Kemira Oyj: Kemira Oyj's January-September 2025 Interim Report: Good profitability maintained in a weakened market environment

Kemira Oyj, Interim Report, October 24, 2025 at 8.30 am (EEST)

Kemira Oyj's January-September 2025 Interim Report: Good profitability maintained in a weakened market environment

This is a summary of the January-September 2025 Interim Report. The complete report with the tables is attached to this release and available at kemira.com/investors.

Q3 2025 performance

• Revenue decreased by 5%, to EUR 687.7 million (727.6). Revenue in local currencies, excluding acquisitions and divestments, decreased by 3%
• Revenue declined in all three business units, mainly driven by market softness and FX impact.
• Sales volumes declined year-on-year, while prices remained stable. Sequentially, sales volumes increased.
• Operative EBITDA decreased by 7%, to EUR 137.3 million (147.4). Operative EBITDA margin was 20.0% (20.3%).
• Operative EBITDA margin remained strong at 23.1% in Water Solutions (23.3%), improved to 13.6% in Packaging & Hygiene Solutions (11.8%) and declined to 24.1% in Fiber Essentials (28.2%).
• EBITDA was EUR 134.4 million (142.9) and EBITDA margin was 19.5% (19.6%).
• Operative EBIT decreased by 13%, to EUR 87.8 million (100.8). Operative EBIT margin was 12.8% (13.9%).
• EBIT decreased by 12%, to EUR 84.9 million (96.3).
• Cash flow from operating activities was EUR 132.2 million (112.2).
• EPS (diluted) was EUR 0.38 (0.41).

January-September 2025 performance*

• Revenue decreased by 4%, to EUR 2,089.9 million (2,179.8*). Revenue in local currencies, excluding acquisitions and divestments, decreased by 3%.
• Revenue declined in all three business units.
• Sales volumes and prices declined year-on-year.
• Operative EBITDA decreased by 9% to EUR 404.6 million (447.1*), mainly driven by lower sales prices and currency impact. Operative EBITDA margin was 19.4% (20.5%*).
• Operative EBIT decreased by 17%to EUR 256.9 million (309.2*).

* Oil & Gas divestment adjusted

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

• Revenue decreased by 6%, to EUR 2,089.9 million (2,224.3).
• Operative EBITDA decreased by 10%, to EUR 404.6 million (450.4). Operative EBITDA margin was 19.4 (20.2 %).
• EBITDA was EUR 398.3 million (434.1) and EBITDA margin19.1% (19.5%).
• Operative EBIT decreased by 18%, to EUR 256.9 million (312.4).
• EBIT was EUR 250.4 million (296.2) and EBIT margin 12.0% (13.3%).
• Cash flow from operating activities was EUR 251.1 million (319.2).
• EPS (diluted) was EUR 1.10 (1.30).

The Oil & Gas divestment

Kemira divested its Oil & Gas (O&G) related portfolio on February 2, 2024. The comparison period January-September 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. The adjusted figures reflect the current performance of Kemira's business units and Kemira's management follows the Oil & Gas divestment adjusted figures.

Outlook for 2025 (unchanged)

REVENUE
Kemira's revenue is expected to be between EUR 2,700 and EUR 2,950 million in 2025 (reported 2024 revenue: EUR 2,948.1 million).

OPERATIVE EBITDA
Kemira's operative EBITDA is expected to be between EUR 510 and EUR 580 million in 2025 (reported 2024 operative EBITDA: EUR 585.4 million).

ASSUMPTIONS BEHIND THE OUTLOOK
The continued global economic uncertainty is expected to result in softer volume demand in Kemira's end-markets. The uncertainty is expected to impact the packaging and pulp market in particular, while the water treatment market is expected to grow in all regions. In a weaker macroeconomic setting, the raw material environment is expected to remain rather stable as a whole. The outlook assumes no major disruptions to Kemira's manufacturing operations, to the supply chain or to Kemira's energy-generating assets in Finland. The outlook assumes the US dollar to remain approximately on the same level as in the end of Q2 2025.

Kemira's President & CEO, Antti Salminen:

"In Q3, Kemira's operating environment remained similar to the previous quarters. Demand slowness, especially in the pulp and paper industry, did not work in our favor. That said, I am particularly pleased with our ability to maintain a good profitability level despite the tough market environment.

As a result of the challenging demand conditions, Kemira's Q3 revenue declined year-on-year, mainly driven by lower sales volumes and a negative FX impact. Despite the decline, the operative EBITDA margin was strong at 20.0%, remaining close to the previous year's level; this is a good achievement in the current market environment.

Water Solutions continued to be Kemira's strong backbone in Q3. The demand environment remained stable, particularly in the Urban water business. Although both revenue and profitability somewhat declined from the previous year, the operative EBITDA margin remained strong at 23.1%. In Packaging & Hygiene Solutions, revenue declined year-on-year. The operative EBITDA margin improved to 13.6%, primarily driven by the sales mix during the quarter and by effective cost management. Our initiative to improve Packaging & Hygiene Solutions' profitability continues. As a next step we are renewing the business unit's operating model, to enhance customer focus, optimize cost-to-serve and to further improve operational efficiency. In Fiber Essentials, revenue declined year-on-year, mainly due to the sluggish market environment. Consequently, the operative EBITDA margin declined to 24.1%.

