Operating in a complex landscape

In a year defined by geopolitical instability, armed conflicts, and increasingly rapid swings in global economic and regulatory cycles, St1 has remained firmly on course. Amid regulatory volatility, we emphasize the urgent need for a stable and predictable policy framework. This is essential to enable the profitable execution of the energy transition while meeting stakeholder expectations.

Our road ahead for low-emissions transport

To ensure a smooth transition, it is important to maintain existing assets while building the new. To support our customers in reducing their carbon footprint, we see that in the short- and midterm, the transport sector’s future will be based firmly on electrification, biogas and Sustainable aviation fuel (SAF). Road transport will mainly be electrified. However, biogas will play a significant role in heavy road transport and in marine transport. The mandated aviation sector needs SAF, which directs liquid low-emissions fuels increasingly to that sector.

In the long term, to meet the vastly growing future demand for low-emissions energy, especially low-priced electricity, new breakthroughs and extensive R&D development are necessary. Thus, more public and private funding is needed, both in the EU and in the Nordic countries.

A strong year in advancing the energy transition

Our energy transition ambition guides our strategic decision-making. St1 has remained firmly on course, and we have continued to advance our strategy as planned, in line with our long-term ambitions.

We have continued to drive the energy transition with balance and resilience, safeguarding the reliability of existing energy systems while investing in new low-emissions solutions. The primary target of our energy transition execution is to grow our low-emissions energy portfolio.

The unified cross-Nordic St1 network is a strong channel for us to introduce more low-emissions energy products to our customers. The rebranding of our entire Shell-branded network to St1 has been finalized as planned: keeping on schedule, ensuring quality, staying within budget, and achieving the zero serious incidents target. In total, we have rebranded 624 sites in Finland, Sweden, and Norway. The One Brand strategy and the strong cross-Nordic network are crucial components of St1’s energy transition execution and of building a profitable business in the long-term.

The cornerstone of our hydrotreated vegetable oil (HVO) value chain, the Gothenburg Biorefinery, has had a stable year of production. Moreover, it is breaking production records with a high utilization rate. The market has revived and the demand for SAF and HVO diesel are strong.

Our biogas value chain is managed in our joint venture St1 Biokraft, which has now completed its first full year of operation. Biogas growth plans continued progressing as planned and a new 138 GWh production plant was commissioned last year in Sweden. St1 Biokraft and Valio’s joint venture Suomen Lantakaasu is currently constructing production plants in Finland with a combined capacity of 248 GWh, and commissioning is expected to take place in 2026. By the end of 2025, the Nordic liquified biogas (LBG) refuelling network had already reached 13 locations, which is one quarter of the target by 2028.

Our EV charging value chain continued growing, and we added 44 new St1 Charge sites to the Nordic network. St1 also opened its first solar park in Gothenburg, Sweden in 2025. Additionally, we established a new Power Business Unit with the aim of developing potential new value chains.

In 2025, St1 joined forces with Novatron Fusion Group (NFG) to accelerate fusion energy in the Nordics. We took up the role as lead investor and have become a new board member in the Group. We believe that NFG has a game changing formula, and as an owner with a long-term mindset, we are excited to help accelerate the work towards limitless fossil-free energy. It is important to increase awareness of the limitless opportunities offered by fusion energy and to promote its development through education, investments, and societal support, while creating a shared fusion strategy for the Nordic countries.

Our new value chains are performing well, and we succeeded to increase profitability through our value chains throughout the year.

The financial year

St1 Nordic Group’s net sales for 2025 was EUR 7.2 billion, a decrease of approximately 9% compared to EUR 8.0 billion in the previous year. The decline was mainly driven by a partial maintenance shutdown at the Gothenburg refinery in spring 2025, as well as lower global market prices for oil products. Overall sales volumes increased slightly, particularly in marine fuels. The geographical distribution of net sales remained similar to previous years: 20.9% from Finland, 53% fromSweden, 25.9% from Norway and 0.3% from the United Kingdom.

The Group’s operating profit was EUR 110.0 million, which was EUR 61.9 million lower than the previous year. Refining margins materialized at higher levels than in 2024, but changes in oil product prices resulted in an inventory loss at the end of the year. The Group’s most significant investment was the rebranding of the Nordic energy station network entirely to St1, in line with our One Brand strategy. In addition, the Gothenburg refinery underwent a smaller planned maintenance shutdown. Investments in low-missions energy production and its distribution network amounted to EUR 32.3 million. Additionally, we invested in biogas operations through our associated company St1 Biokraft Group AB.

For our future investment capability, the Group has a strong balance sheet with equity of EUR 1484.1 million and an equity ratio of 59%.

Strengthening HSSE and sustainability governance

We recognize that our HSSE (Health, Safety, Security & Environment) performance did not fully meet our expectations in all respects, and we are committed to continuously developing our HSSE culture. We have decided to place even greater emphasis on this area by, among other things, elevating HSSE to a strategic focus area for the coming years and strengthening the function through recruitment.

We achieved a key step in compliance and sustainability across our supply chain by developing and implementing an enhanced supplier due diligence process. It allows us to focus resources on high-risk partners while automating counterparty onboarding for low-risk ones. In 2026, we will focus on developing a joint due diligence process and governance with our joint ventures, and continue supporting joint ventures in due diligence development, implementation, and related communications. We have also continued building our own sustainability reporting competences and conducted a double materiality assessment (DMA) by in-house sustainability expertise and resources.

Leading by data supports our energy transition target to grow the low‑emissions energy portfolio and decrease the carbon intensity of our sales, while maintaining profitability. It enables our commitment to be a partner to our customers in their energy transition process by offering insights and support in developing and executing their energy transition.

Together, we challenge the ordinary

To further empower our employees to thrive, we have strengthened our talent management. Equally important are employees’ mental wellbeing, their sustainable way of working, and their working environment. Our employees actively participate in the yearly employee engagement survey as well as in processing the action plans based on the results. The year’s participation rate was exceptionally high, reaching 92%.

We have crystallised our strong corporate culture to ensure it is clear and easily translated into concrete actions and everyday behaviours. The St1 Spirit serves as a solid foundation to grow with the company. We also strive to build an inclusive culture, where everyone feels safe, valued, and empowered to be their true selves.

We have launched our new Employer Value Proposition, which authentically reflects the strengths and unique qualities of St1 as an employer. This supports our talent attraction and retention and while enhancing dynamism and engagement in the working environment.

Looking ahead, the focus area will broaden from talent management to include leadership, digital tooling, and alignment of core HR processes in 2026.

We would like to thank all our employees and partners, customers, and other stakeholders for a successful year.

Henrikki Talvitie

CEO

Lea Rankinen

Head of Sustainability and Corporate Affairs

Read more in St1's annual review Game Changer 2025.