STORA ENSO OYJ INTERIM REPORT 23 October 2025 at 8:30 EEST
Q3/2025 (year-on-year)
• Sales increased by 1% to EUR 2,283 (2,261) million, mainly due to the
acquisition of Junnikkala and the consumer board line ramp-up at the Oulu site.
• Adjusted EBIT decreased by 28% to EUR 126 (175) million, driven by the
ramp-up of the new line in Oulu, impacting the Q3 result negatively by EUR 45
million. Adjusted EBIT margin decreased to 5.5% (7.8%).
• Operating result (IFRS) was EUR 231 (139) million, including items
affecting comparability of EUR 117 million, and fair valuations and other non
-operational items of EUR -11 million.
• Earnings per share were EUR 0.25 (0.11) and earnings per share excl. fair
valuations (FV) were EUR 0.26 (0.10).
• The fair value of the forest assets was EUR 8.3 (8.8) billion, equivalent
to EUR 10.50 per share, reflecting the impact of the forest asset divestment in
Sweden.
• Cash flow from operations amounted to EUR 223(271) million, impacted by
the lower profit.
• The net debt to adjusted EBITDA (LTM) ratio improved to 2.7 (3.1).
• Adjusted ROCE excluding the Forest segment (LTM) was 2.8% (2.7%).
January-September 2025 (year-on-year)
• Sales were EUR 7,072 (6,727) million.
• Adjusted EBIT was EUR 427 (478) million.
• Operating result (IFRS) was EUR 466 (372) million.
• Earnings per share (EPS) were EUR 0.42 (0.26) and EPS excl. fair
valuations (FV) was EUR 0.44 (0.25).
• Cash flow from operations amounted to EUR 560(863) million. Cash flow
after investing activities was EUR -26 (-15) million.
Key highlights
• The divestment of approximately 175,000 hectares of forest land in
Sweden, equivalent of 12.4% of Stora Enso's Swedish forest assets, was completed
in September. The enterprise value of the transaction was SEK 9.8 billion,
equivalent to approximately EUR 900 million.
• The strategic review of the Group's remaining forest assets in Sweden,
initiated in July, is progressing. The review includes assessing a potential
separation and public listing of the forest assets.
• The ramp-up of the consumer board line at the Oulu site in Finland
continues, and the production volumes are gradually increasing. The line is
expected to reach full capacity during 2027.
• In October, Stora Enso and the International Union for Conservation of
Nature (IUCN) launched a science-based framework to enable nature positive
forestry. It guides informed prioritisation of biodiversity actions, ensuring
that the most urgent threats to biodiversity are addressed first.
• The second instalment of dividend, EUR 0.12 per share, was paid on
2October.
Outlook and focus for 2025
Stora Enso expects market demand to remain subdued and challenging, affected by
low consumer confidence and heightened macroeconomic and geopolitical
uncertainty.
Guidance
The ramp-up of the consumer board line at the Oulu site in Finland continues,
and the production volumes are gradually increasing. However, volumes are
somewhat behind the original schedule. Despite this, the target of reaching
EBITDA break-even by year-end is unchanged. As a result, the EBIT impact for Q4
will be higher than initially anticipated - now estimated at a negative EUR
15-35 million. The full year EBIT impact estimated to be approximately negative
EUR 120-140 million. The line is expected to reach full capacity during 2027.
Starting in the fourth quarter, the completed divestment of the forest assets in
Sweden will have an annual adverse impact of EUR 25 million, approximately EUR 6
million per quarter, on the Forest segment's results.
The Group's capital expenditure forecast for the full year of 2025 is EUR
730-790 million.
Fourth quarter profitability will be impacted by planned maintenance stops,
which are expected to be at similar levels as in the third quarter.
Focus for 2025
• Continue proactive, systematic, and determined work across the whole
Group to improve profitability, cash flow, and cost competitiveness through
activities related to sourcing, operational efficiency, commercial excellence,
working capital, and fixed costs.
• Continue to build a leaner and flatter organisation, sharpening the focus
on renewable packaging as the core business. The new streamlined structure not
only enhances customer centricity and operational efficiency through deeper
integration, but also unlocks further performance potential.
