HELSINKI – October 29, 2026 -- UPM-Kymmene reported a third-quarter comparable EBIT of €131 million from continuing operations, down 8% from €142 million a year earlier. Operating cash flow nearly doubled to €420 million from €218 million, driven by working capital measures.
Sales slipped to €2,202 million from €2,226 million, and the comparable EBIT margin fell to 5.9% from 6.4%. Lower deliveries during customer destocking and higher variable costs weighed on results. Pricing actions offset part of the impact. CEO Massimo Reynaudo called it "a softer quarter following a strong first half."
Nine-month EBIT rises 10% to €601 million while net debt falls
For January-September, comparable EBIT rose 10% to €601 million, with the margin improving to 8.6% from 7.6%. Sales declined to €6,983 million from €7,140 million. Net debt fell to €2,993 million from €3,218 million, and the net debt to EBITDA ratio improved to 2.09 from 2.36. Nine-month operating cash flow was €645 million versus €685 million. The first installment of the 2025 dividend, paid in April, totaled €395 million.
Destocking cuts volumes at Adhesive and Specialty Materials
UPM Adhesive Materials and UPM Specialty Materials saw heavy customer destocking, particularly in Europe, but kept margins stable despite higher input costs. UPM Fibres improved: Fibres North returned to positive comparable EBIT, and Fibres South stayed strongly profitable. UPM curtailed the Kaukas pulp mill for eight weeks in the quarter and will idle the Pietarsaari mill for five weeks in Q4.
UPM Communication Papers struggled with weaker demand and overcapacity, which limited its ability to pass through a sharp rise in energy-related costs.
European Commission restates concerns over Sappi graphic paper joint venture
In early October, the European Commission restated its serious concerns about the planned graphic paper joint venture with Sappi. UPM has opened discussions on potential remedies. The transaction remains subject to merger control approvals.
Leuna biorefinery integrated production slips about six months to Q2 2027
UPM has identified modifications needed in the third Leuna process, which converts sugars to glycols. Integrated production is now expected in Q2 2027, about six months later than planned, with nominal capacity in early 2028. Renewable Functional Fillers have reached production readiness, and qualification volumes for customers will be produced in Q4.
WISA Group to list on Nasdaq Helsinki in November after Plywood demerger
An Extraordinary General Meeting in August approved the demerger plan, and WISA Group plc is set to start trading on Nasdaq Helsinki in November. UPM Plywood is reported as discontinued operations.
UPM Energy delivered broadly stable results despite the maintenance shutdown of the OL3 nuclear unit. UPM cites 12 TWh of CO2-free production capacity and a multi-gigawatt pipeline of data center sites and renewable and battery projects. Demand for renewable fuels remained good in the Biofuels business.
H2 comparable EBIT guided at €375-575 million
UPM expects H2 2026 comparable EBIT from continuing operations of roughly €375-575 million, versus €479 million in H2 2025 and €471 million in H1 2026. Compared with H1, delivery volumes are expected to fall and variable costs to rise, with moderately higher sales prices providing support. Energy refunds should help Communication Papers in Q4. Higher maintenance activity and the Leuna ramp-up are expected to add costs.
The fair value change of forest assets is expected to have a significantly smaller effect on H2 2026 comparable EBIT than the €131 million recorded in H2 2025.