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Investing.com -- UPM reported third-quarter EBITDA of €251 million, falling 16% below the Visible Alpha consensus estimate of €299 million, while EBIT came in at €153 million, slightly under the expected €158 million.
The Finnish forest industry company’s shares dropped 1.5% following the announcement.
The pulp division (Fibres) was primarily responsible for the earnings miss, delivering EBITDA of €88 million compared to consensus expectations of €120 million. Delivery volumes reached 1,262 kilotonnes, below analyst estimates of 1,350 kilotonnes. While average selling prices exceeded expectations, higher unit costs offset these gains, likely due to mix effects.
For the first time, UPM provided a geographical EBIT breakdown for its operations. The South (Uruguay) operations generated €80 million in EBIT, while the North (Nordics) recorded a loss of €37 million, impacted by an extended shutdown at the Kaukas facility.
The company reported net debt of €3.2 billion, slightly above the consensus estimate of €3.1 billion.
UPM maintained its second-half comparable EBIT guidance at €425-650 million, with the midpoint comfortably exceeding the current consensus of €472 million. The company expects improved second-half performance compared to the first half (€413 million) due to lower variable costs, annual energy refunds in the fourth quarter, and better results in advanced materials.
These positive factors are expected to outweigh challenges from lower pulp margins, reduced graphic paper volumes, and higher maintenance costs. Capital expenditure guidance for 2025 remains unchanged at €400 million.
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