Good progress in a challenging market environment
Q3/2025 (year-on-year)
- Sales increased by 1% to EUR 2,283 (2,261) million, mainly due to the acquisition of Junnikkala and the consumer board line ramp-up at the Oulu site.
- Adjusted EBIT decreased by 28% to EUR 126 (175) million, driven by the ramp-up of the new line in Oulu, impacting the Q3 result negatively by EUR 45 million. Adjusted EBIT margin decreased to 5.5% (7.8%).
- Operating result (IFRS) was EUR 231 (139) million, including items affecting comparability of EUR 117 million, and fair valuations and other non-operational items of EUR -11 million.
- Earnings per share were EUR 0.25 (0.11) and earnings per share excl. fair valuations (FV) were EUR 0.26 (0.10).
- The fair value of the forest assets was EUR 8.3 (8.8) billion, equivalent to EUR 10.50 per share, reflecting the impact of the forest asset divestment in Sweden.
- Cash flow from operations amounted to EUR 223 (271) million, impacted by the lower profit.
- The net debt to adjusted EBITDA (LTM) ratio improved to 2.7 (3.1).
- Adjusted ROCE excluding the Forest segment (LTM) was 2.8% (2.7%).
January–September 2025 (year-on-year)
- Sales were EUR 7,072 (6,727) million.
- Adjusted EBIT was EUR 427 (478) million.
- Operating result (IFRS) was EUR 466 (372) million.
- Earnings per share (EPS) were EUR 0.42 (0.26) and EPS excl. fair valuations (FV) was EUR 0.44 (0.25).
- Cash flow from operations amounted to EUR 560 (863) million. Cash flow after investing activities was EUR -26 (-15) million.
Stora Enso’s President and CEO Hans Sohlström comments on the third quarter 2025 results:
During the third quarter of 2025, Stora Enso continued to execute on its strategy and profit improvement actions. While the market continues to be challenging and demand subdued, we focused on the areas within our control.
The improvement actions remained the same – driving operational efficiency, cost competitiveness, and commercial excellence across the Group. In addition, we continue to work on further focusing our portfolio on growth in our core renewable packaging business and operations supporting it.
A major milestone in the quarter was the completion of the divestment of approximately 175,000 hectares of forest land in Sweden, representing 12.4% of our total forest holdings. The transaction, with an enterprise value of SEK 9.8 billion (equivalent to approximately EUR 900 million), in line with forest book value, strengthens our balance sheet and improves our financial flexibility.
We also made progress on the strategic review of our remaining 1.2 million hectares of Swedish forest assets announced in June 2025, including the assessment of a potential separation and public listing. The review aims to evaluate ways to unlock further value for our shareholders and strengthen our focus.
The ramp-up of the new consumer board line at our Oulu site in Finland continues, with production volumes gradually increasing. While the ramp-up has, and will continue to, weigh on profitability in the short term, we remain confident that the Oulu board line will deliver industry-leading quality and cost competitiveness once fully operational. We target EBITDA break-even by the end of the year.
Adjusted EBIT for the quarter was EUR 126 million. Excluding the EUR 45 million impact from the Oulu ramp-up, profitability would have been comparable to the same quarter last year, reflecting a stable underlying performance despite persistent market headwinds.
Demand continued to be subdued due to low consumer confidence, and delivery volumes were relatively low, particularly in containerboard and biomaterials. Despite these challenges, we have intensified our own actions to improve and safeguard profitability, including a strengthened P&L responsibility in business areas, a leaner, more customer-focused organisation, and targeted efficiency programmes. Our net debt to adjusted EBITDA ratio improved to 2.7 from 3.1 a year ago, reflecting the positive impact of the forest asset divestment.
Looking ahead, we will continue our systematic efforts to improve profitability and cash flow, whilst we expect market conditions to continue to be subdued and challenging. The strategic review of the Swedish forest assets and ramp-up of Oulu continue to be priorities.
Thanks to the dedication of our teams, we are now laying the foundation for a stronger, more focused company—one that is better positioned to deliver long-term value. As we reshape the company, the work being done today will define a more resilient and competitive future for Stora Enso.
