Business
Kemira Oyj : Q1 2026 Result presentation
Kemira Oyj : Q1 2026 Result
About this update from Kemira Oyj
ANTTI SALMINEN, PRESIDENT & CEO TUOMAS MÄKIPESKA, CFO APRIL 24, 2026 Revenue and profitability declined in a weak market, performance improvement actions accelerated JANUARY - MARCH 2026 Agenda Antti Salminen President and CEO Q1 2026 Highlights Group revenue Group profitability Financial targets Outlook for 2026 p. 4 p. 5 p. 6 p. 7 p. 9 Tuomas Mäkipeska CFO Group profitability bridge Net impact from sales prices and variable costs Business units Balance sheet and cash flow Q&A p. 11 p. 12 p. 13 p. 16 Q1 2026 in brief Market weakness continues Revenue -4% Y/Y, organic growth 1 -3% Y/Y The war in Iran has increased market volatility and cost inflation Operative EBITDA-% declined to 17.3% Proftitability decline driven by Water Solutions and Packaging & Hygiene Solutions, improvement in Fiber Essentials Performance improvement actions accelerated Price increases implemented to mitigate the impact of cost inflation Progress with strategy execution Two acquisitions announced in Q1: AquaBlue, Inc. and SIDRA Wasserchemie2 Plans to build a carbon reactivation site in Tarragona Balance sheet continues strong, enabling investments in long-term growth 1 Revenue growth in local currencies, excluding acquisitions and divestments. Group revenue decrease mainly driven by FX rates and pricing REVENUE AND ORGANIC REVENUE GROWTH 1 (Y/Y) -9% 1% 2% 1% -2% -3% -3% -6% -3% 719 733 728 724 709 693 688 664 677 EUR million 800 700 600 500 400 300 200 100 0 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Revenue decreased Y/Y in Q1 2026 Revenue decline mainly due to the FX rates and lower sales prices driven by market weakness Y/Y organic growth 1 -3%, Revenue declined in Packaging & Hygiene Solutions and in Fiber Essentials, and remained close to the previous year's level in Water Solutions. Q/Q sales volumes and prices increased The graph presents the Oil & Gas divestment adjusted figures. 1 Revenue growth in local currencies, excluding acquisitions and divestments. Operative EBITDA-% declined mainly driven by pricing OPERATIVE EBITDA AND OPERATIVE EBITDA-% EUR million 22.2% 19.2% 20.3% 18.7% 19.1% 19.0% 20.0% 18.1% 17.3% 159.2 140.5 147.4 135.0 135.5 131.8 137.3 119.9 117.3 180 160 140 120 100 80 60 40 20 Q1 Operative EBITDA-% declined to 17.3% Profitability weakened mainly due to pricing and volumes, as well as FX. Operative EBITDA-% declined to 18.4% in Water Solutions and to 10.1% in Packaging & Hygiene Solutions but improved to 26.7% in Fiber Essentials. Q1 earnings per share EUR 0.29 (0.38) 0 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 The graph presents the Oil & Gas divestment adjusted figures. Kemira's financial targets: performance improvement actions continue ORGANIC GROWTH 1 , % OPERATIVE EBITDA, % OP. RETURN ON CAPITAL EMPLOYED EUR million EUR million EUR million 4,000 700 2,500 3,500 3,000 2,500 2,000 1,500 1,000 500 600 500 400 300 200 100 2,000 1,500 1,000 500 +27% 2,722 +11% 4% organic growth target -2% -1% -4% -4% 0 2021 2022 2023 2024 2025 Q1/26 0 506 Op. EBITDA 18-21% 19.7% 20.0% 19.1% 18.6% 15.9% 16.0% 2021 2022 2023 2024 2025 Q1/26 0 2021 11.3% 15.1% 16.5% 20.6% Op. ROCE > 16% 16.2% 21.5% 2,017 2022 2023 2024 2025 Q1/26 Revenue Organic growth-% adj.* LTM Operative EBITDA Operative EBITDA margin adj.* LTM Capital employed 12-month rolling adj.