UPM H1 2026: Q2 EBIT up 71%; plywood demerger approved and graphic paper JV agreed
- Comparable EBIT in Q2 2026 increased 71% to €212 million on sales of €2,355 million.
- H1 2026 comparable EBIT was €471 million with sales of €4,781 million and operating cash flow of €225 million.
- Board approved demerger of the Plywood business into a listed WISA Group; Extraordinary General Meeting scheduled for 31 August 2026 and trading expected in early November.
- UPM and Sappi signed a definitive agreement to create a graphic paper joint venture; EU merger control progressed to Phase II with final resolutions expected by end 2026.
Financial results
Q2 2026 sales from continuing operations were €2,355 million and comparable EBIT rose to €212 million (9.0% of sales), a 71% increase vs Q2 2025. H1 2026 sales were €4,781 million and comparable EBIT €471 million (9.8% of sales). Net debt at 30 June was €3,313 million and net debt to EBITDA was 2.36. Operating cash flow for continuing and discontinued operations was €225 million.
Portfolio transactions
The Board approved a plan to demerge UPM Plywood into an independent listed company (WISA Group); the Extraordinary General Meeting will decide on 31 August 2026 and share trading is expected to begin in early November. UPM signed a definitive agreement with Sappi to form a graphic paper joint venture; merger control entered Phase II with final decisions anticipated by end-2026.
Business performance highlights
Decarbonization businesses performed strongly: UPM Biofuels saw good demand and bio-premiums, with Leuna biorefinery ramp-up ongoing and deliveries of industrial sugars underway; lignin derivative deliveries are expected in Q3. Advanced materials (Adhesive and Specialty) reported robust sales growth. Uruguay pulp platform offset cost increases; Fibres North faced low profitability and mill maintenance caused headwinds, prompting temporary shutdown plans.
Outlook and guidance
UPM expects comparable EBIT from continuing operations in H2 2026 to be approximately €375–575 million. H2 performance versus H1 is expected to benefit from moderately higher sales prices, while variable costs and maintenance activity are expected to increase; Leuna ramp-up will raise costs.
Sensitivities and FX
A €50/tonne change in average pulp price would affect annual comparable EBIT by ~€180–270 million; a €10/MWh change in Finnish electricity price would affect annual comparable EBIT by ~€40 million. The Group hedges on average 50% of estimated net currency cash flows over a 12-month rolling basis; USD exposure was ~€1.4 billion at end-Q2.
Source: UPM
