UPM Kymmene Oyj : Report (upm half year financial report 2026 en)

About this update from Upm-kymmene Oyj

[{"type":"text","content":" \n \n UPM Half Year Financial Report 2026:\n \n \n Improved second quarter results in all businesses and portfolio change progressing\n \n \n \n Q2 2026 highlights, continuing operations\n \n \n Sales totaled C2,355 million (2,341 million in Q2 2025)\n \n \n Comparable EBIT increased by 71% to C212 million, 9.0% of sales (124 million, 5.3%)\n \n \n All businesses improved their results from last year\n \n \n UPM and Sappi signed a definitive agreement on the graphic paper Joint Venture\n \n \n The Board approved a plan to demerge the Plywood business into a new listed company. The Extraordinary General Meeting to decide on the demerger plan will be held on August 31, 2026\n \n \n UPM achieved a Platinum rating from EcoVadis and an A score from CDP for its supplier engagement\n \n \n H1 2026 highlights, continuing operations\n \n \n Sales totaled C4,781 million (4,914 million in H1 2025)\n \n \n Comparable EBIT increased by 17% to C471 million, 9.8 % of sales (404 million, 8.2 %)\n \n \n Strong performance in Decarbonization solutions businesses (UPM Energy and UPM Biofuels)\n \n \n Robust sales growth and performance in Advanced materials businesses (UPM Adhesive Materials and UPM Specialty Materials)\n \n \n Operating cash flow was C225 million (468 million) 1) \n The first installment of the dividend for the year 2025 was paid in April, totaling C395 million\n \n \n Net debt was 3,313C million at the end of June (3,310 million) and net debt to EBITDA ratio was 2.36 (2.12) 1) \n 1) Operating cash, net debt and net debt to EBITDA ratio include continuing and discontinued operations. \n UPM Plywood is presented as discontinued operations due to the proposed demerger\n \n \n \n On April 29, 2026, the Board of Directors of UPM approved a demerger plan for the separation of the Plywood business into an independent listed company. As a result of the proposed demerger, the Plywood business is presented as a discontinued operation in accordance with IFRS 5. Unless otherwise stated, the commentary in this report relates to UPM's continuing operations. More information in Financial statement information Note 10 assets and liabilities classified as held for distribution to owners and discontinued operations. \n Key figures, continuing operations\n \n Q2/2026\n \n \n Q2/2025 Q1/2026\n \n \n Q1-Q2/2026\n \n \n Q1-Q2/2025 Q1-Q4/2025\n \n \n Sales, C million\n \n \n 2,355\n \n \n 2,341 2,425\n \n \n 4,781\n \n \n 4,914 9,392\n \n \n Comparable EBITDA, C million\n \n \n 356\n \n \n 250 375\n \n \n 732\n \n \n 659 1,254\n \n \n % of sales\n \n \n 15.1\n \n \n 10.7 15.5\n \n \n 15.3\n \n \n 13.4 13.4\n \n \n Operating profit (loss), C million\n \n \n 208\n \n \n 105 245\n \n \n 453\n \n \n 296 719\n \n \n Comparable EBIT, C million\n \n \n 212\n \n \n 124 259\n \n \n 471\n \n \n 404 883\n \n \n % of sales\n \n \n 9.0\n \n \n 5.3 10.7\n \n \n 9.8\n \n \n 8.2 9.4\n \n \n Profit (loss) before tax, C million\n \n \n 182\n \n \n 83 226\n \n \n 409\n \n \n 249 660\n \n \n Comparable profit before tax, C million\n \n \n 186\n \n \n 103 240\n \n \n 426\n \n \n 359 825\n \n \n Profit (loss) for the period, C million\n \n \n 163\n \n \n 70 195\n \n \n 358\n \n \n 208 466\n \n \n Comparable profit for the period, C million\n \n \n 163\n \n \n 87 203\n \n \n 366\n \n \n 305 684\n \n \n Earnings per share (EPS), C\n \n \n 0.29\n \n \n 0.13 0.36\n \n \n 0.65\n \n \n 0.38 0.86\n \n \n Comparable EPS, C\n \n \n 0.29\n \n \n 0.16 0.38\n \n \n 0.67\n \n \n 0.56 1.27\n \n \n Return on capital employed (ROCE), %\n \n \n 5.9\n \n \n 3.2 7.2\n \n \n 6.6\n \n \n 4.2 5.4\n \n \n Comparable ROCE, %\n \n \n 6.0\n \n \n 3.7 7.6\n \n \n 6.9\n \n \n 5.7 6.5\n \n \n Capital employed at the end of period, C million\n \n \n 13,954\n \n \n 14,213 14,186\n \n \n 13,954\n \n \n 14,213 13,948\n \n \n Personnel at the end of period\n \n \n 13,665\n \n \n 14,764 13,347\n \n \n 13,665\n \n \n 14,764 13,676\n \n UPM presents certain measures of performance, financial position and cash flows, which are alternative performance measures in accordance with the guidance issued by the European Securities and Markets Authority (ESMA). The definitions of alternative performance measures are presented in UPM's » Annual Report 2025 \n Key figures, discontinued operations\n \n \n \n The financial information presented for the discontinued operations is not representative of the historical or future profitability of the UPM Plywood business area as a standalone business. Information on UPM Plywood's performance is presented in the segment information.\n \n Q2/2026\n \n \n Q2/2025 Q1/2026\n \n \n Q1-Q2/2026\n \n \n Q1-Q2/2025 Q1-Q4/2025\n \n \n Sales, C million\n \n \n 84\n \n \n 59 80\n \n \n 164\n \n \n 132 264\n \n \n Comparable EBITDA, C million\n \n \n 20\n \n \n 7 20\n \n \n 39\n \n \n 19 57\n \n \n % of sales\n \n \n 23.3\n \n \n 11.9 24.8\n \n \n 24.0\n \n \n 14.8 21.5\n \n \n Operating profit (loss), C million\n \n \n 9\n \n \n 2 10\n \n \n 20\n \n \n 9 30\n \n \n Comparable EBIT, C million\n \n \n 18\n \n \n 2 15\n \n \n 33\n \n \n 9 38\n \n \n % of sales\n \n \n 21.4\n \n \n 3.2 19.0\n \n \n 20.2\n \n \n 6.9 14.4\n \n \n Profit (loss) before tax, C million\n \n \n 4\n \n \n 2 10\n \n \n 14\n \n \n 9 30\n \n \n Comparable profit before tax, C million\n \n \n 18\n \n \n 2 15\n \n \n 33\n \n \n 9 38\n \n \n Profit (loss) for the period, C million\n \n \n 3\n \n \n 1 5\n \n \n 9\n \n \n 7 24\n \n \n Comparable profit for the period, C million\n \n \n 14\n \n \n 1 9\n \n \n 24\n \n \n 7 31\n \n \n Return on capital employed (ROCE), %\n \n \n 21.7\n \n \n 3.9 22.0\n \n \n 21.9\n \n \n 9.8 16.4\n \n \n Comparable ROCE, %\n \n \n 37.4\n \n \n 4.3 32.7\n \n \n 35.1\n \n \n 10.0 20.8\n \n \n Capital employed at the end of period, C million\n \n \n 196\n \n \n 181 189\n \n \n 196\n \n \n 181 181\n \n \n Personnel at the end of period\n \n \n 1,519\n \n \n 1,543 1,454\n \n \n 1,519\n \n \n 1,543 1,451\n \n Key figures, UPM total\n \n UPM total\n \n \n Q2/2026\n \n \n Q2/2025 Q1/2026\n \n \n Q1-Q2/2026\n \n \n Q1-Q2/2025 Q1-Q4/2025\n \n \n Sales, C million\n \n \n 2,440\n \n \n 2,400 2,505\n \n \n 4,945\n \n \n 5,046 9,656\n \n \n Comparable EBITDA, C million\n \n \n 376\n \n \n 257 395\n \n \n 771\n \n \n 678 1,311\n \n \n % of sales\n \n \n 15.4\n \n \n 10.7 15.8\n \n \n 15.6\n \n \n 13.4 13.6\n \n \n Operating profit (loss), C million\n \n \n 217\n \n \n 107 255\n \n \n 472\n \n \n 305 749\n \n \n Comparable EBIT, C million\n \n \n 230\n \n \n 126 274\n \n \n 504\n \n \n 413 921\n \n \n % of sales\n \n \n 9.4\n \n \n 5.2 10.9\n \n \n 10.2\n \n \n 8.2 9.5\n \n \n Profit (loss) before tax, C million\n \n \n 186\n \n \n 85 236\n \n \n 422\n \n \n 258 690\n \n \n Comparable profit before tax, C million\n \n \n 204\n \n \n 105 255\n \n \n 459\n \n \n 367 863\n \n \n Profit (loss) for the period, C million\n \n \n 166\n \n \n 71 200\n \n \n 366\n \n \n 215 491\n \n \n Comparable profit for the period, C million\n \n \n 177\n \n \n 89 213\n \n \n 390\n \n \n 312 714\n \n \n Earnings per share (EPS), C\n \n \n 0.30\n \n \n 0.13 0.37\n \n \n 0.67\n \n \n 0.39 0.91\n \n \n Comparable EPS, C\n \n \n 0.32\n \n \n 0.17 0.39\n \n \n 0.71\n \n \n 0.57 1.33\n \n \n Return on equity (ROE), %\n \n \n 6.4\n \n \n 2.7 7.6\n \n \n 7.1\n \n \n 3.9 4.5\n \n \n Comparable ROE, %\n \n \n 6.8\n \n \n 3.4 8.1\n \n \n 7.6\n \n \n 5.7 6.5\n \n \n Return on capital employed (ROCE), %\n \n \n 6.1\n \n \n 3.2 7.4\n \n \n 6.8\n \n \n 4.3 5.5\n \n \n Comparable ROCE, %\n \n \n 6.5\n \n \n 3.7 7.9\n \n \n 7.2\n \n \n 5.8 6.7\n \n \n Operating cash flow, C million\n \n \n 136\n \n \n 179 89\n \n \n 225\n \n \n 468 1,405\n \n \n Operating cash flow per share, C\n \n \n 0.26\n \n \n 0.34 0.17\n \n \n 0.43\n \n \n 0.88 2.66\n \n \n Equity per share at the end of period, C\n \n \n 18.86\n \n \n 18.96 19.48\n \n \n 18.86\n \n \n 18.96 18.97\n \n \n Capital employed at the end of period, C million\n \n \n 14,149\n \n \n 14,394 14,375\n \n \n 14,149\n \n \n 14,394 14,129\n \n \n Net debt at the end of period, C million\n \n \n 3,313\n \n \n 3,310 2,962\n \n \n 3,313\n \n \n 3,310 3,004\n \n \n Net debt to EBITDA (last 12 months)\n \n \n 2.36\n \n \n 2.12 2.30\n \n \n 2.36\n \n \n 2.12 2.29\n \n \n Personnel at the end of period\n \n \n 15,184\n \n \n 16,307 14,801\n \n \n 15,184\n \n \n 16,307 15,127\n \n Massimo Reynaudo, President and CEO, comments on the results:\n \n \n \n \"In the second quarter, we reached two important milestones in the transformation of UPM. We signed the definitive agreement to create the graphic paper joint venture with Sappi, and advanced the separation of the plywood business into the future WISA Group. Following these steps, UPM is positioned with stronger growth prospects and improved earnings quality.\n \n \n During the quarter, all our businesses improved their results compared to the same period last year, with most also outperforming the previous quarter. Increased volumes, margin management and sustained efficiency measures supported our profitability in a business environment that turned inflationary.\n \n \n In Q2, sales from our continuing operations were slightly up at C2,355 million, and comparable EBIT increased to C212 million, 71 percent higher than in the same period last year. Net debt at the end of the reporting period was C3,313 million, including both continuing and discontinued operations, and net debt to EBITDA ratio was 2.36.\n \n \n In decarbonization solutions, UPM Biofuels recorded a strong quarter with good demand and healthy bio-premiums for advanced renewable fuels. Prices were further supported by higher fossil fuel reference prices. The ramp-up of our biorefinery in Leuna, Germany, continued. Customer deliveries of industrial sugars reached substantial volumes, and deliveries of renewable functional fillers and other lignin derivatives are expected to start during Q3. UPM Energy improved its results from last year, although the second quarter saw normal seasonality.\n \n \n Structurally, electricity consumption continued to grow year-on-year, and we are well positioned to create value by serving new large-scale consumers.\n \n \n The markets for our advanced materials businesses, UPM Adhesive Materials and UPM Specialty Materials, showed robust growth in Europe and Asia. Both businesses succeeded in the markets, thanks to a focus on commercial excellence and product portfolio development, and sharpened competitiveness.\n \n \n Our world-class pulp platform in Uruguay, UPM Fibres South, has consistently improved efficiency for several quarters in a row. In the second quarter, this helped us to fully offset the increases in logistics and other costs. Profitability was further improved by a moderate increase in pulp prices.\n \n \n For the Fibres North platform in Finland, the business environment is challenging. Even though pulpwood prices have decreased, profitability remains low. The second quarter earnings were also impacted by the maintenance shutdown at the UPM Pietarsaari mill. We are planning temporary shutdowns of the UPM Kaukas pulp mill and potentially the UPM Pietarsaari pulp mill, to optimize production and wood sourcing, and ensure profitability.\n \n \n UPM Communication Papers' business performance was broadly stable, with slightly improved margins. Preparations for the planned graphic paper Joint Venture continued. In late May we signed the definitive agreement with Sappi, and secured financing arrangements for the Joint Venture. The EU merger control process moved to Phase II, with final resolutions expected by the end of 2026.\n \n \n UPM Plywood continued to perform well as the business prepared for separation into an independent listed company, WISA Group. In April, the Board of Directors approved the demerger plan. Subject to the decision of the Extraordinary General Meeting, trading in the shares of WISA Group on Nasdaq Helsinki is currently expected to commence in early November. By separating the plywood business onto its own growth path, we are strengthening its future prospects and streamlining UPM's business portfolio.\n \n \n Following the planned graphic paper joint venture and plywood separation, UPM operates in structurally growing markets. The ongoing reshaping of UPM's portfolio highlights our position in businesses with stronger growth characteristics, and our direction going forward is towards higher value-added products and lower cyclicality.