Stora Enso Interim Report January-September 2025: Good progress in a challenging market environment – Stora Enso (OTC:SEOAY)

STORA ENSO OYJ INTERIM REPORT 23 October 2025 at 8:30 EEST

HELSINKI, Oct. 23, 2025/ PRNewswire/–

Q3/2025 (year-on-year)

• Sales increased by 1% to EUR 2,283 (2,261) million, generally due to the acquisition of Junnikkala and the customer board line ramp-up at the Oulu website.
• Changed EBIT reduced by 28% to EUR 126 (175) million, driven by the ramp-up of the brand-new line in Oulu, affecting the Q3 result adversely by EUR 45 million Changed EBIT margin reduced to 5.5% (7.8%).
• Operating outcome (IFRS) was EUR 231 (139) million, consisting of products impacting comparability of EUR 117 million, and reasonable assessments and other non-operational products of EUR -11 million
• Revenues per share were EUR 0.25 (0.11) and incomes per share excl. reasonable assessments (FV) were EUR 0.26 (0.10 ).
• The reasonable worth of the forest possessions was EUR 8.3 (8.8) billion, comparable to EUR 10.50 per share, showing the effect of the forest property divestment in Sweden
• Capital from operations totaled up to EUR 223 (271) million, affected by the lower revenue.
• The net financial obligation to changed EBITDA (LTM) ratio enhanced to 2.7 (3.1 ).
• Changed ROCE omitting the Forest section (LTM) was 2.8% (2.7%).

January- September 2025 (year-on-year)

• Sales were EUR 7,072 (6,727) million.
• Changed EBIT was EUR 427 (478) million.
• Operating outcome (IFRS) was EUR 466 (372) million.
• Revenues per share (EPS) were EUR 0.42 (0.26) and EPS excl. reasonable assessments (FV) was EUR 0.44 (0.25 ).
• Capital from operations totaled up to EUR 560 (863) million. Capital after investing activities was EUR -26 (-15) million.

Secret highlights

• The divestment of around 175,000 hectares of forest land in Sweden, equivalent of 12.4% of Stora Enso’s Swedish forest possessions, was finished in September. The business worth of the deal was SEK 9.8 billion, comparable to around EUR 900 million
• The tactical evaluation of the Group’s staying forest possessions in Sweden, started in July, is advancing. The evaluation consists of evaluating a prospective separation and public listing of the forest possessions.
• The ramp-up of the customer board line at the Oulu website in Finland continues, and the production volumes are slowly increasing. The line is anticipated to reach complete capability throughout 2027.
• In October, Stora Enso and the International Union for Preservation of Nature (IUCN) introduced a science-based structure to make it possible for nature favorable forestry. It guides notified prioritisation of biodiversity actions, guaranteeing that the most immediate hazards to biodiversity are attended to initially.
• The 2nd instalment of dividend, EUR 0.12 per share, was paid on 2 October.

Outlook and focus for 2025
Stora Enso anticipates market need to stay controlled and tough, impacted by low customer self-confidence and increased macroeconomic and geopolitical unpredictability.

Assistance
The ramp-up of the customer board line at the Oulu website in Finland continues, and the production volumes are slowly increasing. Nevertheless, volumes are rather behind the initial schedule. In spite of this, the target of reaching EBITDA break-even by year-end is the same. As an outcome, the EBIT effect for Q4 will be greater than at first expected – now approximated at an unfavorable EUR 15 -35 million. The complete year EBIT effect approximated to be around unfavorable EUR 120 -140 million. The line is anticipated to reach complete capability throughout 2027.

Beginning in the 4th quarter, the finished divestment of the forest possessions in Sweden will have a yearly unfavorable effect of EUR 25 million, around EUR 6 million per quarter, on the Forest section’s outcomes.

The Group’s capital investment projection for the complete year of 2025 is EUR 730 -790 million.

4th quarter success will be affected by prepared upkeep stops, which are anticipated to be at comparable levels as in the 3rd quarter.

Focus for 2025

• Continue proactive, methodical, and identified work throughout the entire Group to enhance success, capital, and expense competitiveness through activities connected to sourcing, functional effectiveness, business quality, working capital, and repaired expenses.
• Continue to construct a leaner and flatter organisation, honing the concentrate on sustainable product packaging as the core service. The brand-new structured structure not just boosts client centricity and functional effectiveness through much deeper combination, however likewise opens additional efficiency capacity.
• Shift to a more integrated service design throughout the Nordic product packaging board mills to enhance the whole worth chain and customer-centricity.
• After effectively finishing the sale of 12.4% of the Swedish forest possessions, continue the tactical evaluation of the staying Swedish forest possessions, consisting of evaluation of a prospective separation and public listing.
• Increase production and utilize the EUR 1 billion financial investment in the brand-new product packaging board line at the incorporated mill in Oulu, Finland, to even more reinforce Stora Enso’s competitive position.

Outlook from Q3/2025 to Q4/2025

Markets stay tough, with low customer self-confidence.

The direct effect of the United States tariffs stays modest as Stora Enso’s direct sales to the U.S.A. represent only simply listed below 3% of overall group sales (2024 ). While tariffs affecting worldwide trade present both dangers and chances, the main issue depends on their wider ramifications for financial conditions and trade circulations. Indirect impacts – such as damaging customer self-confidence and a boost in Chinese exports to Europe – continue to weigh on the marketplaces.

