Q1 2026 UPM-Kymmene Oyj Earnings Call Transcript
Key Points
- UPM-Kymmene Oyj (UPMKF) reported a solid start to 2026 with a comparable EBIT of EUR 274 million and an EBIT margin of 10.8%.
- The UPM Energy business achieved its best-ever Q1 results with a comparable EBIT of EUR 100 million, driven by Finnish-specific factors.
- Biofuels posted strong Q1 results, returning to good profitability due to improved cost base and high demand for renewable fuels.
- The company announced a demerger plan to separate UPM Plywood into a new independent listed company, WISA Group, which is expected to create long-term value for shareholders.
- UPM-Kymmene Oyj (UPMKF) is well-positioned to benefit from the expected growth in electricity consumption in Finland, driven by data center installations and green industries.
- First-quarter sales decreased by 5% year-on-year to EUR 2.505 billion, with comparable EBIT also down by 5%.
- The communication paper business faced challenges with a 4% year-on-year decrease in graphic paper demand in Europe and even further in North America.
- The company faces increased uncertainty due to geopolitical tensions, particularly the Middle East crisis, which could impact business operations.
- The Phase 2 investigation by the European Commission into the planned graphic paper joint venture with Sappi could delay the deal's closure.
- The energy business may face challenges in balancing supply and demand, with potential energy price increases due to growing demand from data centers and limited new capacity.
Hello, everyone. Welcome to UPM quarter one 2026 results webcast. I'm Massimo Reynaudo; I'm the CEO of UPM. Here with me is Tapio Korpeinen, the CFO.
Well, we had a good start of the year. Despite the fact that geopolitics continued to introduce new uncertainties, we delivered solid results during the quarter. The quarter one comparable EBIT was EUR274 million with an EBIT margin of 10.8%, in line with (technical difficulty)
In our advanced materials, businesses continue to show steady and resilient performance. Fibers improves its performance compared to the previous quarter.
Our diversified business portfolio and the global spread of our activities served us well in this volatile environment. As an example of the strength of our business model and strategy, the recent Middle East crisis brought challenges and opportunities in equal number. Looking ahead, our work continues with a disciplined focus on improving competitiveness and performance while executing
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