1Q25 first take: 10% comp EBIT beat; H1 guidance maintained We last heard from UPM at Q4 on 5 February. Today the company reports Q1 results with comparable EBIT EUR287m vs Infront (and Bloomberg) consensus EUR262m, BNPPE EUR251m. Most main segments were closely in line with the main beat coming from Fibers with a strong volume performance again and margins better than expected. H1 guidance has been maintained. Call at 13.15 EET/ 11.15 UK today. Main points from Q1 results - Q1 beat: we set out a full variance table in Figure 1 below. Driven by Fibres where volumes were 10% ahead of our expectations and margins also stronger. No obvious signs of any unexpected impacts (+ or -) we can see. - Guidance and outlook: For 1H25 the company expects still comparable EBIT of EUR400-625m vs consensus (per Bloomberg) of EUR501m. This implies EUR113-338m in Q2. Since the company only formulated this style of quantitative guidance at the full year results, we wouldn''t read too much into the fact it has not been revised or narrowed. - Outlook: regarding tariffs the company reiterated that 14% of sales are in the US, with 40% of this produced locally, but believes direct impact to be ''relatively limited...and in general passed through in prices''. Nevertheless, management cautions tariffs may cause customer hesitation or demand impacts. Leuna still expected to be a 2H ramp up. - Buyback completed: EUR160m now complete, as announced 8 April (c.1% of market cap). - Valuation: On our current forecasts UPM (at EUR23.26/share) trades on 8.4/ 6.4x EV/EBITDA, 12.7/ 8.8x EV/EBIT and 13.0/ 8.9x PE for FY Dec-25 and Dec-26 respectively. - Conference call: There will be a webcast/ conference call at 13:15 EET, 12.15 CET, 11:15 UK Time at this link. Figure 1: UPM 1Q25 results variance / Source: Company data, Infront (consensus), BNP Paribas Exane estimates