Stora Enso Half-year Report January-June 2025: Solid business performance in a volatile demand environment
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 approximatelyEUR 50 million . - Operating result (IFRS) was
EUR 64 (92) million, including items affecting comparability ofEUR -35 million , and fair valuations and other non-operational items ofEUR -27 million . - Earnings per share were
EUR 0.03 (0.05) and earnings per share excl. fair valuations (FV) wereEUR 0.05 (0.06). - The fair value of the forest assets increased to
EUR 9.0 (8.7) billion, equivalent toEUR 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) wasEUR 0.18 (0.14). - Cash flow from operations amounted to
EUR 336 (592) million. Cash flow after investing activities wasEUR -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 inSweden for an enterprise value ofEUR 900 million , equivalent toSEK 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 of1 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, andPackaging 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
Guidance
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
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 strengthenStora 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
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
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
Key figures
EUR million |
Q2/25 |
Q2/24 |
Change % Q2/25–Q2/24 |
Q1/25 |
Q1-Q2/25 |
Q1-Q2/24 |
2024 |
Sales |
2,426 |
2,301 |
5.4 % |
2,362 |
4,789 |
4,466 |
9,049 |
Adjusted EBITDA |
279 |
312 |
-10.5 % |
320 |
599 |
610 |
1,223 |
Adjusted EBIT³ |
126 |
153 |
-17.8 % |
175 |
301 |
302 |
598 |
Adjusted EBIT margin³ |
5.2 % |
6.7 % |
|
7.4 % |
6.3 % |
6.8 % |
6.6 % |
Operating result³ (IFRS) |
64 |
92 |
-30.3 % |
171 |
235 |
232 |
93 |
Result before tax³ (IFRS) |
20 |
43 |
-53.8 % |
132 |
152 |
137 |
-118 |
Net result for the period³ (IFRS) |
15 |
35 |
-56.4 % |
107 |
122 |
111 |
-183 |
Forest assets1,3 |
8,990 |
8,723 |
3.1 % |
9,260 |
8,990 |
8,723 |
8,894 |
Adjusted return on capital employed (ROCE), LTM²³ |
4.3 % |
2.6 % |
|
4.4 % |
4.3 % |
2.6 % |
4.3 % |
Adjusted ROCE excl. Forest division, LTM²³ |
3.3 % |
1.1 % |
|
3.8 % |
3.3 % |
1.1 % |
3.6 % |
Earnings per share (EPS) excl. FV, EUR³ |
0.05 |
0.06 |
-15.4 % |
0.13 |
0.18 |
0.14 |
-0.56 |
EPS (basic), EUR³ |
0.03 |
0.05 |
-37.4 % |
0.14 |
0.17 |
0.15 |
-0.17 |
Net debt to LTM² adjusted EBITDA ratio |
3.3 |
3.5 |
|
3.2 |
3.3 |
3.5 |
3.0 |
Average number of employees (FTE) |
19,136 |
19,469 |
-1.7 % |
18,512 |
18,849 |
19,465 |
19,233 |
1 Total forest assets value, including leased land, assets held for sale and Stora Enso's share of
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.
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
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
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
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
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 (
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,
This release is a summary of
Media enquiries:
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