STORA ENSO OYJ HALF-YEAR REPORT 23 July 2026 at 8:30 EEST
HELSINKI, July 23, 2026 /PRNewswire/ --
Q2/2026 (year-on-year)
-- Sales remained stable at EUR 2,423 (2,426) million, as the positive
impact from structural changes was offset by lower prices and adverse
currency movements.
-- Adjusted EBIT increased by 27% to EUR 160 (126) million, supported by a
positive impact of the ramp-up of the new consumer board line at the Oulu
site. The adjusted EBIT margin increased to 6.6% (5.2%).
-- Operating result (IFRS) was EUR 16 (64) million, including items
affecting comparability of EUR -83 (-35) million, mainly related to
impairments and restructuring, and fair valuations and other
non-operational items of EUR -61 (-27) million, mostly related to fair
valuation of biological assets.
-- Earnings per share were EUR -0.03 (0.03) and earnings per share excl.
fair valuations $(FV)$ were EUR 0.03 (0.05).
-- The fair value of the forest assets was EUR 8.5 (9.0) billion, equivalent
to EUR 10.80 per share, reflecting the impact of the divestment of 12.4%
of forest assets in Sweden in 2025.
-- Cash flow from operations amounted to EUR 87 million. Operating working
capital had a negative cash flow impact of EUR 101 million where the main
drivers were higher trade receivables, mainly due to stronger consumer
packaging sales and lower trade payable. This was partly offset by a
decrease in inventories.
-- The net debt to adjusted EBITDA $(LTM)$ ratio improved to 2.2 (3.3),
primarily driven by a reduction in net debt, as proceeds from the hybrid
bond were classified as equity.
January-June 2026 (year-on-year)
-- Sales were EUR 4,781 (4,789) million.
-- Adjusted EBIT was EUR 319 (301) million.
-- Operating result (IFRS) was EUR 101 (235) million.
-- Earnings per share (EPS) were EUR 0.01 (0.17) and EPS excl. fair
valuations (FV) was EUR 0.08 (0.18).
-- Cash flow from operations amounted to EUR 212 (336) million.
Key highlights
-- Stora Enso continues the preparations for the planned separation of its
Swedish forest assets business into a new publicly-listed company,
expected to be completed during the first half of 2027.
-- Stora Enso's strategic review of its Central European sawmills and
building solutions operations is ongoing.
-- The ramp-up of the consumer board line at the Oulu site in Finland
continues, and the production volumes are gradually increasing. The line
is expected to reach full capacity during 2027.
-- Stora Enso is strengthening its focus on specialised pulp grades with a
EUR 19 million investment to increase fluff pulp production at its
Skutskär site in Sweden, responding to growing consumer demand for
hygiene products. As part of this transition, softwood pulp production on
fiberline 3 will be permanently shut down during Q3/2026.
-- Stora Enso published its Circularity Plan, aligned with the Global
Circularity Protocol for Business (GCP), and has set a new target to
achieve 90% material circularity in its direct operations by 2030.
-- In July, the corrugated board production units in Germany were divested
to optimise the asset base.
Outlook Q3/2026
-- Market conditions remain uncertain. Continued geopolitical tensions and
trade-related volatility may affect customer demand, supply chains and
input costs. Stora Enso continues to focus on actions within its control
while proactively adapting to market developments with agility.
-- Planned maintenance impact in the third quarter is expected to increase
by approximately EUR 40-50 million compared with the second quarter. The
increase is due to scheduled maintenance shutdowns across all operational
segments.
-- The ramp-up of the new production line in Oulu continues. A longer annual
shutdown is planned in the third quarter, during which selected
efficiency improvement equipment will be installed. The negative impact
on adjusted EBIT is expected to remain at a similar level to the second
quarter.
-- The divestment of 175,000 hectares of forest assets in Sweden, completed
in 2025, will result in a reduction of annual adjusted EBIT of
approximately EUR 20 million, with an estimated quarterly effect of
approximately EUR 5 million.
