UPM 2025 Financials: Strong Cash Flow, Strategic Moves

Q4 2025 Financial Performance

UPM reported Q4 2025 sales of €2,312 million, a decrease from €2,632 million in Q4 2024. Comparable EBIT fell by 15% to €355 million, representing 15.3% of sales. Despite these declines, operating cash flow was strong at €720 million, up from €570 million the previous year. Net debt increased to €3,004 million, with a net debt to EBITDA ratio of 2.29.

Strategic Developments

UPM Leuna biorefinery commenced its first customer deliveries. UPM Adhesive Materials announced investments in the U.S., Malaysia, and Vietnam, while discontinuing production in Nancy, France. UPM and Sappi signed a non-binding letter of intent to form a graphic paper joint venture. UPM Communication Papers closed paper production at UPM Ettringen, Germany, and UPM Kaukas, Finland, and sold the previously closed Plattling paper mill site in Germany.

Annual 2025 Highlights

For the full year 2025, UPM's sales totaled €9,656 million, down from €10,339 million in 2024. Comparable EBIT decreased by 25% to €921 million. Operating cash flow was €1,405 million. UPM initiated a share buy-back program, repurchasing 6 million shares for approximately €160 million. The company discontinued biorefinery development in Rotterdam to focus on biofuels growth strategy and signed a strategic partnership with Versowood to enhance pulp wood supply in Finland.

Sustainability Achievements

UPM received a Platinum rating from EcoVadis, placing it in the top 1% globally for sustainability performance. The company was also recognized among top sustainability performers by CDP and S&P Global and was the only forest and paper industry company listed in the Dow Jones Global and European Sustainability Indices for 2024–2025.