Q2/2025 (year-on-year)

·      Sales increased by 5% to EUR 2,426 (2,301) million, mainly due to higher deliveries and a positive impact from structural changes. 

·      Adjusted EBIT decreased by 18% to EUR 126 (153) million. Adjusted EBIT margin decreased to 5.2% (6.7%). The ramp-up of the new consumer board line at the Oulu site had a negative impact of approximately EUR 50 million.

·      Operating result (IFRS) was EUR 64 (92) million, including items affecting comparability of EUR -35 million, and fair valuations and other non-operational items of EUR -27 million.

·      Earnings per share were EUR 0.03 (0.05) and earnings per share excl. fair valuations (FV) were EUR 0.05 (0.06).

·      The fair value of the forest assets increased to EUR 9.0 (8.7) billion, equivalent to EUR 11.40 per share.

·      Cash flow from operations amounted to EUR 145 (323) million, impacted by the lower profit and decreasing trade payables.

·      The net debt to adjusted EBITDA (LTM) ratio improved to 3.3 (3.5).

·      Adjusted ROCE excluding the Forest segment (LTM) increased to 3.3% (1.1%).

January-June 2025 (year-on-year)

·        Sales were EUR 4,789 (4,466) million.

·        Adjusted EBIT was EUR 301 (302) million.

·        Operating result (IFRS) was EUR 235 (232) million.

·        Earnings per share (EPS) were EUR 0.17 (0.15) and EPS excl. fair valuations (FV) was EUR 0.18 (0.14).

·        Cash flow from operations amounted to EUR 336 (592) million. Cash flow after investing activities was EUR -83 (-18) million.

Key highlights

·        In May, Stora Enso entered into an agreement to divest approximately 175,000 hectares of forest land, equivalent to 12.4% of its total forest land holdings in Sweden for an enterprise value of EUR 900 million, equivalent to SEK 9.8 billion. Stora Enso will retain a 15% ownership and secure long-term wood supply.

·        Stora Enso has initiated a strategic review of its Swedish forest assets. The review includes assessing a potential separation and public listing of the forest assets.

·        The ramp-up of the new consumer board line at the Oulu site in Finland is proceeding, and the line is expected to reach full capacity during 2027.

·        The acquisition of the Finnish sawmill company Junnikkala Oy was completed during the quarter.

·        Stora Enso implemented a new, leaner and flatter organisational structure as of 1 July 2025, dividing its packaging business into four main areas with a reinforced focus on renewable packaging as the core business: Foodservice and Liquid Board, Cartonboard, Containerboard, and Packaging Solutions.

·        FTSE Russel has upgraded Stora Enso's ESG rating score from 4.4 to 4.6 (max 5.0), and ranked the Group as the best company in its sector. Stora Enso also remains included in the FTSE4Good Index Series.

·        In July, Fitch confirmed that Stora Enso's credit rating will continue as BBB- with Stable Outlook.

Outlook and focus for 2025
Stora Enso expects market demand to remain subdued and volatile, affected by heightened macroeconomic and geopolitical uncertainty.

Guidance
Stora Enso anticipates that the adverse impact on adjusted EBIT for the full year of 2025, due to the ramp-up of the new consumer packaging board line at the Oulu site in Finland, will be around or somewhat above EUR 100 million.

The Group's capital expenditure forecast for the full year of 2025 is EUR 730-790 million.

In the third quarter of 2025, maintenance costs are expected to increase by approximately EUR 10 million from Q2/2025.

Fiber costs are expected to remain at high levels.

Focus for 2025

·      Continue systematic and determined work across the whole Group to improve profitability, cash flow, and cost competitiveness through a focus on sourcing, operational efficiency, commercial excellence, working capital, and fixed costs

·      Complete the sale of 12.4% of Swedish forest assets.

·      Conduct a strategic review of the remaining Swedish forest assets, including the assessment of a potential separation and public listing of the forest assets. 

·      Continue to build a leaner and flatter organisation by dividing the packaging business into four main areas - Foodservice and Liquid Board, Cartonboard, Containerboard, and Packaging Solutions - with a reinforced focus on renewable packaging as the core business. The new streamlined organisation will increase customer focus, drive operational efficiency through increased integration, reduce complexity, and enhance the Group's performance culture.

·      Transition to a more integrated business model across the Nordic packaging board mills to improve the entire value chain and customer-centricity.

·      Ramp up production and leverage the EUR 1 billion investment in the new packaging board line at the integrated mill in Oulu, Finland, to strengthen Stora Enso's competitive position.

Outlook from Q2/2025 to Q3/2025
Markets remain volatile, with low consumer sentiment. The direct impact of the US tariffs at current rates is limited given that Stora Enso's direct sales to the USA account for only just below 3% of total group sales (2024). Tariffs impacting global trade present both risks and opportunities to our business. However, the main risk, as it currently stands, is the overall impact on the economy and trade flows.

