UPM-Kymmene Oyj

Latest Results (26.03.2026):

UPM-Kymmene Oyj reported Q4 2025 results: sales €2,312 million (‑12% vs Q4 2024), comparable EBIT €355 million (‑15% vs Q4 2024), operating cash flow €720 million and profit for the period €258 million (EPS €0.49). Net debt at end‑Q4 2025 was €3,004 million (net debt/EBITDA 2.29). The company closed the year with strong cash generation, continued strategic portfolio moves (share buy‑back, joint‑venture letter of intent with Sappi, Leuna biorefinery first customer deliveries) and a Board proposal to keep the dividend at €1.50 per share for 2025.

Key Q4 2025 financials

Sales €2,312m (‑12% y/y); comparable EBIT €355m (15.3% of sales, ‑15% y/y); operating profit €390m (items affecting comparability included a €46m capital gain on sale of Plattling site); profit for period €258m; EPS €0.49; comparable EPS €0.57.

Full‑year 2025 snapshot

Sales €9,656m (‑7% vs 2024); comparable EBIT €921m (‑25%); comparable profit €714m; operating cash flow €1,405m; comparable EBITDA €1,311m. Company cites lower prices and FX as main drivers of the annual decline.

Cash flow and balance‑sheet

Very strong Q4 operating cash flow €720m (Q4 2024: €570m); FY operating cash flow €1,405m. Net debt €3,004m (end‑Q4), net debt/EBITDA (12‑month) 2.29. Cash + committed facilities ≈ €2.7bn.

Capital returns and shareholder actions

Share buy‑back (Feb–Apr 2025): 6,000,000 shares repurchased for ≈€160m and subsequently cancelled; Board proposes unchanged dividend €1.50 per share for 2025 (to be paid in two instalments).

Items affecting comparability

Q4 2025 included several one‑offs: €46m capital gain on Plattling site sale, reversals of prior restructuring charges and restructuring/impairment charges mainly in Adhesive Materials and Communication Papers. By contrast Q4 2024 included a €373m impairment at the Leuna biochemicals project.

Segment highlights

Fibres: Q4 comparable EBIT down; Fibres South strong, Fibres North loss due to high wood cost and low softwood pulp prices. Energy: good quarter with higher electricity prices and volumes. Adhesive Materials: volume growth but lower margins; ongoing restructuring. Specialty Papers: improved performance. Communication Papers: Q4 on par with prior year but full‑year weaker; announced non‑binding LOI with Sappi to form a 50/50 European graphic paper joint venture and further mill closures/curtailments. Plywood: strategic review initiated to maximize long‑term potential. Other (incl. Biofuels/Biochemicals/Forest): Leuna biorefinery reached first customer deliveries of industrial sugars; UPM Biofuels produced strong volumes.

Strategic moves in Q4/2025

Major actions include share buy‑back and cancellation, signing LOI with Sappi on a graphic‑paper JV, first commercial deliveries from Leuna biochemicals biorefinery (industrial sugars), discontinuation of Rotterdam biorefinery development, strategic review of Plywood, Versowood partnership to secure pulpwood supply, and the Metamark acquisition for Adhesive Materials growth.

Outlook and sensitivities

Guidance: comparable EBIT H1 2026 expected approx. €325–525m. Company notes improving market stability but ongoing geopolitical and trade uncertainties. Sensitivities: ±€50/tonne pulp ≈ €180–270m EBITDA impact (annual); ±€10/MWh electricity ≈ €40m annual impact on comparable EBIT (Finland unhedged position).