\"\n \n \n Profit guidance, continuing operations\n \n \n \n UPM's comparable EBIT in H2 2026 from continuing operations is expected to be approximately in the range of C375-575 million (C479 million in H2 2025, and C471 million in H1 2026). These figures exclude UPM Plywood, which is classified as discontinued operations.\n \n \n \n Outlook\n \n \n \n There continue to be significant uncertainties in geopolitics and trade.\n \n \n In H2 2026, compared with H1 2026, UPM's performance is expected to be supported by moderately higher sales prices. Variable costs are expected to increase moderately. Energy refunds are expected to support UPM Communication Papers' result in Q4. Maintenance activity is expected to increase from the comparison period. The production ramp-up at UPM Leuna is expected to increase costs.\n \n \n In H2 2026, compared with H2 2025, UPM's performance is expected to benefit from higher sales prices. Variable costs are expected to increase moderately. Fair value change of forest assets is expected to have a significantly smaller impact on comparable EBIT in H2 2026 than in H2 2025 (C131 million). The energy refunds to be booked in UPM Communication Papers in Q4 are anticipated to have a somewhat smaller positive impact than in 2025. Maintenance activity is expected to increase from the comparison period. The production ramp-up at UPM Leuna is expected to increase costs.\n \n \n \n Sensitivity to pulp and electricity prices\n \n \n \n UPM's comparable EBIT is sensitive to pulp and electricity prices. The figures below represent group earnings sensitivities on annual level.\n \n \n UPM is a large producer and consumer of chemical pulp. A C50/tonne change in average pulp price would impact annual comparable EBIT by approximately C180 million (net impact: assuming no correlation between pulp and paper prices) to approximately C270 million (gross impact: assuming paper pricing would match changes in pulp costs).\n \n \n UPM is a large producer and consumer of electricity in Finland and separately hedges part of its electricity sales and purchases. Based on UPM's estimated unhedged net electricity sales position in Finland in 2026, a C10/MWh change in average electricity market price in Finland would impact annual comparable EBIT by approximately C40 million.\n \n \n \n Foreign exchange exposure\n \n \n \n Fluctuations in monetary policies and economic conditions can significantly impact the value of various currencies, which in turn may affect UPM. Additionally, the escalation of global trade tensions could influence currency exchange rates. These currency fluctuations could impact UPM's cash flow, earnings, or balance sheet, and may also affect the relative competitiveness between different currency regions.\n \n \n The Group's policy is to hedge an average of 50% of its estimated net currency cash flows on a rolling basis over the next 12-month period. At the end of Q2 2026, UPM's estimated net currency cash flows for the next 12 months totaled approximately C1.5 billion. USD was the largest exposure at approximately C1.4 billion, followed by UYU, GBP, CNY and JPY. In addition, the earnings of UPM's foreign subsidiaries are\n \n \n translated to euros in reporting. UPM has significant foreign subsidiaries in Uruguay, the U.S. and China. Foreign exchange risks are discussed in UPM's Annual Report 2025 on pages 313-314.\n \n \n \n Timing of significant maintenance shutdowns\n \n Timing Unit\n \n Q1-Q2/2025 Olkiluoto nuclear power plant unit OL3\n \n \n Q2/2025 Olkiluoto nuclear power plant units OL1 and OL2 UPM Paso de los Toros pulp mill UPM Kymi pulp mill\n \n \n Q3/2025 UPM Kaukas pulp mill\n Q4/2025 UPM Fray Bentos pulp mill Q2/2026 Olkiluoto nuclear power plant units OL1 and OL2\n \n \n UPM Pietarsaari pulp mill Q3/2026 UPM Lappeenranta biorefinery\n \n \n Q3-Q4/2026 Olkiluoto nuclear power plant unit OL3 Q4/2026 UPM Paso de los Toros pulp mill\n \n \n \n 100\n \n \n \n C million\n \n \n 50\n \n \n \n 0\n \n \n \n -50\n \n \n \n Comparable EBIT\n \n \n Q2 2026\n \n \n Q2 2025 \n Results, continuing operations\n \n \n Q2 2026 compared with Q2 2025\n \n \n Q2 2026 sales totaled C2,355 million, 0.6% higher than the C2,341 million in Q2 2025. The increase in sales was driven by higher delivery volumes in most businesses, whereas changes in currencies had a negative impact on sales. Sales increased in all businesses, with the exception of UPM Communication Papers.\n \n \n The comparable EBIT increased by 71% to C212 million, which was 9.0% of sales (124 million, 5.3%). Comparable EBIT increased in all businesses compared to last year.\n \n \n Variable costs decreased in most businesses, while changes in sales prices were neutral to the group level comparable EBIT. Delivery volumes increased in most businesses. Fixed costs decreased by C23 million. Changes in currencies, net of hedging, had a negative impact on comparable EBIT.\n \n \n UPM Energy\n \n \n UPM Adhesive Materials\n \n \n UPM Specialty Materials\n \n \n UPM Fibres\n \n \n UPM Communication Papers\n \n \n UPM Plywood\n \n \n Other operations\n \n \n Depreciation, amortization and impairment charges excluding items affecting comparability totaled C122 million (133 million), including depreciation of leased assets totaling C22 million (22 million). The change in the fair value of forest assets\n \n \n Comparable EBIT, continuing operations\n \n \n net of wood harvested in comparable EBIT was C-24 million\n \n \n 400\n \n \n \n C million\n \n \n 300\n \n \n \n 200\n \n \n \n 100\n \n \n \n 0\n \n \n \n % of sales\n \n \n Q1 Q2\n \n \n 25 25\n \n \n 20\n \n \n \n 15\n \n \n \n 10\n \n \n \n 5\n \n \n \n 0\n \n \n Q3 Q4 Q1 Q2\n \n \n 25 25 26 26\n \n \n (6 million).\n \n \n Operating profit was C208 million (105 million). Items affecting comparability in operating profit totaled C-4 million in the period (-19 million). More information on items affecting comparability in Financial statement information Note 2 Quarterly information by business area. \n Net interest and other finance income and costs were C-22 million (-21 million). The exchange rate and fair value gains and losses were C-3 million (-1 million). Items affecting comparability in finance costs totaled C0 million (-1 million). Income taxes were C-19 million (-13 million). Items affecting comparability in taxes totaled C4 million (3 million).\n \n \n Profit for Q2 2026 was C163 million (70 million), and comparable profit was C163 million (87 million).\n \n \n \n 800\n \n \n 700\n \n \n 600\n \n \n C million\n \n \n 500\n \n \n 400\n \n \n 300\n \n \n 200\n \n \n 100\n \n \n 0\n \n \n Operating cash flow *\n \n \n \n 2.00\n \n \n \n 1.50\n \n \n \n 1.00\n \n \n \n 0.50\n \n \n \n 0.00\n \n \n \n Q2 2026 compared with Q1 2026\n \n \n The comparable EBIT decreased by 18.0% to C212 million, which was 9.0% of sales (259 million, 10.7%).\n \n \n Comparable EBIT decreased mainly due to higher maintenance activity, impacting both delivery volumes and fixed costs. Sales prices increased, with the exception of the usual seasonal decline in energy prices. Variable costs increased slightly.\n \n \n On the group level, changes in delivery volumes had a small negative impact on comparable EBIT. Fixed costs increased by\n \n \n C46 million, partially due to seasonal fluctuations and partially\n \n \n C per share\n \n \n Q1 Q2 Q3\n \n \n 25 25 25\n \n \n Q4 Q1 Q2\n \n \n 25 26 26\n \n \n due to higher maintenance activity than in the previous quarter.\n \n \n Depreciation, amortization and impairment charges excluding items affecting comparability, totaled C122 million\n \n \n 3,500\n \n \n 3,000\n \n \n 2,500\n \n \n 2,000\n \n \n Net debt and net debt to EBITDA *\n \n \n \n \n \n 2.40\n \n \n \n Net debt to EBITDA\n \n \n 2.00\n \n \n \n 1.60\n \n \n \n 1.20\n \n \n \n 0.80\n \n \n \n 0.40\n \n \n \n 0.00\n \n \n (122 million). The change in the fair value of forest assets net of wood harvested in comparable EBIT was C-24 million (5 million).\n \n \n Operating profit was C208 million (245 million). Items affecting comparability in the operating profit totaled C-4 million for the period (-14 million). More information on items affecting comparability in Financial statement information Note 2 Quarterly information by business area. \n January-June 2026 compared with January-June 2025 In H1 2026 sales were C4,781 million, 3% lower than the C4,914 million in H1 2025. Sales decreased in UPM Fibres, UPM \n Specialty Materials and UPM Communication Papers, but\n \n \n C million\n \n \n 1,500\n \n \n 1,000\n \n \n 500\n \n \n 0\n \n \n Q1 Q2 Q3\n \n \n 25 25 25\n \n \n Q4 Q1 Q2\n \n \n 25 26 26\n \n \n .\n \n \n increased in UPM Energy and UPM Adhesive Materials business areas, and in the Other operations segment.\n \n \n *Operating cash, net debt and net debt to EBITDA ratio Include continuing and discontinued operations.\n \n \n Comparable EBIT increased by 17% to C471 million, 9.8 % of sales (404 million, 8.2%). Variable costs decreased significantly\n \n \n more than sales prices, having a positive impact on comparable EBIT. The result was further supported by increased deliveries and a decline in fixed costs of C43 million.\n \n \n Depreciation, amortization and impairment charges excluding items affecting comparability, totaled C244 million (268 million) including depreciation of leased assets totaling C43 million (45 million). The change in the fair value of forest assets net of wood harvested was C-19 million (12 million).\n \n \n Operating profit totaled C453 million (296 million). Items affecting comparability in operating profit totaled C-18 million in the period (-108 million). More information on items affecting comparability in Financial statement information Note 2 Quarterly information by business area. \n Net interest and other finance costs were C-45 million (-48 million). The exchange rate and fair value gains and losses were C1 million (2 million). Items affecting comparability in finance costs totaled C0 million (-1 million). Income taxes totaled C-51 million (-41 million).\n \n \n Profit for H2 2026 was C358 million (208 million), and comparable profit was C366 million (305 million).\n \n \n \n Financing and cash flow\n \n \n The following information includes both continuing and discontinued operations.\n \n € million\n \n \n \n Q2/26\n \n \n \n Q2/25\n \n \n Q1-Q2/26\n \n \n Q1-Q2/25\n \n \n Q1-Q4/25\n \n \n Operating cash flow\n \n \n 136\n \n \n 179\n \n \n 225\n \n \n 468\n \n \n 1,405\n \n \n Net debt at the end of period\n \n \n 3,313\n \n \n 3,310\n \n \n 3,313\n \n \n 3,310\n \n \n 3,004\n \n \n Net debt to EBITDA (last 12 m)\n \n \n 2.36\n \n \n 2.12\n \n \n 2.36\n \n \n 2.12\n \n \n 2.29\n \n \n Gearing ratio %\n \n \n 32\n \n \n 32\n \n \n 32\n \n \n 32\n \n \n 29\n \n In H1 2026, the cash flow from operating activities before capital expenditure and financing totaled C225 million (468 million in 2025). Working capital increased by C339 million (increased by 112 million), partially due to seasonal variations, and partly due to increased volumes and prices.\n \n \n Net debt was C3,313 million at the end of Q2 2026 (3,310 million at the end of Q2 2025). The gearing ratio as of June 30, 2026 was 32% (32%). The net debt to EBITDA ratio, based on the last 12 months' EBITDA, was 2.36 at the end of the period (2.12).\n \n \n On June 30, 2026, UPM's cash funds and unused committed credit facilities totaled C2.3 billion. The total amount of committed credit facilities was C1.9 billion of which C159 million will mature in 2027, C1.7 billion will mature in 2029 or beyond.\n \n \n For the 2025 financial year, the dividend of C1.50 per share is paid in two equal installments. The first installment of C0.75 per share (totaling C395 million) was paid on April 21, 2026, and the second installment of C0.75 per share will be paid on November 6, 2026 (totaling C395 million).\n \n \n \n Capital expenditure, continuing operations\n \n \n In H1 2026, capital expenditure excluding investments in shares from continuing operations totalled C109 million (198 million), which was 2.3% of sales. There were no investments in shares during the period. In H1 2025, capital expenditure including investment in shares from continuing operations amounted to 371 million, which was 7.6% of sales. Capital expenditure does not include additions to leased assets.