Stora Enso Half-year Report January-June 2025: Solid business performance in a volatile demand environment
Stora Enso (OTC:SEOAY) reported Q2 2025 results showing mixed performance amid challenging market conditions. Sales increased 5.4% to EUR 2,426 million, while adjusted EBIT decreased 17.8% to EUR 126 million. The company's adjusted EBIT margin declined to 5.2% from 6.7% year-over-year.
Key developments include an agreement to divest 175,000 hectares of Swedish forest land for EUR 900 million, representing 12.4% of holdings, while retaining 15% ownership. The company also initiated a strategic review of remaining Swedish forest assets, considering potential separation and public listing.
The ongoing ramp-up of the new consumer board line at Oulu had a negative EUR 50 million impact on Q2 results. Management expects continued market volatility and subdued demand through 2025, with full-year impact from the Oulu ramp-up estimated around or above EUR 100 million.
Stora Enso (OTC:SEOAY) ha riportato i risultati del secondo trimestre 2025 mostrando una performance mista in un contesto di mercato difficile. Le vendite sono aumentate del 5,4% a 2.426 milioni di euro, mentre l'EBIT rettificato è diminuito del 17,8% a 126 milioni di euro. Il margine EBIT rettificato è sceso al 5,2% dal 6,7% su base annua.
Tra gli sviluppi principali, è stato raggiunto un accordo per la cessione di 175.000 ettari di foreste svedesi per 900 milioni di euro, pari al 12,4% delle proprietà, mantenendo però una partecipazione del 15%. La società ha inoltre avviato una revisione strategica dei restanti asset forestali svedesi, valutando una possibile separazione e una quotazione in borsa.
Il progressivo avvio della nuova linea per pannelli per il consumatore a Oulu ha avuto un impatto negativo di 50 milioni di euro sui risultati del secondo trimestre. La direzione prevede una continua volatilità del mercato e una domanda contenuta per tutto il 2025, con un impatto annuo dall'avvio di Oulu stimato intorno o superiore a 100 milioni di euro.
Stora Enso (OTC:SEOAY) presentó resultados del segundo trimestre de 2025 con un desempeño mixto en un entorno de mercado desafiante. Las ventas aumentaron un 5,4% hasta 2.426 millones de euros, mientras que el EBIT ajustado disminuyó un 17,8% hasta 126 millones de euros. El margen EBIT ajustado bajó al 5,2% desde 6,7% interanual.
Entre los principales avances, se acordó la venta de 175.000 hectáreas de bosques suecos por 900 millones de euros, lo que representa el 12,4% de las propiedades, manteniendo una participación del 15%. La empresa también inició una revisión estratégica de los activos forestales suecos restantes, considerando una posible separación y salida a bolsa.
La puesta en marcha progresiva de la nueva línea de tableros para consumidores en Oulu tuvo un impacto negativo de 50 millones de euros en los resultados del segundo trimestre. La dirección espera una volatilidad continua del mercado y una demanda moderada durante 2025, con un impacto anual completo de la puesta en marcha de Oulu estimado alrededor o por encima de 100 millones de euros.
Stora Enso (OTC:SEOAY)는 2025년 2분기 실적을 발표하며 어려운 시장 환경 속에서 혼재된 성과를 보였습니다. 매출은 5.4% 증가하여 24억 2,600만 유로를 기록했으나, 조정 EBIT는 17.8% 감소한 1억 2,600만 유로였습니다. 조정 EBIT 마진은 전년 대비 6.7%에서 5.2%로 하락했습니다.
주요 내용으로는 스웨덴 산림 17만 5천 헥타르를 9억 유로에 매각하는 계약을 체결했으며, 이는 보유지의 12.4%에 해당하고 15% 지분은 유지하는 내용입니다. 또한 남은 스웨덴 산림 자산에 대한 전략적 검토를 시작하여 분리 및 상장 가능성을 모색하고 있습니다.
올루에서의 신규 소비자용 보드 라인 가동 확대가 2분기 실적에 5,000만 유로의 부정적 영향을 미쳤습니다. 경영진은 2025년 내내 시장 변동성과 수요 둔화를 예상하며, 올루 가동 확대의 연간 영향은 1억 유로 이상으로 추정하고 있습니다.