Overall demand in the packaging segments is expected to remain stable at a low level. Prices are expected to remain relatively stable, despite ongoing pressure from persistent overcapacity and increased competition from Asia in consumer boards. In euro terms, prices for overseas deliveries are expected to be negatively affected by a weaker US dollar.

Market demand for pulp is expected to remain weak due to market uncertainty, the low season, and increased inventory levels. Market pulp prices are expected to continue decreasing or to flatten throughout the summer and into autumn, negatively impacted by a weaker US dollar.

Following the holiday season, demand in the wood products markets is projected to return to previous low levels. Prices are expected to remain stable amid ongoing pressure from rising saw log costs.

The Forest segment is estimated to maintain stable financial performance.

The third quarter profitability will be negatively affected by the planned maintenance stops, approximately EUR 10 million, and the continuing ramp-up of the new line at Oulu, with an estimated impact of EUR 30-45 million.
 

Key figures

1 Total forest assets value, including leased land, assets held for sale and Stora Enso's share of Tornator.
2 LTM=Last 12 months
3 Q1 and Q2 2024 restated in Q3 2024, please see the interim report for Q3 2024 for more details.
 

Stora Enso's President and CEO Hans Sohlström comments on the second quarter 2025 results:
During the second quarter of 2025, we continued to make good progress in building a stronger and more competitive Stora Enso. While market conditions remained challenging, we focused on the areas within our control - enhancing sourcing, operational efficiency, commercial excellence, working capital, and fixed costs.

We reached a major milestone with the agreement to divest approximately 175,000 hectares of forest land, equivalent to 12.4% of our total forest land holdings in Sweden, for an enterprise value of approximately EUR 900 million, in line with our Swedish forest book value. This transaction reduces our debt and enhances our financial flexibility. Stora Enso will retain a 15% ownership. In connection with the transaction, Stora Enso and the divested entity will enter into a 15-year wood supply agreement with a possible additional 15-year extension.

Following this, we initiated a strategic review of our remaining 1.2 million hectares of Swedish forest assets, reinforcing our commitment to active portfolio management and shareholder value creation. As part of this review, we will explore various options, including a potential separation and listing of the forest business into a new company that would be wholly owned by all Stora Enso shareholders. The aim of the review is to assess options to further strengthen Stora Enso's leading renewable packaging business, as well as to unlock the value and business potential of the unique Swedish forest business. 

Our new consumer board line in Oulu continued the ramp-up during the quarter. Customer feedback on product quality has been very encouraging. While the ramp-up will continue to weigh on earnings in the short term, we remain confident the Oulu board line will be very cost-competitive and deliver some of the best quality products in the industry. This investment is central to our strategy of growing in renewable packaging. We also closed the acquisition of Junnikkala sawmills, which will further enhance the Oulu mill's cost competitiveness.

Financially, all operational segments delivered positive adjusted EBIT for the second consecutive quarter, despite continued weakness in board and pulp markets, with total adjusted EBIT at EUR 126 million. The Oulu ramp-up had an approximately EUR 50 million negative impact on the second quarter adjusted EBIT. Sales at EUR 2.4 billion grew 5% year-on-year supported by high demand for wood products and packaging solutions. Our continuous, dedicated efforts to improve cash flow resulted in an operating working capital to sales of 6.9%, a decrease of 1.8 percentage points year-on-year. Cash flow was negative in the second quarter, as expected, driven by the final investments at the Oulu site.

Looking ahead, we expect subdued and volatile market demand to persist through the remainder of 2025, driven by macroeconomic and geopolitical uncertainty. Market pulp prices are expected to continue to decrease or to flatten throughout the summer and into autumn, while some board prices are facing pressure due to low demand. We are also entering a period of higher maintenance activity, which will increase maintenance costs in the second half of the year. The Oulu ramp-up will continue to impact EBIT negatively, albeit less than in the second quarter.

As previously announced, we have implemented a new, leaner and flatter organisational structure as of 1 July 2025. This new structure will increase customer focus, drive operational efficiency with increased integration, reduce complexity and enhance the Group's performance culture. The renewable packaging business will consist of four P&L responsible business areas: Foodservice and Liquid Board, Cartonboard, Containerboard, and Packaging Solutions. The remaining businesses continue to be divided into three P&L responsible business areas: Biomaterials, Wood Products, and Forest. Within these seven business areas, P&L responsibility is further decentralised down to 22 new P&L responsible business units close to customers and operations.

I am proud of the resilience and dedication shown by our teams across the company. We are navigating through a volatile world with determination and discipline, and we remain firmly on track to deliver long-term sustainable value. Thank you for your continued support.

 

Webcast for analysts, investors, and media
Analysts, investors, and media are invited to participate in the webcast with a teleconference today at 11:00 am EET (10:00 CET, 9:00 BST, 4:00 EDT). The results will be presented by President and CEO Hans Sohlström and CFO Niclas Rosenlew. The presentation can be followed live via the link: https://stora-enso-oyj-q2-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

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 Half-year Report January-June 2025. The complete report is attached to this release as a pdf file. It is also available on the company website at 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

STORA ENSO OYJ