\n \n \n In 2026 capital expenditure from continuing operations excluding investments in shares, is expected to be about C300 million.\n \n \n In January 2020, UPM announced that it would invest in a 220,000 tonne next-generation biochemicals biorefinery in Leuna, Germany. The total investment estimate is C1,370 million.\n \n \n UPM Adhesive Materials has ongoing production capacity investments in Mills River, North Carolina, U.S., and in Johor Bahru, Malaysia. The business area is also opening new slitting and distribution terminals near Hanoi, Vietnam, and near New Delhi, India.\n \n \n UPM Energy invests over C20 million in the extensive modernization of the Tyrvää hydropower plant in Finland, including the refurbishment of both turbine-generator units. The modernization is expected to be fully completed by the end of 2030.\n \n \n \n Personnel\n \n \n In H1 2026, UPM had an average of 14,933 employees ( 15,999). At the beginning of the year, the number of employees was 15,127 and at the end of H1 it was 15,184.\n \n \n Continuing operations had an average of 13,466 employees (14,486). At the beginning of the year, the number of employees was 13,676 and at the end of the H1 it was 13,665.\n \n \n Discontinued operations had an average of 1,467 employees (1,513). At the beginning of the year, the number of employees was 1,451 and at the end of the H1 it was 1,519.\n \n \n \n Planned graphic paper Joint Venture\n \n \n On May 28, 2026, UPM announced it had signed a definitive agreement to form a graphic paper Joint Venture with Sappi, and the parties had secured financing arrangements that will provide a robust financial standing for the Joint Venture. A non-binding letter of intent (LOI) on the transaction was signed on December 4, 2025.\n \n \n The Joint Venture will include the entire UPM Communication Papers business and Sappi's graphic paper business in Europe. The Joint Venture will be owned 50/50 by UPM and Sappi. It will operate as an independent company, managing its own operations, resources, and decisions within agreed shareholder boundaries.\n \n \n Until the closing of the intended Joint Venture according to the satisfaction of all legal and regulatory requirements, UPM Communication Papers and Sappi's European graphic paper business will continue to operate as separate and independent companies.\n \n \n The Joint Venture is expected to create annual synergies estimated at about C100 million through asset and logistics optimizations, product portfolio rationalization, sourcing efficiency improvements and operational efficiencies.\n \n \n \n Financing secured for the Joint Venture:\n \n \n The parties have secured C600 million of external financing for the transaction as well as a committed revolving credit facility of C100 million to finance the Joint Venture's operational liquidity needs, both facilities fully underwritten by Citi and Nordea.\n \n \n At the closing of the transaction, the Joint Venture will raise the agreed debt to fund the cash consideration payable to UPM and Sappi respectively. To ensure adequate equity and balance sheet for the Joint Venture, the parties have agreed that a part of the purchase prices will be financed through shareholder loans as explained below in further detail.\n \n \n Except for the shareholder loans, the Joint Venture will be independently financed following the closing, and to the\n \n \n extent it would require additional funding, such financing shall be without any recourse to the shareholders.\n \n \n \n Based on the definitive agreement:\n \n \n UPM and Sappi will contribute their respective businesses and assets to the Joint Venture with a combined enterprise value of C1,420 million, excluding the value of expected synergy benefits. UPM Communication Papers business is valued at C1,100 million (enterprise value). Sappi's European business is valued at C320 million (enterprise value).\n \n \n As consideration for its assets contributed to the planned Joint Venture, at closing UPM will receive cash proceeds of C475 million, a receivable for a shareholder loan on preferential terms valued at C88 million, a receivable for an additional shareholder loan valued at C10 million and 50% of the equity of the Joint Venture equal to a book value of C167 million. As part of the transferring business perimeter, C411 million of net pension and other liabilities based on year-end 2025 balance sheet will transfer to the Joint Venture.\n \n \n Sappi will receive cash proceeds of C90 million, a receivable of a shareholder loan valued at C10 million and 50% of the equity of the Joint Venture equal to a book value of C167 million.\n \n \n \n The purchase prices, cash proceeds and financial impact of the transaction are estimates at the time of the definitive agreement, and subject to customary purchase price adjustments.\n \n \n The Joint Venture will first repay its shareholder loans to its two shareholders and thereafter distribute dividends according to its financial performance and standing. The parties have agreed that UPM has an option to sell to Sappi half of any outstanding preferential terms shareholder loan two years after closing.\n \n \n The establishment of the Joint Venture would create a sustainable standalone business that ultimately will provide divestment flexibility for both shareholders. Three years after closing, with the Joint Venture expected to have completed the integration and realized the synergies, either shareholder may initiate a divestment of their shareholdings.\n \n \n \n Securing long-term resilience and sustainability\n \n \n The transaction would create a more efficient, adaptable and sustainable graphic paper business. It would create a structurally competitive cost base and supply security for the European and global customers.\n \n \n By strategic reallocation of production volumes to the most efficient paper machines, the Joint Venture would achieve more sustainable capacity utilization and stronger operational performance, while continuing to serve customers with a broad portfolio of graphic paper products.\n \n \n Overall, the Joint Venture would rationalize supply in an industry burdened by declining demand, structural overcapacity and high energy costs. It would contribute to a more balanced and resilient European market, and make the industry better positioned to withstand market challenges and increasing imports to Europe.\n \n \n UPM Communication Papers has already today an ambitious climate action roadmap to reduce product emissions by up to 70% by 2030, supporting customers in achieving their climate targets. The Joint Venture would further enhance these opportunities. By optimizing capacity utilization, enhancing operational efficiencies and continuing to invest in decarbonization, the Joint Venture could reduce its overall climate impact, helping to advance the EU's Clean Industrial Deal objectives.\n \n \n \n Impact of the transaction on UPM financials\n \n \n The financial benefit for UPM at closing will consist of the C475 million cash payment to UPM by the Joint Venture, the C98 million shareholder loan receivable and UPM's share (50%) of the Joint Venture. In addition, C411 million of net pension and other liabilities will transfer to the Joint Venture as part of the transferring business perimeter.\n \n \n The ownership in the Joint Venture will be accounted for using the equity method, below operating profit.\n \n \n The transaction is expected to have a positive impact on UPM's profitability margins (EBIT % of sales), balance sheet and leverage. UPM would also achieve a more focused business portfolio operating on growth markets and would no longer have direct sales exposure to the declining European and North American graphic paper markets.\n \n \n \n Transaction subject to merger control and other conditions The transaction requires among other conditions approval by Sappi Limited's shareholders and is also subject to merger control approval by the European Commission and authorities \n in other jurisdictions such as the US and China, with final resolutions expected by the end of 2026. The Joint Venture would become operational upon closing. As announced on April 28, 2026, the review of the Joint Venture proceeded to Phase II of EU merger control. UPM continues to engage openly and constructively with the European Commission during the second part of the process.\n \n \n \n The Plywood business demerger into a new listed company\n \n \n \n On April 29, 2026, the Board of Directors approved a demerger plan concerning a partial demerger of UPM. According to the demerger plan, UPM will demerge so that all assets and liabilities of UPM relating to the UPM Plywood business area, or mainly serving the UPM Plywood business area, are transferred to WISA Group Plc (\"WISA Group\"), a company to be established in the demerger (the \"Demerger\"). The Demerger is subject to approval by UPM's Extraordinary General Meeting to be held on August 31, 2026. The planned completion date of the Demerger is October 31, 2026. A demerger and listing prospectus was published on July 16, 2026.\n \n \n UPM intends to apply for admitting the shares of WISA Group for trading on the official list of Nasdaq Helsinki Ltd (\"Nasdaq Helsinki\"). Upon the completion of the Demerger, WISA Group would initially have the same shareholder structure as UPM.\n \n \n \n Strategic rationale of the Demerger\n \n \n According to the assessment of the Board of Directors of UPM, the separation of the Plywood business area into a new publicly listed company would increase shareholder value by creating an integrated platform focused solely on pursuing the strategic priorities and growth opportunities of the Plywood business area. The separation will also simplify governance and decision-making structures, foster more direct accountability, and enhance UPM's focus on its core businesses. It will also provide increased visibility to investors into key value drivers specific to the Plywood business area, which can facilitate the fair valuation of the business and provide more flexibility for accessing external capital. The separation further allows the Plywood business area to attract new investors who are interested in investing directly in an independent company focused on high value - added end-use segments, including construction, LNG shipbuilding and vehicle flooring solutions. This also benefits the value creation for UPM's current shareholders.\n \n \n Overview of the Demerger\n \n \n The Demerger would be executed as a partial demerger, as set out in the Finnish Companies Act (624/2006, as amended, the \"Finnish Companies Act\"). The shareholders of UPM will receive as demerger consideration one new share in WISA Group for each share they hold in UPM (the \"Demerger Consideration\"), that is, the Demerger Consideration will be issued to the shareholders of UPM in proportion to their existing shareholdings with a ratio of 1:1. No action will be required from UPM shareholders to receive the Demerger Consideration.\n \n \n UPM's shareholders will retain their shareholdings in UPM.\n \n \n Completion of the Demerger is subject to, among other things, approval by UPM's shareholders in an Extraordinary General Meeting (the \"EGM\"). The EGM, which resolves on the Demerger and other proposals in relation thereto, will be held on August 31, 2026.\n \n \n The planned completion date of the Demerger pursuant to the demerger plan is October 31, 2026. Trading in the shares of WISA Group on Nasdaq Helsinki is currently expected to commence on or about November 2, 2026, or as soon as possible thereafter. UPM presents the UPM Plywood business area as discontinued operations in its financial reporting in accordance with the IFRS 5 standard starting from the second quarter of 2026.\n \n \n The Board of Directors of UPM may, at any time prior to the completion of the Demerger (also after the EGM resolving on the Demerger), resolve not to complete the Demerger if the Board of Directors of UPM concludes that the completion of the Demerger is no longer in the best interest of UPM and its shareholders due to a change in circumstances that has occurred or arisen after this demerger plan has been signed. In such case, the Demerger will lapse.\n \n \n \n Biochemicals refinery investment\n \n \n \n In January 2020, UPM announced that it would invest in a 220,000 tonne next-generation biochemicals refinery in Leuna, Germany. The investment estimate is C1,370 million.