Stora Enso (OTC:SEOAY) a publié ses résultats du deuxième trimestre 2025, montrant une performance mitigée dans un contexte de marché difficile. Le chiffre d'affaires a augmenté de 5,4 % pour atteindre 2 426 millions d'euros, tandis que l'EBIT ajusté a diminué de 17,8 % à 126 millions d'euros. La marge EBIT ajustée est passée de 6,7 % à 5,2 % d'une année sur l'autre.
Parmi les faits marquants, un accord a été conclu pour la cession de 175 000 hectares de forêt suédoise pour 900 millions d'euros, représentant 12,4 % des actifs, tout en conservant une participation de 15 %. L'entreprise a également lancé une revue stratégique des actifs forestiers suédois restants, envisageant une possible séparation et une introduction en bourse.
La montée en puissance de la nouvelle ligne de panneaux grand public à Oulu a eu un impact négatif de 50 millions d'euros sur les résultats du deuxième trimestre. La direction prévoit une volatilité continue du marché et une demande modérée tout au long de 2025, avec un impact annuel complet de la montée en puissance d'Oulu estimé autour ou au-delà de 100 millions d'euros.
Stora Enso (OTC:SEOAY) meldete für das zweite Quartal 2025 gemischte Ergebnisse in einem herausfordernden Marktumfeld. Der Umsatz stieg um 5,4 % auf 2.426 Millionen Euro, während das bereinigte EBIT um 17,8 % auf 126 Millionen Euro zurückging. Die bereinigte EBIT-Marge sank im Jahresvergleich von 6,7 % auf 5,2 %.
Wichtige Entwicklungen umfassen eine Vereinbarung zum Verkauf von 175.000 Hektar schwedischem Wald für 900 Millionen Euro, was 12,4 % der Bestände entspricht, wobei das Unternehmen 15 % der Anteile behält. Zudem wurde eine strategische Überprüfung der verbleibenden schwedischen Waldflächen eingeleitet, mit Blick auf eine mögliche Abspaltung und Börsennotierung.
Der laufende Hochlauf der neuen Verbraucherplatten-Linie in Oulu hatte einen negativen Einfluss von 50 Millionen Euro auf die Ergebnisse des zweiten Quartals. Das Management erwartet weiterhin Marktvolatilität und eine gedämpfte Nachfrage im Jahr 2025, mit einem geschätzten Jahresgesamtimpact des Hochlaufs in Oulu von rund oder über 100 Millionen Euro.
- Sales growth of 5.4% year-over-year to EUR 2,426 million
- Strategic divestment of Swedish forest assets for EUR 900 million to reduce debt
- All operational segments delivered positive adjusted EBIT for second consecutive quarter
- Operating working capital to sales improved to 6.9%, down 1.8 percentage points year-over-year
- FTSE Russell upgraded ESG rating to 4.6 out of 5.0, ranking best in sector
- Fitch confirmed BBB- credit rating with Stable Outlook
- Adjusted EBIT decreased 17.8% to EUR 126 million
- Adjusted EBIT margin declined to 5.2% from 6.7%
- Oulu board line ramp-up negatively impacted earnings by EUR 50 million in Q2
- Cash flow from operations decreased to EUR 145 million from EUR 323 million
- Market pulp prices expected to continue decreasing or flatten
- Persistent overcapacity and increased competition from Asia in consumer boards
STORA ENSO OYJ HALF-YEAR FINANCIAL REPORT 23 July 2025 at 8:30 EEST
Q2/2025 (year-on-year)
- Sales increased by
5% toEUR 2,426 (2,301) million, mainly due to higher deliveries and a positive impact from structural changes. - Adjusted EBIT decreased by
18% toEUR 126 (153) million. Adjusted EBIT margin decreased to5.2% (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 a15% 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
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 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
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 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
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
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
CONTACT:
Investor enquiries:
Jutta Mikkola
SVP Investor Relations
tel. +358 50 544 6061
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FAQ
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