Stora Enso Reports Solid Business Performance Despite Market Challenges in Q2 2025

Overview of Stora Enso's Half-Year Report Q2 2025

Stora Enso, a global leader in renewable products, released its half-year financial report for January to June 2025, highlighting a solid performance amidst volatile market conditions. The company's sales rose by 5% year-on-year, reaching EUR 2,426 million, primarily driven by increased deliveries and positive structural changes. However, the adjusted EBIT witnessed a decline of 18% to EUR 126 million, influenced negatively by the ramp-up of the new consumer board line at the Oulu factory, which impacted earnings by approximately EUR 50 million.

Financial Highlights

In the financial details, Stora Enso reported an operating result of EUR 64 million, showing a decrease from EUR 92 million in the previous year. Additionally, earnings per share dropped to EUR 0.03 from EUR 0.05. Despite these challenges, the company’s cash flow from operations was recorded at EUR 145 million, adversely affected by lower profits and decreasing trade payables. Notably, the fair value of forest assets increased to EUR 9.0 billion, equating to EUR 11.40 per share.

Strategic Developments

Stora Enso took significant steps in its business strategy, including a major agreement in May to divest approximately 175,000 hectares of forest land in Sweden, which represents 12.4% of its total holdings in the country. This transaction, valued at EUR 900 million, aims to reduce the company’s debt while retaining a 15% ownership for long-term wood supply assurance. The company is also conducting a strategic review of its Swedish forest assets, which may lead to a potential separation and public listing in the future.

The company is committed to enhancing its organizational structure, which was streamlined into four main focus areas for its packaging business effective July 1, 2025. These areas will emphasize renewable packaging, supporting the global shift towards sustainable materials.

Market Outlook

As Stora Enso navigates through geopolitical and macroeconomic uncertainties, it anticipates subdued demand persist into 2025. The company’s guidance indicates an expected adverse impact on adjusted EBIT due to the ongoing ramp-up of the new packaging line at Oulu, estimated to exceed EUR 100 million for the full year. Despite the challenges posed by fluctuating fiber costs and ongoing market volatility, Stora Enso aims to enhance profitability through various operational efficiencies and strategic integrations across its Nordic packaging board mills.

Conclusion

The resilience of Stora Enso is evident through its performance metrics and strategic initiatives, particularly in the context of ongoing market fluctuations and demands for renewable products. As the company prepares for the remaining months of 2025, it remains focused on sustainability, efficiency, and enhanced customer value, providing a solid foundation for future growth amid external challenges. The positive steps taken in asset management and organizational restructuring position the company well as it strives to strengthen its competitive advantage in the renewable sourcing and packaging sectors.