• Transition to a more integrated business model across the Nordic
packaging board mills to improve the entire value chain and customer-centricity.
• After successfully completing the sale of 12.4% of the Swedish forest
assets, continue the strategic review of the remaining Swedish forest assets,
including assessment of a potential separation and public listing.
• Ramp up production and leverage the EUR 1 billion investment in the new
packaging board line at the integrated mill in Oulu, Finland, to further
strengthen Stora Enso's competitive position.
Outlook from Q3/2025 to Q4/2025
Markets remain challenging, with low consumer confidence.
The direct impact of the US tariffs remains modest as Stora Enso's direct sales
to the USA account for only just below 3% of total group sales (2024). While
tariffs impacting global trade present both risks and opportunities, the primary
concern lies in their broader implications for economic conditions and trade
flows. Indirect effects - such as weakening consumer confidence and an increase
in Chinese exports to Europe - continue to weigh on the markets.
Market outlook continues weak due to suppressed end-user demand, which is
leading to weakening order inflow and lower volumes particularly in the
packaging businesses. Market prices remain under persistent downward pressure as
supply continues to surpass demand.
Market demand for pulp remains weak, driven by ongoing market uncertainty.
Market pulp prices are stable at low levels, and with demand continuing to lag.
Prices are expected to stay flat or show only limited movement for the remainder
of the year.
Demand in the wood products markets remains low. The construction market outlook
continues to be weak, and the European construction confidence index remains
negative. In addition, rising log costs in Central Europe are putting further
pressure on margins.
The Forest segment continues to deliver solid financial performance. Fiber costs
are expected to remain high, even though wood prices have decreased slightly.
Key figures
EUR million Q3/25 Q3/24 Change Q2/25 Q1 Q1 2024
% -Q3/25 -Q3/24
Q3/25-Q
3/24
Sales 2,283 2,261 1.0% 2,426 7,072 6,727 9,049
Adjusted 291 328 -11.4% 279 889 938 1,223
EBITDA
Adjusted 126 175 -28.2% 126 427 478 598
EBIT
Adjusted 5.5% 7.8% 5.2% 6.0% 7.1% 6.6%
EBIT margin
Operating 231 139 65.8% 64 466 372 93
result
(IFRS)
Result 202 98 105.3% 20 354 235 -118
before tax
(IFRS)
Net result 201 84 138.7% 15 323 195 -183
for the
period
(IFRS)
Forest 8,277 8,758 -5.5% 8,990 8,277 8,758 8,894
assets¹
Adjusted 3.9% 3.7% 4.3% 3.9% 3.7% 4.3%
return on
capital
employed
(ROCE),
LTM²
Adjusted 2.8% 2.7% 3.3% 2.8% 2.7% 3.6%
ROCE excl.
Forest
segment,
LTM²
Earnings per 0.26 0.10 149.8% 0.05 0.44 0.25 -0.56
share (EPS)
excl. FV,
EUR
EPS (basic), 0.25 0.11 125.7% 0.03 0.42 0.26 -0.17
EUR
Net debt to 2.7 3.1 3.3 2.7 3.1 3.0
LTM²
adjusted
EBITDA ratio
Average 19,409 19,364 0.2% 19,136 18,996 19,405 19,233
number of
employees
(FTE)
1 Total forest assets value, including leased land and Stora Enso's share of
forest assets in associated companies
2 LTM=Last 12 months
Stora Enso's President and CEO Hans Sohlström comments on the third quarter 2025
results:
During the third quarter of 2025, Stora Enso continued to execute on its
strategy and profit improvement actions. While the market continues to be
challenging and demand subdued, we focused on the areas within our control.
The improvement actions remained the same - driving operational efficiency, cost
competitiveness, and commercial excellence across the Group. In addition, we
continue to work on further focusing our portfolio on growth in our core
renewable packaging business and operations supporting it.
