Kemira Q1 2026 Results: Revenue and Profitability Decline Amid Weak Market Conditions

Kemira reported a challenging start to 2026, with both revenue and profitability declining in the first quarter due to weak market conditions, pricing pressure, and geopolitical uncertainty.

Financial Highlights (Q1 2026)

• Revenue: EUR 677.3 million (↓4% YoY)

• Operative EBITDA: EUR 117.3 million (↓13% YoY)

• Operative EBITDA Margin: 17.3% (19.1% last year)

• Net Profit: EUR 45.5 million (↓26% YoY)

• EPS (diluted): EUR 0.29 (0.38)

• Operating Cash Flow: EUR 91.7 million (↑ vs EUR 55.0 million)

The decline was primarily driven by lower sales prices, unfavorable FX impacts, and soft demand, while volumes remained largely stable.

Business Segment Performance

Water Solutions

• Revenue: EUR 300.8 million (↓1%)

• EBITDA margin: 18.4% (↓ from 21.4%)

• Impacted by pricing pressure and higher costs

Packaging & Hygiene Solutions

• Revenue: EUR 232.9 million (↓8%)

• EBITDA margin: 10.1% (↓ from 12.0%)

• Weak demand in packaging and pulp markets

Fiber Essentials

• Revenue: EUR 143.7 million (↓5%)

• EBITDA margin: 26.7% (↑ from 26.3%)

• Margin improvement driven by favorable pricing

Strategic Developments & Investments

• Acquisitions:

  • Completed acquisition of AquaBlue, Inc. (industrial water treatment, US)

  • Announced acquisition of SIDRA Wasserchemie (~EUR 75 million), pending regulatory approval

• Capital Expenditure:

  • Total capex: EUR 41.1 million (↑ YoY)

  • Expansion, maintenance, and efficiency projects ongoing

• New Project:

  • Planned activated carbon reactivation plant in Tarragona, Spain

  • Estimated investment: ~EUR 20 million

  • Expected completion: by 2029

Operational & Cost Actions

• Implementation of price increases to offset rising raw material and logistics costs

• Performance improvement and efficiency measures accelerated across the company

• Focus on aligning cost base with weaker demand environment

Shareholder Updates

• Dividend: EUR 0.76 per share for FY2025 (paid in two installments)

• Share Buyback Program:

  • Up to 5 million shares (max EUR 100 million)

  • ~1.93 million shares repurchased by end of Q1

Outlook for 2026 (Unchanged)

• Revenue: EUR 2.6 – 3.0 billion

• Operative EBITDA: EUR 470 – 570 million

Market Assumptions

• Continued global economic uncertainty and geopolitical tensions

• Weakness in packaging and pulp markets

• Moderate growth in water treatment markets

• Expected cost pressures from raw materials and logistics

Management Commentary

CEO Antti Salminen stated that Q1 performance was impacted by weak demand and geopolitical uncertainty, including the war in Iran, which increased cost pressures and volatility. The company is focused on restoring profitability through pricing actions and operational efficiency improvements.

Workforce & Sustainability

• Total employees: 4,867 (↑ YoY)

• R&D spending: EUR 13.9 million (2.1% of revenue)

• Continued focus on:

  • Clean water solutions

  • Emission reductions

  • Renewable product portfolio expansion

Key Risks

• Geopolitical tensions (notably Middle East conflict)

• Raw material price volatility

• Demand uncertainty in core end markets

• FX fluctuations

Conclusion

Kemira faced a difficult Q1 2026 with declining profitability, but continues to push forward with strategic acquisitions, investments, and cost optimization measures. The company remains committed to its long-term growth strategy while navigating short-term market headwinds.