Stora Enso Oyj

Latest Results (18.11.2025):

Stora Enso Oyj's Interim Report for Q3 2025 (January–September 2025) shows a mixed performance with moderate sales growth and declining adjusted EBIT margin. The report highlights key financial metrics, including a slight increase in sales and robust divestment actions, while also underlining operational challenges and a subdued market outlook combined with strategic initiatives to enhance efficiency and unlock further shareholder value.

Sales & Revenue Performance

Sales increased by 1% to EUR 2,283 million (Q3/2025 vs. Q3/2024) with total sales for the period reaching EUR 7,072 million. This growth was driven by a consumer board line ramp-up and solid performance in several product segments.

EBIT & Profitability

The operating result on an IFRS basis improved to EUR 466 million, although the adjusted EBIT declined to EUR 427 million. The adjusted EBIT margin decreased to 5.5% compared to 7.8% in the previous period. Earnings per share were recorded at EUR 0.42, with EPS excluding fair valuations at EUR 0.44.

Divestment & Strategic Review

A significant milestone was the divestment of approximately 175,000 hectares of forest land in Sweden—equivalent to 12.4% of Stora Enso’s Swedish forest assets—with an enterprise value of SEK 9.8 billion (around EUR 900 million). Additionally, the company has initiated a strategic review of its remaining Swedish forest assets, exploring options such as separation and a potential public listing.

Operations & Investment Initiatives

The ramp-up of the consumer board line at the Oulu site in Finland is progressing gradually, although production volumes are slightly behind schedule. The ongoing investment in new packaging board production aims to strengthen Stora Enso’s competitive position, with full capacity expected by 2027.

Cash Flow & Financial Position

Cash flow from operations decreased to EUR 560 million from EUR 863 million, yet improvements in the net debt to adjusted EBITDA ratio were noted, moving from 3.1 to 2.7. These actions reflect the company's efforts in streamlining its portfolio and enhancing financial flexibility.

Market Outlook

Despite recent achievements, market conditions remain challenging due to subdued consumer demand, low confidence, and geopolitical uncertainties. The company anticipates a continued subdued environment into Q4 2025, with additional pressures from planned maintenance and rising costs affecting margin performance in the near term.