Kemira Oyj’s Financial Statements Bulletin 2025: Solid profitability in a continued weak market environment

This is a summary of Kemira's Financial Statements Bulletin 2025. The complete report with the tables is attached to this release and available at kemira.com/investors.

Q4 2025 performance

• Revenue decreased by 8%, to EUR 663.7 million (723.7). Revenue in local currencies, excluding acquisitions and divestments, decreased by 6%
• Revenue declined in all three business units, mainly driven by market softness and FX impact.
• Sales volumes and prices declined year-on-year.
• Operative EBITDA decreased by 11%, to EUR 119.9 million (135.0). Operative EBITDA margin was 18.1% (18.7%).
• Operative EBITDA margin declined to 18.5% in Water Solutions (18.9%), improved to 12.3% in Packaging & Hygiene Solutions (10.8%) and declined to 27.4% in Fiber Essentials (32.2%).
• EBITDA was EUR 87.6 million (116.5) and EBITDA margin was 13.2% (16.1%).
• Items affecting comparability within EBITDA totaled EUR 32.4 million (18.5) and consisted mainly of restructuring and streamlining costs, including an environmental liability related to an old site closure in Finland, and transaction costs.
• Operative EBIT decreased by 22%, to EUR 67.5 million (86.2). Operative EBIT margin was 10.2% (11.9%).
• EBIT decreased by 65%, to EUR 23.7 million (67.0).
• Cash flow from operating activities was EUR 127.2 million (165.4).
• EPS (diluted) was EUR 0.07 (0.31).

January-December 2025 performance*

• Revenue decreased by 5%, to EUR 2,753.5  million (2,903.5*). Revenue in local currencies, excluding acquisitions and divestments, decreased by 4%.
• Revenue declined in all three business units.
• Sales volumes and prices declined year-on-year.
• Operative EBITDA decreased by 10% to EUR 524.6 million (582.1*), mainly driven by pricing and lower sales volumes. Operative EBITDA margin was 19.1% (20.0%*).
• Operative EBIT decreased by 18% to EUR 324.4 million (395.5*).

* Oil & Gas divestment adjusted

January-December 2025 reported performance (Including the Oil & Gas business in 2024)

• Revenue decreased by 7%, to EUR 2,753.5 million (2,948.1). 
• Operative EBITDA decreased by 10%, to EUR 524.6 million (585.4). Operative EBITDA margin was 19.1 (19.9 %).
• EBITDA was EUR 485.8 million (550.7) and EBITDA margin17.6% (18.7%).
• Operative EBIT decreased by 19%, to EUR 324.4 million (398.7).
• EBIT was EUR 274.1 million (363.2) and EBIT margin 10.0% (12.3%).
• Cash flow from operating activities was EUR 378.2 million (484.6).
• EPS (diluted) was EUR 1.18 (1.61).

The Oil & Gas divestment

Kemira divested its Oil & Gas (O&G) related portfolio on February 2, 2024. The comparison period January-December 2024 includes around EUR 45 million of revenue and around EUR 3 million of operative EBITDA from Oil & Gas in Q1 2024. Kemira has presented the Oil & Gas divestment adjusted figures and performance in the relevant parts of the report.

Dividend proposal for 2025

The Board of Directors proposes to the Annual General Meeting 2026 a cash dividend of EUR 0.76 per share (0.74), totaling EUR 114 million (114). It is proposed that the dividend is paid in two installments, in April and in October.

Outlook for 2026

REVENUE
Kemira's revenue is expected to be between EUR 2,600 and EUR 3,000 million in 2026 (2025 revenue: EUR 2,753.5 million).

OPERATIVE EBITDA
Kemira's operative EBITDA is expected to be between EUR 470 and EUR 570 million in 2026 (2025 operative EBITDA: EUR 524.6 million).

ASSUMPTIONS BEHIND THE OUTLOOK
The continued global economic uncertainty has resulted in softer volume demand in Kemira's end-markets. The uncertainty is impacting the packaging and pulp market in particular, while the water treatment market is expected to grow, although there is volatility caused by the economic uncertainty among Kemira's industrial customers. The outlook assumes a stable raw material environment, no major disruptions to Kemira’s manufacturing operations or the supply chain and for the US dollar to weaken slightly from the end of 2025. The acquisitions which Kemira has announced prior to publishing the Financial Statements Bulletin 2025 are included in the outlook.

Kemira’s President & CEO, Antti Salminen:

"In 2025, Kemira’s market environment weakened from the previous years and demand was slow, particularly in the pulp and paper industry. Despite the revenue decline, our profitability remained solid and we reported a full-year operative EBITDA margin of 19.1%, which is well within our profitability target range. This is a good achievement in a challenging market environment and demonstrates the resilience of our business model. During the year, we also took several significant steps towards our strategic ambitions and expanded our business into industrial water treatment services.

In Q4, the market environment remained largely unchanged compared to the previous quarters. In the water treatment market we saw the usual seasonal decline in demand. Overall, the market environment remained rather stable among our municipal water treatment customers but was slow on the industrial side. In the pulp and paper industry, the market environment continued weak but on a stable level. As a result of the market softness and the negative FX impact, Kemira’s Q4 revenue decreased year-on-year. Revenue declined in all three business units. Consequently, the operative EBITDA margin declined to 18.1%.

