UPM-Kymmene (UPM) investor relations material

Strategic portfolio and business transformation

• Focus on decarbonization solutions, advanced materials, renewable fibres, and communication papers to drive growth and margin expansion.

• Portfolio initiatives are increasing growth potential and profitability, with emphasis on electrification, biofuels, and biochemicals.

• Joint venture with Sappi in graphic papers and planned demerger of UPM Plywood to enhance core business focus and shareholder value.

• Consistent sales growth above GDP, with a global business model supporting resilience and expansion.

Financial performance and targets

• Q2 2026 sales from continuing operations reached €2,355 million, with comparable EBIT up 71% year-over-year to €212 million.

• H1 2026 comparable EBIT margin improved to 9.8% for continuing operations; all business areas showed year-over-year improvement.

• Net debt at €3,313 million and net debt/EBITDA ratio at 2.36, with strong liquidity and no financial covenants.

• Dividend policy targets at least 50% of comparable earnings per share; €1.50/share paid for 2025.

• Outlook for H2 2026 expects comparable EBIT of €375–575 million, supported by higher sales prices and moderate cost increases.

Business area highlights

• Decarbonization: Strong biofuels results, biochemicals ramp-up, and clean energy portfolio with 99% CO2-free generation.

• Advanced materials: Robust sales and EBIT growth in adhesives and specialty materials, with expansion in higher-margin products and regions.

• Renewable fibres: Improved results in Fibres South, challenging conditions in Fibres North, and ongoing optimization and debottlenecking.

• Communication papers and plywood: Solid Q2 performance, graphic paper JV with Sappi, and plywood demerger progressing.