UPM reports improved results across all businesses as portfolio transformation advances

UPM delivered a significantly stronger second quarter in 2026, with every business area improving its performance compared with the same period last year. Comparable EBIT increased by 71% to EUR 212 million, while sales rose slightly to EUR 2.36 billion.

For the first half of the year, comparable EBIT reached EUR 471 million, up 17% from the corresponding period of 2025.

The second quarter also marked important milestones in UPM's portfolio transformation. The company signed the definitive agreement with Sappi to establish a graphic papers joint venture, while the Board of Directors approved the demerger plan to separate UPM Plywood into a new listed company, WISA Group. Shareholders will vote on the proposal at an Extraordinary General Meeting on 31 August.

UPM's growth businesses continued to perform well. Strong results were reported in the decarbonisation solutions businesses, including UPM Energy and UPM Biofuels, while UPM Adhesive Materials and UPM Specialty Materials achieved robust sales growth and improved profitability.

In Finland, however, the operating environment for pulp production remains challenging. Although pulpwood prices have declined, profitability is still weak. UPM is therefore planning temporary shutdowns at the Kaukas pulp mill and potentially also at the Pietarsaari pulp mill to optimise production, wood sourcing and profitability.

For the second half of 2026, UPM expects comparable EBIT from continuing operations to be between EUR 375 million and EUR 575 million. The company notes that geopolitical uncertainty and trade tensions continue to create risks, although moderately higher sales prices are expected to support earnings.

President and CEO Massimo Reynaudo said the company has reached two significant milestones in reshaping its business portfolio.

"Following the planned graphic paper joint venture and plywood separation, UPM operates in structurally growing markets. Our direction going forward is towards higher value-added products and lower cyclicality," Reynaudo said.