Stora Enso (STE) Q4 2025 earnings summary

Executive summary

• 2025 marked a pivotal year with a sharpened strategic focus, including the separation into two companies: a renewable materials leader and a pure-play forest company, and the divestment of Swedish forest assets.

• Oulu consumer board line ramp-up continued, impacting short-term profitability and earnings but strengthening long-term competitiveness.

• Resilient results achieved despite challenging market conditions, with sales of EUR 9,326 million, up 3% year-over-year, and adjusted EBIT of 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 inclusion 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 Swedish forest land divestment.

• Cash flow from operations was EUR 897 million, with cash flow after investing activities at EUR 122 million.

• 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.

• Strategic focus on margin expansion, cash flow, and disciplined capital allocation continues, with new financial targets and reporting structure to be implemented in Q1 2026.

• Oulu ramp-up to continue, with full capacity expected by 2027; Q1 2026 EBIT impact guided at EUR 15–30 million.

• Annual adjusted EBIT to decrease by EUR 20 million due to the Swedish forest asset divestment.

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