* Operative ROCE-% LTM The impact of the cost inflation and mitigating actions Oil and logistics cost inflation drives cost pressure especially in Water Solutions and Packaging & Hygiene Solutions DIRECT PURCHASES AND LOGISTICS COSTS 2025 EUR 1.5 billion 20% EXPOSURE TO OIL-RELATED RAW MATERIALS, 2025 Higher logistics costs visible in the financials towards the end of Q1, the impact of raw material cost inflation comes with some delay Price increases implemented to mitigate the impact of the increased costs It takes up to two quarters before the price increases are fully visible in the financials Logistics 11% Electricity & energy 69% Raw materials 67% Not oil related 33% Oil & gas related ASSUMPTIONS BEHIND THE OUTLOOK (SPECIFIED) The demand in Kemira's end-markets has weakened due to continued global economic uncertainty and increased geopolitical tensions. In particular, the packaging and pulp market continues to be impacted by this uncertainty. The urban water treatment market is expected to grow modestly, but there is demand volatility within Kemira's industrial customer segment. The outlook assumes that Kemira can largely mitigate raw material and logistics cost increases caused by the war in Iran. The outlook assumes no major disruptions to Kemira's manufacturing operations or the supply chain and for the US dollar to weaken slightly from the end of 2025. The acquisitions which Kemira announced before the Financial Statements Bulletin 2025 was published are included in the outlook. Outlook for 2026 OUTLOOK REVENUE Kemira's revenue is expected to be between EUR 2,600 and EUR 3,000 million in 2026 (2025 revenue: EUR 2,753.5 million). OPERATIVE EBITDA Kemira's operative EBITDA is expected to be between EUR 470 and EUR 570 million in 2026 (2025 operative EBITDA: EUR 524.6 million) A P RIL 24, 2026 Q 1 2 0 2 6 RESU LT PRESEN T AT IO N 9 Agenda Antti Salminen President and CEO Q1 2026 Highlights Group revenue Group profitability Financial targets Outlook for 2026 p. 4 p. 5 p. 6 p. 7 p. 9 Tuomas Mäkipeska CFO Group profitability bridge Net impact from sales prices and variable costs Business units Balance sheet and cash flow Q&A p. 11 p. 12 p. 13 p. 16 Q1 operative EBITDA bridge Q1/2026 REVENUE DEVELOPMENT (Y/Y) 709 -4 -15 -26 14 -1 677 EUR million Revenue decreased 4% to EUR 677 million Revenue decline mainly driven by negative FX impact and pricing Organic revenue growth 1 -3% Q/Q both sales volumes and prices increased Q1 2025 Sales volumes Sales prices Currency Acquisitions impact Others Q1 2026 OPERATIVE EBITDA BRIDGE EUR million -4 -15 7 -3 -3 2 -2 117 136 Operative EBITDA declined to EUR 117.3 million Weaker profitability mainly driven by revenue decline Operative EBITDA margin was 17.3%. Q1 2025 Sales Sales Variable Fixed Currency Acquisitions Others Q1 2026 volumes prices costs costs impact Net impact from sales prices and variable costs SALES PRICES AND VARIABLE COSTS (CHANGE Y/Y) EUR million 256 269 188 197 129 174 152 138 141 99 97 122 59 68 64 9 5 -23 -9 -18 -18 -3 -10 -26 -13 -23 -20 -16 0 -16 -4 -10 -2 13 13 3 11 -2 26 23 11 47 36 4 42 38 8 37 29 24 34 11 28 23 -5 32 19 -13 28 14 -14 25 0 -25 16 -4 -20 28 -4 -32 15 -4 -14 -13 -29 43 12 -31 62 38 -24 70 -27 36 16 75 66 -2 -24 -10 -10 -4 -12 -48 -52 -42 -1 2 1 2 -6 -17 -8 0 0 -1 -2 -5 -7 7 -8 -15 16 -23 -9 -88 -92 -73 -83 -31 2 -15 -101 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Net impact on EBITDA (sales prices-variable costs) Sales prices Variable costs Water Solutions REVENUE AND ORGANIC REVENUE GROWTH 1 (Y/Y) 329 321 311 309 314 304 296 301 295 -2% 3% 5% 6% 0% -2% -2% -5% -2% EUR million 400 300 200 100 0 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 OPERATIVE EBITDA AND OPERATIVE EBITDA-% EUR million 24.0% 22.6% 23.3% 21.4% 22.9% 23.1% 18.9% 18.5% 18.4% 71 73 77 73 59 65 71 55 55 80 60 40 20 Market environment impacted by uncertainty Demand stable withing municipal customers, volatility continues among industrial customers Q1 historically a seasonally weaker quarter compared to Q2 and Q3 Q1 revenue declined slightly driven by FX and pricing Y/Y