Member of the Board	Member of the Board	Member of the Board

Anders Svensson	Eriikka Söderström	Arja Talma
Member of the Board	Member of the Board	Member of the Board

Sami Takaluoma
President and CEO

Auditor's note

Our auditor’s report has been issued today.

Espoo, February 11, 2026

Ernst & Young Oy

Authorized Public Accountant Firm

Toni Halonen

APA

Metso Corporation - Board of Directors' report and financial statements 2025 |211

Auditor’s Report

(Translation of the Finnish original)

To the Annual General Meeting of Metso Corporation

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Metso Corporation (business identity code 0828105-4) for the

year ended 31 December, 2025. The financial statements comprise the consolidated balance sheet, income

statement, statement of comprehensive income, statement of changes in equity, statement of cash flows and

notes, including material accounting policy information, as well as the parent company’s balance sheet,

income statement, statement of cash flows and notes.

In our opinion

• the consolidated financial statements give a true and fair view of the group’s financial position, financial

performance and cash flows in accordance with IFRS Accounting Standards as adopted by the EU. the

financial statements give a true and fair view of the parent company’s financial performance and financial

position in accordance with the laws and regulations governing the preparation of financial statements in

Finland and comply with statutory requirements.

Our opinion is consistent with the additional report submitted to the Audit and Risk Committee.

Basis for Opinion

We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under

good auditing practice are further described in the Auditor’s Responsibilities for the Audit of the Financial

Statements section of our report.

We are independent of the parent company and of the group companies in accordance with the ethical

requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other

ethical responsibilities in accordance with these requirements.

In our best knowledge and understanding, the non-audit services that we have provided to the parent

company and group companies are in compliance with laws and regulations applicable in Finland regarding

these services, and we have not provided any prohibited non-audit services referred to in Article 5(1) of

regulation (EU) 537/2014. The non-audit services that we have provided have been disclosed in note 6.1 to the

consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit

of the financial statements of the current period. These matters were addressed in the context of our audit of

the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate

opinion on these matters.

We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the Financial

Statements section of our report, including in relation to these matters. Accordingly, our audit included the

performance of procedures designed to respond to our assessment of the risks of material misstatement of

the financial statements. The results of our audit procedures, including the procedures performed to address

the matters below, provide the basis for our audit opinion on the accompanying financial statements.

We have also addressed the risk of management override of internal controls. This includes consideration of

whether there was evidence of management bias that represented a risk of material misstatement due to

fraud.

Metso Corporation - Board of Directors' report and financial statements 2025 |212


Key Audit Matter for the audit of the consolidated financial statements		How our audit addressed the Key Audit Matter

Revenue recognition over time, including valuation of project receivables and project loss provisions The accounting principles and disclosures about revenue, project receivables and project loss provisions are included in Note 1.2, Note 2.2 and Note 2.6.
Metso delivers to its customers customized engineered solutions, where the signing of a delivery contract and the final acceptance of a delivery by the customer may take place in different financial periods. In accordance with Metso’s accounting principles, revenue from such projects is recognized over time. The recognition of revenue and the estimation of the outcome of a project require significant management judgment, in particular with respect to estimating the stage of completion and cost to complete. Significant judgment is also required to assess the recoverability of project receivables and particularly to determine the project loss provision when it is expected that the total costs will exceed the total revenues from the delivery contract. Based on above, revenue recognition over time, including valuation of project receivables and project loss provisions, was a key audit matter. This matter was also a significant risk of material misstatement referred to in EU Regulation No 537/2014, point (c) of Article 10(2).		Our audit procedures to address the risk of material misstatement in respect of the revenue recognition over time, including valuation of project receivables and project loss provisions, included, among others: • Assessment of the Group’s accounting policies over revenue recognition over time and valuation of project receivables and project loss provisions. • Inspection of the project documentation such as contracts, legal opinions and other written communication. • Evaluation of financial development and status of projects by – analyzing the changes in assumptions relating to estimated revenues and costs, receipts of project payments and loss provisions, and – discussions with different levels of the organization including project management and group management. • Evaluation of the appropriateness of the Group’s disclosures in respect of revenue recognition over time and valuation of projects receivables and project loss provisions.


