Neste has reported its strongest-ever quarterly performance, powered by record renewable fuel margins, a sharp recovery in energy markets and growing global demand for low-carbon fuels.
The Finnish renewable fuels giant posted comparable EBITDA of EUR 1.203 billion in the second quarter of 2026, compared with EUR 341 million a year earlier, as exceptional market conditions and stronger regulatory support boosted earnings. Group EBITDA reached EUR 1.144 billion, while Renewable Products delivered an all-time high comparable EBITDA of EUR 859 million.
President and CEO Heikki Malinen said the company successfully capitalised on a volatile market environment, despite production constraints.
'Neste delivered record results during the second quarter of 2026, which I am very pleased with. The conflict in the Middle East dominated global oil and product markets through most of the period, creating an exceptional market environment for Neste.
"At the same time, we benefited from favorable regulatory decisions that will continue to support demand for renewables for years to come. We successfully captured the market potential to deliver strong margins, leading to robust financial results, despite production limitations in Renewable Products."
Renewable Products emerged as the key growth driver, benefiting from record sales margins of USD 1,223 per ton and sales volumes exceeding one million tonnes. The company said improving renewable fuel mandates in Europe and the United States are strengthening long-term demand.
Malinen highlighted the impact of regulatory changes, including Germany’s adoption of RED III legislation, which is expected to increase renewable diesel demand significantly.
"In Renewable Products, comparable EBITDA reached an all-time high of EUR 859 (174) million, supported by a record high sales margin of USD 1,223 (361)/ton and sales volumes exceeding 1 million tons. The improved mandate outlook and sustained demand for renewable diesel have strengthened the European market."
Neste’s Oil Products business also benefited from favourable conditions, with comparable EBITDA rising to EUR 334 million from EUR 135 million a year earlier. The Porvoo refinery achieved a total refining margin of USD 25.8 per barrel, driven by exceptionally strong middle distillate markets.
"In Oil Products, comparable EBITDA was EUR 334 (135) million, with a total refining margin of USD 25.8 (10.0)/bbl and an average Porvoo utilization rate of 90% (92%). The main margin drivers were exceptionally wide middle distillate cracks — a product slate for which Porvoo is highly optimized."
The company said preparations are underway for planned maintenance at its Porvoo refinery, with advance production and storage measures taken to ensure customer supply remains uninterrupted.
Neste’s financial position strengthened significantly during the first half of 2026. The company’s leverage ratio improved to 29.9%, below its 40% target, while January–June comparable EBITDA reached EUR 2.064 billion compared with EUR 551 million in the same period last year.
Malinen said the global energy crisis has reinforced the strategic importance of renewable fuels.
"The ongoing Middle East conflict has accelerated global energy debate: repeated supply shocks keep energy security high on the policy agenda. In this context, reducing reliance on imported fossil fuels is an increasingly important strategic goal both to strengthen energy security of supply and to mitigate climate change."
Neste continues to advance its Rotterdam refinery expansion project, which the company says will become the world’s largest renewable diesel and sustainable aviation fuel refinery once completed.
"Our strategic priorities remain unchanged. The Rotterdam refinery expansion — which on completion will be the world's largest renewable diesel and SAF refinery — continues to progress. Concurrently, we remain focused on strengthening day-to-day execution, as we recognize there is still room to improve our operational reliability."
Looking ahead, Neste expects renewable fuel sales volumes in 2026 to remain broadly in line with 2025 levels, while Oil Products volumes are expected to decline due to planned refinery maintenance.
The company estimates full-year 2026 cash-out capital expenditure, excluding mergers and acquisitions, at approximately EUR 1.2 billion. Planned maintenance shutdowns include eight-week turnarounds at Porvoo and Rotterdam refineries, along with an 11-week maintenance period at one production line in Singapore.
Malinen said Neste’s global production network and diversified feedstock supply chain will remain central to navigating continued market uncertainty.
"The world in which we operate remains volatile and uncertain and global oil and gas trade flows will take time to fully normalize. The resilience of our feedstock sourcing, our global refinery network and continuous performance improvement ensure that we can continue to serve our customers reliably. With the increased demand outlook for renewables, we are on track to continue building long-term shareholder value."
