#Finland #Helsinki #Stora Enso #Q1 2026 #forest assets

Stora Enso's Q1 2026 Interim Results

Stability in Sales Despite Challenges
Stora Enso Oyj has released its interim report for the first quarter of 2026, demonstrating resilience in its sales figures. The company reported stable sales at EUR 2,358 million, just slightly down from EUR 2,362 million in the same period last year. This consistency in sales is particularly noteworthy, considering the negative effects of fluctuating foreign exchange rates that offset the benefits from increased deliveries.

Financial Overview
Despite a stable sales performance, Stora Enso saw a significant decrease in its adjusted earnings before interest and taxes (EBIT), which fell by 9% to EUR 159 million from EUR 175 million a year earlier. The company's EBIT margin also experienced a decline, landing at 6.7%, down from 7.4%. The operating result, as per International Financial Reporting Standards (IFRS), was reported at EUR 85 million, a stark drop from EUR 171 million year-on-year. This figure included comparability adjustments amounting to EUR -56 million, reflecting the financial pressures Stora Enso is facing.

The report also highlights earnings per share, which were recorded at EUR 0.04, compared to EUR 0.14 from the previous year. Further, the fair value of Stora Enso’s forest assets decreased from EUR 9.3 billion to EUR 8.5 billion due to the partial divestment in 2025.

Cash Flow and Operational Challenges
Cash flow from operations totaled EUR 125 million, down from EUR 192 million, influenced by increased restructuring-related costs and higher working capital demands. After accounting for investments, cash flow improved slightly to negative EUR 22 million from negative EUR 47 million last year. The company's net debt to adjusted EBITDA ratio showed marginal improvement, decreasing to 3.1 from 3.2.

Strategic Developments and Future Outlook
Stora Enso continues to prepare for the separation of its Swedish forest assets into a new publicly-listed company, expected in the first half of 2027. Additionally, a strategic review of its Central European sawmills and building solutions operations is currently underway. An important development is the ramp-up of the consumer board line at the Oulu site in Finland, which is scheduled to reach full capacity by 2027.

Looking forward, the company anticipates challenging market conditions due to geopolitical tensions, particularly concerning the ongoing conflict in the Middle East. These tensions are projected to exert upward pressure on costs, specifically in logistics, chemicals, and energy inputs. Stora Enso is actively addressing these challenges while maintaining vigilance over the cost implications as they unfold. The company's management remains focused on improving operational efficiency and commercial excellence to navigate these uncertainties.

Hans Sohlström, CEO of Stora Enso, emphasized that the first quarter progressed mostly as expected, albeit within a challenging market environment. The company is committed to sustainability and innovation, striving to replace non-renewable materials with renewable solutions.

Engagement and Future Events
In addition to the financial updates, Stora Enso plans to hold a Capital Markets Day on November 3, 2026, to provide deeper insights into its strategies and the forthcoming separation of its forest assets business. Investors and analysts are invited to participate in the upcoming webcast for a comprehensive explanation of the results and future outlook.

In conclusion, while Stora Enso faces notable challenges in the current market, the company's strategic focus on innovation, operational efficiency, and sustainability positions it to navigate through the complexities of the market landscape effectively.