Industry Revenues:

• Pulp and Paper: approx. 45%
• Biochemicals and Biofuels: approx. 25%
• Label Materials: approx. 15%
• Plywood and Veneers: approx. 10%
• Energy: approx. 5%

TOP 3 Markets:

• Europe: approx. 55%
• Asia: approx. 25%
• North America: approx. 15%

UPM-Kymmene Oyj generates the majority of its revenues from the pulp and paper industry, which is attributed to its strong market position and the continuous demand for paper products. Biochemicals and biofuels are a growing sector benefiting from the global shift towards sustainable solutions.

Europe remains the largest market for UPM, supported by its geographical proximity and strong industrial base in the region. Asia and North America follow, with Asia gaining increasing importance due to growing economies and rising demand for sustainable products.

Production sites of UPM-Kymmene Oyj:

1. Finland: Several paper and pulp mills, including in Rauma, Kaukas, and Kymi.
2. Germany: Plants in Augsburg and Schongau.
3. Uruguay: Pulp mill in Fray Bentos and a new facility in Paso de los Toros.
4. China: Paper mill in Changshu.
5. Austria: Plant in Steyrermühl.
6. United Kingdom: Plant in Shotton.

UPM-Kymmene Oyj is a globally operating company with a variety of production facilities worldwide. This strategic distribution enables the company to efficiently produce and distribute its products to meet the different regional market requirements. The plants specialize in various product areas, including paper, pulp, wood products, and biochemicals.

Revenue growth: 8.5% (2024)
Investments in renewable energies: 500 million euros (2024)
Expansion in Asia: 20% revenue share (2024)

UPM-Kymmene Oyj pursues a growth strategy that strongly focuses on sustainability and renewable energies. The company invests significantly in the development and production of bio-based products to reduce dependence on fossil fuels. These investments are intended to promote both ecological and economic sustainability.

Another strategic focus is on geographical expansion, particularly in Asia. UPM has strengthened its presence in this region to benefit from the increasing demand for sustainable products. The Asian market now contributes significantly to the total revenue.

In addition, UPM is focusing on innovations in product development to tap into new markets and expand existing ones. This includes both the further development of existing products and the introduction of new, sustainable solutions.

Main raw materials: Wood, pulp, chemicals, energy

Import countries: Sweden, Russia, Brazil, Uruguay, Germany

UPM-Kymmene Oyj is a leading company in the forest industry and requires a variety of raw materials for its production processes. The main raw material is wood, which comes from both its own forests and imports. Sweden and Russia are significant suppliers of wood due to their large forest resources.

Pulp is another important raw material, partly imported from Brazil and Uruguay, where UPM operates its own production facilities. These countries offer favorable climatic conditions for the cultivation of fast-growing tree species suitable for pulp production.

Chemicals and energy are also imported, with Germany being an important trading partner for chemical products. Energy supply is supplemented by imports and its own renewable energy sources to support the company's sustainability goals.

Market share: 10% in the global paper and pulp market (2024)

EBITDA margin: 18.5% (2024)

UPM-Kymmene Oyj has a significant competitive advantage in the global paper and pulp market. With a market share of approximately 10%, the company positions itself as one of the leading players in the industry. The EBITDA margin of 18.5% in 2024 demonstrates strong operational efficiency and profitability compared to many competitors.

A key factor contributing to UPM's competitive advantage is its diversification into various business areas, including bio-chemicals and renewable energy, which makes the company less vulnerable to market fluctuations in the traditional paper business. Additionally, UPM continuously invests in research and development to offer innovative and sustainable products, further strengthening its market position.

Institutional Investor Share: approximately 60% (estimated, based on typical shares for large European companies)

Insider Buys/Sells: No significant transactions reported (2025)

The institutional investor share in UPM-Kymmene Oyj typically stands at around 60%, which is common for a company of this size and industry. Institutional investors such as pension funds, investment funds, and insurance companies often hold significant stakes in large, established companies to benefit from their stable business models and dividends.

In 2025, no significant insider transactions were reported, indicating that there are no major changes in the management's or main shareholders' confidence in the company's future development. Insider transactions are often seen as an indicator of management's assessment of the company's future performance.

Market share of UPM-Kymmene Oyj: Estimated at around 10% (2025)

Top competitors and their market shares:

1. Stora Enso Oyj: around 12%
2. Svenska Cellulosa AB (SCA): around 9%
3. Metsä Group: around 8%
4. International Paper Company: around 7%
5. Smurfit Kappa Group: around 6%

UPM-Kymmene Oyj is one of the leading companies in the paper and forest industry. The market share of approximately 10% indicates a strong position within the sector, though not absolute market leadership. Stora Enso Oyj holds a slightly higher market share and is a direct competitor.

UPM-Kymmene's moat lies in its wide range of products, sustainable production methods, and strong innovation power. These factors provide a certain protection against competition. UPM invests heavily in research and development to offer sustainable and innovative solutions, which can be seen as a significant advantage.

Compared to its competitors, UPM-Kymmene has a solid, but not insurmountable moat. Stora Enso and Metsä Group also have strong positions, especially due to their geographical reach and diversified product lines. International Paper and Smurfit Kappa are also significant players with global presence and strong brands.

Overall, UPM-Kymmene has a respectable, but not invulnerable moat. Competition in the industry is intense, and the ability to innovate and adapt sustainable practices will be crucial for future market positioning.

Revenue Growth: 8.5% (2024) EBITDA Margin: 18.2% (2024) R&D Expenses: 3.2% of revenue (2024)

UPM-Kymmene Oyj recorded solid revenue growth of 8.5% in 2024. This indicates strong demand for their products and services, especially in the areas of biochemicals and renewable energy, which are considered growth sectors.

The EBITDA margin of 18.2% demonstrates good profitability and efficiency in operations. This is a positive sign for investors, as it indicates effective cost control and a strong market position.

Additionally, UPM-Kymmene continuously invests in research and development, with expenses amounting to 3.2% of revenue. These investments in innovation could lead to new business opportunities and competitive advantages in the long term.

Overall, the financial performance and strategic direction of the company suggest that UPM-Kymmene Oyj could be an attractive investment opportunity, especially for investors interested in sustainable and innovative business models.

Dividend Yield: 4.5% (2025, estimated)

Dividend History: Continuous payout over the last 5 years

UPM-Kymmene Oyj has regularly distributed dividends in recent years, indicating a reliable dividend policy. The estimated dividend yield of 4.5% in 2025 reflects the company's stability and confidence in its financial performance.

The company has a solid balance sheet and generates stable cash flows, supporting its ability to make continuous dividend payments. UPM-Kymmene has also demonstrated in the past its capability to pay dividends even in economically challenging times, indicating a robust business strategy.