UPM Interim Report Q3 2026: Strong cash flow in a challenging quarter amid destocking and cost inflation
Key Highlights
- ➤Q3 sales €2,202 million, down from €2,226 million year over year
- ➤Comparable EBIT €131 million, down 8% year over year
- ➤Operating cash flow €420 million, nearly doubling from €218 million
- ➤H2 comparable EBIT guidance €375-575 million, versus €479 million in H2 2025
- ➤Leuna integrated production delayed approximately six months to Q2 2027
Expert Statements
Massimo Reynaudo, President and CEO of UPM
“This was a softer quarter following a strong first half.”
Massimo Reynaudo, President and CEO of UPM
“The broader global uncertainty and persistently high energy costs were visible in more cautious customer activity.”
Massimo Reynaudo, President and CEO of UPM
“In some of our markets, we saw significant destocking among customers, resulting in lower deliveries.”
Massimo Reynaudo, President and CEO of UPM
“Together with higher variable costs, this weighed on performance, although we were able to partly offset the impact through pricing actions.”
Massimo Reynaudo, President and CEO of UPM
“A clear highlight for the quarter was the strong cash flow, supported by improved working capital efficiency.”
Massimo Reynaudo, President and CEO of UPM
“We continued our work to shape UPM for the future as a more focused company – built around businesses with strong positions in structurally growing markets.”
Massimo Reynaudo, President and CEO of UPM
“The separation of our Plywood business is just days away from completion and will result in the establishment of WISA Group as an independent listed company.”
Massimo Reynaudo, President and CEO of UPM
“Operational preparations for the planned graphic paper Joint Venture with Sappi have progressed well.”
Massimo Reynaudo, President and CEO of UPM
“We believe in the strength of our arguments in addressing the concerns raised.”
Massimo Reynaudo, President and CEO of UPM
“At the same time, we have opened discussions on potential remedies.”
Massimo Reynaudo, President and CEO of UPM
“Leuna brings our biochemical science and technology to industrial scale and will open up new markets and opportunities for us and our customers.”
Massimo Reynaudo, President and CEO of UPM
“We have now reached production readiness of Renewable Functional Fillers, and qualification volumes for customers will be produced in Q4.”
Massimo Reynaudo, President and CEO of UPM
“During commissioning of the third and final process turning sugars to glycols, we have identified specific modifications that are required.”
Massimo Reynaudo, President and CEO of UPM
“We now expect to start integrated production of the refinery in Q2 2027 – approximately six months later than previously anticipated – and to reach nominal capacity in early 2028.”
Massimo Reynaudo, President and CEO of UPM
“At the same time, our year-to-date performance remains clearly ahead of 2025: comparable EBIT increased by 10% to €601 million and the comparable EBIT margin improved to 8.6% from 7.6%.”
Massimo Reynaudo, President and CEO of UPM
“Cash generation was particularly strong in the quarter.”
Massimo Reynaudo, President and CEO of UPM
“Strengthening cash flow and maintaining a strong balance sheet remain clear priorities for us.”
Massimo Reynaudo, President and CEO of UPM
“Our decarbonization solutions businesses continued to perform well, supported by good demand and pricing for renewable fuels.”
Massimo Reynaudo, President and CEO of UPM
“Strong demand for electricity continued, and new data center projects were announced during the quarter in Finland.”
Massimo Reynaudo, President and CEO of UPM
“We are well positioned to serve data centers and other large electricity consumers.”
Massimo Reynaudo, President and CEO of UPM
“Both businesses saw heavy customer destocking, particularly in Europe.”
Massimo Reynaudo, President and CEO of UPM
“On the positive side, we were able to maintain stable margins in both businesses, despite input cost increases.”
Massimo Reynaudo, President and CEO of UPM
“UPM Fibres’ results improved.”
Massimo Reynaudo, President and CEO of UPM
“UPM Communication Papers had a challenging quarter, further underlining the structural pressures facing the graphic paper markets.”
Massimo Reynaudo, President and CEO of UPM
“These market realities reaffirm the rationale for the planned Joint Venture with Sappi and the need to strengthen the long-term competitiveness of the business.”
Massimo Reynaudo, President and CEO of UPM
“Destocking is still going on in some markets but is temporary by nature.”
Massimo Reynaudo, President and CEO of UPM
“Finally, following the increase in variable costs we will continue margin management actions across our businesses.”
Massimo Reynaudo, President and CEO of UPM
“These priorities support our ongoing transformation towards a more focused UPM, centered on businesses with stronger growth characteristics and higher value creation.”
UPM-Kymmene Oyj UPM-Kymmene Corporation Stock Exchange Release (Q3 Interim Report) October 28, 2026 at 9:45 EET
UPM Interim Report Q3 2026: Strong cash flow in a challenging quarter amid destocking and cost inflation
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