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UPM-Kymmene (UPM) investor relations material

UPM-Kymmene Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary29 Oct, 2025

Executive summary

  • Q3 2025 saw sales of €2,298 million, down 8.8–9% year-over-year, with comparable EBIT down 47% to €153 million but up 21–22% sequentially; EBIT margin was 6.7%.

  • Advanced Materials and Decarbonization Solutions showed resilience and improved performance, while Renewable Fibers and Communication Papers faced subdued demand and volatility.

  • Decisive actions included capacity closures, strategic partnerships, and a strategic review of the plywood business.

  • The Leuna biorefinery achieved industrial-scale production in its first core process, with first product sales expected in Q4 and full production and positive EBIT by 2027.

  • Sustainability recognitions included a Platinum EcoVadis rating and listings in major ESG indices.

Financial highlights

  • Q3 comparable EBIT: €153 million (6.7% of sales), up 21–22% sequentially but down 47% year-over-year.

  • Q3 2025 sales: €2,298 million (Q3 2024: €2,521 million); Q1–Q3 2025 sales: €7,344 million.

  • Operating cash flow: €218 million; net debt at €3,218 million; net debt/EBITDA: 2.36x.

  • Share buy-back of 6 million shares for €160 million; dividend of €1.50 per share for 2024.

  • Cash funds and committed credit facilities totaled €2.7–2.8 billion.

Outlook and guidance

  • H2 2025 comparable EBIT expected between €425–650 million (H1 2025: €413 million; H2 2024: €709 million).

  • Q4 performance to be supported by energy refunds and potential forest asset revaluation, but likely below last year.

  • Advanced materials expected to remain resilient; short-term Fibres performance sensitive to pulp prices and maintenance shutdowns.

  • Significant uncertainties remain due to geopolitics, trade relations, and currency fluctuations.

  • Weaker U.S. dollar and lower pulp margins expected to impact H2 2025.

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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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