Stora Enso saw a 5% increase in sales for the second quarter of 2025, reaching EUR 2.426 billion compared to EUR 2.301 billion in Q2 2024. This increase was largely attributed to stronger demand for wood products and packaging solutions, as well as positive structural changes within the company. Despite this growth in sales, the company faced some challenges, particularly related to the ramp-up of its new consumer board line at the Oulu site in Finland, which impacted profitability.
Financial results
In terms of profitability, Stora Enso reported a decline in adjusted EBIT by 18%, dropping from EUR 153 million in Q2 2024 to EUR 126 million in Q2 2025. This resulted in a lower adjusted EBIT margin of 5.2%, down from 6.7% in the previous year. The ramp-up of the new consumer board line at the Oulu site had a significant negative impact on profits, with an estimated cost of EUR 50 million. This is part of the company’s long-term strategy to strengthen its renewable packaging segment.
The company’s operating result, based on IFRS standards, was EUR 64 million, down from EUR 92 million in the same period last year. This decline includes EUR 35 million in items affecting comparability and EUR 27 million in fair valuations and other non-operational items. Earnings per share were EUR 0.03, down from EUR 0.05 in Q2 2024, with earnings excluding fair valuations (FV) at EUR 0.05, down from EUR 0.06.
Divestitures and acquisitions
In May 2025, Stora Enso entered into a significant transaction by divesting approximately 175,000 hectares of forest land in Sweden. This transaction, valued at EUR 900 million (SEK 9.8 billion), represents 12.4% of Stora Enso’s total forest land holdings in the country. The sale was part of the company’s strategy to optimise its asset portfolio and strengthen financial flexibility. As part of this deal, Stora Enso will retain a 15% stake in the divested land and enter into a long-term wood supply agreement.
Additionally, Stora Enso initiated a strategic review of its remaining 1.2 million hectares of forest assets in Sweden. The review aims to assess potential options, including the possibility of separating and listing these forest assets as an independent entity. This move is expected to unlock further value from the company’s unique forest holdings while enabling Stora Enso to focus on expanding its renewable packaging business.
Key operational developments: Oulu Site and new organisational structure
One of the most critical developments in Q2 2025 was the ongoing ramp-up of the new consumer board line at the Oulu mill in Finland. While the new line is expected to reach full capacity by 2027, the ramp-up has put pressure on the company’s short-term profits. Despite this, Stora Enso is optimistic about the line’s future, with customer feedback on product quality being highly positive. This new line is central to the company’s strategy of strengthening its position in the renewable packaging market.
Stora Enso also completed the acquisition of Junnikkala Oy, a Finnish sawmill company, during the quarter. This acquisition is expected to enhance the cost competitiveness of the Oulu mill and further contribute to the company’s renewable packaging growth.
In July 2025, Stora Enso introduced a new, leaner organisational structure aimed at improving operational efficiency and focusing more intently on renewable packaging. The company restructured its packaging business into four core areas: Foodservice and Liquid Board, Cartonboard, Containerboard, and Packaging Solutions. This strategic restructuring is designed to streamline operations, reduce complexity, and enhance customer focus, all while improving the company’s ability to meet the growing demand for sustainable packaging solutions.
Financial outlook
Looking ahead to the second half of 2025, Stora Enso expects market demand to remain subdued and volatile. Heightened macroeconomic and geopolitical uncertainty continues to affect the company’s operations, with ongoing challenges in the pulp and board markets. Market pulp prices are forecasted to remain weak due to inventory build-ups and seasonal factors, while the packaging market faces pressure from increased competition, especially from Asian producers.
In terms of costs, Stora Enso anticipates an increase in maintenance costs for Q3 2025, expected to rise by EUR 10 million compared to Q2 2025. Additionally, the ramp-up at the Oulu mill is forecasted to continue to weigh on profits, with an estimated negative impact of EUR 30-45 million in Q3 2025.
Despite these challenges, Stora Enso remains committed to improving profitability and cash flow through enhanced operational efficiency and cost management. The company’s capital expenditure forecast for the full year of 2025 is between EUR 730 million and EUR 790 million, reflecting ongoing investments in its renewable packaging capabilities.
CEO’s Statement
Stora Enso’s President and CEO, Hans Sohlström, emphasised the company’s resilience in navigating a volatile global market. He noted that despite the challenging conditions, Stora Enso has made significant progress in its strategic initiatives, including the divestiture of forest land, the ramp-up of the Oulu site, and the acquisition of Junnikkala Oy.
Sohlström also highlighted the company’s commitment to sustainable growth, noting that Stora Enso remains focused on its renewable packaging strategy while continuing to manage its forest assets actively. The company’s focus on profitability, cost competitiveness, and innovation will be key to navigating the challenges in the second half of 2025 and beyond.
In conclusion, Stora Enso’s performance in Q2 2025 reflects a combination of strong sales growth and strategic investments in renewable packaging, despite the pressure from market volatility and the ongoing ramp-up of new production lines. The company’s focus on sustainability, efficiency, and innovation positions it well for long-term growth. As the market remains unpredictable, Stora Enso is taking decisive steps to adapt, streamline operations, and optimise its asset portfolio to maximise value for its stakeholders.
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