UPM Reports Sharp Profit Jump as Portfolio Restructuring Advances

The company’s performance in the second quarter highlights a pivot toward higher-value products. Sales reached €2,355 million, supported by margin management and increased volumes across its advanced materials and decarbonization units. President and CEO Massimo Reynaudo noted that these results validate the firm’s strategy to focus on structurally growing markets while reducing cyclical exposure.

A central feature of this transformation is the separation of the plywood business into a new, independent entity, the WISA Group. The board’s demerger plan is moving toward an Extraordinary General Meeting on August 31, with trading expected to begin on Nasdaq Helsinki in early November. Simultaneously, UPM has finalized a deal with Sappi to merge their graphic paper operations, a move currently under EU merger control review.

While the group’s overall outlook remains positive, challenges persist in the Finnish pulp sector. Increased maintenance activity and low profitability have prompted management to plan temporary production shutdowns at the Kaukas and Pietarsaari mills to optimize wood sourcing and costs. Looking ahead to the second half of 2026, UPM projects a comparable EBIT range of €375–575 million, contingent on moderate price increases and the ongoing production ramp-up at its Leuna biorefinery in Germany.