UPM financial statements release 2025: Positive finish to the year – strong cash flow and decisive strategic actions

UPM-Kymmene Corporation Stock Exchange Release (Financial Statements Release 2025) February 4, 2026 at 09:20 EET

HELSINKI, Feb. 4, 2026 /PRNewswire/ —

UPM financial statements release 2025:
Positive finish to the year – strong cash flow and decisive strategic actions

Q4 2025 highlights

• Sales totaled €2,312 million (2,632 million in Q4 2024)
• Comparable EBIT decreased by 15% to €355 million, 15.3% of sales (418 million, 15.9%)
• Operating cash flow was strong at €720 million (570 million)
• Net debt totaled €3,004 million (2,869 million) and net debt to EBITDA ratio was 2.29 (1.66)
• UPM Leuna biorefinery made its first customer deliveries
• UPM Adhesive Materials announced investments to grow in the U.S., Malaysia and Vietnam, and discontinued production in Nancy, France
• UPM and Sappi signed a non-binding letter of intent to form a graphic paper Joint Venture
• UPM plans to increase its growth focus through streamlined business portfolio
• UPM Communication Papers closed paper production at UPM Ettringen, Germany and UPM Kaukas, Finland and sold the earlier closed Plattling paper mill site, Germany

2025 highlights

• Sales totaled €9,656 million (10,339 million in Q1-Q4 2024)
• Comparable EBIT decreased by 25% to €921 million, 9.5 % of sales (1,224 million, 11.8 %)
• Operating cash flow was €1,405 million (1,352 million)
• UPM commenced a share buy-back program and repurchased 6 million shares for a total of approximately €160 million
• UPM discontinued the biorefinery development in Rotterdam to sharpen the focus in biofuels growth strategy
• UPM signed a strategic partnership with Versowood to strengthen pulp wood supply in the tight Finnish markets
• UPM initiated a strategic review of UPM Plywood to assess options for maximizing the long-term potential of the business
• UPM received a Platinum rating from EcoVadis, placing the company in the top 1% globally for sustainability performance
• UPM was recognized among the top sustainability performers by CDP and S&P Global and was listed as the only forest and paper industry company in the Dow Jones Global and European Sustainability Indices for the years 2024-2025

Key figures

Q4/2025 Q4/2024 Q3/2025 Q1-Q4/2025 Q1-Q4/2024

Sales, EUR million 2,312 2,632 2,298 9,656 10,339

Comparable EBITDA, EUR million 382 436 251 1,311 1,734

% of sales 16.5 16.5 10.9 13.6 16.8

Operating profit (loss), EUR million 390 -105 55 749 604

Comparable EBIT, EUR million 355 418 153 921 1,224

% of sales 15.3 15.9 6.7 9.5 11.8

Profit (loss) before tax, EUR million 406 -131 26 690 500

Comparable profit before tax, EUR million 370 392 125 863 1,123

Profit (loss) for the period, EUR million 258 -95 18 491 463

Comparable profit for the period, EUR million 300 328 103 714 953

Earnings per share (EPS), EUR 0.49 -0.19 0.03 0.91 0.82

Comparable EPS, EUR 0.57 0.61 0.19 1.33 1.74

Return on equity (ROE), % 9.9 -3.4 0.7 4.5 4.0

Comparable ROE, % 11.6 11.5 4.0 6.5 8.3

Return on capital employed (ROCE), % 12.3 -2.6 1.6 5.5 4.1

Comparable ROCE, % 11.3 11.1 4.3 6.7 8.2

Operating cash flow, EUR million 720 570 218 1,405 1,352

Operating cash flow per share, EUR 1.36 1.07 0.41 2.66 2.54

Equity per share at the end of period, EUR 18.97 20.89 19.07 18.97 20.89

Capital employed at the end of period, EUR million 14,129 15,452 14,292 14,129 15,452

Net debt at the end of period, EUR million 3,004 2,869 3,218 3,004 2,869

Net debt to EBITDA (last 12 months) 2.29 1.66 2.36 2.29 1.66

Personnel at the end of period 15,127 15,827 15,642 15,127 15,827

UPM presents certain measures of performance, financial position and cash flows, which are alternative
performance measures in accordance with the guidance issued by the European Securities and Markets Authority
(ESMA). The definitions of alternative performance measures are presented in UPM’s » Annual Report 2024

Massimo Reynaudo, President and CEO,
comments on the results:

«Year 2025 was characterized by escalating geopolitical and trade tensions, which had an adverse effect on our business environment. Amidst the trade uncertainties and weakening consumer confidence, we intensified actions to both sharpen our competitiveness and to execute our portfolio strategy. This resulted in a visible improvement of performance in most businesses and a very strong cash flow in the fourth quarter.

