Half Year 2026 UPM-Kymmene Oyj Earnings Call Transcript
Key Points
- UPM-Kymmene Oyj (UPMKF) achieved a 71% year-on-year increase in comparable EBIT from continuing operations, reaching EUR212 million or 9% of sales.
- The company signed a definitive agreement with Sappi to create a graphic paper joint venture, securing financing for it.
- UPM-Kymmene Oyj advanced the separation of its plywood business into the future WISA Group, enhancing its focus on advanced materials and decarbonization solutions.
- The Energy segment showed strong performance, benefiting from structural growth in electricity consumption in Finland.
- Biofuels business recorded strong results, supported by good demand and healthy bio premiums for advanced renewable fuels, achieving an EBIT margin of 35% in the first half of 2026.
- The Fibers North platform in Finland reported a comparable EBIT loss of EUR10 million due to challenging business conditions and maintenance shutdowns.
- The company anticipates additional headwinds in the second half of 2026 due to increased operating expenses and depreciation from the ramp-up of the biochemicals business.
- UPM-Kymmene Oyj expects higher maintenance costs in the second half of the year, with a EUR40 million increase compared to the first half.
- The company faces potential challenges from the renewed US-Canada tariffs on the pulp market, which could impact its business.
- The North American market for advanced materials remained soft, impacting overall performance despite growth in Europe and Asia.
Hi, everyone. Welcome to UPM quarter two, 2026 results webcast. I am Massimo Reynaudo, I'm the CEO of UPM. Here with me is Tapio Korpeinen, the CFO. Well, in the second quarter this year, we reached two important milestones in our transformation. First, we signed a definitive agreement with Sappi to create the graphic paper joint venture and we secured financing for it.
Second, we advanced the separation of the plywood business into the future WISA Group. Following these steps, UPM is becoming an increasingly focused advanced materials and decarbonization solution company with stronger growth prospects and improved earnings quality.
Next, looking at the quarter two business performance. All our businesses improved their results from last year, most also outperformed the previous quarter. Increased volumes, disciplined margin management and continued efficient improvements supported our profitability in a business environment that turned inflationary.
Our quarter two sales
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