Finnish renewable fuels producer Neste has reported increased renewable diesel and sustainable aviation fuel (SAF) volumes in the fourth quarter.
Announcing its 2025 fourth quarter results on 5 February, the company also reported increased renewable diesel sales in the full year.
The renewable diesel market improved towards the end of the year and record SAF sales had supported profitability, the company said.
In the fourth quarter, Neste’s renewable products segment reported comparable earnings before interests, taxes, depreciation and amortisation (EBITA) of €252M (US$339M), up from €13M (US$17.5M) in the same period of 2024, due to higher sales volumes and margins.
Neste’s revenue in the fourth quarter totalled €4.95bn (US$6.66bn), compared to €5.568bn (US$7.495bn) the previous year. The increase in sales volumes had a positive impact of approximately €0.4bn (US$0.53bn) on revenue, driven by the increased capacity and demand in Renewable Products, Neste said.
The company said the market environment for renewables had improved compared to the previous year and the comparable sales margin had increased to US$479/tonne, up from US$242/tonne.
The higher sales margin had a positive impact of €180M (US$242M) on the comparable EBITDA against the same period in 2024 and increased SAF sales further supported profitability.
“The beginning of the year [2025] was challenging for us in many ways amidst depressed oil and renewable products markets,” said Heikki Malinen, Neste president and CEO.
“To change course, we … initiated a group-wide performance improvement programme. While the programme continues in 2026 and we still have a lot to do, our operational efficiency and financial position have significantly improved. At the same time, we are seeing favourable regulatory developments and increasing demand for renewable fuels in Europe.”
Although increased SAF sales supported profitability in the fourth quarter, higher net production costs had impacted earnings due to maintenance shutdowns at the company’s Rotterdam and Singapore refineries.
Neste’s biorefineries operated at 53% capacity during the fourth quarter, up from 41% during the same period of 2024. Production at the Martinez facility in the USA – a joint venture with Marathon Petroleum – increased year-on-year.
However, due to a challenging US renewables market, the Martinez facility continued to have a diluting impact on Neste’s sales margin, the company said.
Neste produced 838,000 tonnes of renewable fuel during the fourth quarter, including 726,000 tonnes of renewable diesel, 100,000 tonnes of SAF and 12,000 tonnes of other products.
During the same period in 2024, the company produced 687,000 tonnes of renewable fuel, including 602,000 tonnes of renewable diesel, 72,000 tonnes of SAF and 13,000 tonnes of other products. The proportion of waste and residue inputs reached 91%, up from 90% during the fourth quarter of 2024.
Neste sold 1.1M tonnes of renewable fuel during the fourth quarter, up from 926,000 tonnes during the same period of 2024. Sales included 832,000 tonnes of renewable diesel, up from 713,000 tonnes; 253,000 tonnes of SAF, up from 195,000 tonnes; and 16,000 tonnes of other products, down from 18,000 tonnes. Approximately 73% of sales during the quarter were sold to the European market, with 27% sold to North America.
Neste’s Renewable Products segment reported a full-year comparable sales margin of US$411/tonne, up from US$377/tonne in 2024 and the segment’s comparable EBITDA reached €764M (US$1.02bn) for the full year, up from €514M (US$692M) in 2024.
For the full year 2025, Neste produced 4.24M tonnes of renewable fuels, including 3.31M tonnes of renewable diesel, 841,000 tonnes of SAF and 89,000 tonnes of other products.
Renewable sales for 2025 reached 4.13M tonnes, up from 3.73M tonnes. Sales included 3.18M tonnes of renewable diesel down from 3.23M tonnes; 867,000 tonnes of SAF, up from 412,000 tonnes; and 93,000 tonnes of other products, up from 92,000 tonnes. Approximately 72% of sales were into the European market, with 28% into the US market.
Looking ahead, Neste said it expected Renewable Products’ sales in 2026 would be approximately at the same level as the previous year.