Key Audit Matter for the audit of the consolidated financial statements		How our audit addressed the Key Audit Matter

Revenue recognition The accounting principles and disclosures about revenues are included in Note 1.2.
Metso provides standardized equipment and wear and spare parts to customers. According to the Group’s accounting policies sales are recognized at an amount that reflects the consideration which Metso expects to receive in exchange for transferring goods or services to a customer. Sales are recognized when the control of goods or services is transferred to a customer. Control is transferred either at a point in time or over time. The terms and conditions of sales contracts vary by market and revenue is a key performance measure used in the Metso Group, which may create an incentive for the premature recognition of revenues. Revenue recognition is a key audit matter and a significant risk of material misstatement as defined by EU Regulation No 537/2014, point (c) of Article 10(2) due to the significant risk relating to correct timing of revenue recognition.		Our audit procedures to address the risk of material misstatement in respect of correct timing of revenue recognition included among others: • Assessing the Group’s accounting policies over revenue recognition compared to applicable accounting standards; • Gaining an understanding of the revenue recognition process including related accruals and testing controls; • Data analytical procedures, for example, analyzing the conversion of revenue to cash received; • Familiarizing ourselves with the contractual terms in sales agreements; • Testing the revenue cut-off with analytical procedures and with a sample test of details on a transaction level on either side of the balance sheet date; and • Assessment of the Group´s disclosures in respect of revenues.

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Key Audit Matter for the audit of the consolidated financial statements		How our audit addressed the Key Audit Matter

Valuation of goodwill The accounting principles and disclosures about goodwill are included in Note 3.1.
As of balance sheet date December 31, 2025, the value of goodwill in continuing operations amounted to 1 277 million euros representing 18 % of the total assets and 48 % of the total equity. The annual impairment testing of goodwill was based on the management’s estimate about the value-in-use of the cash generating units. There are a number of assumptions used to determine the value-in-use of the cash generating units, including revenue growth, margins and the discount rate applied on net cash-flows. The estimated value-in use may vary significantly when underlying assumptions are changed and the changes in above-mentioned individual assumptions may result in an impairment of goodwill. The valuation of goodwill was a key audit matter because the annual impairment testing included management judgment with respect to the key assumptions used and because of the significance of goodwill to the financial statements.		Our audit procedures in respect of valuation of goodwill included, among others: • Evaluation of the determination of cash generating units and the goodwill allocated to those units. • Involvement of our valuation specialists to assist us in evaluating the key assumptions used in impairment testing by comparing the management’s assumptions to externally derived data and to our independently calculated industry averages, in particular those relating to • the forecasted revenue growth, – the forecasted margin and – the weighted average cost of capital used – to discount the net cash-flows. • Testing of the accuracy of the impairment calculations prepared by the management and comparison of the sum of discounted cash flows against Metso’s market capitalization. • Evaluation of the adequacy of the disclosures of the impairment testing results.

Responsibilities of the Board of Directors and the Managing Director for the Financial

Statements

The Board of Directors and the Managing Director are responsible for the preparation of consolidated

financial statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted

by the EU, and of financial statements that give a true and fair view in accordance with the laws and

regulations governing the preparation of financial statements in Finland and comply with statutory

requirements. The Board of Directors and the Managing Director are also responsible for such internal control

as they determine is necessary to enable the preparation of financial statements that are free from material

misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors and the Managing Director are responsible for

assessing the parent company’s and the group’s ability to continue as going concern, disclosing, as

applicable, matters relating to going concern and using the going concern basis of accounting. The financial

statements are prepared using the going concern basis of accounting unless there is an intention to liquidate

the parent company or the group or cease operations, or there is no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance on whether the financial statements as a whole are free

from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our

opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in

accordance with good auditing practice will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they

could reasonably be expected to influence the economic decisions of users taken on the basis of the financial

statements.

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As part of an audit in accordance with good auditing practice, we exercise professional judgment and

maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or

error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is

sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material

misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,

forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that

are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness

of the parent company’s or the group’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates

and related disclosures made by management.

• Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use of the going

concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty

exists related to events or conditions that may cast significant doubt on the parent company’s or the

group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are

required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if

such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence

obtained up to the date of our auditor’s report. However, future events or conditions may cause the parent

company or the group to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the

disclosures, and whether the financial statements represent the underlying transactions and events so that

the financial statements give a true and fair view.

• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial

information of the entities or business units within the group as a basis for forming an opinion on the group

financial statements. We are responsible for the direction, supervision and review of the audit work

performed for purposes of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope

and timing of the audit and significant audit findings, including any significant deficiencies in internal control

that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical

requirements regarding independence, and communicate with them all relationships and other matters that

may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were

of most significance in the audit of the financial statements of the current period and are therefore the key

audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public

disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not

be communicated in our report because the adverse consequences of doing so would reasonably be

expected to outweigh the public interest benefits of such communication..