\n \n \n The start-up of the Leuna biorefinery is progressing. The wood-to-lignin-and-sugar process was successfully ramped up and the first commercial deliveries of industrial sugars took place in Q4 2025, and have reached substantial volumes.\n \n \n Deliveries of renewable functional fillers and other lignin derivatives are expected to start during Q3.\n \n \n Commercial interest in the main products and side-streams has continued strong, with confirmed customer contracts and a sales and customer qualification pipeline that exceeds multiple times the annual capacity. The biorefinery is expected to reach full production and positive EBIT during 2027.\n \n \n The biorefinery will produce a range of 100% wood-based biochemicals, which will enable a switch from fossil raw materials to sustainable alternatives in various end-uses. The valuation of the products is driven by their sustainability performance which enables consumer brands to achieve market differentiation and by their superior technical performance. The investment opens new markets for UPM, with large growth potential for the future.\n \n \n The industrial scale biorefinery will convert solid wood into next generation biochemicals: bio-monoethylene glycol (BioMEG) and Renewable Functional Fillers (RFF). In addition, the biorefinery will produce bio-monopropylene glycol (BioMPG) and industrial sugars. The ROCE target for the UPM Biochemicals business is 14%.\n \n \n The combination of a sustainable wood supply, a unique technology concept, integration into existing infrastructure at Leuna and the proximity to customers will ensure the competitiveness of operations. The safety and sustainability of the value chain will meet UPM's high standards and the strong\n \n \n focus on regional sourcing, especially of feedstock supports the market valuation.\n \n \n InfraLeuna GmbH, in the state of Saxony-Anhalt, offers very competitive conditions for constructing a biorefinery with its logistics arrangements and infrastructure for various services and utilities.\n \n \n \n Biofuels business development\n \n \n Renewable fuels and renewable chemicals are the central elements of UPM's long-term growth in decarbonization solutions. UPM is focusing on three targeted growth areas in its biofuels business:\n \n \n Evaluating the potential to debottleneck the Lappeenranta biorefinery in order to capture low CAPEX expansion opportunities and further leverage the strong market performance of CTO-derived biofuels.\n \n \n Enabling the qualification of CTO-derived UPM biofuels as sustainable aviation fuel (SAF). This strategic direction is supported by successful SAF trials conducted with the Austrian aircraft manufacturer Diamond Aircraft using Austro Engine propulsion and by continued progress in the technical acceptance process at the American Society for Testing and Materials (ASTM). Results from these trials and stakeholder reviews have been consistently positive.\n \n \n Continuing feedstock technology development to qualify and enable the use of additional competitive and sustainable biomass. This will support the cost-efficient production of high-quality biofuels for both road and aviation applications.\n \n \n \n Change in the composition of reportable segments\n \n \n \n The Group has changed its reportable segments composition by moving UPM Forest business into UPM Fibres business area as of January 1, 2026. The vast majority of wood used by UPM in Finland is consumed within the UPM Fibres business, and the Finnish forests are therefore considered an integral operational and strategic part of UPM Fibres North operations. In addition, the change improves consistency with UPM Fibres operations in Uruguay, where forest assets have already been reported as part of the UPM Fibres South operations. Until the end of 2025, UPM Forest was included in Other operations.\n \n \n UPM Biorefining, consisting of UPM Biochemicals and UPM Biofuels and reported as part of Other operations, was renamed UPM Next Generation Renewables as of January 1, 2026.\n \n \n Following these changes, Other Operations includes UPM Next Generation Renewables, wood sourcing, Group services and Technology and forest assets in the U.S.\n \n \n The change impacts KPIs of UPM Fibres reportable segment and Other Operations. The comparative periods are restated according to the new reporting principles. The reporting change has had no impact on Group financial result or balance sheet.\n \n \n Refer to Financial Statement information Note 9 Change in the composition of reportable segments in Financial statement information.\n \n \n \n Events during the reporting period\n \n \n On January 12, 2026, UPM received leadership scores in CDP 2025 assessment for climate change, forests and water security, reaffirming UPM's leading position in sustainability.\n \n \n On February 4, 2026, UPM announced plans for the period 2026-2028 within the company's two long-term share incentive arrangements.\n \n \n On March 5, 2026, UPM Energy announced an investment of over C20 million in the extensive modernization of the Tyrvää hydropower plant.\n \n \n On March 30, 2026, UPM Adhesive Materials announced an expansion of its footprint in India with a new slitting and distribution terminal near New Delhi.\n \n \n On April 9, 2026, UPM-Kymmene Corporation's held its Annual General Meeting. Decisions of the AGM are presented elsewhere in this report.\n \n \n On April 28, 2026, the EU Commission announced the opening of a Phase II investigation into the planned graphic paper Joint Venture.\n \n \n On April 29, 2026, the Board of Directors of UPM approved a demerger plan concerning the separation of the Plywood business into a new listed company.\n \n \n On May 4, 2026, UPM announced that it has been included as the only company in its sector in the Dow Jones World and European Sustainability Indices (DJSI) for 2025-2026.\n \n \n On May 28, 2026, UPM and Sappi signed a definitive agreement on the graphic paper Joint Venture.\n \n \n On June 18, 2026, UPM announced the temporary shutdown of the UPM Kaukas pulp mill as of August 3, 2026, for approx. six weeks, and a potential temporary shutdown of the UPM Pietarsaari pulp mill in October.\n \n \n Events after the balance sheet date\n \n \n On July 2, 2026, EcoVadis, a leading provider of corporate sustainability ratings, awarded UPM Platinum recognition, the highest possible rating held by only the top one percent of rated companies.\n \n \n On July 16, 2026, UPM issued a notice to an Extraordinary General Meeting. The Board of Directors of UPM has resolved to convene an Extraordinary General Meeting to decide on the partial demerger of UPM. The stock exchange release regarding the partial demerger and the demerger plan were published on April 29, 2026. According to the demerger plan, UPM will demerge so that all assets and liabilities of UPM relating to the UPM Plywood business area, or predominantly serving the UPM Plywood business area, are transferred to WISA Group Plc, a company to be established in the demerger. The Extraordinary General Meeting will be held on August 31, 2026. The Finnish Financial Supervisory authority has, on July 16, 2026, approved the demerger- and listing prospectus relating to the partial demerger, which is available at company's website.\n \n \n UPM Energy\n \n \n UPM Energy generates cost competitive, zero-carbon electricity. Operations also include physical electricity and financial portfolio management as well as services to industrial electricity consumers. UPM Energy is the second largest electricity producer in Finland. UPM's power generation capacity consists of hydropower, nuclear power and thermal power.\n \n \n \n 120\n \n \n \n C million\n \n \n 90\n \n \n \n 60\n \n \n \n 30\n \n \n \n 0\n \n \n \n Comparable EBIT\n \n \n \n 60\n \n \n \n % of sales\n \n \n 45\n \n \n \n 30\n \n \n \n 15\n \n \n \n 0\n \n \n Q1 Q2 Q3\n \n \n 25 25 25\n \n \n Q4 Q1 Q2\n \n \n 25 26 26\n \n Q2/26\n \n \n \n Q1/26\n \n \n \n Q4/25\n \n \n \n Q3/25\n \n \n \n Q2/25\n \n \n Q1-\n \n \n Q1/25 Q2/26\n \n \n Q1-Q2/25\n \n \n Q1-Q4/25\n \n \n Sales, C million\n \n \n 141\n \n \n 252\n \n \n 176\n \n \n 149\n \n \n 118\n \n \n 173\n \n \n 392\n \n \n 291\n \n \n 615\n \n \n Comparable EBITDA, C million\n \n \n 26\n \n \n 102\n \n \n 56\n \n \n 39\n \n \n 12\n \n \n 51\n \n \n 128\n \n \n 63\n \n \n 158\n \n \n % of sales\n \n \n 18.2\n \n \n 40.5\n \n \n 31.8\n \n \n 25.9\n \n \n 10.2\n \n \n 29.6\n \n \n 32.5\n \n \n 21.7\n \n \n 25.6\n \n \n Depreciation, amortization and impairment charges, C million\n \n \n -2\n \n \n -2\n \n \n -2\n \n \n -2\n \n \n -2\n \n \n -2\n \n \n -3\n \n \n -3\n \n \n -7\n \n \n Operating profit, C million\n \n \n 24\n \n \n 100\n \n \n 54\n \n \n 37\n \n \n 10\n \n \n 49\n \n \n 124\n \n \n 60\n \n \n 151\n \n \n % of sales\n \n \n 17.0\n \n \n 39.8\n \n \n 30.7\n \n \n 24.7\n \n \n 8.7\n \n \n 28.7\n \n \n 31.7\n \n \n 20.6\n \n \n 24.5\n \n \n Items affecting comparability in operating profit, C million (Financial statements information Note 2)\n \n \n -\n \n \n -\n \n \n -\n \n \n -\n \n \n -\n \n \n -\n \n \n -\n \n \n -\n \n \n -\n \n \n Comparable EBIT, C million\n \n \n 24\n \n \n 100\n \n \n 54\n \n \n 37\n \n \n 10\n \n \n 49\n \n \n 124\n \n \n 60\n \n \n 151\n \n \n % of sales\n \n \n 17.0\n \n \n 39.8\n \n \n 30.7\n \n \n 24.7\n \n \n 8.7\n \n \n 28.7\n \n \n 31.7\n \n \n 20.6\n \n \n 24.5\n \n \n Capital employed (average), C million\n \n \n 2,532\n \n \n 2,416\n \n \n 2,647\n \n \n 2,698\n \n \n 2,555\n \n \n 2,514\n \n \n 2,474\n \n \n 2,534\n \n \n 2,603\n \n \n Comparable ROCE, %\n \n \n 3.8\n \n \n 16.6\n \n \n 8.2\n \n \n 5.5\n \n \n 1.6\n \n \n 7.9\n \n \n 10.0\n \n \n 4.7\n \n \n 5.8\n \n \n Electricity deliveries, GWh\n \n \n 2,628\n \n \n 3,140\n \n \n 3,161\n \n \n 2,829\n \n \n 2,409\n \n \n 2,743\n \n \n 5,768\n \n \n 5,152\n \n \n 11,141\n \n Hydropower production in Q2 was lower than normal due to dry conditions\n \n \n Scheduled maintenance shutdowns in OL1 and OL2 nuclear power plant units, OL3 scheduled maintenance is during H2 2026\n \n \n \n Results\n \n \n \n Q2 2026 compared with Q2 2025\n \n \n The comparable EBIT for UPM Energy increased due to higher sales prices and higher nuclear volumes.\n \n \n UPM's average electricity sales price increased by 12% to C48.5/MWh (C43.4/MWh).\n \n \n \n Q2 2026 compared with Q1 2026\n \n \n The comparable EBIT decreased due to significantly lower sales prices.\n \n \n UPM's average electricity sales price decreased by 35% to C48.5/MWh (C74.1/MWh).\n \n \n \n January-June 2026 compared with January-June 2025 The comparable EBIT increased significantly, supported by higher prices and higher nuclear power production volumes. \n UPM's average electricity sales price increased by 24% to C62.4/MWh (C50.5/MWh).\n \n \n Market environment\n \n \n Nordic hydrological balance was well below the long-term average at the end of June. In Finland, the hydrological balance was close to the long-term average.\n \n \n The CO₂ emissions daily future price of C79.1/tonne at the end of Q2 2026, was higher than at the end of Q1 2026 (C71.0/tonne) and at the end of Q2 2025 (C68.2/tonne).\n \n \n The average Finnish area spot price on the Nordic electricity exchange in Q2 2026 was C49.3/MWh, 47% lower than in Q1 2026 (C92.7/MWh) and 76% higher than in Q2 2025 (C28.1/ MWh).\n \n \n The front-year forward electricity price for the Finnish area closed at C48.5/MWh in June, 2% higher than at the end of Q1 2026 (C47.4/MWh).\n \n \n Sources: The Norwegian Water Resources and Energy Directorate, Svensk Energi, Finnish Environment Institute, Nord Pool, Euronext, ICE, UPM\n \n \n UPM Adhesive Materials\n \n \n UPM Adhesive Materials offers high-quality self-adhesive paper and film products including label materials, graphics solutions and removable self-adhesive products. UPM Adhesive Materials is the second-largest producer of self-adhesive label materials worldwide.