UPM-Kymmene Oyj Q3 2026 Earnings Recap

UPM shares fell 6.5% after Q3, as lower volumes and rising variable costs pressured earnings and made the upper end of unchanged second-half EBIT guidance look less likely. Destocking and customer caution added to the disappointment, despite strong cash flow.

Key Takeaways

• Q3 sales were EUR 2.202 billion, down 1% year over year; comparable EBIT fell 8% to EUR 131 million, or 5.9% of sales.
• Sequentially, variable costs increased significantly and delivery volumes were clearly lower; price increases covered only part of the cost rise at group level.
• Management maintained second-half EBIT guidance, but said the upper end now looks less likely due to Q3’s low volumes and higher variable costs.
• Operating cash flow was EUR 420 million in Q3, supported by a significant working-capital release; net debt fell EUR 320 million from the end of Q2, with net debt-to-EBITDA at 2.09x.
• At Leuna, two of three core processes are producing commercial volumes or ramping up, while the sugars-to-glycols process is expected to start integrated production in Q2 2027—about six months later than previously anticipated.