Upm Kymmene Corp (UPMKF) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello, everyone. Welcome to UPM's quarter four results webcast. I am Massimo Reinaudo. I'm the CEO of UPM. Here with me is Tapio Corpenen, the CFO of UPM. The year 2025 has been characterized by escalating geopolitical and trade tensions with multiple impacts and also on our business environment. During the year and in response to the situation, we intensified our actions to both sharpen our competitiveness and to execute our portfolio strategy. This resulted in the fourth quarter in a visible improvement of our performance in most of our businesses compared to the previous quarter. Our cash flow resulted very strong too. Our Q4 EBIT was €355 million compared to €418 million one year earlier. The Q4 EBIT margin was nearly unchanged at 15.3 versus 15.9 in the previous year. The operating cash flow in quarter four, I said, was strong at 720 million euros, and our net debt decreased while we also paid out the second installment of the dividends. During 2025, we launched significant strategic initiatives that continue to transform the company. In February, we acquired Metamark to accelerate the growth in adhesive materials. In May, we sharpened the focus in our biofuel business and discontinued the Rotterdam biorefinery development. When it comes to biofuels, during the year we made good progresses with our turnaround plan and the business got back to profitability in the second part of the year. In September, we started the strategic review of our plywood business. And in December, we announced the plan to establish a graphic paper joint venture that would encompass the UPN communication paper business and SAPI graphic and paper operations in Europe. While doing all of this, we took decisive actions to improve performance and competitiveness across all our businesses. J...