UPM-Kymmene Oyj

Latest Results (12.11.2025):

UPM-Kymmene Oyj’s financial results for the third quarter of 2025 reveal a mixed performance amid persistent market uncertainty. The company reported sales of €2,298 million and a comparable EBIT of €153 million, reflecting sequential improvement of 22% over the prior quarter but a 47% decline compared with the corresponding period last year. While advanced materials and decarbonization solutions advanced their performance, challenges in the Fibres and Communication Papers segments, driven by volatile market conditions and elevated costs, continue to weigh on overall earnings. UPM-Kymmene Oyj is taking strategic actions to improve performance, cash flow, and balance sheet strength as uncertainties in global trade and geopolitics persist.

Sales and EBIT Performance

In Q3 2025, UPM-Kymmene Oyj achieved sales of €2,298 million and posted a comparable EBIT of €153 million – a 22% sequential increase, albeit down 47% year-on-year.

Cash Flow and Financial Position

The operating cash flow reached €218 million with a robust balance sheet, as the net debt to EBITDA ratio stood at 2.36 by the end of the quarter.

Fibres Segment Performance

Within the Fibres division, significant contrasts emerged: Fibres South delivered a solid performance with an EBIT of €80 million and a 22% margin, while Fibres North registered a comparable EBIT loss of €37 million, largely due to high wood costs and scheduled maintenance at the Kaukas pulp mill.

Performance in Other Business Units

Advanced materials, including UPM Adhesive Materials and UPM Specialty Papers, showed resilience, and UPM Plywood delivered strong results alongside a strategic review, whereas UPM Communication Papers faced weak demand and is planning to cease operations at the Kaukas mill.

Decarbonization and Outlook

Decarbonization solutions, particularly in UPM Energy and UPM Biofuels, benefited from market price recoveries. Looking ahead into H2 2025, UPM-Kymmene Oyj anticipates a mix of challenges and opportunities, with sensitivities to fluctuations in pulp and electricity prices, as well as foreign exchange risks, influencing future performance.