Kemira lifts revenue 3% to €708.9 million despite 18% drop in operating profit
Key Facts
Kemira reported third-quarter revenue up 3% year on year to €708.9 million, from €687.7 million, driven mainly by acquisitions, but sales growth did not prevent profitability from declining. Adjusted EBITDA fell 18% to €112.8 million, compared with €137.3 million a year earlier. The margin on this measure narrowed to 15.9% from 20.0% in the comparable period. Diluted earnings per share also fell to €0.21 from €0.38. The divergence between revenue growth and shrinking profits highlights the impact of higher costs on the company’s results during the quarter.
The company said the decline in operating profit was mainly caused by cost inflation following the conflict in the Middle East. Selling prices rose year on year, but sales volumes fell, while Kemira was able to offset only part of the inflation in raw materials and other variable costs through customer price increases. Management said: "We were only partially able to offset inflation in raw material costs and other variable costs through customer price increases." These pressures were reflected in net profit for the period, which fell to €34.5 million from €61.6 million a year earlier. This reflects a decline in earnings at both the operating level and the bottom line, alongside higher revenue.
Margin declines extended across all three business units, though their levels varied. In Water Solutions, the adjusted EBITDA margin fell to 19.7% from 23.1% in the third quarter last year. The margin in Packaging & Hygiene Solutions declined to 9.3% from 13.6%, the lowest among the units cited. In Fiber Essentials, the margin fell to 19.3% from 24.1%. All three units therefore recorded year-on-year margin contraction, with Packaging & Hygiene Solutions posting the lowest margin among them during the quarter.
In the first nine months of 2026, revenue was €2,079.3 million, down 1% from €2,089.9 million in the same period of 2025. Revenue in local currencies, excluding acquisitions and divestments, fell 2%, indicating that overall third-quarter growth was not accompanied by organic growth over the longer period. Adjusted EBITDA for the nine months fell 16% to €341.8 million from €404.6 million. Cash flow from operating activities in the third quarter also fell to €57.0 million, compared with €132.2 million a year earlier. The chief executive said demand had remained "broadly stable over the past two quarters," while demand in pulp and packaging markets continued to be weak.
Kemira estimated the annual negative impact of raw material and logistics cost inflation at about €100 million in 2026, and said it expects to offset about 50% of the impact through price increases. The company kept its full-year outlook at revenue of between €2,600 million and €3,000 million and adjusted EBITDA of between €400 million and €500 million. Management said it does not expect significant changes in the demand environment in the fourth quarter, but noted that raw material inflation remains volatile and adds uncertainty to input costs. Kemira is scheduled to publish its 2026 financial results on 9 February 2027, followed by its January–March 2027 report on 23 April 2027.