Stora Enso Q3 profit declines amid Oulu ramp-up, market headwinds

FINLAND – Finnish pulp and packaging major Stora Enso has posted a 28% drop in adjusted operating profit for the third quarter (Q3) of 2025, with earnings before interest and taxes (EBIT) falling to €126 million from €175 million a year earlier.

The decline was largely attributed to the ongoing ramp-up of a consumer board line at its Oulu site, which had a negative impact of €45 million during the quarter.

The company’s adjusted EBIT margin narrowed to 5.5% from 7.8% in the same period of 2024, while sales inched up 1% to €2.28 billion, supported by the Junnikkala acquisition and Oulu’s gradual production increase.

On an IFRS basis, operating profit rose to €231 million from €139 million, reflecting €117 million in items affecting comparability.

Basic earnings per share increased to €0.25 from €0.11, but cash flow from operations dipped to €223 million from €271 million a year ago.

During the quarter, Stora Enso completed the sale of 175,000 hectares of forest land in Sweden for SEK 9.8 billion (€900 million), representing 12.4% of its Swedish forest holdings.

The divestment helped reduce the company’s net debt-to-adjusted EBITDA ratio to 2.7 from 3.1. Following the sale, the fair value of forest assets stood at €8.3 billion, down from €8.8 billion a year earlier.

Looking ahead, Stora Enso warned of ongoing weakness in packaging and pulp markets amid subdued consumer demand and flat or declining prices.

Capital expenditure for 2025 is projected between €730 million and €790 million, with maintenance stoppages remaining consistent with Q3 levels.

The Swedish forest divestment is expected to have an annual adverse impact of around €25 million on the Forest segment, starting in Q4.

President and CEO Hans Sohlström reaffirmed the group’s focus on profitability and competitiveness, saying, “While the market continues to be challenging, we are laying the foundation for a stronger, more focused company, one that is better positioned to deliver long-term value.”

Amid its operational challenges, Stora Enso also introduced Ensovelvet, a premium uncoated solid bleached sulphate (SBS) board designed for luxury packaging.

The product, offering a smooth “velvet-like” texture, debuted at LuxePack Monaco (29 September–1 October 2025), underscoring the company’s push into high-value, sustainable packaging solutions for cosmetics, fragrances, and premium consumer goods.

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE