Q3 2025 UPM-Kymmene Oyj Earnings Call Transcript
Key Points
- UPM-Kymmene Oyj (UPMKF) reported a 21% increase in comparable EBIT compared to the previous quarter, reaching EUR153 million.
- The Advanced Materials and Decarbonization Solutions segments showed improved performance compared to the previous year.
- The Energy business benefited from increased electricity market prices and successful production optimization.
- UPM-Kymmene Oyj (UPMKF) is taking decisive actions to strengthen competitiveness, including targeted investments with limited CapEx needs.
- The company plans to reduce paper capacity by 570,000 tons, leading to an annual fixed cost reduction of EUR70 million.
- Comparable EBIT was down 47% compared to the same period last year, indicating a significant year-on-year decline.
- Renewable Fibers and Communication Paper businesses were negatively impacted by volatility in their operating environments.
- Pulp sales prices remained low, affecting earnings, particularly in the Renewable Fibers segment.
- The net debt-to-EBITDA ratio was 2.36 times, slightly above the company's policy limit of 2 times.
- Communication Paper markets remained weak, with a 7% demand decrease in Europe compared to the previous year.
Hello, everyone. Welcome to UPM quarters three 2025 results webcast. I'm Massimo Reynaudo. I'm the CEO of UPM, and here with me today is Tapio Korpeinen, the CFO.
The third quarter brought some temporary clarity to the terms of the international trade, but significant uncertainty remains and the consumer demand stayed subdued. Our businesses in Advanced Materials and in the Decarbonization Solutions segment improved their third-quarter performance compared to the previous year.
On the other hand, the Renewable Fibers and Communication Paper businesses were impacted by the unusual volatility in their operating environments. In quarter three comparable EBIT was EUR153 million, up 21% compared to the previous quarter, but down 47% compared to the last year's corresponding period. The EBIT margin was 6.7%.
During the quarter, we continued to take decisive actions to further strengthen our competitiveness. Our focus has been and is on improving performance, cash flow
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