We launched significant strategic initiatives that continue to transform the company. In February, we acquired Metamark in Adhesive Materials. In May, we refocused our biofuels growth strategy and discontinued the biorefinery development in Rotterdam. In September, we started the strategic review of our Plywood business. In December, we announced the plan to establish a graphic paper joint venture that would encompass the UPM Communication Papers business and Sappi’s graphic paper operations in Europe.

By these portfolio initiatives, we aim to change the profile of the company, increasing its growth focus and improving the margins and leverage. Future UPM would have an attractive portfolio focused on renewable fibres, advanced materials and decarbonization solutions. All these businesses operate in growing markets. Across these businesses UPM has shown a strong track record of realized growth above GDP.

During the year, we restructured our production footprint in Adhesive Materials and Communication Papers and took efficiency measures in all our businesses to increase competitiveness. In Finland, we mitigated the pulp and wood market challenges with production curtailments and entered into a long-term strategic partnership with Versowood, which will strengthen our position in the tight wood markets. We intensified our actions to improve working capital efficiency.

In Q4, the market environment started to stabilize. We improved our performance in most businesses compared to the preceding quarter, resulting in a comparable EBIT of €355 million. Q4 operating cash flow was particularly strong at €720 million. Net debt decreased during the quarter, while we also paid out the second instalment of dividends.

UPM Fibres’ performance in Q4 improved from the previous quarter. Fibres South performance continued strong, with good progress on cost management, well managed maintenance shutdown in UPM Fray Bentos and gradually increasing hardwood pulp prices. In Fibres North, performance improved but the combination of high wood cost and low softwood pulp prices resulted in a negative quarterly EBIT. During the second half of the year, we saw wood market prices decrease in Finland, with the cost impact materializing later during 2026.

In the advanced materials businesses, UPM Specialty Papers achieved good results, improving performance from the previous quarter and year-on-year. UPM Adhesive Materials continued to grow faster than the markets, but results were weighed down by lower margins during the quarter, and the ongoing efficiency measures are not yet fully visible in the results.

UPM Plywood had a solid quarter as production ran at full capacity. Demand for LNG birch plywood was strong whereas the market for spruce plywood remained challenging.

In decarbonization solutions, the various end markets continued to show positive development in Q4.

UPM Energy had a good quarter of seasonally higher production volumes and market prices. Our own optimization on the physical markets continued to generate strong results. Electrification continued to drive electricity demand growth in Finland.

UPM Biofuels had excellent production efficiency and improved market conditions and is now back in positive EBIT contribution. The business improved its performance each quarter throughout the year.

In UPM Biochemicals, we are now in commercial business, with the first customer deliveries of industrial sugars taking place in Q4. We will continue to introduce further products to the market during the first half of this year, the next step being the renewable functional fillers. Demand and interest for our biochemicals products is robust.

UPM Communication Papers delivered Q4 results on par with Q4 2024. However, the annual results were lower due to continued structural market decline. During the quarter UPM Communication Papers stopped production at its Kaukas mill in Finland and at its Ettringen mill in Germany, reducing its paper production capacity by 13%.

We are entering 2026 with some cautious optimism. The business environment at the beginning of the year is showing signs of stability, even if there continue to be uncertainties in geopolitics and trade. We will continue to focus on performance, cash generation, strengthening the balance sheet and successfully completing the strategic portfolio initiatives.

Confident in UPM’s strategy and ability to create value, the Board of Directors has today proposed an unchanged dividend of €1.50 per share for 2025. The dividend represents 113% of UPM’s comparable earnings per share for 2025.»

Profit guidance

UPM’s comparable EBIT in H1 2026 is expected to be approximately in the range of €325-525 million (€413 million in H1 2025, and €508 million in H2 2025).

Outlook

The business environment at the beginning of the year is showing signs of stability, even if there continue to be significant uncertainties in geopolitics and trade.

In H1 2026, compared with H2 2025, UPM’s performance is expected to benefit from moderately higher sales prices and delivery volumes and moderately lower fixed costs. Performance is expected to be held back by continued weak communication paper markets and increased costs during the early phase of the production ramp-up at UPM Leuna. Currencies started the year at similar levels, compared with H2 2025. Comparable EBIT in H2 2025 benefited from the timing of energy refunds and increased fair value of forest assets, items that are not expected to take place during H1 2026 in similar quantities.

