Stora Enso (STE) Q3 2025 earnings summary

Executive summary

• Achieved 1% year-over-year sales growth in Q3 2025 to EUR 2.3 billion, despite challenging market conditions and subdued consumer sentiment, mainly due to acquisitions and Oulu ramp-up.

• Adjusted EBIT fell 28% year-over-year to EUR 126 million, mainly due to the Oulu consumer board line ramp-up, which had a EUR 45 million negative EBIT impact in Q3.

• Completed the divestment of 12–12.4% of Swedish forest assets for EUR 900 million, strengthening the balance sheet and reducing net debt.

• Strategic review of remaining Swedish forest assets ongoing, with potential demerger and public listing under consideration.

• Leadership changes: new EVP for People and Legal, CFO assumes additional responsibilities effective January 2026.

Financial highlights

• Q3 2025 sales: EUR 2,283 million (+1% YoY); adjusted EBIT: EUR 126 million (-28% YoY); operating result: EUR 231 million (+66% YoY).

• Net debt to adjusted EBITDA improved to 2.7x from above 3x, reflecting the Swedish forest asset divestment.

• Cash flow from operations turned positive, supported by a EUR 700 million reduction in operating working capital since 2023.

• Earnings per share: EUR 0.25 (EUR 0.11 in Q3 2024); net result for Q3: EUR 201 million.

• Capital expenditure for Q3: EUR 144 million (EUR 229 million in Q3 2024); 2025 CapEx forecast: EUR 730–790 million.

Outlook and guidance

• Oulu ramp-up EBIT impact for Q4 projected at EUR 35–50 million; full-year EBIT impact expected at EUR 120–140 million.

• Full ramp-up of Oulu expected by 2027, with EBITDA break-even targeted by year-end 2025.

• Market demand expected to remain subdued due to low consumer confidence and macroeconomic/geopolitical uncertainty.

• CapEx to decrease from over EUR 1 billion in recent years to mid-EUR 700 million, with further reductions expected.

• Q4 profitability to be impacted by planned maintenance stops.