\n \n \n \n Comparable EBIT\n \n \n 60 15\n \n \n \n % of sales\n \n \n C million\n \n \n 40 10\n \n \n \n 20 5\n \n \n \n 0\n \n \n Q1 Q2\n \n \n 25 25\n \n \n 0\n \n \n Q3 Q4 Q1 Q2\n \n \n 25 25 26 26\n \n Q2/26\n \n \n Q1/26\n \n \n Q4/25\n \n \n Q3/25\n \n \n Q2/25\n \n \n Q1-\n \n \n Q1/25 Q2/26\n \n \n Q1-Q2/25\n \n \n Q1-Q4/25\n \n \n Sales, C million\n \n \n 448\n \n \n 414\n \n \n 391\n \n \n 405\n \n \n 425\n \n \n 434\n \n \n 861\n \n \n 859\n \n \n 1,655\n \n \n Comparable EBITDA, C million\n \n \n 56\n \n \n 45\n \n \n 33\n \n \n 46\n \n \n 49\n \n \n 49\n \n \n 101\n \n \n 98\n \n \n 176\n \n \n % of sales\n \n \n 12.5\n \n \n 10.9\n \n \n 8.4\n \n \n 11.2\n \n \n 11.5\n \n \n 11.3\n \n \n 11.8\n \n \n 11.4\n \n \n 10.7\n \n \n Depreciation, amortization and impairment charges, C million\n \n \n -12\n \n \n -13\n \n \n -22\n \n \n -13\n \n \n -14\n \n \n -13\n \n \n -25\n \n \n -27\n \n \n -61\n \n \n Operating profit, C million\n \n \n 41\n \n \n 25\n \n \n -6\n \n \n 4\n \n \n 28\n \n \n 27\n \n \n 67\n \n \n 55\n \n \n 53\n \n \n % of sales\n \n \n 9.3\n \n \n 6.1\n \n \n -1.6\n \n \n 1.1\n \n \n 6.5\n \n \n 6.3\n \n \n 7.8\n \n \n 6.4\n \n \n 3.2\n \n \n Items affecting comparability in operating profit, C million (Financial statements information Note 2)\n \n \n -2\n \n \n -7\n \n \n -26\n \n \n -28\n \n \n -7\n \n \n -9\n \n \n -10\n \n \n -16\n \n \n -70\n \n \n Comparable EBIT, C million\n \n \n 44\n \n \n 33\n \n \n 20\n \n \n 33\n \n \n 35\n \n \n 36\n \n \n 76\n \n \n 71\n \n \n 124\n \n \n % of sales\n \n \n 9.8\n \n \n 7.9\n \n \n 5.1\n \n \n 8.1\n \n \n 8.2\n \n \n 8.3\n \n \n 8.9\n \n \n 8.2\n \n \n 7.5\n \n \n Capital employed (average), C million\n \n \n 867\n \n \n 842\n \n \n 864\n \n \n 891\n \n \n 900\n \n \n 787\n \n \n 855\n \n \n 844\n \n \n 860\n \n \n Comparable ROCE, %\n \n \n 20.1\n \n \n 15.5\n \n \n 9.2\n \n \n 14.8\n \n \n 15.4\n \n \n 18.4\n \n \n 17.9\n \n \n 16.8\n \n \n 14.4\n \n Launch of UPM QuickStick™ receipt materials, designed to help quick-service restaurants improve order accuracy and speed of service\n \n \n Production capacity investments continued in Mills River, North Carolina, U.S., and in Johor Bahru, Malaysia. Investment started to open a new slitting and distribution terminal near New Delhi, India\n \n \n \n Results\n \n \n \n Q2 2026 compared with Q2 2025\n \n \n The comparable EBIT for UPM Adhesive Materials increased driven by higher deliveries.\n \n \n \n Q2 2026 compared with Q1 2026\n \n \n The comparable EBIT increased due to higher deliveries and higher sales prices, partially offset by increased variable costs.\n \n \n \n January-June 2026 compared with January-June 2025 The comparable EBIT increased due to higher volumes, especially in EMEIA, and lower variable costs. \n Market environment\n \n \n In Q2 2026, markets for self-adhesive label materials were good in Europe and solid in the Asia-Pacific (APAC) region. The North American markets were weak.\n \n \n \n Sources: UPM, FINAT, TLMI\n \n \n UPM Specialty Materials\n \n \n UPM Specialty Materials offers labelling and packaging materials as well as office and graphic papers for labelling, commercial siliconizing, packaging, office use and printing. The production plants are located in China, Finland and Germany.\n \n \n \n Comparable EBIT\n \n \n 60 20\n \n \n \n % of sales\n \n \n C million\n \n \n 45 15\n \n \n \n 30 10\n \n \n \n 15 5\n \n \n \n 0\n \n \n Q1 Q2\n \n \n 25 25\n \n \n 0\n \n \n Q3 Q4 Q1 Q2\n \n \n 25 25 26 26\n \n Q2/26\n \n \n Q1/26\n \n \n Q4/25\n \n \n Q3/25\n \n \n Q2/25\n \n \n Q1/25 Q Q1- \n 2/26\n \n \n Q1-Q2/25\n \n \n Q1-Q4/25\n \n \n Sales, C million\n \n \n 341\n \n \n 332\n \n \n 309\n \n \n 304\n \n \n 328\n \n \n 374\n \n \n 673\n \n \n 702\n \n \n 1,315\n \n \n Comparable EBITDA, C million\n \n \n 51\n \n \n 52\n \n \n 53\n \n \n 45\n \n \n 48\n \n \n 59\n \n \n 103\n \n \n 107\n \n \n 204\n \n \n % of sales\n \n \n 14.9\n \n \n 15.6\n \n \n 17.1\n \n \n 14.8\n \n \n 14.6\n \n \n 15.7\n \n \n 15.2\n \n \n 15.2\n \n \n 15.5\n \n \n Depreciation, amortization and impairment charges, C million\n \n \n -11\n \n \n -12\n \n \n -13\n \n \n -11\n \n \n -17\n \n \n -16\n \n \n -23\n \n \n -33\n \n \n -57\n \n \n Operating profit, C million\n \n \n 40\n \n \n 43\n \n \n 38\n \n \n 34\n \n \n 30\n \n \n 43\n \n \n 83\n \n \n 72\n \n \n 144\n \n \n % of sales\n \n \n 11.7\n \n \n 12.9\n \n \n 12.4\n \n \n 11.2\n \n \n 9.1\n \n \n 11.4\n \n \n 12.3\n \n \n 10.3\n \n \n 11.0\n \n \n Items affecting comparability in operating profit, C million (Financial statements information Note 2)\n \n \n 0\n \n \n 3\n \n \n -2\n \n \n 0\n \n \n -1\n \n \n -\n \n \n 3\n \n \n -1\n \n \n -3\n \n \n Comparable EBIT, C million\n \n \n 40\n \n \n 40\n \n \n 40\n \n \n 34\n \n \n 31\n \n \n 43\n \n \n 80\n \n \n 73\n \n \n 147\n \n \n % of sales\n \n \n 11.7\n \n \n 12.0\n \n \n 13.0\n \n \n 11.1\n \n \n 9.4\n \n \n 11.4\n \n \n 11.8\n \n \n 10.5\n \n \n 11.2\n \n \n Capital employed (average), C million\n \n \n 676\n \n \n 670\n \n \n 686\n \n \n 693\n \n \n 705\n \n \n 739\n \n \n 673\n \n \n 722\n \n \n 706\n \n \n Comparable ROCE, %\n \n \n 23.5\n \n \n 23.8\n \n \n 23.4\n \n \n 19.5\n \n \n 17.5\n \n \n 23.1\n \n \n 23.7\n \n \n 20.3\n \n \n 20.9\n \n \n Paper deliveries, 1000 t\n \n \n 367\n \n \n 367\n \n \n 354\n \n \n 333\n \n \n 343\n \n \n 368\n \n \n 734\n \n \n 710\n \n \n 1,398\n \n UPM Specialty Materials, Michelman and BOBST introduced a bio-based paper packaging concept aligned with EU packaging regulation\n \n \n The PM8 at UPM Tervasaari in Finland, the world's first purpose-built label base paper machine, reached 30 years of production\n \n \n \n Results\n \n \n \n Q2 2026 compared with Q2 2025\n \n \n The comparable EBIT for UPM Specialty Materials increased. The positive impact from increased volumes and lower variable costs was greater than the negative impact of lower sales prices and higher fixed costs.\n \n \n \n Q2 2026 compared with Q1 2026\n \n \n The comparable EBIT remained at the same level. Positive impact from increased volumes and sales prices were offset by increased costs.\n \n \n \n January-June 2026 compared with January-June 2025 The comparable EBIT increased mainly due to lower depreciation. The decline in variable costs and the increase in volumes broadly \n offset the impact of lower prices.\n \n \n Market environment\n \n \n In Q2 2026, markets for label and release base papers in Europe were good, supported by some stocking by customers. The U.S. markets were softer.\n \n \n In Q2 2026, market demand for specialty papers in Asia was good. Fine paper markets continued to be highly competitive.\n \n \n \n Sources: UPM, RISI, AFRY, AWA\n \n \n UPM Fibres\n \n \n UPM Fibres consists of pulp and timber businesses. UPM Pulp offers a versatile range of responsibly-produced pulp grades suitable for a wide range of end-uses. UPM Timber offers certified sawn timber. UPM has two pulp mills and plantation operations in Uruguay (Fibres South) as well as three pulp mills, three sawmills and forest operations in Finland (Fibres North).\n \n \n \n 200\n \n \n \n C million\n \n \n 150\n \n \n \n 100\n \n \n \n 50\n \n \n \n 0\n \n \n \n Comparable EBIT\n \n \n \n 20\n \n \n \n % of sales\n \n \n 15\n \n \n \n 10\n \n \n \n 5\n \n \n \n 0\n \n \n Q1 Q2\n \n \n 25 25\n \n \n Q3 Q4 Q1 Q2\n \n \n 25 25 26 26\n \n UPM Fibres 1) \n Q2/26\n \n \n Q1/26\n \n \n Q4/25\n \n \n Q3/25\n \n \n Q2/25\n \n \n Q1/25\n \n \n Q1-Q2/26\n \n \n Q1- Q1-Q2/25 Q4/25\n \n \n Sales, C million\n \n \n 885\n \n \n 876\n \n \n 825\n \n \n 797\n \n \n 870\n \n \n 1,039\n \n \n 1,761\n \n \n 1,909\n \n \n 3,531\n \n \n Comparable EBITDA, C million\n \n \n 181\n \n \n 178\n \n \n 140\n \n \n 105\n \n \n 149\n \n \n 227\n \n \n 359\n \n \n 376\n \n \n 621\n \n \n % of sales\n \n \n 20.4\n \n \n 20.3\n \n \n 17.0\n \n \n 13.1\n \n \n 17.2\n \n \n 21.8\n \n \n 20.4\n \n \n 19.7\n \n \n 17.6\n \n \n Change in fair value of forest assets and wood harvested, C million\n \n \n -24\n \n \n 5\n \n \n 103\n \n \n 28\n \n \n 6\n \n \n 6\n \n \n -19\n \n \n 12\n \n \n 144\n \n \n Share of results of associated companies and joint ventures, C million\n \n \n 1\n \n \n 1\n \n \n 0\n \n \n 1\n \n \n 1\n \n \n 1\n \n \n 1\n \n \n 1\n \n \n 2\n \n \n Depreciation, amortization and impairment charges, C million\n \n \n -70\n \n \n -70\n \n \n -72\n \n \n -72\n \n \n -73\n \n \n -79\n \n \n -141\n \n \n -152\n \n \n -295\n \n \n Operating profit, C million\n \n \n 86\n \n \n 113\n \n \n 172\n \n \n 62\n \n \n 83\n \n \n 155\n \n \n 199\n \n \n 237\n \n \n 472\n \n \n % of sales\n \n \n 9.7\n \n \n 12.9\n \n \n 20.9\n \n \n 7.8\n \n \n 9.5\n \n \n 14.9\n \n \n 11.3\n \n \n 12.4\n \n \n 13.4\n \n \n Items affecting comparability in operating profit, C million (Financial statements information Note 2)\n \n \n -1\n \n \n -\n \n \n 0\n \n \n -\n \n \n 0\n \n \n -\n \n \n -1\n \n \n 0\n \n \n 0\n \n \n Comparable EBIT, C million\n \n \n 87\n \n \n 113\n \n \n 172\n \n \n 62\n \n \n 83\n \n \n 155\n \n \n 200\n \n \n 238\n \n \n 472\n \n \n % of sales\n \n \n 9.9\n \n \n 12.9\n \n \n 20.9\n \n \n 7.8\n \n \n 9.6\n \n \n 14.9\n \n \n 11.4\n \n \n 12.5\n \n \n 13.4\n \n \n Capital employed (average), C million\n \n \n 8,242\n \n \n 8,254\n \n \n 8,294\n \n \n 8,349\n \n \n 8,482\n \n \n 9,099\n \n \n 8,248\n \n \n 8,791\n \n \n 8,556\n \n \n Comparable ROCE, %\n \n \n 4.2\n \n \n 5.5\n \n \n 8.3\n \n \n 3.0\n \n \n 3.9\n \n \n 6.8\n \n \n 4.9\n \n \n 5.4\n \n \n 5.5\n \n \n Pulp deliveries, 1000 t\n \n \n 1,320\n \n \n 1,413\n \n \n 1,276\n \n \n 1,262\n \n \n 1,192\n \n \n 1,433\n \n \n 2,732\n \n \n 2,625\n \n \n 5,163\n \n 1) 2025 reporting is restated according to the change in the composition of UPM Fibres reporting segment and Other operations Financial Statements information Note 9 Change in the composition of reportable segments \n Pulp mill maintenance shutdowns: Q2 2026 UPM Pietarsaari, Q4 2025 UPM Fray Bentos, Q3 2025 UPM Kaukas, Q2 2025 UPM Paso de los Toros and UPM Kymi.\n \n \n \n Additional information on geographic areas 1) \n \n Fibres South\n \n \n Q2/26\n \n \n Q1/26\n \n \n Q4/25\n \n \n Q3/25\n \n \n Q2/25\n \n \n Q1/25\n \n \n Q1-Q2/26\n \n \n Q1-Q2/25\n \n \n Q1-Q4/25\n \n \n Sales, C million\n \n \n 419\n \n \n 411\n \n \n 370\n \n \n 367\n \n \n 374\n \n \n 435\n \n \n 831\n \n \n 809\n \n \n 1,545\n \n \n Comparable EBITDA, C million\n \n \n 168\n \n \n 138\n \n \n 100\n \n \n 111\n \n \n 95\n \n \n 145\n \n \n 306\n \n \n 240\n \n \n 451\n \n \n % of sales\n \n \n 40.1\n \n \n 33.4\n \n \n 27.0\n \n \n 30.3\n \n \n 25.4\n \n \n 33.4\n \n \n 36.8\n \n \n 29.7\n \n \n 29.2\n \n \n Comparable EBIT, C million\n \n \n 101\n \n \n 85\n \n \n 78\n \n \n 80\n \n \n 50\n \n \n 86\n \n \n 187\n \n \n 136\n \n \n 294\n \n \n % of sales\n \n \n 24.2\n \n \n 20.8\n \n \n 21.1\n \n \n 21.9\n \n \n 13.3\n \n \n 19.8\n \n \n 22.5\n \n \n 16.8\n \n \n 19.1\n \n \n Capital employed (average), C million\n \n \n 5,520\n \n \n 5,460\n \n \n 5,578\n \n \n 5,592\n \n \n 5,718\n \n \n 6,244\n \n \n 5,490\n \n \n 5,981\n \n \n 5,783\n \n \n Comparable ROCE, %\n \n \n 7.4\n \n \n 6.3\n \n \n 5.6\n \n \n 5.7\n \n \n 3.5\n \n \n 5.5\n \n \n 6.8\n \n \n 4.5\n \n \n 5.1\n \n \n Pulp deliveries, 1000 t\n \n \n 769\n \n \n 824\n \n \n 767\n \n \n 782\n \n \n 723\n \n \n 786\n \n \n 1,593\n \n \n 1,508\n \n \n 3,058\n \n \n \n Fibres North\n \n \n \n Q2/26\n \n \n \n Q1/26\n \n \n \n Q4/25\n \n \n \n Q3/25\n \n \n \n Q2/25\n \n \n \n Q1/25\n \n \n Q1-Q2/26\n \n \n Q1-Q2/25\n \n \n Q1-Q4/25\n \n \n Sales, C million\n \n \n 458\n \n \n 457\n \n \n 447\n \n \n 423\n \n \n 488\n \n \n 591\n \n \n 915\n \n \n 1,079\n \n \n 1,949\n \n \n Comparable EBITDA, C million\n \n \n 17\n \n \n 47\n \n \n 43\n \n \n -5\n \n \n 56\n \n \n 88\n \n \n 64\n \n \n 145\n \n \n 183\n \n \n % of sales\n \n \n 3.7\n \n \n 10.4\n \n \n 9.6\n \n \n -1.1\n \n \n 11.6\n \n \n 15.0\n \n \n 7.0\n \n \n 13.4\n \n \n 9.4\n \n \n Comparable EBIT, C million\n \n \n -10\n \n \n 34\n \n \n 99\n \n \n -15\n \n \n 37\n \n \n 76\n \n \n 24\n \n \n 113\n \n \n 197\n \n \n % of sales\n \n \n -2.2\n \n \n 7.4\n \n \n 22.1\n \n \n -3.5\n \n \n 7.6\n \n \n 12.9\n \n \n 2.6\n \n \n 10.5\n \n \n 10.1\n \n \n Capital employed (average), C million\n \n \n 2,711\n \n \n 2,775\n \n \n 2,688\n \n \n 2,759\n \n \n 2,757\n \n \n 2,856\n \n \n 2,743\n \n \n 2,806\n \n \n 2,765\n \n \n Comparable ROCE, %\n \n \n -1.5\n \n \n 4.9\n \n \n 14.7\n \n \n -2.1\n \n \n 5.4\n \n \n 10.7\n \n \n 1.7\n \n \n 8.1\n \n \n 7.1\n \n \n Pulp deliveries, 1000 t\n \n \n 550\n \n \n 589\n \n \n 509\n \n \n 480\n \n \n 469\n \n \n 648\n \n \n 1,139\n \n \n 1,117\n \n \n 2,106\n \n 1) Geographical information is excluding i.e. administration, development and other Fibres' operations. \n Scheduled maintenance shutdown at the UPM Pietarsaari mill in Finland\n \n \n A production curtailment at UPM Kaukas was announced as of August 3, 2026, and is expected to last approximately six weeks\n \n \n Results\n \n \n \n Q2 2026 compared with Q2 2025\n \n \n The comparable EBIT for UPM Fibres increased slightly. Higher volumes and lower variable and fixed costs had a positive impact on earnings while changes in currencies had an adverse impact. The change in the fair value of net forest assets and wood harvested was C-24 million (6 million).