Other Reporting Requirements

Information on our audit engagement

We were first appointed as auditors by the Annual General Meeting on 30.3.2020, and our appointment

represents a total period of uninterrupted engagement of five years.

Other information

The Board of Directors and the Managing Director are responsible for the other information. The other

information comprises the report of the Board of Directors and the information included in the Annual

Report, but does not include the financial statements and our auditor’s report thereon. We have obtained the

report of the Board of Directors prior to the date of this auditor’s report, and the Annual Report is expected

to be made available to us after that date.

Our opinion on the financial statements does not cover the other information.

In connection with our audit of the financial statements, our responsibility is to read the other information

identified above and, in doing so, consider whether the other information is materially inconsistent with the

financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

With respect to report of the Board of Directors, our responsibility also includes considering whether the

report of the Board of Directors has been prepared in compliance with the applicable provisions, excluding

the sustainability report information on which there are provisions in Chapter 7 of the Accounting Act and in

the sustainability reporting standards.

In our opinion, the information in the report of the Board of Directors is consistent with the information in the

financial statements and the report of the Board of Directors has been prepared in compliance with the

applicable provisions. Our opinion does not cover the sustainability report information on which there are

provisions in Chapter 7 of the Accounting Act and in the sustainability reporting standards.

If, based on the work we have performed on the other information that we obtained prior to the date of this

auditor’s report, we conclude that there is a material misstatement of this other information, we are required

to report that fact. We have nothing to report in this regard.

Metso Corporation - Board of Directors' report and financial statements 2025 |215

Other statements based on law

Our responsibility is to, based on our audit, express an opinion on the registration and publication of the

income tax report required in Chapter 7 b of the Accounting Act.

The Board of Directors and the Managing Director are responsible for the registration and the publication of

the income tax report.

In our opinion, the company has not been obliged to register and publish an income tax report referred to in

Chapter 7 b of the Accounting Act for the financial year immediately preceding the financial year.

Espoo 11 February 2026

Ernst & Young Oy

Authorized Public Accountant Firm

Toni Halonen

Authorized Public Accountant

Metso Corporation - Board of Directors' report and financial statements 2025 |216

Assurance Report On The Sustainability Statement (Translation of the Finnish original)

To the Annual General Meeting of Metso Corporation

We have performed a limited assurance engagement on the group sustainability statement of Metso

Corporation (business identity code 0828105-4) that is referred to in Chapter 7 of the Accounting Act and

that is included in the report of the Board of Directors for the reporting period 1.1.–31.12.2025.

Opinion

Based on the procedures we have performed and the evidence we have obtained, nothing has come to our

attention that causes us to believe that the group sustainability statement does not comply, in all material

respects, with

1) the requirements laid down in Chapter 7 of the Accounting Act and the sustainability reporting standards

(ESRS), and

2) the requirements laid down in Article 8 of the Regulation (EU) 2020/852 of the European Parliament and of

the Council on the establishment of a framework to facilitate sustainable investment, and amending

Regulation (EU) 2019/2088 (EU Taxonomy).

Point 1 above also contains the process in which Metso Corporation has identified the information for

reporting in accordance with the sustainability reporting standards (double materiality assessment).

Our opinion does not cover the tagging of the group sustainability statement with digital XBRL sustainability

tags in accordance with Chapter 7, Section 22, Subsection 1(2), of the Accounting Act, because sustainability

reporting companies have not had the possibility to comply with that requirement in the absence of

requirements for the tagging of sustainability information in the ESEF regulation or other European Union

legislation.

Basis for Opinion

We performed the assurance of the group sustainability statement as a limited assurance engagement in

compliance with good assurance practice in Finland and with the International Standard on Assurance

Engagements (ISAE) 3000 (Revised) Assurance Engagements Other than Audits or Reviews of Historical

Financial Information.

Our responsibilities under this standard are further described in the Responsibilities of the Authorized Group

Sustainability Auditor section of our report.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our

opinion.

Other Matter

We draw attention to the fact that the group sustainability statement of Metso Corporation, prepared in

accordance with Chapter 7 of the Accounting Act, has been prepared and assured for the first time for the

financial year January 1–December 31, 2024. Our opinion covers the comparative information that has been

presented in the group sustainability statement for January 1–December 31, 2024, but not any other

comparative information. Our opinion is not modified in respect of this matter

Authorized Group Sustainability Auditor's Independence and Quality Management

We are independent of the parent company and of the group companies in accordance with the ethical

requirements that are applicable in Finland and are relevant to our engagement, and we have fulfilled our

other ethical responsibilities in accordance with these requirements.