In Water Solutions, revenue decreased, mainly driven by the lower volumes among our industrial customers, and the operative EBITDA margin declined to 18.5%. In Packaging & Hygiene Solutions, revenue decreased year-on-year but remained stable sequentially. The operative EBITDA margin improved to 12.3% year-on-year, primarily driven by effective cost control and the profitability improvement initiative. In Fiber Essentials, revenue decreased year-on-year, remaining stable sequentially. The operative EBITDA margin declined to 27.4%.

To minimize the impact of the lower demand, we have continued our focus on operational and cost efficiency. In Packaging & Hygiene Solutions, the profitability improvement initiative is progressing well, and the business unit's new operating model was implemented at the beginning of this year. In Water Solutions, we have planned to ramp down production at our Teesport site and decided to make significant operational improvements at our Botlek site. As a result, our Q4 restructuring and streamlining costs were clearly higher versus a year ago.

We made progress with our strategy execution in Q4. The acquisition of US-based  Water Engineering, Inc., expanding our Water Solutions business into industrial water treatment services, was completed in October, and the integration work is ongoing. At the beginning of this year, we announced the first follow-up deal when we completed the acquisition of AquaBlue, Inc. We expect to continue to drive similar acquisitions in the coming quarters.

Turning to 2026, at the moment we do not see any major changes in the market environment in the near-term.  We have given our financial outlook for this year and expect our 2026 revenue to be between EUR 2,600 million and EUR 3,000 million and our 2026 operative EBITDA to be between EUR 470 million and EUR 570 million.

Despite the current market slowness, our confidence in Kemira’s future success remains high.  Based on the 2025 performance, the Board is proposing to the AGM to increase the dividend to EUR 0.76 per share. The Board has also decided to launch a new share buyback program of up to 5,000,000 shares or EUR 100 million to further optimize Kemira’s capital structure.

In 2026, we will continue our investments in Kemira’s growth. Yesterday we announced the highly synergistic acquisition of SIDRA Wasserchemie*, expanding  our core business in Western and Central Europe. Our earlier announced capacity expansions in coagulant and active carbon reactivation are also progressing as planned.

The long-term demand drivers for our business remain unchanged – the need for advanced water treatment and renewable solutions continues to grow and Kemira plays an important role in this development. Our strong financial position, resilient business model and the structural changes we have undertaken in the previous years,  provide a solid foundation for Kemira’s growth and future success."

*The acquisition is subject to competition authority clearance in Germany. 

KEY FIGURES AND RATIOS

*12-month rolling average

Unless otherwise stated, all comparisons in this report are made to the corresponding period in 2024.

Kemira provides certain financial performance measures (alternative performance measures) that are not defined by IFRS. Kemira believes that alternative performance measures followed by capital markets and by Kemira management, such as revenue growth in local currencies, excluding acquisitions and divestments (=organic growth), EBITDA, operative EBITDA, operative EBIT, cash flow after investing activities and gearing provide useful information on Kemira’s comparable business performance and financial position. Selected alternative performance measures are also used as performance criteria in remuneration.

Kemira’s alternative performance measures should not be viewed in isolation from the equivalent IFRS measures and alternative performance measures should be read in conjunction with the most directly comparable IFRS measures. Definitions of the alternative performance measures can be found in the definitions of the key figures in this report, as well as at www.kemira.com > Investors > Financial information. All the figures in this report have been individually rounded and consequently the sum of the individual figures may deviate slightly from the total figure presented.

Financial targets

Kemira has the following long-term financial targets to support its growth strategy; Kemira’s target is to achieve an annual organic growth rate of over 4%, to maintain an operative EBITDA margin within the range of  18–21% and to maintain operative ROCE above 16%.

Financial reporting schedule 2026

Annual report 2025                                                              February 20, 2026
Interim report January-March 2026                                     April 24, 2026
Half-year financial report January-June 2026                     July 17, 2026
Interim report January-September 2026                             October 23, 2026

The Annual General Meeting is scheduled for Thursday, March 19, 2026.

Webcast and conference call for analysts, investors and media

Kemira will arrange a webcast for analysts, investors and the media on Thursday, February 12, 2026, starting at 10.30 am EET (8.30 am UK time). During the webcast, Kemira’s President & CEO Antti Salminen and CFO Petri Castrén will present results. The webcast will be held in English and can be followed at kemira.com/investors. The presentation material and a recording of the webcast will be available on the above-mentioned company website.

You can attend the Q&A session via conference call. You can access the teleconference by registering on the following link: https://events.inderes.com/kemira/q4-2025/dial-in

After registration you will be provided with phone numbers and a conference ID to access the conference. If you wish to ask a question please dial *5 on your telephone keypad to enter the queue.

For more information, please contact:

Kemira Oyj
Kiira Fröberg, Vice President, Investor Relations
Tel. +358 40 760 4258
kiira.froberg@kemira.com

Kemira is a global leader in sustainable chemistry for water-intensive industries. We operate globally and serve a wide range of customers including municipal and industrial water treatment companies and the fiber industry. Our solutions and services help secure clean water for millions of people every day and support our customers in advancing circularity and responsible resource use throughout their value chains. In 2025, Kemira’s revenue totaled EUR 2.8 billion, and we employed approximately 4,900 people. Kemira’s shares are listed on Nasdaq Helsinki (symbol: KEMIRA) www.kemira.com