\n \n \n The average price in euro for UPM's pulp deliveries decreased by 3%.\n \n \n \n Q2 2026 compared with Q1 2026\n \n \n The comparable EBIT decreased. Earnings were supported by higher sales prices. Variable costs increased, impacted by higher oil prices, and they were held back by the maintenance shutdown of UPM Pietarsaari. The change in the fair value of net forest assets and wood harvested in Q2 was C-24 million (5 million).\n \n \n The average price in euro for UPM's pulp deliveries increased by 8%.\n \n \n \n January-June 2026 compared with January-June 2025 The comparable EBIT decreased due to lower sales prices and adverse changes in currencies. Volumes, as well as variable and \n fixed costs, developed favorably. The change in the fair value of net forest assets and wood harvested in H1 was C -19 million (12 million).\n \n \n The average price in euro for UPM's pulp deliveries decreased by 10%.\n \n \n Market environment\n \n \n In Q2 2026, chemical pulp market prices continued to trend upward.\n \n \n In Europe, the average market price of northern bleached softwood kraft pulp (NBSK) in euros was 6% higher in Q2 than in Q1 2026 and the price of bleached hardwood kraft pulp (BHKP) 15% higher.\n \n \n In China, the average market price of northern bleached softwood kraft pulp (NBSK) in dollars increased by 4% in Q2 compared to Q1 2026 and the price of bleached hardwood kraft pulp (BHKP) decreased by 4%.\n \n \n In Q2 2026, demand for sawn timber remained relatively weak due to the slow recovery of the construction sector.\n \n \n \n Sources: FOEX, UPM\n \n \n UPM Communication Papers\n \n \n UPM Communication Papers offers an extensive product range of sustainably produced graphic papers for advertising and publishing as well as home and office uses. The business has extensive low-cost operations consisting of 8 efficient paper mills in Europe and the United States, a global sales network and an efficient logistic system. The main customers are publishers,\n \n \n \n Comparable EBIT\n \n \n 20\n \n \n \n % of sales\n \n \n 15\n \n \n \n 10\n \n \n \n 5\n \n \n \n 0\n \n \n 120\n \n \n 100\n \n \n 80\n \n \n 60\n \n \n 40\n \n \n 20\n \n \n 0\n \n \n C million\n \n \n catalogers, retailers, printers and merchants.\n \n \n Q1 Q2\n \n \n 25 25\n \n \n Q3 Q4 Q1 Q2\n \n \n 25 25 26 26\n \n Q2/26\n \n \n Q1/26\n \n \n Q4/25\n \n \n Q3/25\n \n \n Q2/25\n \n \n Q1/25 Q Q1- \n 2/26\n \n \n Q1-Q2/25\n \n \n Q1-Q4/25\n \n \n Sales C million\n \n \n 594\n \n \n 613\n \n \n 580\n \n \n 619\n \n \n 630\n \n \n 664\n \n \n 1,207\n \n \n 1,294\n \n \n 2,493\n \n \n Comparable EBITDA,C million\n \n \n 47\n \n \n 27\n \n \n 127\n \n \n 28\n \n \n 21\n \n \n 65\n \n \n 74\n \n \n 87\n \n \n 241\n \n \n % of sales\n \n \n 7.9\n \n \n 4.4\n \n \n 21.8\n \n \n 4.6\n \n \n 3.4\n \n \n 9.8\n \n \n 6.1\n \n \n 6.7\n \n \n 9.7\n \n \n Share of results of associated companies and joint ventures, C million\n \n \n -\n \n \n -\n \n \n -\n \n \n -\n \n \n 0\n \n \n -\n \n \n -\n \n \n 0\n \n \n 0\n \n \n Depreciation, amortization and impairment charges, C million\n \n \n -12\n \n \n -17\n \n \n -17\n \n \n -49\n \n \n -20\n \n \n -23\n \n \n -29\n \n \n -42\n \n \n -109\n \n \n Operating profit, C million\n \n \n 35\n \n \n 6\n \n \n 183\n \n \n -53\n \n \n -2\n \n \n -22\n \n \n 41\n \n \n -24\n \n \n 107\n \n \n % of sales\n \n \n 5.9\n \n \n 1.0\n \n \n 31.5\n \n \n -8.5\n \n \n -0.3\n \n \n -3.3\n \n \n 3.4\n \n \n -1.8\n \n \n 4.3\n \n \n Items affecting comparability in operating profit, C million (Financial statements information Note 2)\n \n \n 3\n \n \n -7\n \n \n 73\n \n \n -67\n \n \n -7\n \n \n -74\n \n \n -4\n \n \n -81\n \n \n -75\n \n \n Comparable EBIT, C million\n \n \n 32\n \n \n 13\n \n \n 110\n \n \n 14\n \n \n 5\n \n \n 52\n \n \n 45\n \n \n 58\n \n \n 181\n \n \n % of sales\n \n \n 5.4\n \n \n 2.1\n \n \n 18.9\n \n \n 2.3\n \n \n 0.8\n \n \n 7.9\n \n \n 3.7\n \n \n 4.5\n \n \n 7.3\n \n \n Capital employed (average), C million\n \n \n 881\n \n \n 898\n \n \n 937\n \n \n 991\n \n \n 1,033\n \n \n 1,109\n \n \n 890\n \n \n 1,071\n \n \n 1,018\n \n \n Comparable ROCE, %\n \n \n 14.6\n \n \n 5.6\n \n \n 46.9\n \n \n 5.6\n \n \n 2.1\n \n \n 18.9\n \n \n 10.1\n \n \n 10.8\n \n \n 17.8\n \n \n Paper deliveries, 1000 t\n \n \n 700\n \n \n 726\n \n \n 690\n \n \n 733\n \n \n 740\n \n \n 731\n \n \n 1,426\n \n \n 1,471\n \n \n 2,893\n \n Preparations for a graphic paper join venture with Sappi continued, a definitive agreement was signed in May and co-operation with the EU Commission continued in the Phase II investigation\n \n \n \n Results\n \n \n \n Q2 2026 compared with Q2 2025\n \n \n The comparable EBIT for UPM Communication Papers increased due to slightly better unit margins. Fibre costs decreased, while delivery volumes and other variable costs developed unfavorably.\n \n \n The average price in euros for UPM's paper deliveries was stable.\n \n \n \n Q2 2026 compared with Q1 2026\n \n \n The comparable EBIT increased due to slightly better unit margins.\n \n \n The average price of UPM's paper deliveries in euros was at the same level as in the comparison period.\n \n \n \n January-June 2026 compared with January-June 2025\n \n \n The comparable EBIT decreased due to lower sales prices.\n \n \n The average price in euros for UPM's paper deliveries decreased by 4%.\n \n \n Market environment\n \n \n In Q2 2026, demand for graphic papers in Europe was 3% lower than in Q2 2025. Demand declined by 3% for newsprint, while magazine papers declined by 5% and fine papers by 2%.\n \n \n In Q2 2026, publication paper prices in Europe were 2% lower compared to Q2 2025 and 2% higher compared to Q1 2026. Fine paper prices in Europe declined by 3% compared to Q2 2025 and increased by 2% compared to Q1 2026.\n \n \n In April-May 2026, demand for magazine and coated wood free papers in North America was flat compared to April-May 2025. In Q2 the average price in North America for magazine and coated wood free papers was 2% higher than in Q2 2025 and 1% higher than in Q1 2026.\n \n \n \n Sources: PPI/RISI, Euro-Graph, PPPC\n \n \n UPM Plywood\n \n \n UPM Plywood offers high quality WISA® plywood and veneer products for construction, vehicle flooring, LNG shipbuilding, parquet manufacturing and other industrial applications.\n \n \n As a result of the proposed demerger, UPM presents the UPM Plywood business area as discontinued operations in accordance with the IFRS 5 Non-current assets held for sale and discontinued operations starting from the second quarter of\n \n \n \n Comparable EBIT\n \n \n 20 25\n \n \n % of sales\n \n \n C million\n \n \n 15 20 \n 15\n \n \n 10\n \n \n 10\n \n \n 5 5 \n 0 0\n \n \n 2026. More information in Financial statement information Note 10 assets and liabilities classified as held for distribution to owners and discontinued operations. \n Q1 Q2\n \n \n 25 25\n \n \n Q3 Q4 Q1 Q2\n \n \n 25 25 26 26\n \n Q2/26\n \n \n Q1/26\n \n \n Q4/25\n \n \n Q3/25\n \n \n Q2/25\n \n \n Q1/25 Q Q1- \n 2/26\n \n \n Q1-Q2/25\n \n \n Q1-Q4/25\n \n \n Sales, C million\n \n \n 121\n \n \n 119\n \n \n 104\n \n \n 113\n \n \n 89\n \n \n 103\n \n \n 240\n \n \n 192\n \n \n 409\n \n \n Comparable EBITDA, C million\n \n \n 18\n \n \n 17\n \n \n 20\n \n \n 16\n \n \n 7\n \n \n 12\n \n \n 35\n \n \n 19\n \n \n 55\n \n \n % of sales\n \n \n 15.0\n \n \n 14.5\n \n \n 19.5\n \n \n 14.2\n \n \n 8.3\n \n \n 11.4\n \n \n 14.8\n \n \n 10.0\n \n \n 13.6\n \n \n Depreciation, amortization and impairment charges, C million\n \n \n -2\n \n \n -5\n \n \n -4\n \n \n -5\n \n \n -5\n \n \n -6\n \n \n -7\n \n \n -11\n \n \n -20\n \n \n Operating profit, C million\n \n \n 16\n \n \n 12\n \n \n 16\n \n \n 7\n \n \n 2\n \n \n 6\n \n \n 28\n \n \n 8\n \n \n 31\n \n \n % of sales\n \n \n 13.4\n \n \n 10.0\n \n \n 15.3\n \n \n 6.4\n \n \n 2.1\n \n \n 5.9\n \n \n 11.7\n \n \n 4.2\n \n \n 7.6\n \n \n Items affecting comparability in operating profit, C million (Financial statements information Note 2)\n \n \n 0\n \n \n -1\n \n \n 0\n \n \n -4\n \n \n 0\n \n \n -\n \n \n -1\n \n \n 0\n \n \n -4\n \n \n Comparable EBIT, C million\n \n \n 16\n \n \n 12\n \n \n 16\n \n \n 11\n \n \n 2\n \n \n 6\n \n \n 29\n \n \n 8\n \n \n 35\n \n \n % of sales\n \n \n 13.6\n \n \n 10.4\n \n \n 15.4\n \n \n 10.0\n \n \n 2.3\n \n \n 5.9\n \n \n 12.0\n \n \n 4.2\n \n \n 8.7\n \n \n Capital employed (average), C million\n \n \n 235\n \n \n 240\n \n \n 228\n \n \n 223\n \n \n 226\n \n \n 244\n \n \n 238\n \n \n 235\n \n \n 230\n \n \n Comparable ROCE, %\n \n \n 28.0\n \n \n 20.6\n \n \n 27.9\n \n \n 20.3\n \n \n 3.6\n \n \n 10.0\n \n \n 24.3\n \n \n 6.9\n \n \n 15.4\n \n \n Plywood deliveries, 1000 m 3 \n 138\n \n \n 131\n \n \n 112\n \n \n 128\n \n \n 99\n \n \n 120\n \n \n 269\n \n \n 218\n \n \n 458\n \n Good performance continued\n \n \n Demerger plan was announced in April, preparations proceeding according to plans\n \n \n \n Results\n \n \n \n Q2 2026 compared with Q2 2025\n \n \n The comparable EBIT for UPM Plywood increased significantly as the comparative quarter of 2025 was impacted by strikes.\n \n \n \n Q2 2026 compared with Q1 2026\n \n \n The comparable EBIT increased. The positive impact of increased deliveries and better production efficiency outweighed the negative impact from sales mix.\n \n \n \n January-June 2026 compared with January-June 2025 The comparable EBIT increased. The comparison period was affected by strikes from March to May of 2025. \n Market environment\n \n \n In Q2 2026, demand for spruce plywood in Europe was stable at a low level as the construction sector remained weak.\n \n \n In Q2 2026, demand for birch plywood in panel trading and industrial end uses continued to be good. Demand for parquet veneers improved slightly year-over-year.\n \n \n In Q2 2026, demand for LNG end-use birch plywood continued at a very good level.\n \n \n \n Source: UPM\n \n \n Other operations\n \n \n Other Operations includes UPM Biofuels and UPM Biochemicals business units as well as biofuels development and Group services. UPM Biofuels produces wood-based renewable diesel for all diesel engines and renewable naphtha that can be used as a biocomponent for gasoline or for replacing fossil raw materials in petrochemical industry. UPM Biochemicals offers wood-based renewable biochemicals to replace fossil-based raw materials in various applications such as packaging, PET bottles, cosmetics, pharmaceuticals, textiles, detergents, rubbers and resins. UPM operates one biofuels refinery in Finland and one biochemicals refinery in Germany.\n \n \n \n 30\n \n \n \n C million\n \n \n 0\n \n \n \n -30\n \n \n \n -60\n \n \n \n Comparable EBIT\n \n \n \n Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26\n \n Q2/26\n \n \n \n Q1/26\n \n \n \n Q4/25\n \n \n \n Q3/25\n \n \n \n Q2/25\n \n \n Q1-Q1/25 Q2/26 \n Q1-Q2/25\n \n \n Q1-Q4/25\n \n \n Sales, C million\n \n \n 208\n \n \n 185\n \n \n 187\n \n \n 149\n \n \n 192\n \n \n 166\n \n \n 393\n \n \n 358\n \n \n 693\n \n \n Comparable EBITDA, C million\n \n \n -7\n \n \n -15\n \n \n -44\n \n \n -21\n \n \n -33\n \n \n -37\n \n \n -21\n \n \n -70\n \n \n -136\n \n \n Share of results of associated companies and joint ventures, C million\n \n \n 1\n \n \n 0\n \n \n -2\n \n \n 0\n \n \n 0\n \n \n 0\n \n \n 0\n \n \n 0\n \n \n -2\n \n \n Depreciation, amortization and impairment charges, C million\n \n \n -16\n \n \n -12\n \n \n -10\n \n \n -10\n \n \n -11\n \n \n -14\n \n \n -27\n \n \n -25\n \n \n -44\n \n \n Operating profit, C million\n \n \n -29\n \n \n -35\n \n \n -64\n \n \n -31\n \n \n -47\n \n \n -54\n \n \n -64\n \n \n -102\n \n \n -197\n \n \n Items affecting comparability in operating profit, C million (Financial statements information Note 2)\n \n \n -11\n \n \n -9\n \n \n -9\n \n \n 0\n \n \n -3\n \n \n -5\n \n \n -19\n \n \n -8\n \n \n -17\n \n \n Comparable EBIT, C million\n \n \n -19\n \n \n -26\n \n \n -55\n \n \n -31\n \n \n -44\n \n \n -50\n \n \n -45\n \n \n -94\n \n \n -180\n \n \n Capital employed (average), C million\n \n \n 1,458\n \n \n 1,405\n \n \n 1,358\n \n \n 1,315\n \n \n 1,334\n \n \n 1,198\n \n \n 1,432\n \n \n 1,266\n \n \n 1,301\n \n \n Comparable ROCE, %\n \n \n -5.1\n \n \n -7.5\n \n \n -16.2\n \n \n -9.6\n \n \n -13.2\n \n \n -16.6\n \n \n -6.3\n \n \n -14.8\n \n \n -13.8\n \n * 2025 reporting is restated according to the change in the composition of UPM Fibres reporting segment and Other operations Financial Statement information Note 9 Change in the composition of reportable segments \n UPM Biofuels delivered strong performance in the quarter, supported by favorable price levels, partly driven by recent regulatory developments, particularly in Germany\n \n \n Customer deliveries of industrial sugars at the Leuna biorefinery reached substantial volumes\n \n \n \n Results\n \n \n Q2 2026 compared with Q2 2025\n \n \n The comparable EBIT for Other operations increased. The sales price of biofuels was significantly higher while the cost of feedstock was lower. The production ramp-up of the Leuna refinery increased costs.