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1. Company Snapshot

1.a. Company Description

Kemira Oyj operates as a chemicals company in Finland, rest of Europe, the Middle East, Africa, the Americas, and the Asia Pacific.It operates in two segments, Pulp & Paper and Industry & Water.The Pulp & Paper segment develops and commercializes pulp, paper, and packaging chemicals, as well as a range of products for paper wet-end, including packaging and board, and tissue products.


The Industry & Water segment offers coagulants, polymers, and other water treatment chemicals for raw water, waste water and sludge treatment, friction reduction, tailing treatment, mining processes, and oil recovery applications.Kemira Oyj was founded in 1920 and is headquartered in Helsinki, Finland.

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1.b. Last Insights on KEMIRA

Kemira Oyj's recent performance was negatively impacted by softer market conditions, leading to declining sales in certain segments. The company's profitability was resilient, with strong EBITDA margins maintained, but this was not enough to offset the decline in sales. Additionally, the formation of a joint venture with IFF, Alpha Bio, may not have had a significant short-term impact, as it is focused on commercial-scale production of renewable biobased materials, which may take time to materialize.

1.c. Company Highlights

2. Kemira's Q4 and Full Year '25 Earnings: A Challenging Year with Strategic Progress

Kemira's financial performance in 2025 was marked by a challenging market environment, with the company reporting an 8% decline in Q4 revenue compared to the previous year. The operative EBITDA margin, however, remained solid at over 18%. For the full year, the company maintained a healthy operative EBITDA margin of over 19%. The earnings per share (EPS) came in at €0.0675, significantly lower than the estimated €0.3423. Revenue for the year was impacted by volume decline, negative FX impact, and lower product pricing, as highlighted by CFO Petri Castren.

Publication Date: 09:13

📋 Highlights
  • Operative EBITDA Margin Resilience:: Maintained over 19% for the full year and 18.5% in Q4 despite market challenges.
  • Revenue Decline Drivers:: Q4 revenue dropped 8% YoY due to volume decline (-5%), FX impact (-3%), and lower pricing (-2%).
  • Strategic Investments:: Acquired Water Engineering in North America and launched a EUR 200M CapEx growth plan for 2026.
  • Leadership Transition:: CFO Petri Castrén to leave by March 2026; CEO Antti Salminen to take over, alongside a EUR 0.76 dividend increase.
  • 2026 Financial Outlook:: Revenue target of EUR 2.6–3B and EBITDA of EUR 470–570M, with BHS unit aiming for 15% EBITDA margin by 2026.

Business Unit Performance

The Water Solutions business unit saw a 9% revenue decline due to operational issues with a major customer and general weakness in the industrial side. The Packaging & Hygiene Solutions business unit reported a 6% revenue decline due to soft markets, but profitability was protected by measures taken by the company. The Fiber Essentials business unit was impacted by weak pulp chemical markets and price increases for raw materials.

Strategic Progress and Outlook

Despite the challenging market, Kemira continued to invest in its strategy execution, including the acquisition of Water Engineering in North America and an investment project in Helsingborg, Sweden. The company is focused on expanding its water business, building its presence as a leading provider of renewable chemistry, and investing in new adjacent high-growth market areas. For 2026, Kemira expects revenue between €2.6 billion and €3 billion and EBITDA between €470 million and €570 million, assuming stable raw material prices and continued global economic uncertainty.

Valuation and Growth Prospects

With a P/E Ratio of 16.46 and an EV/EBITDA of 7.46, the market appears to be pricing in a moderate level of growth. Analysts estimate next year's revenue growth at 3.7%. Kemira's commitment to returning capital to shareholders through a share buyback program and increasing its dividend to €0.76 is positive. The company's return on capital employed (ROIC) stands at 8.13%, indicating a decent return on invested capital.

Key Drivers and Challenges

The company's ability to achieve its targets will depend on its ability to navigate the challenging market environment and execute its growth strategy. Key drivers include the successful integration of acquired companies, improvement in production capacity, and the implementation of the profitability program in Packaging & Hygiene Solutions. Challenges include the ongoing market uncertainty, energy price volatility, and the impact of raw material price changes on profitability.

3. NewsRoom

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Kemira Oyj (KOYJF) Q4 2025 Earnings Call Highlights: Navigating Revenue Declines and Strategic ...

Feb -12

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Feb -10

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3 European Dividend Stocks Yielding Up To 9.7%

Jan -08

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Nov -12

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Water Treatment Chemicals Market Size and Companies Analysis 2025-2034

Nov -04

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NEW RESEARCH: Kemira Water Index 2025 exposes critical weaknesses in water resilience and alarming consumer unpreparedness

Oct -14

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LVMH: Share transactions disclosure

Sep -09

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The BANK of Greenland issued and early redemption of Senior Non-Preferred capital

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Pulp & Paper

Expected Growth: 4.5%

Growing demand for sustainable paper products, increasing focus on efficiency and quality, and rising need for expertise in paper and board production drive the growth of Kemira Oyj's Pulp & Paper segment.

Industry & Water

Expected Growth: 4.5%

Growing demand for sustainable and efficient processes in pulp and paper, oil and gas, mining, and water treatment industries drives growth. Increasing focus on environmental sustainability and regulatory compliance also fuels demand for Kemira's chemicals and expertise.

7. Detailed Products

Pulp Cooking

Kemira's pulp cooking products are used to improve the efficiency and quality of the pulping process in paper mills.

Bleaching

Kemira's bleaching products are used to improve the brightness and strength of pulp in paper mills.

Retention and Drainage

Kemira's retention and drainage products are used to improve the efficiency of the papermaking process.

Sizing

Kemira's sizing products are used to improve the strength and water resistance of paper.

Coatings

Kemira's coating products are used to improve the printability and appearance of paper.

Oil and Gas

Kemira's oil and gas products are used to improve the efficiency and safety of oil and gas production.

Mining

Kemira's mining products are used to improve the efficiency and safety of mining operations.

8. Kemira Oyj's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Kemira Oyj is moderate due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for Kemira Oyj is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Kemira Oyj is moderate due to the company's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants for Kemira Oyj is high due to the relatively low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry for Kemira Oyj is high due to the presence of several established competitors in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 33.64%
Debt Cost 7.27%
Equity Weight 66.36%
Equity Cost 7.83%
WACC 7.64%
Leverage 50.69%

11. Quality Control: Kemira Oyj passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Kemira

A-Score: 6.3/10

Value: 6.4

Growth: 6.0

Quality: 5.8

Yield: 6.9

Momentum: 5.0

Volatility: 7.7

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Buzzi Unicem

A-Score: 6.0/10

Value: 6.2

Growth: 7.3

Quality: 7.4

Yield: 3.8

Momentum: 7.5

Volatility: 4.0

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SOL

A-Score: 5.3/10

Value: 2.4

Growth: 7.3

Quality: 5.1

Yield: 0.6

Momentum: 8.5

Volatility: 8.0

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Dottikon Es Holding

A-Score: 5.2/10

Value: 2.5

Growth: 8.6

Quality: 6.9

Yield: 0.0

Momentum: 7.5

Volatility: 6.0

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Solvay

A-Score: 4.9/10

Value: 5.6

Growth: 2.1

Quality: 3.4

Yield: 10.0

Momentum: 2.5

Volatility: 6.0

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Bachem

A-Score: 3.9/10

Value: 3.5

Growth: 6.8

Quality: 6.5

Yield: 3.8

Momentum: 1.0

Volatility: 1.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.8$

Current Price

19.8$

Potential

-0.00%

Expected Cash-Flows