Finland · Delayed Price · Currency is EUR UPM-Kymmene Oyj Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 saw resilient performance with EUR 2,505 million sales and 10.8% EBIT margin, despite a 5% year-on-year decline. Key developments include the Plywood demerger, progress on the Sappi JV, and strong energy and biofuels results.
Fiscal Year 2025
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Q4 2025 delivered improved performance and strong cash flow, with EBIT margin stable year-over-year. Strategic actions included acquisitions, restructuring, and a planned joint venture, while outlook for H1 2026 is tempered by weak paper markets and ramp-up costs at Leuna refinery.
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A 50/50 joint venture is planned to combine two major European graphic paper businesses, aiming for EUR 100 million in annual synergies and a EUR 1.42 billion enterprise value. The JV will operate independently, with both partners benefiting from financial gains, improved efficiency, and a focus on sustainability.
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Q3 2025 saw EBIT rise 21% sequentially but fall 47% year-over-year, with Advanced Materials and Decarbonization Solutions improving while Fibres and Communication Papers struggled amid volatile markets. Strategic actions included capacity closures, cost reductions, and a new reporting structure for Fibres.
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Q2 saw a 6% sales decline and 31% EBIT drop, mainly from lower prices and currency headwinds, with Fibers and Communication Papers most affected. Advanced Materials remained resilient, and significant cost and capacity actions were taken. H2 EBIT is guided higher than H1 but below last year.
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Q1 2025 delivered sequential business improvement with stable sales and a 14% year-over-year EBIT decline. Pulp and advanced materials outperformed, while communication papers and energy faced headwinds. Trade tensions, tariffs, and increased Q2 maintenance add uncertainty.
Fiscal Year 2024
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Comparable EBIT rose 21% in 2024, driven by strong pulp and cost savings, with Q4 EBIT at EUR 418 million. Outlook for H1 2025 is EUR 400–625 million EBIT, with full production at Paso de los Toros and continued portfolio streamlining.
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Q3 saw improved profitability year-on-year and sequentially, driven by cost reductions and the ramp-up of the Paso de los Toros mill, despite weaker demand in Europe and China. Outlook for Q4 is stable or better, with further cost actions and no major shutdowns planned.
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The company has transformed into a diversified, global leader with balanced profit streams across four segments, focusing on growth in renewable fibers, advanced materials, and decarbonization. Capital allocation will emphasize harvesting recent investments, disciplined growth, and increased shareholder returns, while maintaining a strong balance sheet.
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Comparable EBIT rose 60% year-over-year in Q2 2024, driven by improved demand and the Paso de los Toros mill ramp-up, despite significant maintenance and strike impacts. Strategic actions included asset closures, a key acquisition, and progress on biofuel and biochemical projects. H2 EBIT is expected to improve, with no major disruptions anticipated.