Stora Enso (STE) investor relations material

Executive summary

• Achieved solid business performance in a volatile demand environment, with all operational segments posting positive adjusted EBIT for the second consecutive quarter.

• Strengthened focus on renewable packaging and sustainability, with major steps including divestment of 12.4% of Swedish forest land and a strategic review of remaining forest assets.

• Transformation initiatives and a new, leaner organizational structure were implemented to drive long-term value and operational efficiency.

• Oulu board line ramp-up impacted profitability but positions for future growth.

• Completed acquisition of Junnikkala Oy sawmills to support integration and cost efficiency.

Financial highlights

• Q2 2025 sales reached €2.4 billion, up 5% year-over-year, driven by higher deliveries and structural changes.

• Adjusted EBIT was €126 million, down €27 million year-over-year, mainly due to a €50 million negative impact from the Oulu ramp-up.

• Cash flow from operations was €145 million; after investments, free cash flow was negative €37 million, as expected due to Oulu investments.

• Net debt to adjusted EBITDA improved to 3.3x from 3.5x year-over-year; net debt increased slightly to €4 billion.

• Forest assets fair value at €9 billion, equivalent to €11.4 per share.

Outlook and guidance

• Oulu ramp-up expected to reach EBITDA breakeven in Q4 2025; full ramp-up to add €800 million in sales by 2027.

• CapEx expected to decrease as Oulu investment phase ends; net debt and leverage ratio anticipated to improve post-forest asset divestment.

• Market demand expected to remain subdued and volatile due to macroeconomic and geopolitical uncertainty.

• Full-year 2025 adjusted EBIT to be negatively impacted by €100 million or more from Oulu ramp-up; capex forecast €730–790 million.

• Focus for 2025 includes improving profitability, cash flow, and cost competitiveness across sourcing, operations, and fixed costs.