Stora Enso’s adjusted EBIT rises 28% – wood costs expected to increase in Q4

Stora Enso’s adjusted EBIT rose to EUR 161 million in the third quarter, supported by higher board volumes, lower variable costs and progress in ramping up its new board line in Oulu, Finland. Reported sales and operating profit declined, however, while subdued demand and cost pressures continue to weigh on the outlook.

Production line and maintenance platforms inside Stora Enso’s Oulu mill in Finland. — Progress in ramping up the new consumer board line at Stora Enso’s Oulu mill in Finland supported third-quarter earnings. The ramp-up is expected to be completed during 2027.

Stora Enso reported third-quarter sales of EUR 2,240 million, down from EUR 2,283 million a year earlier. Reported sales fell by 2% due to divestments, while organic sales increased by 2%, supported by higher board deliveries and containerboard prices.

Adjusted EBIT increased by 28% to EUR 161 million from EUR 126 million. The adjusted EBIT margin improved from 5.5% to 7.2%.

Reported operating profit under IFRS fell from EUR 231 million to EUR 47 million. The result was affected by impairments, restructuring and disposals, as well as changes in the fair value of biological assets. Earnings per share declined from EUR 0.25 to EUR 0.01.

Packaging businesses support earnings

According to Stora Enso’s President and CEO Hans Sohlström, the packaging businesses continued to perform well despite challenging market conditions.

“Consumer Packaging delivered another strong quarter, supported by increased deliveries, good operational execution and continued progress in Oulu,” Sohlström said.

Underlying profitability in Integrated Packaging remained solid despite significant annual maintenance at several key sites. Improved containerboard pricing and successful restarts following maintenance supported performance.

Sohlström said Biomaterials also maintained solid margins in a challenging operating environment. Geopolitical tensions and the conflict in Iran continued to increase energy, logistics and other input costs.

Stora Enso President and CEO Hans Sohlström wearing a dark suit in front of a wood-panelled wall. — Stora Enso President and CEO Hans Sohlström says the packaging businesses continued to perform well in the third quarter, supported by higher deliveries, strong operational execution and progress in Oulu.

Oulu ramp-up continues into 2027

The ramp-up of the new consumer board line at the Oulu site in Finland is continuing and is expected to be completed during 2027. The line’s financial performance is expected to improve somewhat year-on-year in the fourth quarter.

Stora Enso is also continuing to consolidate production. The Veitsiluoto sawmill in Kemi, Finland, has been permanently closed, with production transferred to the company’s other sawmills.

The cross-laminated timber (CLT) unit at Gruvön in Sweden will close by the end of 2026, while sawn goods production will continue at the site.

In Finland, corrugated packaging production will be centralised at the Lahti site, and the Kristiinankaupunki site will close. The strategic review of Stora Enso’s Central European sawmills and building solutions operations remains ongoing.

Wood costs expected to rise

Stora Enso expects market conditions to remain mixed and uncertain in the fourth quarter. Demand remains subdued across several end markets, although pricing has improved in certain packaging grades.

Geopolitical tensions are expected to put further pressure on variable costs, particularly energy, logistics and chemicals. Wood costs are also expected to increase somewhat in the final quarter.

Significant planned annual maintenance will increase costs and reduce volumes in Consumer Packaging. The fourth quarter is also seasonally quieter for the segment.

Capital expenditure for the full year is now estimated at approximately EUR 500 million, compared with the previous estimate of below EUR 550 million.

Third-quarter cash flow improves

Cash flow from operations increased to EUR 245 million in July–September, compared with EUR 223 million a year earlier. Lower capital spending helped lift cash flow after investing activities from EUR 57 million to EUR 132 million.

For January–September, Stora Enso reported sales of EUR 7,021 million, compared with EUR 7,072 million in the corresponding period of 2025. Adjusted EBIT increased from EUR 427 million to EUR 479 million, while reported operating profit fell from EUR 466 million to EUR 148 million.

The fair value of the company’s forest assets stood at EUR 8.4 billion at the end of September.

Stora Enso’s Board of Directors has also approved a plan to separate its Swedish forest assets business into a new listed company, Bergslagets Skogar. The planned completion date is 31 March 2027, subject to approval by an Extraordinary General Meeting and other conditions.