UPM reported stronger second-quarter results across all its continuing businesses, with comparable EBIT rising 71% year over year to €212 million.
Sales totaled €2.36 billion, slightly above the €2.34 billion reported in the second quarter of 2025. The comparable EBIT margin increased to 9.0% from 5.3%, while comparable EBITDA rose to €356 million from €250 million.
Profit for the period reached €163 million, compared with €70 million a year earlier. Earnings per share increased to €0.29 from €0.13.
UPM attributed the improvement to higher volumes, margin management and ongoing efficiency measures, which helped offset a more inflationary operating environment.
First-half earnings rise as cash flow weakens
For the first six months of 2026, sales declined to €4.78 billion from €4.91 billion in the same period last year. Comparable EBIT nevertheless increased 17% to €471 million, representing 9.8% of sales.
Despite the improvement in earnings, first-half operating cash flow fell to €225 million from €468 million a year earlier. Net debt stood at €3.31 billion at the end of June, broadly unchanged from a year earlier, while the net debt-to-EBITDA ratio increased to 2.36 from 2.12.
The group paid the first €395 million installment of its 2025 dividend in April.
All businesses improve
UPM’s decarbonization businesses delivered stronger results during the first half. UPM Biofuels benefited from healthy demand and favorable premiums for advanced renewable fuels, while UPM Energy improved its year-over-year performance.
The company also reported growth in its advanced materials businesses. UPM Adhesive Materials and UPM Specialty Materials benefited from stronger markets in Europe and Asia, supported by product portfolio development and commercial measures.
At UPM Fibres South in Uruguay, efficiency improvements offset higher logistics and other costs. A moderate increase in pulp prices also supported profitability.
Conditions remained more challenging for UPM Fibres North in Finland. Despite lower pulpwood prices, profitability remained weak, while the maintenance shutdown at the Pietarsaari mill affected second-quarter earnings.
UPM Communication Papers delivered broadly stable results with slightly improved margins.
Portfolio transformation advances
UPM signed a definitive agreement with Sappi during the quarter to create a joint venture combining their graphic paper operations. The transaction remains under regulatory review, with final decisions expected by the end of 2026.
The company is also preparing to separate UPM Plywood into WISA Group, an independently listed company. UPM now presents the plywood business as a discontinued operation while the proposed demerger awaits shareholder approval.
UPM Plywood reported second-quarter sales of €84 million and comparable EBIT of €18 million, compared with €59 million and €2 million, respectively, a year earlier.
UPM issues wide second-half outlook
UPM expects comparable EBIT from continuing operations of between €375 million and €575 million in the second half of 2026. This compares with €479 million in the second half of 2025 and €471 million during the first six months of 2026.
Moderately higher selling prices are expected to support performance. However, UPM also anticipates higher variable costs, increased maintenance activity and additional expenses related to the production ramp-up at its Leuna biorefinery in Germany.
The company said geopolitical and trade-related uncertainty remains significant.
UPM is a Finland-based materials company operating across renewable fibres, advanced materials, decarbonization solutions and communication papers. The group employs approximately 15,100 people globally and is listed on Nasdaq Helsinki.