\n \n \n \n Q2 2026 compared with Q1 2026\n \n \n The comparable EBIT increased. Biofuels deliveries increased and sales prices were higher, supported by high GHG reduction of our products and RED III implementation in key EU markets.\n \n \n \n January-June 2026 compared with January-June 2025 The comparable EBIT increased significantly due to the markedly improved performance of UPM Biofuels. The production ramp-up \n of the Leuna refinery increased costs.\n \n \n Market environment\n \n \n In Q2 2026, demand and prices for advanced renewable fuels in the European markets continued to be good while volatility in the fossil fuel markets continued.\n \n \n Uncertainty around RED III implementation in Germany pressured HVO prices in early 2026, but subsequent regulatory clarity strengthened the market sentiment and supported prices, especially in categories with highest feedstock sustainability and GHG reduction potential.\n \n \n Source: UPM\n \n \n Risks and near-term uncertainties\n \n \n The main uncertainties in UPM's earnings relate to the sales prices and customer demand of the Group's products, as well as changes to the main input cost items and currency exchange rates. Most of these items depend on general economic developments.\n \n \n In 2026, tensions and uncertainties related to geopolitics and trade relations continue.\n \n \n Currently significant uncertainty in the global business environment relates to the conflict in the Middle East between the U.S., Israel and Iran. Significant part of global supply of oil, LNG and many other commodities has been disrupted, which has increased their global market prices. It is uncertain how long the conflict will last, what the outcome will be, and how long will it take for the global business environment to normalize.\n \n \n Higher fossil fuel prices may have an increasing impact on UPM's energy costs, logistics costs and many raw material costs.\n \n \n Uncertainty has increased related to global logistics and supply chains. This may increase logistics costs, but it may also disrupt trade flows and supply chains and possibly impact the supply-demand dynamics of various globally traded products and commodities in different markets. Bottlenecks in global logistics could impact the delivery of UPM's products, the sourcing of raw materials for UPM's businesses and the delivery of equipment for UPM's investments projects.\n \n \n On the global macro level, the situation may lead to decreased economic growth, increased inflation and potentially higher interest rates. This may indirectly impact demand for UPM products.\n \n \n On the mitigating side, UPM's business portfolio includes an energy business, a biofuels business and a new biochemicals business, all of which provide alternatives for fossil energy and fossil-based materials. In other businesses UPM has production units in different geographic locations, which may provide opportunities to optimize operations.\n \n \n Russia's war in Ukraine continues, and political ambitions by the U.S. continue to cause uncertainty in the operating environment, which may impact economic growth, inflation and trade. The potential escalation in global geopolitical and trade tensions and the resulting impacts on the global economy may all affect UPM's operations and the supply chain, demand, supply and pricing of UPM's products, inputs or resources, or the progress of UPM's large investment projects.\n \n \n There continues to be uncertainty related to the trade tensions between major economies, particularly to the tariffs introduced by the U.S. on imports from nearly all countries in the world, and the potential countermeasures introduced by the other countries.\n \n \n It is possible that widely applied tariffs could have indirect impacts on UPM, for example impacting demand and supply of various products or raw materials, or redirect trade flows between countries and regions, which could impact deliveries and pricing of UPM's products or cost of raw materials on markets relevant to UPM. For example, in Q2 2025 the tariffs between the U.S. and China were momentarily very high. This uncertainty indirectly impacted even trading of goods in China from third countries and not under tariffs, such as pulp. Lower pulp buying, even if temporary, negatively impacted pulp prices.\n \n \n A part of UPM's business is directly impacted by the U.S tariffs. In 2025, approximately 13 % of UPM's sales had the U.S. as destination. Approximately 46 % of UPM sales to the U.S. market was produced locally within the U.S. and approximately 54 % was imported, mainly from the EU. The imports consisted mainly of communication papers, specialty papers, and eucalyptus pulp. Part of the raw materials used by UPM in the U.S. were also imported and may be subject to tariffs. It is estimated that the\n \n \n U.S. market demand exceeds local production for many of the products that UPM exports to the U.S. However, even in such cases, tariffs could affect demand of such products. For example, demand for imported communication papers in the U.S. could be negatively impacted by tariffs.\n \n \n The halting of wood imports from Russia, combined with investments by competitors have impacted the wood markets in the Baltic Rim. It is possible that wood raw material costs in Finland could stay elevated even if product markets were slow to recover.\n \n \n Fluctuations in monetary and fiscal policies and economic conditions can significantly impact the value of various currencies, which in turn may affect UPM. Additionally, the escalation of global trade tensions, or political pressure on key central banks could influence currency exchange rates. These currency changes could impact UPM's cash flow, earnings, or balance sheet, and may also affect the relative competitiveness between different currency regions.\n \n \n UPM's business operations depend on the availability of supporting information systems and network services. Unplanned interruptions in critical information system services can cause disruptions to the continuity of operations. The information systems may be exposed to a cyber-intrusion that could cause leaks of sensitive information, violation of data privacy regulations, theft of intellectual property, AI-generated misinformation or disinformation, production outages or damage to reputation.\n \n \n In Germany, UPM is in the commissioning and start-up of the next-generation biochemicals refinery in Leuna. The commissioning and start up has made good progress, and there is a good pipeline of commercial interest for the products. Due to the pioneering nature of the project, there are uncertainties how quickly or whether the project will reach the targeted returns. The project is subject to the risks related to product development, innovation, IPR and large investment projects discussed in the Annual Report 2025, on pages 130-132.\n \n \n In Finland, UPM indirectly owns approximately 31% of the new nuclear power plant unit, Olkiluoto 3 EPR (OL3), through its shareholdings in Pohjolan Voima Oyj. Pohjolan Voima Oyj is a majority shareholder of Teollisuuden Voima Oyj (TVO), holding 58.5% of its shares.\n \n \n TVO supplies electricity to its shareholders on a cost-price principle (Mankala principle), which is widely applied in the Finnish energy industry. Under the Mankala principle electricity and/or heat is supplied to shareholders in proportion to ownership, and each shareholder is, pursuant to the specific stipulations of the respective articles of association, responsible for its respective share of the production costs of the energy company concerned.\n \n \n TVO procured OL3 as a fixed-price turnkey project from a consortium (Plant Supplier) formed by Areva GmbH, Areva NP SAS and Siemens AG. As stipulated in the Plant Contract, the consortium companies have joint and several liability for the contractual obligations.\n \n \n TVO has announced that even though there have been few interruptions to electricity generation at OL3 following the conclusion of the test operation program, there are uncertainties related to the availability of OL3 during the first operating cycles due to the possibility of unexpected events. These uncertainties are managed by means of systematic maintenance and monitoring of the plant unit.\n \n \n According to TVO, if OL3 fails to achieve the planned load factor or operating cost structure, the Finnish national grid limits its power level, or the costs incurred by TVO due to grid load limitation make it unprofitable to operate at full power, there is a risk of production costs exceeding TVO's target.\n \n \n The Group's cost structure is presented on page 276 of the UPM Annual Report 2025. Risks and opportunities are discussed\n \n \n on pages 31-33, risks and risk management are presented on pages 128-132, and material sustainability risks and opportunities are presented on pages 148-152, 158, 189, 209, 223 and 230 as part of the UPM Sustainability Statement. Financial risk management, including foreign exchange and interest rate risks, is discussed on pages 313-318. Shareholdings in Pohjolan Voima Oyj are discussed on page 129 of the UPM Annual Report 2025.\n \n \n \n Sustainability\n \n \n In April, UPM was included as the only company in its sector in the Dow Jones World and European Sustainability Indices (DJSI) for 2025-2026, placing it among the world's most rigorously assessed sustainability leaders for several years in a row.\n \n \n In May, UPM received an A score in CDP's 2025 Supplier Engagement Assessment (SEA), which evaluates how companies engage their supply chains on climate-related issues. According\n \n \n Communication Papers managed to decrease fossil CO₂ emissions from own operations and purchased energy (Scopes 1 and 2) by 38% per tonne of paper in Europe in 2025 compared to the 2023 baseline year. In 2025, UPM Adhesive Materials achieved a 58% reduction in Scope 1 and 2 emission intensity compared to its 2015 baseline. This outcome is the result of targeted, site-specific actions aimed at improving energy efficiency and reducing the use of fossil fuels.\n \n ESG ratings and recognitions\n \n CDP Climate A; Forest A-; Water A- (A is the highest) DJSI Indices World and Europe (only constituent)\n \n \n Ecovadis Platinum (highest level)\n \n \n ISS ESG Quality Governance 1 ; Environment 1; Social 1 (1 best) ISS ESG Rating B (A+ best)\n \n \n MSCI AAA (highest level)\n \n \n to CDP, companies that actively involve their suppliers in climate \n \n \n change mitigation play a crucial role in the green transition.\n \n \n UPM Adhesive Materials strengthened its sustainability driven offering with the introduction of the UPM ProCycle™ portfolio of recycling compatible label solutions. Combining advanced adhesive technologies and circular products, the portfolio helps converters and brand owners select labeling solutions that support recyclability performance in beverage, food, and home and personal care packaging.\n \n \n UPM Adhesive Materials also launched UPM QuickStick™ receipt materials for quick-service restaurants (QSRs), enabling efficient and reliable labeling across various food packaging surfaces such as paper wraps, cardboard boxes, coated packaging and plastic containers. Selected products in the portfolio are certified CarbonNeutral® by Climate Impact Partners in accordance with the CarbonNeutral Protocol.