UPM Reports Improved Q2 Performance Across All Businesses as Portfolio Transformation Advances

– UPM-Kymmene Corporation reported improved second-quarter performance across all of its businesses, supported by higher profitability and continued progress in its strategic portfolio transformation, while maintaining resilience in a challenging global operating environment.

The company said second-quarter performance improved across all business areas compared with the first quarter of 2026. Management highlighted that ongoing portfolio changes—including the planned graphic paper joint venture with Sappi and the strategic review of UPM Plywood—continued to advance during the reporting period.

President and CEO Massimo Reynaudo said the quarter reflected broad-based operational improvement, with businesses benefiting from continued commercial execution, disciplined cost management and progress in strategic initiatives. He noted that the company's portfolio transformation is progressing according to plan while strengthening UPM's long-term competitiveness.

The company said its advanced materials businesses continued to demonstrate resilience, while its decarbonization solutions business maintained positive momentum. The portfolio transformation remains focused on increasing exposure to higher-value growth businesses while optimizing legacy operations.

During the reporting period, UPM continued preparations for the planned graphic paper joint venture with Sappi and advanced the strategic review of UPM Plywood, initiatives first announced earlier in 2026 as part of the company's portfolio optimization program.

Earlier in the year, UPM also continued investments in growth businesses, including UPM Adhesive Materials, which announced an investment in a new slitting and distribution terminal near New Delhi, India, and UPM Energy, which is modernizing the Tyrvää hydropower plant. UPM Biofuels also continued to improve its performance.

UPM said it will present the half-year financial results in a webcast for investors and analysts led by President and CEO Massimo Reynaudo and CFO Tapio Korpeinen.

The company employs approximately 15,100 people globally and reported annual sales of approximately €9.7 billion. UPM's shares are listed on Nasdaq Helsinki.