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UPM-Kymmene Oyj
F:RPL

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UPM-Kymmene Oyj
F:RPL
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Price: 25.1 EUR -1.22% Market Closed
Market Cap: €13.4B

UPM-Kymmene Oyj
Investor Relations

UPM-Kymmene Oyj is a Finnish forest products company that turns wood into paper, pulp, label materials, plywood, and other wood-based products. It also sells biofuels and other wood-derived materials, so it sits between the forest and the industries that need raw materials made from it. Its business is built around harvesting and processing timber, then refining it into products that customers use in packaging, publishing, manufacturing, and energy. Its main customers are packaging makers, consumer goods companies, printers, publishers, and industrial buyers that need pulp, specialty papers, or engineered wood products. UPM makes money by selling these physical products to business customers, usually through long-term supply relationships and contracts tied to industrial demand. The company also earns from managing and selling wood fiber and related bio-based inputs. What makes UPM different is that it is not just a paper maker. It is a broad wood-processing company with deep control over forestry, fiber sourcing, and industrial production, which gives it a central role in the bioeconomy. That makes its business less about finished consumer brands and more about supplying the basic materials other companies use to make packaging, printed goods, and renewable industrial products.

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Last Earnings Call
Fiscal Period
Q1 2026
Call Date
Apr 29, 2026
AI Summary
Q1 2026

Solid quarter: UPM reported first-quarter comparable EBIT of EUR 274 million with an EBIT margin of 10.8%, in line with last year, on sales of EUR 2.505 billion.

Portfolio shift: Management announced a plan to demerge UPM Plywood into a new listed company, WISA Group, and said the graphic paper joint venture with Sappi remains on track despite a Phase 2 review by the European Commission.

Energy strength: UPM Energy delivered its best first quarter ever, with comparable EBIT of EUR 100 million, helped by Finnish-specific seasonal and structural factors.

Margin focus: Management said the environment is turning more inflationary and reiterated that margin protection, cash generation, and working capital discipline are priorities.

Q2 headwinds: The company flagged maintenance shutdowns in the second quarter, with a EUR 55 million to EUR 60 million headwind versus Q1, plus softer seasonal energy pricing.

Growth bets: Biofuels improved further, Leuna ramp-up continued, and management highlighted strong demand and a solid pipeline in biochemicals and advanced materials.

Key Financials
Sales
EUR 2.505 billion
Comparable EBIT
EUR 274 million
EBIT margin
10.8%
Operating cash flow
EUR 89 million
Working capital
EUR 192 million increase
Energy business comparable EBIT
EUR 100 million
Fibres South comparable EBIT
EUR 85 million
Fibres North comparable EBIT
EUR 34 million
Label materials demand in Europe
2% year-on-year growth
Label materials demand in North America
2% year-on-year decline
Graphic paper demand in Europe
4% year-on-year decline
Plywood demerger completion
October 31, 2026
WISA Group first day of trading
November 2, 2026
Graphic paper JV target synergy
EUR 100 million
Second quarter maintenance impact
EUR 55 million to EUR 60 million
Net debt
EUR 2.962 billion
Net debt-to-EBITDA
around 2.3x
Finnish electricity consumption growth outlook
4% to 7% year-on-year
2030 Finnish energy consumption outlook
20% to 45% higher than now
Potential additional renewable power pipeline
up to 1 gigawatt
Clean baseload power offered through PPAs
12 terawatt hours
Leuna pilot projects in 2026
more than 70
Uruguay cost reduction target
USD 25 per tonne
Earnings Call Recording
Other Earnings Calls

Management

Mr. Massimo Reynaudo
President & CEO
No Bio Available
Mr. Petri Hakanen
SVP of Tech, Head of Uruguayan Dev Projects and SVP of Fibres Finland Operations & UPM Fibres
No Bio Available
Ms. Saara Tahvanainen M.Sc. (Soc.)
Executive Vice President of Marketing, Sustainability & Communications
No Bio Available
Ms. Riitta Savonlahti M.Sc. (Econ.)
Executive Vice President of Human Resources
No Bio Available
Ms. Pirkko Harrela M.A.
Executive Officer
No Bio Available
Ms. Anu Ahola
Senior Vice President of SBU Newspaper Publishing for UPM Paper Europe & North America
No Bio Available
Mr. Kari Stahlberg M.Sc. (Eng.)
Executive Vice President of Strategy
No Bio Available
Mr. Jaakko Nikkila
Executive Vice President of UPM Specialty Papers
No Bio Available
Mr. Aki Temmes
Executive Vice President of UPM Fibres
No Bio Available
Mr. Mika Kekki
Executive Vice President of UPM Plywood
No Bio Available

Contacts

Address
ETELA-SUOMEN
Helsinki
Alvar Aallon katu 1
Contacts
+35820415111.0
www.upm.com
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