volumes stable due to acquisitions Y/Y organic revenue growth 1 -2% Operative EBITDA-% decreased to 18.4% The decrease driven by pricing and higher costs, which included a couple of one-off like items 0 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 The graphs present the Oil & Gas divestment adjusted figures. Packaging & Hygiene Solutions REVENUE AND ORGANIC REVENUE GROWTH 1 (Y/Y) EUR million 271 269 264 255 254 240 239 237 233 -4% 0% 0% 0% -6% -7% -3% -6% -4% 400 300 200 100 0 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 OPERATIVE EBITDA AND OPERATIVE EBITDA-% EUR million 15.5% 13.3% 11.8% 13.6% 10.8% 12.0% 12.3% 9.9% 10.1% 42 36 30 28 31 33 29 24 24 80 60 40 20 Market environment continued challenging Packaging and paper industry impacted by the economic uncertainty and low consumer confidence Q1 revenue decreased mainly due to pricing, partly offset by volumes Q1 organic revenue growth 1 -4% Q/Q sales prices declined slightly, volumes remained stable Operative EBITDA-% decreased to 10.1% Profitability decline mainly driven by pricing Profitability improvement initiative continues: implementation of the new operating model progressing as planned 0 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 The figures for 2024 were published as a stock exchange release on March 12, 2025. 1 Revenue growth in local currencies, excluding acquisitions and divestments.Organic growth figures were not Fiber Essentials REVENUE AND REVENUE GROWTH 1 (Y/Y) EUR million 152 144 144 149 151 145 144 134 132 -6% -3% -3% 0% 3% -9% -2% 400 300 200 100 0 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 OPERATIVE EBITDA AND OPERATIVE EBITDA-% EUR million Market environment continued soft Demand healthier in Q1 versus the previous quarters, driven by cold winter in the Nordics The market prices of bleaching chemicals have increased, while prices of other base chemicals remain low Q1 revenue decreased Y/Y mainly due to volumes, partly offset by pricing Organic revenue growth 1 -2% 80 30.4% 60 40 20 0 Q1 2024 Q2 2024 Q3 2024 32.2% 48 46 41 40 37 38 36 32 32 28.2% 26.3% 25.9% 27.4% 26.7% 22.4% 24.1% Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q/Q sales volumes and prices increased Operative EBITDA margin increased to 26.7% Profitability increase mainly driven by higher prices Q1 2026 The figures for 2024 were published as a stock exchange release on March 12, 2025. 1 Revenue growth in local currencies, excluding acquisitions and divestments.Organic growth Balance sheet remains strong, enabling investments in long-term growth NET DEBT, GEARING AND LEVERAGE RATIO* OPERATIVE RETURN ON CAPITAL EMPLOYED Gearing Net debt 506 505 376 368 30% 31% 23% 310 292 21% 18% 16% 216 13% 286 17% 292 17% 0.6 0.4 1.0 Op. ROCE-% Capital employed 2,093 2,032 1,963 1,920 1,922 1,920 1,924 1,972 2,017 21.6% 21.6% 21.6% 20.6% 19.1% 18.5% 17.8% 16.5% 15.1% EUR in million EUR in million 600 500 400 300 200 100 0 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 3,000 2,500 2,000 1,500 1,000 500 0 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 * Leverage ratio = Net debt / last 12 months operative EBITDA *Oil&Gas adjusted Net debt and gearing increased Y/Y, driven by acquisitions and share buybacks Average interest rate of net debt excl. leases 2.5% (2.8%) and duration 9 (14) months By the end of March 2026, Kemira had repurchased altogether 1,929,488 shares under the ongoing share buyback program. Operative ROCE decreased Y/Y due to EBIT decline and acquisitions Operative ROCE highest in Water Solutions at 21.5% Operating cash flow at a good level in Q1 NET WORKING CAPITAL NWC % of LTM revenue Net working capital 10.2% 10.0% 10.4% 10.7% 9.7% 10.1% 10.2% 10.6% 8.5% 286 284 300 304 248 281 285 282 289 EUR in million 