Kemira Reports Mixed First-Half 2026 Performance as Pulp and Paper Markets Remain Weak

Kemira has reported stable second-quarter revenue but lower profitability for the first half of 2026, with continued weakness in global pulp and paper markets weighing on its Fiber Essentials and Packaging & Hygiene Solutions businesses. The company cited softer customer demand, lower pricing, and higher raw material and logistics costs as key factors affecting performance.

The pulp and paper industry remained one of the most challenging end markets during the reporting period. According to Kemira, demand declined particularly in packaging, pulp and industrial water businesses, while Nordic pulp markets remained subdued throughout the quarter. Lower bleaching chemical volumes and reduced demand for base chemicals negatively impacted the Fiber Essentials business. Packaging and paper markets also continued to experience weak pricing despite improving sales volumes in certain regions.

Fiber Essentials Impacted by Weak Pulp Market

Kemira's Fiber Essentials business, which supplies bleaching chemicals including sodium chlorate, hydrogen peroxide and other base chemicals to the pulp industry, recorded a 12% decline in second-quarter revenue to EUR 126.7 million, compared with EUR 144.5 million in the corresponding period of 2025. Operative EBITDA fell 27% to EUR 27.2 million, while the operative EBITDA margin declined to 21.4% from 25.9% a year earlier. The decline was primarily attributed to lower pulp production volumes, weaker demand and reduced pricing.

For the first six months of 2026, Fiber Essentials revenue decreased 9% to EUR 270.3 million, while operative EBITDA declined 15% to EUR 65.5 million, reflecting continued softness in pulp production and lower customer demand.

Packaging, Paper and Tissue Markets Face Pricing Pressure

Kemira's Packaging & Hygiene Solutions business, serving packaging, board, paper and tissue manufacturers, generated EUR 240.1 million in second-quarter revenue, remaining broadly unchanged from the previous year. Sales volumes increased, but lower selling prices offset volume gains. Despite market challenges, operative EBITDA improved 17% to EUR 27.8 million, supported by cost savings from the company's operating model changes and higher production volumes.

For January-June 2026, revenue in the Packaging & Hygiene Solutions segment declined 4% to EUR 472.9 million, mainly due to lower prices and currency effects, although sales volumes increased year-on-year.

Company Performance

Group revenue for the second quarter remained stable at EUR 693.0 million, while operative EBITDA declined 15% to EUR 111.7 million as increased raw material and logistics costs, partly linked to geopolitical tensions, offset stable sales volumes. First-half revenue decreased 2% to EUR 1.37 billion, and operative EBITDA fell 14% to EUR 229.0 million.

Cost Actions and Business Measures

To mitigate rising costs, Kemira implemented customer price increases across its product portfolio and continued cost-efficiency initiatives. During the second quarter, the company reduced more than 130 positions globally, a move expected to generate annualized savings of approximately EUR 15 million.

Outlook

Kemira expects market conditions to remain challenging through the remainder of 2026, with demand in its end markets continuing to be affected by global economic uncertainty and geopolitical tensions. The company forecasts full-year revenue between EUR 2.6 billion and EUR 3.0 billion and operative EBITDA between EUR 400 million and EUR 500 million, while estimating approximately EUR 100 million in negative raw material and logistics cost impacts, around half of which is expected to be offset through price increases.