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UPM's Financial Statements Release for 2025

UPM-Kymmene Corporation has recently published its financial results for the year 2025, reporting a solid conclusion to the fiscal year characterized by strong cash flows and pivotal strategic initiatives. The company's performance highlights reveal challenges faced throughout the year but also significant transformations aimed at sustaining and enhancing growth within the competitive landscape.

Q4 2025 Financial Highlights

In the fourth quarter of 2025, UPM generated sales amounting to €2,312 million, which reflects a decline from €2,632 million in Q4 2024. The comparable EBIT also witnessed a downturn of 15%, landing at €355 million, equating to 15.3% of sales. Notably, during this period, UPM maintained a robust operating cash flow of €720 million, showcasing an increase from €570 million in the same quarter the previous year.

Net debt grew to €3,004 million, rising from €2,869 million, demonstrating an increase in the net debt-to-EBITDA ratio from 1.66 to 2.29. This uptick necessitated a comprehensive approach to managing resources effectively.

Additionally, UPM's new biorefinery in Leuna made its first customer deliverables, marking a crucial milestone in their biofuels strategy. The company also announced plans to invest in Adhesive Materials across the U.S., Malaysia, and Vietnam while ceasing operations in Nancy, France. Furthermore, a non-binding letter of intent has been signed with Sappi for a joint venture focused on graphic paper, indicating a proactive approach in expanding and optimizing its business portfolio.

Year 2025 Overview

For the entire year, UPM's total sales reached €9,656 million, down from €10,339 million in 2024. The comparable EBIT decreased by 25% to €921 million, or 9.5% of sales. Operating cash flow for the year was robust at €1,405 million, slightly increasing from €1,352 million the previous year. As part of its growth strategies, UPM initiated a share buyback program, repurchasing 6 million shares amounting to roughly €160 million.

Additionally, in a move to sharpen its biofuels focus, the company decided to halt the development of a biorefinery in Rotterdam, whereas a strategic partnership with Versowood was established to strengthen wood supply in Finland's constrained market. UPM also commenced a strategic review of its plywood operations to maximize long-term potential.

The company earned accolades for its sustainability practices, receiving a Platinum rating from EcoVadis and ranking in the top 1% globally for sustainability performance. In recognition of its efforts, UPM was prominently featured in sustainability indices by CDP and S&P Global.

Future Outlook and Challenges

Massimo Reynaudo, UPM's President and CEO, expressed that 2025 was significantly influenced by geopolitical tensions and trade issues affecting market dynamics. Despite these challenges, UPM's decisive actions resulted in enhancements seen across most business sectors and a notably strong cash flow in Q4.

Reynaudo emphasized UPM's commitment to strategic initiatives including acquisitions, restructuring, and strategic partnerships to foster growth while navigating market challenges. The CEO pointed out that restructuring efforts, particularly in Adhesive Materials and Communication Papers, have started taking effect, enhancing overall competitiveness.

Moving into 2026, UPM remains cautiously optimistic, though it acknowledges the prevailing uncertainties in geopolitics and trade conditions. The company is committed to pursuing operational efficiencies and cash generation, aligning with upcoming strategic initiatives to bolster its market position further.

The financial statements reflect UPM's continuous striving for excellence, showcasing its adaptability in changing market trends while reinforcing its commitment to sustainability and innovation. In response to the solid performance, the Board has proposed to maintain the dividend at €1.50 per share for 2025, underscoring a commitment to return value to shareholders despite market fluctuations.

Overall, UPM's financial results for 2025 not only highlight a year of challenges but also signify a trajectory towards strategic advancement and sustained growth, aligning with its vision of leveraging renewable resources for future endeavors. As the company enters 2026, stakeholders eagerly await how UPM will further navigate through an evolving market environment.