UPM Q1 2026: Strong start led by decarbonization solutions

Financial snapshot

Q1 sales €2,505m; comparable EBIT €274m (10.9% of sales); operating cash flow €89m; net debt €2,962m and net debt/EBITDA 2.30.

Business highlights

UPM Energy delivered record Q1 results driven by cold winter and high Finnish electricity consumption; UPM Biofuels improved performance. The Leuna biochemicals refinery is producing industrial sugars and lignin, with renewable functional fillers production starting in the coming weeks.

Operational moves

UPM Adhesive Materials is investing in a slitting and distribution terminal near New Delhi; UPM Energy is modernizing the Tyrvää hydropower plant. UPM Fibres showed underlying improvement, with Finnish forests moved into Fibres North from 2026 so forest fair value changes are now reflected in that business area. UPM Communication Papers increased deliveries versus the prior quarter and reduced energy use; UPM Plywood is under strategic review.

Strategic developments

Preparations for a planned graphic paper joint venture advanced to EU merger control Phase II; definitive agreements are expected during H1 2026 as part of broader portfolio changes toward decarbonization solutions, advanced materials and renewable fibres.

Outlook, guidance and sensitivities

H1 2026 comparable EBIT is guided at €325–525m. UPM flags key sensitivities: a €50/tonne pulp price move impacts annual comparable EBIT by ~€180–270m; a €10/MWh change in Finnish electricity price impacts comparable EBIT by ~€40m. The group hedges ~50% of estimated 12‑month net currency cash flows (estimated exposure ~€1.6bn; USD ~€1.4bn).