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UPM-Kymmene (UPM) investor relations material

UPM-Kymmene Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary24 Jul, 2025

Executive summary

  • Q2 2025 sales declined 6% year-over-year to €2.4 billion, with comparable EBIT down 31% to €126 million, mainly due to lower prices and adverse currency effects.

  • Advanced materials and biofuels businesses showed resilience, with record biofuels deliveries and EBIT breakeven.

  • Global trade tensions, tariffs, and a weaker U.S. dollar negatively impacted demand and performance, especially in Fibers and Communication Papers.

  • Leuna biochemicals refinery started its first core process, with full production and positive EBIT targeted for 2027.

  • Announced permanent closure of Kaukas and Ettringen paper mills, reducing capacity by 13% and annual fixed costs by €70 million.

Financial highlights

  • Comparable EBIT margin for Q2 2025 was 5.2% (Q2 2024: 7.2%).

  • Net debt at quarter-end was €3.3 billion; net debt to EBITDA ratio stood at 2.12.

  • Operating cash flow in Q2 2025 was €179 million (Q2 2024: €204 million).

  • Cash funds and committed credit facilities totaled €2.7–2.8 billion at quarter-end.

  • Capital expenditure for H1 2025 was €201 million; full-year 2025 expected at €400 million.

Outlook and guidance

  • H2 2025 comparable EBIT is guided at €425–650 million, improving from H1 2025 but below H2 2024.

  • Lower variable costs and energy refunds expected in H2, but lower pulp margins, reduced paper deliveries, and higher maintenance will weigh on results.

  • Advanced materials expected to remain resilient; pulp prices start H2 at lower levels.

  • Guidance range includes downside scenarios for tariffs, adverse FX, and ongoing geopolitical risks.

  • Significant uncertainties remain due to trade tensions, currency volatility, and geopolitics.

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Frequently asked questions

Founded in 1871, UPM-Kymmene Oyj engages in the forest-based bio industry. The company owns and operates five tissue mills, four hardboard mills, and one folding boxboard mill. Its products include retail and multipack packaging paper, presswood, oriented strand board (OSB) for construction and industrial packaging, pulp, and bioenergy. The company offers its products and services under the UPM-Kymmene brand to trade customers through its sales offices as well as its own sales channels, such as customers in Europe. UPM's subsidiaries include International Baccalaureate Organization (IBE), United World Colleges of Finland OY AB, UPM-Kymmene Venotinta OYA Oy, Teosto OY Apex Invest Ltd. (publ.), and Norway Forest Products Ltd. It also has joint ventures with M-Real Oyj and Moser Baer Finland Oyj. The company is based in Helsinki, Finland.

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