700 600 500 400 300 200 100 CASH FLOW FROM OPERATIONS EUR in million LTM operating cash flow Operating cash flow 547 514 453 485 442 396 416 378 415 165 98 109 112 132 127 55 64 92 700 600 500 400 300 200 100 0 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 0 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 The graph present the Oil & Gas divestment adjusted revenue. Net working capital increased Y/Y to 289.3 million. The increase was mainly driven by the Water Engineering Inc. acquisition and the decrease in accrued expenses. Inventories declined both Y/Y and Q/Q Cash flow from operations increased Y/Y to EUR 91.7 million in Q1/26 Capex excl. acquisitions was EUR 35.6 million in Q1 2026 (27.5) Capex excl. acquisitions in 2026 is expected to be slightly higher than in 2025. Enhanced focus on ensuring Kemira's competitiveness in a volatile and soft market Demand remained stable in all business units compared to the previous quarters Raw material, energy and logistics cost inflation mitigated through price increases Profitability improvement actions continue: Further cost efficiency measures planned A P RIL 24, 2026 Q 1 2 0 2 6 RESU LT PRESEN T AT IO N 18 Q&A A P RIL 24, 2026 Q 1 2 0 2 6 RESU LT PRESEN T AT IO N 19 Chemistry with a purpose. Better every day. Appendix A P RIL 24, 2026 Q 1 2 0 2 6 RESU LT PRESEN T AT IO N 21 Financial highlights of Q1 2026 EUR million (except ratios) Q1 2026 Q1 2025 Δ% 2025 Revenue 677.3 708.8 -4% 2,753.5 Operative EBITDA 117.3 135.5 -13% 524.6 of which margin 17.3% 19.1% 19.1% Operative EBIT 65.4 85.6 -24% 324.4 of which margin 9.7% 12.1% 11.8% Net profit 45.5 61.7 -26% 194.1 EPS diluted, EUR 0.29 0.38 -24% 1.18 Cash flow from operating activities 91.7 55.0 67% 378.2 Currency impact in Q1 2026 KEMIRA REVENUE DISTRIBUTION IN 2025 Main currency exposure comes via translation impact Transaction risk is limited as revenues and costs are typically in same currency due to local manufacturing. Transaction risk mostly hedged. 10% change in Kemira's main foreign currencies would have approximately EUR 15 million impact on operative EBITDA on an annualized basis. 8% Others 2% PLN 2% BRL 2% SEK 3% GBP 3% CNY 5% CAD 30% USD 45% EUR KEMIRA COST DISTRIBUTION IN 2025 4% Others Currency exchange rates had EUR -26.0 million impact on revenue and EUR -3.1 million impact on the operative EBITDA in Q1 2026 compared to Q1 2025. 2% KRW 2% PLN 2% BRL 1% GBP 4% CAD 5% CNY 3% SEK 26% USD 51% EUR EUR million Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025 2025 2024 Revenue 677.3 663.7 687.7 693.4 708.8 2,753.5 2,948.1 Operative EBITDA 117.3 119.9 137.3 131.8 135.5 524.6 19.1% 585.4 19.9% margin 17.3% 18.1% 20.0% 19.0% 19.1% Operative EBIT 65.4 67.5 87.8 83.4 85.6 324.4 398.7 margin 9.7% 10.2% 12.8% 12.0% 12.1% 11.8% 13.5% Net profit 45.5 13.4 61.6 57.5 61.7 194.1 262.7 Earnings per share, diluted, EUR 0.29 0.07 0.38 0.35 0.38 1.18 1.61 Cash flow from operations 91.7 127.2 132.2 63.8 55.0 378.2 484.6 Capex excl. acquisitions 35.6 77.6 47.8 43.8 27.5 196.7 167.3 Net debt 505 506 292 286 216 506 291 NWC ratio (rolling 12 m) 11.9% 11.6% 11.2% 11.2% 11.0% 11.6% 11.4%* Operative ROCE (rolling 12 m) 15.1% 16.5% 17.8% 18.5% 19.1% 16.5% 20.8% Personnel at period-end 4,867 4,911 4,766 4,851 4,731 4,911 4,698 Key figures (reported) Cash flow EUR million Q1 2026 Q1 2025 2025 Net profit for the period 45.5 61.7 194.1 Total adjustments 71.2 70.3 305.4 Change in net working capital -0.9 -40.7 -45.2 Finance expenses -11.5 -6.9 -14.8 Income taxes paid -12.7 -29.4 -61.3 Net cash generated from operating activities 91.7 55.0 378.2 Purchases of subsidiaries and business acquisitions, net of cash acquired -5.5 - -144.6 Capital expenditure - -27.5 -196.7 Proceeds from sale of subsidiaries, businesses