-- The operating income from emission rights in 2025 was about EUR 72
million, distributed evenly throughout the year. For 2026, the income
from the sale of emission rights is projected to decrease to EUR 10-20
million. This decline reflects changes to the EU ETS (Emissions Trading
Scheme) rules: several sites will lose their free CO allowance
allocations from 2026 onward, as their emissions are more than 95%
biogenic and therefore no longer qualify for free allocations under the
revised ETS framework.
Key figures
Change %
EUR million Q2/26 Q2/25 Q2/26-Q2/25 Q1/26 Q1-Q2/26 Q1-Q2/25 2025
------------ ------ ------ ------------ ------ -------- -------- ------
Sales 2,423 2,426 -0.1 % 2,358 4,781 4,789 9,326
------------ ------ ------ ------------ ------ -------- -------- ------
Adjusted
EBITDA 320 279 14.5 % 309 628 599 1,144
------------ ------ ------ ------------ ------ -------- -------- ------
Adjusted
EBIT 160 126 26.8 % 159 319 301 528
------------ ------ ------ ------------ ------ -------- -------- ------
Adjusted
EBIT
margin 6.6 % 5.2 % 6.7 % 6.7 % 6.3 % 5.7 %
------------ ------ ------ ------------ ------ -------- -------- ------
Operating
result
(IFRS) 16 64 -74.7 % 85 101 235 942
------------ ------ ------ ------------ ------ -------- -------- ------
Result
before tax
(IFRS) -26 20 -229.9 % 43 18 152 783
------------ ------ ------ ------------ ------ -------- -------- ------
Net result
for the
period
(IFRS) -11 15 -172.1 % 35 24 122 686
------------ ------ ------ ------------ ------ -------- -------- ------
Cash flow
from
operations 87 145 -39.8 % 125 212 336 897
------------ ------ ------ ------------ ------ -------- -------- ------
Cash flow
after
investing
activities 3 -37 107.0 % -22 -19 -83 122
------------ ------ ------ ------------ ------ -------- -------- ------
Forest
assets(1) 8,518 8,990 -5.3 % 8,484 8,518 8,990 8,478
------------ ------ ------ ------------ ------ -------- -------- ------
Earnings per
share (EPS)
excl. FV,
EUR 0.03 0.05 -49.1 % 0.05 0.08 0.18 0.41
------------ ------ ------ ------------ ------ -------- -------- ------
EPS (basic),
EUR -0.03 0.03 -195.5 % 0.04 0.01 0.17 0.88
------------ ------ ------ ------------ ------ -------- -------- ------
Net debt to
LTM(2)
adjusted
EBITDA
ratio 2.2 3.3 3.1 2.2 3.3 2.8
------------ ------ ------ ------------ ------ -------- -------- ------
Average
number of
employees
(FTE) 18,215 19,136 -4.8 % 18,055 18,174 18,849 18,877
------------ ------ ------ ------------ ------ -------- -------- ------
(1) Total forest assets value, including leased land and Stora Enso's share of
forest assets in associated companies (2) LTM=Last 12 months
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Stora Enso's President and CEO Hans Sohlström comments the results:
"The second quarter marked another period of disciplined execution in a volatile market environment. We improved operational performance, strengthened customer relationships and advanced several important strategic initiatives. Despite continued market uncertainty, we made progress in building a stronger and more focused Stora Enso.
I am particularly pleased with the progress in Consumer Packaging, where operational performance strengthened further and customer feedback continues to be very encouraging. We continue to receive positive feedback on both product quality and service, reflecting the dedication of our teams, strength of our customer offering and our significant investments in leading technologies. Creating customer value remains at the heart of our strategy, and it is encouraging to see this translating into stronger customer relationships and faster than market growth.
At the same time, we continued to execute our strategy and focus on our portfolio. We announced actions to further strengthen our position in specialised pulp through the decision to invest in fluff pulp capacity at Skutskär, while also closing a less competitive production line at the site. As a part of our corrugated asset base optimisation we divested the corrugated board production in Germany. These actions are aligned with our strategic ambition to strengthen competitiveness and allocate capital where we see the greatest opportunities to create value.
Preparations for the separation of our Swedish forest assets business, Bergslagets Skogar, also progressed as planned. The strategy is defined, the organisation is in place, and preparations continue at a good pace. Bergslagets Skogar is an important step towards unlocking value and enhancing the strategic focus of both companies.
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