Kemira Oyj

Q2 revenue was EUR 693 million, unchanged year over year, with acquisitions contributing EUR 70 million and organic revenue growth at -2%. Operating EBITDA was EUR 112 million and the operative EBITDA margin was 16.1%, both lower year over year due to lower sales prices and significantly higher variable costs. By business unit, Water Solutions revenue rose to EUR 326 million with a 17.4% EBITDA margin, Packaging & Hygiene Solutions revenue was approximately EUR 240 million with an 11.6% margin, and Fiber Essentials revenue declined to EUR 127 million with a 21.4% margin. Net debt increased to EUR 622 million, gearing was 39%, leverage was 1.3x, operating cash flow was EUR 59 million, net working capital was EUR 316 million, and CapEx excluding acquisitions was EUR 41 million. Full-year 2026 guidance was lowered to revenue of EUR 2.6 billion-EUR 3.0 billion and operative EBITDA of EUR 400 million-EUR 500 million. Management said the Iran-related gross cost impact is roughly EUR 100 million for 2026, with about half expected to be mitigated by price increases; the pricing benefit should come through over the coming quarters, with full impact visible in Q4.

Antti Salminen described the market as extremely soft, with weak demand and low utilization at customer sites continuing to pressure volumes. He said Kemira is responding with price increases, efficiency actions, cost cutting, and portfolio streamlining, while still pushing its strategy through M&A, innovation, services, and Water Solutions growth. His tone was candid and negative on the quarter but confident that the business can recover over the mid to long term, even if the short term remains difficult.

Tuomas Mäkipeska focused on the mechanics behind the earnings decline: revenue was flat at EUR 693 million, but operating EBITDA fell to EUR 112 million as raw materials and logistics costs surged. He said the net impact from variable cost and price changes was EUR 21 million in Q2 and close to EUR 30 million year to date, with price benefits lagging by up to two quarters. On the balance sheet, he highlighted net debt of EUR 622 million, gearing of 39%, leverage of 1.3x, operating cash flow of EUR 59 million, net working capital of EUR 316 million, and CapEx excluding acquisitions of EUR 41 million, while noting full-year CapEx should be slightly above 2025.

Analysts focused on whether demand or pricing improved intra-quarter, how much of the Iran-related cost headwind could really be offset, and whether the price increases would mainly show up in Q4. Management said they do not comment on intra-quarter swings, confirmed the pricing lag is typically up to two quarters, and said the full effect of current actions should be visible in Q4. Questions also covered weak Fiber Essentials demand, where management pointed to normal comparison periods last year, more downtime at northern-hemisphere pulp mills, and stronger conditions in Latin America and parts of the southern hemisphere. On ROACE, management acknowledged that M&A in Water Solutions can pressure the metric in the short term because capital employed rises before earnings fully contribute.