UPM-Kymmene Oyj Price & Performance (UPMMY)

The ongoing labor dispute between UPM Plywood and Finland’s Industrial Union remains unresolved as the union rejected the latest settlement proposal, prolonging strikes that have halted domestic mill operations for nearly eight weeks. The impasse is causing mounting business losses and uncertainty for roughly 1,000 employees covered by the collective agreement.12

UPM-Kymmene Oyj’s 2024 financials reveal a 40% drop in operating cash flow and a 36% decline in free cash flow compared to the previous year. Despite positive net income, the company faces headwinds from reduced operating margins and increased capital expenditures, reflecting challenging market conditions and internal restructuring.34

UPM-Kymmene’s stock has declined nearly 9% over the past two weeks, with analysts forecasting further weakness in coming months. Technical indicators and trading volumes suggest heightened risk, and the company’s shares are expected to remain volatile ahead of its earnings release later this month.56