Upm Kymmene Corp (UPMKF) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hi, everyone. Welcome to UPM Quarter 2, 2026 Results Webcast. I'm Massimo Reynaudo. I'm the CEO of UPM. Here with me is Tapio Corpeinen, the CFO. Well, in the second quarter this year, we reached two important milestones in our transformation. First, we sign the definitive agreement with SAPI to create the graphic paper joint venture and we secure financing for it. Second, we advance the separation of the plywood business into the future visa group. Following these steps, UPM is becoming an increasingly focused advanced materials and decarbonization solution company with stronger growth prospects and improved earnings quality. Next, looking at the quarter to business performance, all our businesses improved their results from last year. Most also outperformed the previous quarter. Increased volumes, disciplined margin management, and continued efficiency improvements supported our profitability in a business environment that turned inflationary. Our quarter to sales grew slightly, and our comparable EBIT from continuing operations increased 71% year-on-year, reaching $212 million, or 9% of sales. I am here referring to continued operations because the UPM plywood business is now presented as discontinued operations in our reporting. Including plywood, UPM's total EBIT was 230 million euros. Now, let's take a look at the businesses in some more detail. And let's start with decarbonization solutions with another stronger quarter for this segment. If we start with energy, the business improved its results from last year. You may recall that commenting the strong quarter one performance back in April, we talked about seasonal and structural factors. When it comes to the seasonal factors, quarter two followed the normal seasonality, which means lower electricity consumpti...