Q2 2025 UPM-Kymmene Oyj Earnings Call Transcript
Key Points
- UPM-Kymmene Oyj (UPMKF) successfully started the first of the refineries' core processes in Leuna, marking a key milestone in developing a new biochemical business.
- The Advanced Materials businesses showed resilience amid global trade uncertainties, with labeling materials demand growing by 3% in North America.
- UPM biofuels business improved its performance with higher deliveries and decreasing costs, reaching EBIT breakeven in the quarter.
- UPM Energy experienced increased power demand in Finland, indicating a positive trend towards electrification of the economy.
- The company is investing in expanding its Adhesive Materials business in the US and Malaysia, aiming for double-digit EBIT margins in the near term.
- Sales decreased by 6% year-over-year to EUR2.4 billion, primarily due to lower sales prices and unfavorable currency exchange rates.
- Comparable EBIT decreased by 31% to EUR126 million, with an EBIT margin of 5.2%.
- The Fibers and Communication Paper businesses were negatively impacted by tariff uncertainties and a weakened US dollar.
- Demand for Communication Papers was weak, with a 9% decline in Europe and significant overcapacity leading to decreased prices.
- High wood costs in Finland and low pulp prices are pressuring profitability, leading to extended maintenance shutdowns at the Kaukas pulp mill.
(technical difficulty) 2025 results webcast. My name is Massimo Reynaudo. I'm the CEO of UPM, and I'm here today with Tapio Korpeinen, the CFO. Over the next half an hour or so, we will share the main facts of the second quarter and then open up for your questions.
Three months ago, we reported a good start of the year. But the promising start took a negative turn during the second quarter. In quarter two, in fact, our sales decreased by 6% from last year to EUR2.4 billion, mainly due to lower sales prices and unfavorable changes in currency exchange rates. Our comparable EBIT decreased by 31% to EUR126 million. The EBIT margin was 5.2%. The tariff announcements caused uncertainty in the global trade, which weakened the demand for our products and weakened the US dollar. These are negative impact, particularly on our Fibers and Communication Paper businesses. On the other hand, our Advanced Materials businesses showed more resilience. To secure performance, we took a number of decisive
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
