Stora Enso (STE) investor relations material

Executive summary

• 2025 marked a pivotal year with a sharpened strategic focus, including the separation of Swedish forest assets and a review of Central European sawmills and building solutions, as well as a focus on renewable packaging and materials.

• Oulu consumer board ramp-up weighed on earnings by EUR 140 million but is key to long-term competitiveness; ramp-up continues to impact short-term profitability.

• Sales reached EUR 9.3 billion, up 3% year-over-year, and adjusted EBIT was EUR 528 million, down 12% mainly due to Oulu ramp-up and lower pulp prices.

• Strong sustainability progress: 61% reduction in Scope 1 and 2 emissions since 2019, 94% of products technically recyclable, and recognition on CDP's Climate Change A List.

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

Financial highlights

• Full year 2025 sales were EUR 9,326 million (+3%), adjusted EBIT EUR 528 million (-12%), and operating result (IFRS) EUR 942 million.

• Q4 2025 sales decreased 3% year-over-year to EUR 2,254 million, with adjusted EBIT down 17% to EUR 100 million.

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

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

• EPS was EUR 0.88 (vs. -0.17 in 2024); EPS excluding fair valuations was EUR 0.41.

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 full capacity expected by 2027; Q1 2026 EBIT impact guided at EUR 15–30 million.

• New reporting structure and financial targets to be implemented in Q1 2026, regrouping packaging businesses.

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