Nokian Tyres continued to outperform the North American replacement tire market during the third quarter of 2026, reporting a 5.3% increase in regional sales as the company strengthened profitability across its global operations.

The Finland-based tiremaker generated approximately $92 million in North American sales during the July-September period, compared with $87.4 million during the same quarter in 2025.

Through the first nine months of 2026, Nokian's North American sales increased 5.5% in comparable currencies, despite an estimated 3% decline in the region's passenger car and light truck replacement tire market.

The results extend the momentum MTD reported during the first half of 2026, when Nokian's North American sales increased 5.6% in comparable currencies despite an estimated 5% contraction in regional replacement tire demand.

Global profitability strengthens

Globally, Nokian reported third-quarter net sales of approximately $400.5 million, up 4.4% from $383.7 million during the prior-year period.

Operating profit increased 73.5% to approximately $42.3 million, compared with $24.3 million a year earlier. The company's operating profit margin improved to 10.5%, up from 6.3%.

Segment operating profit, which excludes certain non-recurring and manufacturing ramp-up costs, increased 45.3% to approximately $52.4 million, representing 13.1% of net sales.

Nokian attributed the improvement primarily to pricing adjustments, a stronger product mix and lower manufacturing and material costs.

"Our strong performance continued in the third quarter," says Paolo Pompei, president and CEO of Nokian Tyres. "Operating profit increased by 73%, and year to date earnings per share turned positive for the first time since 2021, marking an important milestone in our transformation journey."

For the first nine months of 2026, Nokian generated approximately $1.14 billion in global sales, a 6.4% increase over the same period in 2025. Operating profit reached approximately $61.2 million, compared with less than $1 million during the first nine months of 2025.

Premium tires drive results

Nokian's passenger car tire business remained the primary driver of profitability improvement during the third quarter.

The segment generated approximately $275.6 million in sales, an increase of 5.6% from the previous year. Segment operating profit rose to approximately $56.7 million, up from $43.4 million, with its profit margin improving to 20.5%.

The gains were supported by higher average selling prices and a greater concentration of premium products.

According to Nokian's third-quarter presentation, passenger tire sales volume declined 0.9% year-over-year, but improvements in pricing and product mix contributed 5.2% to sales growth.

Winter tires accounted for 76% of passenger tire sales by value during the quarter, compared with 73% a year earlier. Tires with rim diameters of 18 inches and larger represented a record 54% of sales value, up from 48%.

New products also contributed to Nokian's premium positioning.

The company's Nokian Tyres Hakkapeliitta 01 studded winter tire became available to consumers during the quarter, primarily targeting Nordic and North American markets. The tire features adaptive stud technology designed to respond automatically to changing temperatures.

Nokian also introduced its Snowproof 3P winter tire for Central and Southern European markets.

"New products remain a key driver of our premium positioning and profitable growth," says Pompei.

Heavy tire sales also increase

Nokian's heavy tire business reported approximately $63.2 million in third-quarter sales, up 2.4% from the previous year.

Operating profit increased to approximately $9.7 million from $5.6 million, with the segment's operating profit margin reaching 15.3%, compared with 9% a year earlier.

The company attributed the profitability improvement to disciplined pricing and cost management. Its quarterly presentation also identified agricultural tires as an area of strong growth.

Meanwhile, Nokian's Vianor retail operations reported approximately $86.1 million in sales, a 3% increase. However, the business recorded an operating loss of approximately $7.8 million, compared with a $7.1 million loss in the prior-year quarter.

Nokian raises 2026 outlook

Following its third-quarter results, Nokian raised its profitability guidance for the remainder of 2026.

The company now expects segment operating profit to reach the higher end of a 9% to 10% range of net sales. Its previous forecast called for a margin of 8% to 10%.

Nokian continues to expect full-year sales growth despite projecting flat tire demand across its markets.

The company says new premium products, improvements in pricing and product mix and manufacturing efficiencies will continue supporting profitability.

Nokian also expects capital expenditures to decline in 2026 following several years of significant manufacturing investments, including expansion of its global production network.

"While geopolitical tensions and market uncertainty are likely to persist, we continue to execute our strategy through stronger premium positioning, disciplined pricing, and continuous efficiency improvements," says Pompei.