The Authorized Group Sustainability Auditor applies International Standard on Quality Management ISQM 1,

which requires the Authorized Sustainability Audit Firm to design, implement and operate a system of quality

management including policies or procedures regarding compliance with ethical requirements, professional

standards and applicable legal and regulatory requirements.

Responsibilities of the Board of Directors and the Managing Director

The Board of Directors and the Managing Director of Metso Corporation are responsible for:

• the group sustainability statement and for its preparation and presentation in accordance with the

provisions of Chapter 7 of the Accounting Act, including the process that has been defined in the

sustainability reporting standards and in which the information for reporting in accordance with the

sustainability reporting standards has been identified,

Metso Corporation - Board of Directors' report and financial statements 2025 |217

• the compliance of the group sustainability statement with the requirements laid down in Article 8 of the

Regulation (EU) 2020/852 of the European Parliament and of the Council on the establishment of a

framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088, and for

• such internal control as the Board of Directors and the Managing Director determine is necessary to enable

the preparation of a group sustainability statement that is free from material misstatement, whether due to

fraud or error.

Inherent Limitations in the Preparation of a Sustainability Statement

The preparation of the group sustainability statement requires a materiality assessment from the company in

order to identify relevant disclosures. This significantly involves management judgment and choices. Group

Sustainability reporting is also characterized by the fact that reporting of this type of information involves

estimates and assumptions, as well as measurement and assessment uncertainty.

The determination of greenhouse gases is subject to inherent uncertainty due to the incomplete scientific data

used to determine the emission factors and the numerical values needed to combine emissions of different

gases.

When reporting future-related information in accordance with the ESRS standards, the company’s management

must present assumptions regarding possible future events and disclose the company's potential future actions

related to these events, as well as prepare future-related information based on these assumptions. The actual

outcome is likely to differ, as predicted events often do not occur as expected.

Responsibilities of the Authorized Group Sustainability Auditor

Our responsibility is to perform an assurance engagement to obtain limited assurance about whether the group

sustainability statement is free from material misstatement, whether due to fraud or error, and to issue a limited

assurance report that includes our opinion. Misstatements can arise from fraud or error and are considered

material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of

users taken on the basis of the group sustainability statement.

Compliance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) requires that we

exercise professional judgment and maintain professional skepticism throughout the engagement. We also:

• Identify and assess the risks of material misstatement of the group sustainability statement, whether due to

fraud or error, and obtain an understanding of internal control relevant to the engagement in order to design

assurance procedures that are appropriate in the circumstances, but not for the purpose of expressing an

opinion on the effectiveness of the parent company’s or the group’s internal control.

• Design and perform assurance procedures responsive to those risks to obtain evidence that is sufficient and

appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting

from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional

omissions, misrepresentations, or the override of internal control.

Description of the Procedures That Have Been Performed

The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in

extent than for, a reasonable assurance engagement. The nature, timing and extent of assurance procedures

selected depend on professional judgment, including the assessment of risks of material misstatement, whether

due to fraud or error. Consequently, the level of assurance obtained in a limited assurance engagement is

substantially lower than the assurance that would have been obtained had a reasonable assurance engagement

been performed.

Our procedures included for ex. the following:

• We have interviewed the management of the group as well as key personnel responsible for collecting and

reporting of the information included in the group sustainability statement.

• Through interviews, we gained an understanding of the group’s control environment related to the group

sustainability reporting process.

• We evaluated the implementation of the company's double materiality assessment process in relation to the

requirements of the ESRS standards, as well as whether the information provided from the double materiality

assessment is in material respects in accordance with the ESRS standards.

• We assessed whether the group sustainability statement in material respects meets the requirements of the

ESRS standards regarding material sustainability topics:

– We have tested the accuracy of the information presented in the group sustainability statement by

comparing the information on a sample basis to the documentation and records prepared by the company

and assessed whether they support the information included in the group sustainability statement.

– We have on a sample basis performed analytical assurance procedures and related inquiries, recalculations

and inspected documentation, as well as tested data aggregation to assess the accuracy of the group

sustainability statement.

• We conducted site visits at selected locations.

• Regarding EU Taxonomy data, we gained an understanding of the process by which a company has defined

taxonomy-eligible and taxonomy-aligned economic activities, and we assessed the compliance of the

information provided.