A major milestone in the quarter was the completion of the divestment of
approximately 175,000 hectares of forest land in Sweden, representing 12.4% of
our total forest holdings. The transaction, with an enterprise value of SEK 9.8
billion (equivalent to approximately EUR 900 million), in line with forest book
value, strengthens our balance sheet and improves our financial flexibility.
We also made progress on the strategic review of our remaining 1.2 million
hectares of Swedish forest assets announced in June 2025, including the
assessment of a potential separation and public listing. The review aims to
evaluate ways to unlock further value for our shareholders and strengthen our
focus.
The ramp-up of the new consumer board line at our Oulu site in Finland
continues, with production volumes gradually increasing. While the ramp-up has,
and will continue to, weigh on profitability in the short term, we remain
confident that the Oulu board line will deliver industry-leading quality and
cost competitiveness once fully operational. We target EBITDA break-even by the
end of the year.
Adjusted EBIT for the quarter was EUR 126 million. Excluding the EUR 45 million
impact from the Oulu ramp-up, profitability would have been comparable to the
same quarter last year, reflecting a stable underlying performance despite
persistent market headwinds.
Demand continued to be subdued due to low consumer confidence, and delivery
volumes were relatively low, particularly in containerboard and biomaterials.
Despite these challenges, we have intensified our own actions to improve and
safeguard profitability, including a strengthened P&L responsibility in business
areas, a leaner, more customer-focused organisation, and targeted efficiency
programmes. Our net debt to adjusted EBITDA ratio improved to 2.7 from 3.1 a
year ago, reflecting the positive impact of the forest asset divestment.
Looking ahead, we will continue our systematic efforts to improve profitability
and cash flow, whilst we expect market conditions to continue to be subdued and
challenging. The strategic review of the Swedish forest assets and ramp-up of
Oulu continue to be priorities.
Thanks to the dedication of our teams, we are now laying the foundation for a
stronger, more focused company—one that is better positioned to deliver long
-term value. As we reshape the company, the work being done today will define a
more resilient and competitive future for Stora Enso.
Webcast for analysts, investors, and media
Stora Enso's President and CEO Hans Sohlström and CFO Niclas Rosenlew will
present the results in a webcast today starting at 11:30 am EET (10:30 CET, 9:30
BST, 4:30 EDT). The live the webcast can be accessed using the following link:
https://stora-enso-oyj-q3-earnings-presentation-2025.open
-exchange.net/registration.
During the webcast presentation, analysts and investors will also have the
possibility to ask questions. To participate in the teleconference, please
choose the “Teleconference” option on the homepage of the webcast. Recording of
the webcast will be available shortly after the event at the same address and at
storaenso.com/en/investors/interim
-report (https://www.storaenso.com/en/investors/interim-report).
Media representatives who wish to ask questions after the publication of the
report may contact Carl Norell, SVP Corporate Communications at Stora Enso on
+46 72 241 0349.
This release is a summary of Stora Enso's Interim Report January-September 2025.
The complete report is attached to this release as a pdf file, and it is also
available on the company website at storaenso.com/en/investors/interim
-report (https://www.storaenso.com/en/investors/interim-report).
Media enquiries:
Carl Norell
SVP Corporate Communications
tel. +46 72 241 0349
Investor enquiries:
Jutta Mikkola
SVP Investor Relations
tel. +358 50 544 6061
The forest is at the heart of Stora Enso and we believe that everything made
from fossil-based materials today can be made from a tree tomorrow. We are the
leading provider of renewable products in packaging, biomaterials, and wooden
construction, and one of the largest private forest owners in the world. Stora
Enso has approximately 19,000 employees and our sales in 2024 were EUR 9
billion. Stora Enso shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and
Nasdaq Stockholm AB (STE A, STE R). In addition, the shares are traded in the
USA on OTC Markets (OTCQX) as ADRs and ordinary shares (SEOAY, SEOFF, SEOJF).
storaenso.com/investors (https://www.storaenso.com/en/investors)
STORA ENSO OYJ
Media enquiries:
Carl Norell
SVP Corporate Communications
tel. +46 72 241 0349
Investor enquiries:
Jutta Mikkola
SVP Investor Relations
tel. +358 50 544 6061