UPM Q3 2025: Resilient Performance Amid Weak Markets
- UPM's Q3 2025 sales were €2,298 million, with a 47% drop in comparable EBIT to €153 million.
- UPM initiated a strategic review of UPM Plywood and signed a partnership with Versowood.
- UPM Adhesive Materials plans to discontinue production in Nancy, France, and invest in the U.S., Malaysia, and Vietnam.
- The Leuna biorefinery started its first core process, achieving industrial-scale production.
Financial Performance
UPM's Q3 2025 sales totaled €2,298 million, a decrease from €2,521 million in Q3 2024. Comparable EBIT fell by 47% to €153 million, representing 6.7% of sales. Operating cash flow was €218 million, slightly down from €242 million the previous year.
Strategic Initiatives
UPM initiated a strategic review of its plywood business to explore long-term potential. A strategic partnership with Versowood was signed to enhance pulp wood supply in Finland. UPM Adhesive Materials plans to cease production in Nancy, France, while investing in the U.S., Malaysia, and Vietnam.
Operational Adjustments
UPM decided to end paper production at the Kaukas mill in Finland by the end of 2025 and sold the Plattling paper mill site in Germany. The Leuna biorefinery successfully started its first core process, achieving stability and industrial-scale production.
Sustainability and Recognition
UPM received a Platinum rating from EcoVadis, placing it in the top 1% globally for sustainability performance. The company was also recognized by CDP and S&P Global and listed in the Dow Jones Sustainability Indices for 2024–2025.
Outlook and Challenges
UPM anticipates continued uncertainties in geopolitics and global trade, impacting product deliveries, sales prices, and currency exchange rates. The company expects performance to benefit from lower variable costs and moderate fair value changes in forest assets in H2 2025.
Source: UPM