UPM-Kymmene (UPM) Q3 2026 earnings summary

Executive summary

• Q3 continuing-operations sales were €2,202m, down 1% YoY; comparable EBIT fell 8% to €131m as destocking and higher variable costs weighed on results.

• Strong working-capital actions lifted Q3 operating cash flow to €420m from €218m YoY; net debt declined €320m QoQ.

• For 9M, sales declined 2% to €6,983m, while comparable EBIT rose 10% to €601m and margin improved to 8.6% from 7.6%.

• Transformation continued toward a portfolio focused on businesses with strong positions in structurally growing markets; UPM Plywood was classified as discontinued operations.

Financial highlights

• Q3 comparable EBIT margin was 5.9%, versus 6.4% in Q3 2025; 9M comparable EBIT margin was 8.6%, versus 7.6%.

• Q3 continuing-operations profit was €78m versus €12m YoY; comparable profit was €91m versus €93m. EPS was €0.14 and comparable EPS €0.16.

• 9M operating profit was €565m versus €343m; profit was €435m versus €220m, and comparable profit was €458m versus €398m.

• Q3 comparable EBITDA was €267m, 12.1% of sales, versus €235m and 10.6% YoY; Q1–Q3 comparable EBITDA was €999m versus €894m.

• Q3 prices increased in most businesses, but lower deliveries, higher variable costs and adverse currency movements pressured comparable EBIT; fixed costs fell €16m YoY.

Outlook and guidance

• H2 2026 continuing-operations comparable EBIT guidance remained €375m–€575m, versus €479m in H2 2025 and €471m in H1 2026; the upper end looked less likely after Q3.

• Versus H1, H2 deliveries are expected to decline; moderately higher sales prices, higher variable costs, increased maintenance and Leuna ramp-up costs are expected.

• Q4 may include a tail of destocking before demand normalizes; input prices were stabilizing, with energy-driven cost pressure expected to be less severe than the Q2-to-Q3 increase.

• Q4 supports include seasonally stronger Energy results, ~€60m in Communication Papers energy refunds and an expected forest revaluation impact on the scale of €55m; maintenance impact estimated at €65m.

• Leuna integrated production is expected in Q2 2027, about six months later than planned; nominal capacity is expected in early 2028, with 2027 EBIT impact broadly similar to 2026.