\n \n \n UPM Specialty Materials advanced its PPWR aligned (EU Packaging and Packaging Waste Regulation) innovation pipeline through collaboration driven developments in fibre-based barrier packaging. UPM Specialty Materials and Felix Schoeller developed a customizable, recyclable barrier solution for flexible food packaging applications such as chocolate and snack bars. UPM Specialty Materials and BASF have developed recyclable packaging concepts that combine barrier papers with advanced coating technologies. Designed to meet growing demand for recyclable materials, these fibre based solutions further support the packaging industry's transition toward compliance with upcoming PPWR recyclability requirements.\n \n \n In June, EcoVadis, a leading provider of corporate sustainability ratings, once again awarded UPM its highest possible Platinum Medal. Among more than 150,000 companies assessed, only the top one percent achieved Platinum status.\n \n \n UPM has been in the top one percent since 2020 and earned an outstanding score of 90/100 for the second consecutive year. The EcoVadis assessment evaluates performance across four categories: Environment, Labor and Human Rights, Ethics, and Sustainable Procurement.\n \n \n Also in June, UPM signed a long-term partnership agreement with UNICEF Finland. UPM's contribution is directed at UNICEF's Global Education Fund, supporting access to quality learning opportunities for children and young people. The partnership aligns with UPM's Share and Care Program focus areas of youth, education and climate and biodiversity.\n \n \n Two UPM businesses published their 2025 climate reports in June, showing strong progress in their climate actions. UPM\n \n \n Shares\n \n \n \n In January-June 2026, UPM shares worth a total of C 3,737 million (4,087) were traded on the Nasdaq Helsinki stock exchange. This is estimated to represent approximately 70% of the total trading volume in UPM shares. The highest listing was C27.94 in February and the lowest was C22.98 in June.\n \n \n The Annual General Meeting held on April 9, 2026, authorized the Board of Directors to resolve on the repurchase of a maximum of 50,000,000 of the Company's own shares. The authorization will be valid for 18 months from the date of the AGM's resolution.\n \n \n The Annual General Meeting authorized the Board of Directors to resolve on the issuance of new shares, transfer of treasury shares and issuance of special rights entitling to shares in proportion to the shareholders' existing holdings in the Company, or in a directed share issue, deviating from the shareholder's pre-emptive subscription right. The Board of Directors may also resolve on a share issue without payment to the Company itself. The aggregate maximum number of new shares that may be issued and treasury shares that may be transferred is 25,000,000 including also the number of shares that can be received on the basis of the special rights. The authorization is valid for 18 months from the date of the AGM resolution.\n \n \n Aside from the above, the Board of Directors has no current\n \n \n authorization to issue shares, convertible bonds or share options.\n \n \n The number of shares entered in the Trade Register on June 30, 2026 was 527,735,699. Through the issuance\n \n \n authorization, the number of shares may increase to a maximum of 552,735,699.\n \n \n On June 30, 2026, the Company held 411,653 of its own shares, representing approximately 0.08% of the total number of Company shares and voting rights. The Board of Directors may decide to retain, transfer or cancel the treasury shares.\n \n \n \n Legal proceedings\n \n \n \n The Group's management is not aware of any significant litigation at the end of Q2 2026.\n \n \n \n Helsinki, July 23, 2026\n \n \n UPM-Kymmene Corporation\n \n \n Board of Directors\n \n \n Financial statement information\n \n \n Consolidated income statement\n \n € million\n \n \n Q2/2026\n \n \n Q2/2025\n \n \n Q1-Q2/2026\n \n \n Q1-Q2/2025 Q1-Q4/2025\n \n \n Continuing operations Sales (Note 3) Other operating income Costs and expenses \n Change in fair value of forest assets and wood harvested Share of results of associated companies and joint ventures\n \n \n Depreciation, amortization and impairment charges\n \n \n \n 2,355\n \n \n 47\n \n \n -2,049\n \n \n -24\n \n \n 1\n \n \n -122\n \n \n \n 2,341\n \n \n 21\n \n \n -2,127\n \n \n 6\n \n \n 0\n \n \n -136\n \n \n \n 4,781\n \n \n 81\n \n \n -4,144\n \n \n -19\n \n \n 2\n \n \n -247\n \n \n \n 4,914 9,392\n \n \n 43 170\n \n \n -4,392 -8,412\n \n \n 12 144\n \n \n 1 0\n \n \n -282 -575\n \n \n Operating profit (loss)\n \n \n 208\n \n \n 105\n \n \n 453\n \n \n 296 719\n \n \n \n Exchange rate and fair value gains and losses Interest and other finance costs, net\n \n \n \n -3\n \n \n -22\n \n \n \n -1\n \n \n -21\n \n \n \n 1\n \n \n -45\n \n \n \n 2 43\n \n \n -48 -102\n \n \n Profit (loss) before tax from continuing operations\n \n \n 182\n \n \n 83\n \n \n 409\n \n \n 249 660\n \n \n \n Income taxes\n \n \n \n -19\n \n \n \n -13\n \n \n \n -51\n \n \n \n -41 -194\n \n \n Profit (loss) for the period from continuing operations\n \n \n 163\n \n \n 70\n \n \n 358\n \n \n 208 466\n \n \n \n Discontinued operations\n \n \n Profit (loss) for the period from discontinued operations (Note 10)\n \n \n \n 3\n \n \n \n 1\n \n \n \n 9\n \n \n \n 7 24\n \n \n Profit (loss) for the period\n \n \n 166\n \n \n 71\n \n \n 366\n \n \n 215 491\n \n \n \n Attributable to: Owners of the parent company Non-controlling interests \n 158\n \n \n 8\n \n \n \n 70\n \n \n 1\n \n \n \n 353\n \n \n 13\n \n \n \n 207 480\n \n \n 8 11\n \n \n 166\n \n \n 71\n \n \n 366\n \n \n 215 491\n \n \n \n Earnings per share for profit attributable to owners of the parent company\n \n \n Basic earnings per share, C Diluted earnings per share, C Basic earnings per share from continuing operations, C Diluted earnings per share from continuing operations, C\n \n \n \n 0.30\n \n \n 0.30\n \n \n 0.29\n \n \n 0.29\n \n \n \n 0.13\n \n \n 0.13\n \n \n 0.13\n \n \n 0.13\n \n \n \n 0.67\n \n \n 0.67\n \n \n 0.65\n \n \n 0.65\n \n \n \n 0.39 0.91\n \n \n 0.39 0.91\n \n \n 0.38 0.86\n \n \n 0.38 0.86\n \n Consolidated statement of comprehensive income\n \n € million\n \n \n Q2/2026\n \n \n Q2/2025\n \n \n Q1-Q2/2026\n \n \n Q1-Q2/2025 Q1-Q4/2025\n \n \n Profit (loss) for the period\n \n \n 166\n \n \n 71\n \n \n 366\n \n \n 215 491\n \n \n Other comprehensive income for the period, net of tax\n \n \n Items that will not be reclassified to income statement:\n \n \n Actuarial gains and losses on defined benefit obligations\n \n \n 1\n \n \n 0\n \n \n 8\n \n \n 16 31\n \n \n Changes in fair value of financial assets at FVOCI\n \n \n 284\n \n \n 153\n \n \n 283\n \n \n 127 -87\n \n \n Items that may be reclassified subsequently to income statement:\n \n \n Translation differences\n \n \n 58\n \n \n -447\n \n \n 179\n \n \n -679 -724\n \n \n Net investment hedge\n \n \n -7\n \n \n 24\n \n \n -14\n \n \n 36 37\n \n \n Cash flow hedges\n \n \n -35\n \n \n 2\n \n \n -65\n \n \n 71 38\n \n \n Other comprehensive income for the period, net of tax\n \n \n 301\n \n \n -267\n \n \n 390\n \n \n -430 -705\n \n \n Total comprehensive income for the period\n \n \n 468\n \n \n -196\n \n \n 756\n \n \n -215 -214\n \n \n \n Total comprehensive income attributable to:\n \n \n Owners of the parent company\n \n \n 457\n \n \n -169\n \n \n 733\n \n \n -179 -180\n \n \n Non-controlling interests\n \n \n 11\n \n \n -27\n \n \n 23\n \n \n -36 -34\n \n \n 468\n \n \n -196\n \n \n 756\n \n \n -215 -214\n \n \n \n Total comprehensive income attributable to owners of the parent company:\n \n \n Continuing operations\n \n \n 454\n \n \n -170\n \n \n 724\n \n \n -186 -204\n \n \n Discontinued operations\n \n \n 3\n \n \n 1\n \n \n 9\n \n \n 7 24\n \n \n Total comprehensive income for the period attributable to owners of the parent company\n \n \n 457\n \n \n -169\n \n \n 733\n \n \n -179 -180\n \n Consolidated balance sheet\n \n € million\n \n \n \n JUN 30, 2026\n \n \n \n JUN 30, 2025 DEC 31, 2025\n \n \n ASSETS\n \n \n Goodwill\n \n \n 255\n \n \n 267 264\n \n \n Other intangible assets\n \n \n 464\n \n \n 600 554\n \n \n Property, plant and equipment (Note 4)\n \n \n 6,391\n \n \n 6,543 6,459\n \n \n Leased assets\n \n \n 755\n \n \n 771 778\n \n \n Forest assets\n \n \n 2,638\n \n \n 2,454 2,605\n \n \n Financial assets at FVOCI (Note 5)\n \n \n 2,472\n \n \n 2,381 2,193\n \n \n Other non-current financial assets\n \n \n 17\n \n \n 35 24\n \n \n Deferred tax assets\n \n \n 424\n \n \n 521 413\n \n \n Net retirement benefit assets\n \n \n 1\n \n \n 1 1\n \n \n Investments in associates and joint ventures\n \n \n 28\n \n \n 19 27\n \n \n Other non-current assets\n \n \n 24\n \n \n 21 22\n \n \n Non-current assets\n \n \n 13,469\n \n \n 13,614 13,337\n \n \n \n Inventories\n \n \n \n 1,872\n \n \n \n 2,006 1,886\n \n \n Trade and other receivables\n \n \n 1,730\n \n \n 1,773 1,481\n \n \n Other current financial assets\n \n \n 46\n \n \n 113 78\n \n \n Income tax receivables\n \n \n 36\n \n \n 53 35\n \n \n Cash and cash equivalents\n \n \n 458\n \n \n 627 715\n \n \n Current assets\n \n \n 4,142\n \n \n 4,572 4,194\n \n \n Assets classified as held for distribution to owners (Note 10)\n \n \n 268\n \n \n - -\n \n \n \n Assets\n \n \n \n 17,879\n \n \n \n 18,186 17,532\n \n \n \n EQUITY AND LIABILITIES\n \n \n Share capital\n \n \n 890\n \n \n 890 890\n \n \n Treasury shares\n \n \n -2\n \n \n -2 -2\n \n \n Translation reserve\n \n \n 170\n \n \n 58 15\n \n \n Other reserves\n \n \n 1,837\n \n \n 1,862 1,622\n \n \n Reserve for invested non-restricted equity\n \n \n 1,273\n \n \n 1,273 1,273\n \n \n Retained earnings\n \n \n 5,777\n \n \n 5,917 6,205\n \n \n Equity attributable to owners of the parent company\n \n \n 9,944\n \n \n 9,997 10,001\n \n \n Non-controlling interests\n \n \n 331\n \n \n 332 333\n \n \n Equity\n \n \n 10,275\n \n \n 10,329 10,335\n \n \n \n Deferred tax liabilities\n \n \n \n 658\n \n \n \n 684 692\n \n \n Net retirement benefit liabilities\n \n \n 425\n \n \n 473 439\n \n \n Provisions (Note 8)\n \n \n 70\n \n \n 76 101\n \n \n Non-current debt\n \n \n 3,637\n \n \n 3,707 3,638\n \n \n Other non-current financial liabilities\n \n \n 94\n \n \n 151 90\n \n \n Non-current liabilities\n \n \n 4,884\n \n \n 5,090 4,961\n \n \n \n Current debt\n \n \n \n 231\n \n \n \n 359 156\n \n \n Trade and other payables\n \n \n 2,153\n \n \n 2,120 1,839\n \n \n Provisions (note 8)\n \n \n 146\n \n \n 236 179\n \n \n Other current financial liabilities\n \n \n 81\n \n \n 24 37\n \n \n Income tax payables\n \n \n 31\n \n \n 29 25\n \n \n Current liabilities\n \n \n 2,642\n \n \n 2,768 2,237\n \n \n Liabilities related to assets classified as held for distribution to owners (Note 10)\n \n \n 78\n \n \n - -\n \n \n Liabilities\n \n \n 7,604\n \n \n 7,857 7,197\n \n \n \n Equity and liabilities\n \n \n \n 17,879\n \n \n \n 18,186 17,532\n \n Consolidated statement of changes in equity\n \n € million\n \n \n \n Share capital\n \n \n \n Treasury shares\n \n \n \n Translation\n \n \n reserve\n \n \n \n Other reserves\n \n \n Reserve\n \n \n for invested\n \n \n non-restricted\n \n \n equity\n \n \n \n Retained earnings\n \n \n \n Equity attributable to owners of the parent company\n \n \n \n Non-controlling Total\n \n \n interests equity\n \n \n Value at January 1, 2026\n \n \n 890\n \n \n -2\n \n \n 15\n \n \n 1,622\n \n \n 1,273\n \n \n 6,205\n \n \n 10,001\n \n \n 333\n \n \n 10,335\n \n \n 366\n \n \n 179\n \n \n 43\n \n \n \n -109\n \n \n -14\n \n \n 283\n \n \n \n 8\n \n \n Profit for the period\n \n \n -\n \n \n -\n \n \n -\n \n \n -\n \n \n -\n \n \n 353\n \n \n 353\n \n \n 13\n \n \n Translation differences\n \n \n -\n \n \n -\n \n \n 169\n \n \n -\n \n \n -\n \n \n -\n \n \n 169\n \n \n 10\n \n \n Cash flow hedges - reclassified to income statement, net of tax\n \n \n -\n \n \n -\n \n \n -\n \n \n 43\n \n \n -\n \n \n -\n \n \n 43\n \n \n -\n \n \n Cash flow hedges - changes in fair value, net of tax\n \n \n -\n \n \n -\n \n \n -\n \n \n -109\n \n \n -\n \n \n -\n \n \n -109\n \n \n -\n \n \n Net investment hedge, net of tax\n \n \n -\n \n \n -\n \n \n -14\n \n \n -\n \n \n -\n \n \n -\n \n \n -14\n \n \n -\n \n \n Financial assets at FVOCI - changes in fair value, net of tax\n \n \n -\n \n \n -\n \n \n -\n \n \n 283\n \n \n -\n \n \n -\n \n \n 283\n \n \n -\n \n \n Actuarial gains and losses on defined benefit plans, net of tax\n \n \n -\n \n \n -\n \n \n -\n \n \n -\n \n \n -\n \n...

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