In H1 2026, compared with H1 2025, UPM’s performance is expected to benefit from lower variable costs and moderately higher delivery volumes. Maintenance activity is expected to be lower than in the comparison period. Performance is expected to be held back by continued weak communication paper markets and increased costs during the early phase of the production ramp-up at UPM Leuna. Currencies at the beginning of the year are negative to comparable EBIT, compared with H1 2025.

Sensitivity to pulp and electricity prices

UPM’s comparable EBIT is sensitive to pulp and electricity prices. The figures below represent group earnings sensitivities on annual level.

UPM is a large producer and consumer of chemical pulp. A €50/tonne change in average pulp price would impact annual comparable EBIT by approximately €180 million (net impact: assuming no correlation between pulp and paper prices) to approximately €270 million (gross impact: assuming paper pricing would match changes in pulp costs).

UPM is a large producer and consumer of electricity in Finland and separately hedges part of its electricity sales and purchases. Based on UPM’s estimated unhedged net electricity sales position in Finland in 2026, a €10/MWh change in average electricity market price in Finland would impact annual comparable EBIT by approximately €40 million.

Foreign exchange exposure

Fluctuations in monetary policies and economic conditions can significantly impact the value of various currencies, which in turn may affect UPM. Additionally, the escalation of global trade tensions could influence currency exchange rates. These currency fluctuations could impact UPM’s cash flow, earnings, or balance sheet, and may also affect the relative competitiveness between different currency regions.

The group’s policy is to hedge an average of 50% of its estimated net currency cash flows on a rolling basis over the next 12-month period. At the end of 2025, UPM’s estimated net currency cash flows for the next 12 months totaled approximately €1.5 billion. USD was the largest exposure at approximately €1.3 billion, followed by UYU, GBP and JPY. In addition, the earnings of UPM’s foreign subsidiaries are translated to euros in reporting. UPM has significant foreign subsidiaries in Uruguay, the U.S. and China. Foreign exchange risks are discussed in UPM’s Annual Report 2024 on pages 305-306.

Invitation to UPM’s webcast on Financial Statements 2025

A webcast and a conference call for analysts and investors will start at 13:15 EET. Financial Statements will be presented in English by President and CEO Massimo Reynaudo and CFO Tapio Korpeinen. Participants can follow the webcast online via this link.

Participants wishing to ask questions after the presentation must register for the conference call. To participate in the conference call, please register here. After registering, you will be provided with telephone numbers, a user ID and a conference ID to access the conference. To ask a question, press *5 on your telephone keypad to join the queue.

The webcast will be available on the company website for 12 months after the call.

*It should be noted that certain statements herein, which are not historical facts, including, without limitation, those regarding expectations for market growth and developments; expectations for growth and profitability; and statements preceded by «believes», «expects», «anticipates», «foresees», or similar expressions, are forward-looking statements. Since these statements are based on current plans, estimates and projections, they involve risks and uncertainties which may cause actual results to materially differ from those expressed in such forward-looking statements. Such factors include, but are not limited to: (1) operating factors such as continued success of manufacturing activities and the achievement of efficiencies therein including the availability and cost of production inputs, continued success of product development, acceptance of new products or services by the Group’s targeted customers, success of the existing and future collaboration arrangements, changes in business strategy or development plans or targets, changes in the degree of protection created by the Group’s patents and other intellectual property rights, the availability of capital on acceptable terms; (2) industry conditions, such as strength of product demand, intensity of competition, prevailing and future global market prices for the Group’s products and the pricing pressures thereto, financial condition of the customers and the competitors of the Group, the potential introduction of competing products and technologies by competitors; and (3) general economic conditions, such as rates of economic growth in the Group’s principal geographic markets or fluctuations in exchange and interest rates. The main earnings sensitivities and the group’s cost structure are presented on pages 271-272 of the Annual Report 2024. Risks and opportunities are discussed on pages 33-35, and risks and risk management are presented on pages 120-124.

UPM, Media relations
Mon-Fri 9:00-16:00 EETtel. +358 40 588 [email protected]

UPM
UPM is a material solutions company, renewing products and entire value chains with an extensive portfolio of renewable fibres, advanced materials, decarbonization solutions, and communication papers. Our performance in sustainability has been recognized by third parties, including EcoVadis and the Dow Jones Sustainability Indices. We operate globally and employ approximately 15,100 people worldwide, with annual sales of approximately €9.7 billion. Our shares are listed on Nasdaq Helsinki Ltd.UPM – we renew the everyday Read more: upm.com

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