Stora Enso's Q3 2025 Report: Success Amidst Market Challenges

Stora Enso's Q3 2025 Interim Report Overview

Stora Enso Oyj has released its interim report for January to September 2025, which reflects significant progress despite facing a myriad of market challenges. Published on October 23, the report provides an in-depth look at the company's performance during the third quarter.

Financial Highlights of Q3 2025

In the third quarter of 2025, Stora Enso noted a 1% increase in sales, totaling EUR 2,283 million compared to EUR 2,261 million in Q3 2024. A significant factor contributing to this increase was the acquisition of Junnikkala and the ramp-up of the new consumer board line at the Oulu site.

Adjusted EBIT, however, saw a notable decrease of 28%, dropping to EUR 126 million from EUR 175 million the previous year. This decline was primarily attributed to the ongoing ramp-up of the new line in Oulu, which negatively impacted the quarter by EUR 45 million. The adjusted EBIT margin fell to 5.5%, down from 7.8% in the same period last year.

The overall operating result (IFRS) for this quarter improved significantly, reaching EUR 231 million compared to EUR 139 million in Q3 2024, boosted by items affecting comparability totaling EUR 117 million and fair valuations.

Year-to-Date Performance

Looking at the nine-month period from January to September 2025, Stora Enso achieved sales of EUR 7,072 million, a rise from the prior year's EUR 6,727 million. Adjusted EBIT was recorded at EUR 427 million, down from EUR 478 million, demonstrating the corporation's resilience amid adverse conditions.

The operating result for the period was EUR 466 million, increasing from EUR 372 million last year. Earnings per share also showed remarkable growth, rising to EUR 0.42 from EUR 0.26, alongside a similar uptick in EPS that excludes fair valuations.

Despite the lower cash flow from operations at EUR 560 million, compared to EUR 863 million last year, the financial situation remains robust, underlined by a net debt to adjusted EBITDA ratio, which improved to 2.7 from 3.1 over the last year.

Strategic Developments and Future Outlook

A significant milestone for Stora Enso was the divestment of approximately 175,000 hectares of forest land in Sweden, completed in September 2025. This transaction, valued at SEK 9.8 billion, represents 12.4% of the company’s forest assets in Sweden. Stora Enso aims to assess a potential separation and public listing of their remaining forest assets to unlock more value for shareholders.

The company continues its strategic focus on ramping up the new consumer board line at the Oulu site, incrementally increasing production volumes. While the ramp-up has faced delays, Stora Enso is on track to achieve EBITDA break-even by year-end despite the anticipated EBIT impact in the fourth quarter.

As the fourth quarter approaches, market conditions are predicted to remain challenging, largely due to low consumer confidence. Stora Enso's leadership has stated that comprehensive strategies are in place to enhance profitability and optimize cash flow through improved operational efficiency.

Focus Areas for Enhancements in 2025

Looking towards 2025, Stora Enso is committed to proactively addressing profitability and cash flow. The initiatives planned include streamlining operations across their renewable packaging business, refining customer connections, and enhancing operational processes to deliver better performance.

Moreover, they will continue their review of the remaining Swedish forest assets, exploring strategic options to maximize returns. The company remains dedicated to leveraging its EUR 1 billion investment into the Oulu packaging line, emphasizing their competitive positioning in the industry.

Final Thoughts and Closing

As challenges persist within the broader market, the firm is determined to sustain its focus and strategic execution. Acknowledging the urgent ecosystem demands, the company remains steadfast in its commitment to creating a sustainable and environmentally friendly approach while enhancing its operational capabilities. With a strong foundation laid this year, Stora Enso is poised for a resilient and competitive future.

Frequently Asked Questions

What are the key financial highlights for Stora Enso in Q3 2025?

Stora Enso reported a 1% increase in sales, with adjusted EBIT decreasing by 28%. The operating result improved significantly, reaching EUR 231 million.

How did Stora Enso perform year-to-date in 2025?

The company achieved sales of EUR 7,072 million, with adjusted EBIT at EUR 427 million, reflecting resilience amid challenges.

What strategic moves has Stora Enso made recently?

Stora Enso successfully divested approximately 175,000 hectares of forest land in Sweden and is evaluating further strategic options for its remaining forest assets.

What is the company’s outlook for the future?

Stora Enso anticipates further challenges in the market but aims to enhance profitability and cash flow through strategic improvements and efficiencies.

How has the ramp-up at the Oulu site progressed?

The ramp-up continues, albeit slightly behind schedule, with expectations to reach full operational capacity by 2027.

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