Market outlook continues weak due to reduced end-user need, which is causing damaging order inflow and lower volumes especially in the product packaging services. Market value stay under relentless down pressure as supply continues to go beyond need.

Market need for pulp stays weak, driven by continuous market unpredictability. Market pulp costs are steady at low levels, and with need continuing to lag. Rates are anticipated to remain flat or reveal just minimal motion for the rest of the year.

Need in the wood items markets stays low. The building and construction market outlook continues to be weak, and the European building and construction self-confidence index stays unfavorable. In addition, increasing log expenses in Central Europe are putting additional pressure on margins.

The Forest section continues to provide strong monetary efficiency. Fiber expenses are anticipated to stay high, although wood costs have actually reduced somewhat.

Secret figures

Stora Enso’s President and CEO Hans Sohlström discuss the 3rd quarter 2025 outcomes:

Throughout the 3rd quarter of 2025, Stora Enso continued to carry out on its technique and revenue enhancement actions. While the marketplace continues to be tough and need controlled, we concentrated on the locations within our control.

The enhancement actions stayed the very same – driving functional effectiveness, expense competitiveness, and business quality throughout the Group. In addition, we continue to deal with additional focusing our portfolio on development in our core sustainable product packaging service and operations supporting it.

A significant turning point in the quarter was the conclusion of the divestment of around 175,000 hectares of forest land in Sweden, representing 12.4% of our overall forest holdings. The deal, with a business worth of SEK 9.8 billion (comparable to around EUR 900 million), in line with forest book worth, enhances our balance sheet and enhances our monetary versatility.

We likewise made development on the tactical evaluation of our staying 1.2 million hectares of Swedish forest possessions revealed in June 2025, consisting of the evaluation of a prospective separation and public listing. The evaluation intends to assess methods to open additional worth for our investors and reinforce our focus.

The ramp-up of the brand-new customer board line at our Oulu website in Finland continues, with production volumes slowly increasing. While the ramp-up has, and will continue to, weigh on success in the short-term, we stay positive that the Oulu board line will provide industry-leading quality and expense competitiveness as soon as totally functional. We target EBITDA break-even by the end of the year.

Changed EBIT for the quarter was EUR 126 million Leaving out the EUR 45 million effect from the Oulu ramp-up, success would have been similar to the very same quarter in 2015, showing a steady hidden efficiency in spite of relentless market headwinds.

Need continued to be controlled due to low customer self-confidence, and shipment volumes were reasonably low, especially in containerboard and biomaterials. In spite of these difficulties, we have actually heightened our own actions to enhance and protect success, consisting of a strengthened P&L duty in service locations, a leaner, more customer-focused organisation, and targeted effectiveness programs. Our net financial obligation to changed EBITDA ratio enhanced to 2.7 from 3.1 a year earlier, showing the favorable effect of the forest property divestment.

Looking ahead, we will continue our methodical efforts to enhance success and capital, whilst we anticipate market conditions to continue to be controlled and tough. The tactical evaluation of the Swedish forest possessions and ramp-up of Oulu continue to be concerns.

Thanks to the commitment of our groups, we are now laying the structure for a more powerful, more concentrated company-one that is much better placed to provide long-lasting worth. As we improve the business, the work being done today will specify a more resistant and competitive future for Stora Enso.

Webcast for experts, financiers, and media
Stora Enso’s President and CEO Hans Sohlström and CFO Niclas Rosenlew will provide the lead to a webcast today beginning at 11:30 am EET ( 10:30 CET, 9:30 BST, 4:30 EDT). The live the webcast can be accessed utilizing the following link: https://stora-enso-oyj-q3-earnings-presentation-2025.open-exchange.net/registration

Throughout the webcast discussion, experts and financiers will likewise have the possibility to ask concerns. To take part in the teleconference, please select the “Teleconference” alternative on the homepage of the webcast. Recording of the webcast will be readily available soon after the occasion at the very same address and at storaenso.com/en/investors/interim-report.

Media agents who want to ask concerns after the publication of the report might call Carl Norell, SVP Corporate Communications at Stora Enso on +46 72 241 0349.

This release is a summary of Stora Enso’s Interim Report January- September 2025 The total report is connected to this release as a pdf file, and it is likewise readily available on the business site at storaenso.com/en/investors/interim-report.

Media queries:
Carl Norell
SVP Corporate Communications
tel. +46 72 241 0349

Financier queries:
Jutta Mikkola
SVP Financier Relations
tel. +358 50 544 6061

The forest is at the heart of Stora Enso and our company believe that whatever made from fossil-based products today can be made from a tree tomorrow. We are the leading supplier of sustainable items in product packaging, biomaterials, and wood building and construction, and among the biggest personal forest owners on the planet. Stora Enso has around 19,000 staff members and our sales in 2024 were EUR 9 billion Stora Enso shares are noted on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In addition, the shares are sold the(* )U.S.A. on OTC Markets( OTCQX )as ADRs and common shares (SEOAY, SEOFF, SEOJF ). storaenso.com/investors STORA ENSO OYJ

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