UPM-Kymmene (UPM) Q3 2025 earnings summary

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.