Nordic forest product business UPM says all its businesses improved results in the second quarter of 2026.

UPM Group operating profit for the first half of 2026 was €453m (H1,2025 – €296m). Sales were €4.78bn (H1, 2025 – €4.91bn).

UPM’s timber business incorporates three sawmills in Finland and falls under the Group’s Fibres division, specifically the Fibres North segment which also includes three pulp mills and forest operations.

Specific details and figures on the sawn timber business are sparse other than the comment below.

“In Q2, demand for sawn timber remained relatively weak due to the slow recovery of the construction sector,” said UPM.

The Fibres North division reported sales of €915m in H1 (H1, 2025 – €1.079bn), with the 2026 Q2 sales figures slightly up on Q1.

The operating profit of the entire Fibres business was €199m (H1, 2025 – €237m).

UPM described the business environment for Fibres North “challenging”, citing decreasing pulpwood prices and low profitability. The second quarter earnings were also impacted by the maintenance shutdown at the UPM Pietarsaari mill, while temporary shutdowns of the UPM Kaukas pulp mill and potentially the UPM Pietarsaari pulp mill are planned to optimize production and wood sourcing, and ensure profitability.

UPM’s Board has approved a plan to demerge the Plywood business into a new listed company – WISA Group. The Extraordinary General Meeting to decide on the demerger plan will be held on August 31, 2026.

UPM Plywood continued to perform well as the business prepared for separation. It recorded a H1 operating profit of €28m (H1, 2025 – €8m) from sales of €240m (H1, 2025 – €192m). Plywood deliveries were also up – recording 269,000m3 in the first half of 2026, compared with 218,000m3 a year ago.

Subject to the decision of the Extraordinary General Meeting, trading in the shares of WISA Group on Nasdaq Helsinki is currently expected to commence in early November.

“By separating the plywood business onto its own growth path, we are strengthening its future prospects and streamlining UPM’s business portfolio,” UPM said.

Looking forward, UPM says in H2 2026, compared with H2 2025, its performance is expected to benefit from higher sales prices. Variable costs are expected to increase moderately.

Source: upm.com