and assets 2.0 0.1 0.9 Change in long-term loan receivables 0.0 48.1 48.1 Net cash used in investing activities -39.2 20.6 -295.8 Water Solutions KEY FINANCIALS EUR million Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025 2025 2024 Revenue 300.8 295.0 313.9 308.6 303.8 1,221.5 1,256.9 Operative EBITDA 55.4 54.6 72.5 70.7 65.1 262.9 279.1 margin 18.4% 18.5% 23.1% 22.9% 21.4% 21.5% 22.2% Operative EBIT 32.3 32.6 52.8 51.5 47.0 183.9 211.7 margin 10.7% 11.0% 16.8% 16.7% 15.5% 15.1% 16.8% Operative ROCE*, % 21.5% 25.0% 28.3% 30.1% 31.8% 25.0% 33.4% Capital expenditure (excl. M&A) 16.7 37.6 23.0 21.7 14.8 97.1 68.2 Cash flow after investing activities 41.5 -123.4 85.9 -7.4 74.9 30.0 328.8 *12-month rolling average The graph presents the Oil & Gas divestment adjusted figures. Packaging & Hygiene Solutions KEY FINANCIALS EUR million Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025 2025 2024 Revenue 232.9 236.8 239.4 240.3 253.7 970.2 1,058.5 Operative EBITDA 23.6 29.1 32.6 23.7 30.5 115.9 136.3 margin 10.1% 12.3% 13.6% 9.9% 12.0% 12.0% 12.9% Operative EBIT 10.1 14.6 18.0 9.4 13.9 56.0 76.1 margin 4.3% 6.2% 7.5% 3.9% 5.5% 5.8% 7.2% Operative ROCE*, % 10.2% 10.8% 10.3% 9.6% 11.3% 10.8% 13.7% Capital expenditure (excl. M&A) 7.1 13.0 9.0 9.0 6.2 37.2 40.1 Cash flow after investing activities 15.9 13.4 3.8 6.6 -17.0 6.8 99.0 *12-month rolling average The figures for 2024 were published as a stock exchange release on March 12, 2025. Fiber Essentials KEY FINANCIALS EUR million Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025 2025 2024 Revenue 143.7 131.8 134.3 144.5 151.2 561.9 588.2 Operative EBITDA 38.3 36.2 32.3 37.4 39.8 145.7 166.7 margin 26.7% 27.4% 24.1% 25.9% 26.3% 25.9% 28.3% Operative EBIT 23.0 20.3 17.1 22.5 24.7 84.5 107.7 margin 16.0% 15.4% 12.7% 15.6% 16.3% 15.0% 18.3% Operative ROCE*, % 11.5% 11.8% 13.4% 14.5% 13.8% 11.8% 14.8% Capital expenditure (excl. M&A) 11.8 26.9 15.8 13.1 6.6 62.4 59.1 Cash flow after investing activities 19.5 15.2 14.8 23.8 54.1 107.8 103.3 *12-month rolling average The figures for 2024 were published as a stock exchange release on Revenue split by country FY 2025 Other APAC 6% China 3% Other EMEA 8% Belgium 2% Netherlands 3% France 3% Spain 3% Italy 3% Poland 4% UK 4% Germany 4% USA 24% Canada 7% Brazil 3% Other Americas 3% Sweden 7% Finland 13% Important information about financial figures Kemira provides certain financial performance measures (alternative performance measures) that are not defined by IFRS. Kemira believes that alternative performance measures followed by capital markets and Kemira management, such as revenue growth in local currencies, excluding acquisitions and divestments (=organic growth), EBITDA, operative EBITDA, operative EBIT, cash flow after investing activities, and gearing, provide useful information about Kemira's comparable business performance and financial position. Selected alternative performance measures are also used as performance criteria in remuneration. Kemira's alternative performance measures should not be viewed in isolation from the equivalent IFRS measures, and alternative performance measures should be read in conjunction with the most directly comparable IFRS measures. Definitions of the alternative performance measures can be found in the definitions of the key figures in this report, as well as at https://www.kemira.com > Investors > Financial information. All the figures in this presentation have been individually rounded, and consequently the sum of the individual figures may deviate slightly from the total figure presented. A P RIL 24, 2026 Q 1 2 0 2 6 RESU LT PRESEN T AT IO N 30 Attention : This is an excerpt of the original content. To continue reading it, access the original document here .