Stora Enso (STE) investor relations material

Executive summary

• 2025 was a pivotal year, marked by a sharpened strategic focus, including the separation of Swedish forest assets and a focus on renewable packaging and materials.

• Oulu consumer board line ramp-up continued, impacting short-term profitability, with completion on time and on budget.

• Board proposed a dividend of EUR 0.25 per share for 2025, to be paid in two instalments in 2026.

• Strong sustainability progress: 61% reduction in Scope 1 and 2 emissions since 2019, surpassing 2030 targets, and 94% of products technically recyclable.

• Recognized on the CDP Climate Change 'A List' for leadership in transparency and climate action.

Financial highlights

• Full-year 2025 sales reached EUR 9.3 billion, up 3%, supported by acquisitions and the Oulu ramp-up.

• Adjusted EBIT for 2025 was EUR 528 million, down 12% year-over-year, mainly due to Oulu ramp-up costs and lower pulp prices.

• Oulu ramp-up weighed on earnings by EUR 140 million for the year.

• Net debt to adjusted EBITDA improved to 2.8x, aided by the Swedish forest land divestment.

• Cash flow after investing activities improved as the Oulu investment phase ended.

Outlook and guidance

• Market conditions expected to remain subdued and volatile in 2026 due to macroeconomic and geopolitical uncertainty.

• Focus remains on executing strategy, improving profitability, cash flow, and cost competitiveness.

• Oulu ramp-up to continue, with negative EBIT impact of EUR 15–30 million expected in Q1 2026; full ramp-up targeted for 2027.

• New reporting structure and financial targets to be implemented in Q1 2026.

• Emission rights income projected to drop to EUR 10–20 million in 2026 due to EU ETS rule changes.