We continued to execute our strategy in Q3. In September, we announced the acquisition of Water Engineering, Inc., a US-based industrial water treatment services company. The acquisition, which was completed last week, is a significant strategic milestone for Kemira, enabling us to expand our Water Solutions business into industrial water treatment services. It is also a good example of the inorganic growth opportunities that we are looking for. Water Engineering, Inc., brings us new expertise in boiler and cooling tower water treatment formulations and a wide portfolio of other industrial water services. The acquisition provides us with a solid platform for further expansion, both organic and inorganic, in the industrial water treatment services sector.

In addition, we announced a partnership with CuspAI, a pioneering materials science artificial intelligence company. The partnership aims to accelerate the discovery and optimization of new materials and our first project is related to the removal of PFAS from water. Our plan to build a reactivation plant for activated carbon at our Helsingborg site in Sweden also received final investment approval. The plant will be the first activated carbon reactivation site in the Nordics and is expected to be operational during the second half of 2027.

As for the rest of the year, we do not see improvement in the market environment in the packaging and pulp industry. In Water Solutions, the market environment remains more stable although the volatility caused by general economic uncertainty has increased in our Industrial water treatment business. We reiterate our financial outlook for this year and expect our 2025 revenue to be between EUR 2,700 million and EUR 2,950 million and our 2025 operative EBITDA to be between EUR 510 million and EUR 580 million.

Although the market environment is expected to continue challenging in the coming months, Kemira has a solid foundation for growth and future success. The financial position of the company is strong, enabling our investments in long-term growth. We have maintained our focus on operational excellence and profitability and our commitment towards our strategy remains high. We continue to work hard to execute on our strategic initiatives - expanding our water business and innovating and developing renewable solutions - and delivering the best for our customers."

KEY FIGURES AND RATIOS

EUR million	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
	2025	2024	2025	2024	2024
Revenue	687.7	727.6	2,089.9	2,224.3	2,948.1
Revenue, O&G divestment adjusted	687.7	727.6	2,089.9	2,179.8	2,903.5
Operative EBITDA	137.3	147.4	404.6	450.4	585.4
Operative EBITDA, O&G divestment adjusted	137.3	147.4	404.6	447.1	582.1
Operative EBITDA, %	20.0	20.3	19.4	20.2	19.9
Operative EBITDA %, O&G divestment adjusted	20.0	20.3	19.4	20.5	20.0
EBITDA	134.4	142.9	398.3	434.1	550.7
EBITDA, %	19.5	19.6	19.1	19.5	18.7
Operative EBIT	87.8	100.8	256.9	312.4	398.7
Operative EBIT, O&G divestment adjusted	87.8	100.8	256.9	309.2	395.5
Operative EBIT, %	12.8	13.9	12.3	14.0	13.5
Operative EBIT %, O&G divestment adjusted	12.8	13.9	12.3	14.2	13.6
EBIT	84.9	96.3	250.4	296.2	363.2
EBIT, %	12.3	13.2	12.0	13.3	12.3
Net profit for the period	61.6	67.2	180.8	211.6	262.7
Earnings per share, diluted, EUR	0.38	0.41	1.10	1.30	1.61
Capital employed*	1,923.9	1,963.2	1,923.9	1,963.2	1,920.1
Capital employed*, O&G divestment adjusted	1,923.9	1,911.4	1,923.9	1,911.4	1,920.1
Operative ROCE*, %	17.8	21.7	17.8	21.7	20.8
Operative ROCE, %, O&G divestment adjusted	17.8	21.6	17.8	21.6	20.6
ROCE*, %	16.5	15.2	16.5	15.2	18.9
Cash flow from operating activities	132.2	112.2	251.1	319.2	484.6
Capital expenditure excl. acquisition	47.8	35.1	119.1	96.2	167.3
Capital Expenditure excl. Acquisitions, O&G divestment adjusted	47.8	35.1	119.1	96.2	167.3
Capital expenditure	47.8	38.2	141.5	99.4	170.5
Cash flow after investing activities	84.4	67.1	158.2	316.3	411.8
Equity ratio, % at period-end	55	54	55	54	53
Equity per share, EUR	11.29	11.26	11.29	11.26	11.59
Gearing, % at period-end	17	18	17	18	16

*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 annual organic growth of over 4%, an operative EBITDA margin of between 18-21% and operative ROCE of over 16%.

Financial reporting schedule 2025 and 2026

Financial Statements Bulletin for the year 2025 February 12, 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 Report 2025 will be published during the week starting on February 16, 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 Friday, October 24, 2025, starting at 10.30 am EEST (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/q3-2025/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. [phone]
[e-mail]

Kemira is the global leader in sustainable chemical solutions for water-intensive industries. We deliver tailored products and services to improve the product quality, processes, and resource efficiency of our diverse range of customers. Our focus is on water treatment, as well as on fiber and renewable solutions - enabling sustainability transformation for our customers. In 2024, Kemira reported annual revenue of EUR 2.9 billion with a global team of some 4,700 colleagues. Kemira is listed on the Nasdaq Helsinki www.kemira.com