Espoo 11 February 2026

Ernst & Young Oy

Authorized Sustainability Audit Firm

Toni Halonen

Authorized Sustainability Auditor

Metso Corporation - Board of Directors' report and financial statements 2025 |218

(Translation of the Finnish original)

Independent Auditor’s Report on the ESEF Consolidated Financial

Statements of Metso Corporation

To the Board of Directors of Metso Corporation

We have performed a reasonable assurance engagement on the financial statements

549300R0VN9C371W0E07-2025-12-31-fi.zip of Metso Corporation (y-identifier: 0828105-4) that have been

prepared in accordance with the Commission’s regulatory technical standard for the financial year ended

31.12.2025.

Responsibilities of the Board of Directors and the Managing Director

The Board of Directors and the Managing Director are responsible for the preparation of the company’s

report of Board of Directors and financial statements (the ESEF financial statements) in such a way that they

comply with the requirements of the Commission’s regulatory technical standard. This responsibility includes:

• preparing the ESEF financial statements in XHTML format in accordance with Article 3 of the Commission’s

regulatory technical standard

• tagging the primary financial statements, notes and company’s identification data in the consolidated

financial statements that are included in the ESEF financial statements with iXBRL tags in accordance with

Article 4 of the Commission’s regulatory technical standard and ensuring the consistency between the ESEF

financial statements and the audited financial statements.

The Board of Directors and the Managing Director are also responsible for such internal control as they

determine is necessary to enable the preparation of ESEF financial statements in accordance the requirements

of the Commission’s regulatory technical standard.

Auditor’s Independence and Quality Management

We are independent of the company in accordance with the ethical requirements that are applicable in

Finland and are relevant to the engagement we have performed, and we have fulfilled our other ethical

responsibilities in accordance with these requirements.

The firm applies International Standard on Quality Management (ISQM) 1, which requires the firm to design,

implement and operate a system of quality management including policies or procedures regarding

compliance with ethical requirements, professional standards and applicable legal and regulatory

requirements.

Metso Corporation - Board of Directors' report and financial statements 2025 |219

Auditor’s Responsibilities

Our responsibility is to, in accordance with Chapter 7, Section 8 of the Securities Markets Act, provide

assurance on the financial statements that have been prepared in accordance with the Commission’s technical

regulatory standard. We express an opinion on whether the consolidated financial statements that are

included in the ESEF financial statements have been tagged, in all material respects, in accordance with the

requirements of Article 4 of the Commission's regulatory technical standard.

Our responsibility is to indicate in our opinion to what extent the assurance has been provided. We

conducted a reasonable assurance engagement in accordance with International Standard on Assurance

Engagements (ISAE) 3000.

The engagement includes procedures to obtain evidence on:

• whether the primary financial statements in the consolidated financial statements that are included in the

ESEF financial statements have been tagged, in all material respects, with iXBRL tags in accordance with the

requirements of Article 4 of the Commission's regulatory technical standard and

• whether the notes and company's identification data in the consolidated financial statements that are

included in the ESEF financial statements have been tagged, in all material respects, with iXBRL tags in

accordance with the requirements of Article 4 of the Commission's regulatory technical standard and

• whether there is consistency between the ESEF financial statements and the audited financial statements.

The nature, timing and extent of the selected procedures depend on the auditor’s judgement. This includes

an assessment of the risk of material deviations due to fraud or error from the requirements of the

Commission’s technical regulatory standard.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our

opinion.

Opinion

Our opinion pursuant to Chapter 7, Section 8 of the Securities Markets Act is that the primary financial

statements, notes and company's identification data in the consolidated financial statements that are included

in the ESEF financial statements of Metso Corporation 549300R0VN9C371W0E07-2025-12-31-fi.zip for the

financial year ended 31.12.2025 have been tagged, in all material respects, in accordance with the

requirements of the Commission's regulatory technical standard.

Our opinion on the audit of the consolidated financial statements of Metso Corporation for the financial year

ended 31.12.2025 has been expressed in our auditor's report dated 11.2.2026. With this report we do not

express an opinion on the audit of the consolidated financial statements nor express another assurance

conclusion.

Helsinki 3 March 2026

Ernst & Young Oy

Authorized Public Accountant Firm

Toni Halonen

Authorized Public Accountant


Financial year 2025 ....................................................................	4
Corporate governance statement ...........................................	12
Sustainability statement .............................................................	34
Shares and shareholders ...........................................................	119
Key figures ..................................................................................	122
Board of Directors’ proposal on the use of profit .................	125