UPM-Kymmene closed 2025 with a solid cash position and a series of decisive strategic moves, reinforcing its long-term transformation despite continued pressure on earnings across several business lines.
The group reported full-year sales of €9.66 billion, down from €10.34 billion in 2024, while comparable EBIT declined 25% to €921 million. In contrast, operating cash flow remained resilient at €1.41 billion, reflecting tighter working capital management and improved operational discipline, particularly in the second half of the year.
Strong fourth quarter cash generation
In the fourth quarter, UPM generated operating cash flow of €720 million, a marked improvement over the prior year. Comparable EBIT for the quarter reached €355 million, supported by stronger performance in several businesses and early signs of market stabilization after a volatile year marked by geopolitical tensions and subdued consumer confidence.
Net debt stood at €3.0 billion at year-end, with a net debt-to-EBITDA ratio of 2.29, as the company balanced dividend payments with balance-sheet discipline.
Portfolio reshaping accelerates
2025 was also defined by significant portfolio decisions. UPM discontinued the planned Rotterdam biorefinery to sharpen its biofuels growth strategy, launched a strategic review of its plywood business, and announced a non-binding letter of intent with Sappi to create a European graphic paper joint venture. At the same time, the company reduced graphic paper capacity through mill closures in Germany and Finland.
Growth investments continued in higher-value segments. UPM Leuna delivered its first customer shipments, marking a milestone in biochemicals, while Adhesive Materials expanded in the U.S. and Asia. UPM also strengthened pulpwood supply in Finland through a strategic partnership with Versowood.
Sustainability and capital allocation
UPM maintained its focus on sustainability, earning a Platinum EcoVadis rating and remaining the only forest and paper company included in both the Dow Jones Global and European Sustainability Indices. The group also repurchased approximately six million shares during the year.
Looking ahead, UPM enters 2026 with cautious optimism, citing a more stable market environment but ongoing uncertainty in global trade and geopolitics. Comparable EBIT for the first half of 2026 is expected to range between €325 million and €525 million, as the company continues to prioritize performance, cash generation and portfolio transformation.
UPM is a global material solutions company focused on renewable fibres, advanced materials, decarbonization solutions, and communication papers. Headquartered in Finland, the group employs about 15,100 people worldwide and reported annual sales of approximately €9.7 billion. Its shares are listed on Nasdaq Helsinki.
Source: UPM
