Neste’s H1 2025 Results Highlight SAF Sales Surge Despite Margin Pressures

Neste's H1 2025 Results Highlight SAF Sales Surge Despite Margin Pressures

Renewable Products Drive Volume Records, with SAF Up 80% QoQ, Signaling Capacity Utilization Gains Amid Oversupply and Regulatory Tailwinds

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July 26, 2025

image: Neste

Summary: Neste's half-year report shows Q2 revenue at EUR 4.5 billion and comparable EBITDA at EUR 341 million, with Renewable Products achieving record sales volumes of 1,096 kt, including an 80% QoQ SAF increase from Rotterdam expansion. Despite weaker margins at USD 361/ton, higher 2025 volumes forecast underscores Neste's positioning in a volatile market, aiding stakeholders in mandate compliance and investment planning.

ESPOO, FINLAND — Neste released its half-year financial report for January–June 2025 on July 24, revealing steady progress in its Renewable Products segment amid broader market challenges. Q2 revenue reached EUR 4,511 million, down slightly from EUR 4,642 million in Q2 2024 due to lower market prices, while comparable EBITDA improved to EUR 341 million from EUR 240 million, reflecting operational efficiencies.

The Renewable Products division, central to Neste’s SAF strategy, posted a comparable EBITDA of EUR 174 million for Q2, up from EUR 152 million, fueled by a record sales volume of 1,096 thousand tons—a 15% increase year-over-year. SAF volumes specifically surged nearly 80% quarter-on-quarter, leveraging additional production capacity at the Rotterdam refinery. This growth aligns with evolving regulations like ReFuelEU Aviation and RED III, which Neste has invested heavily to support, potentially easing supply constraints for airlines facing 2% SAF mandates in 2025.

“Our sustainable aviation fuel (SAF) sales increased close to 80% quarter on quarter, benefitting from additional SAF production capacity at our renewables refinery in Rotterdam, the Netherlands,” said Heikki Malinen, President and CEO of Neste.

In market context, the renewable fuels sector remains oversupplied, with global SAF production still under 1% of aviation fuel demand (per IATA estimates), yet Neste’s margin dipped to USD 361/ton from USD 382/ton amid feedstock volatility and competition. For stakeholders—producers, airlines, and investors—this indicates a shift toward volume-driven strategies to offset premiums, with Neste’s Rotterdam project (slated for 2027 completion) set to boost annual capacity to 6.8 million tons, enhancing Europe’s SAF hub status. Challenges include geopolitical uncertainties and trade flows, which could amplify volatility, but positive U.S. and EU biofuel policies offer long-term demand stability. Prioritizing competitiveness, Neste’s outlook projects higher Renewable Products volumes for 2025, providing actionable signals for supply chain partners to ramp up feedstock sourcing and blending infrastructure.

Neste Press Release, “Neste’s half-year financial report for January–June 2025”, July 24, 2025.

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