Stora Enso Half-year Report 2026: Optimising our portfolio and driving results through our own actions

STORA ENSO OYJ HALF-YEAR REPORT 23July 2026 at 8:30 EEST

Q2/2026 (year-on-year)

•Sales remained stable at EUR 2,423 (2,426) million, as the positive impact from structural changes was offset by lower prices and adverse currency movements.

•Adjusted EBIT increased by 27% to EUR 160 (126) million, supported by a positive impact of the ramp-up of the new consumer board line at the Oulu site. The adjusted EBIT margin increased to 6.6% (5.2%).

•Operating result (IFRS) was EUR 16 (64) million, including items affecting comparability of EUR -83 (-35) million, mainly related to impairments and restructuring, and fair valuations and other non-operational items of EUR -61 (-27) million, mostly related to fair valuation of biological assets.

•Earnings per share were EUR -0.03 (0.03) and earnings per share excl. fair valuations (FV) were EUR 0.03 (0.05).

•The fair value of the forest assets was EUR 8.5 (9.0) billion, equivalent to EUR 10.80 per share, reflecting the impact of the divestment of 12.4% of forest assets in Sweden in 2025.

•Cash flow from operations amounted to EUR 87 million. Operating working capital had a negative cash flow impact of EUR 101 million where the main drivers were higher trade receivables, mainly due to stronger consumer packaging sales and lower trade payable. This was partly offset by a decrease in inventories.

•The net debt to adjusted EBITDA (LTM) ratio improved to 2.2 (3.3), primarily driven by a reduction in net debt, as proceeds from the hybrid bond were classified as equity.

January-June 2026 (year-on-year)

•Sales were EUR 4,781 (4,789) million.

•Adjusted EBIT was EUR 319 (301) million.

•Operating result (IFRS) was EUR 101 (235) million.

•Earnings per share (EPS) were EUR 0.01 (0.17) and EPS excl. fair valuations (FV) was EUR 0.08 (0.18).

•Cash flow from operations amounted to EUR 212(336) million.

Key highlights

•Stora Enso continues the preparations for the planned separation of its Swedish forest assets business into a new publicly-listed company, expected to be completed during the first half of 2027.

•Stora Enso's strategic review of its Central European sawmills and building solutions operations is ongoing.

•The ramp-up of the consumer board line at the Oulu site in Finland continues, and the production volumes are gradually increasing. The line is expected to reach full capacity during 2027.

•Stora Enso is strengthening its focus on specialised pulp grades with a EUR 19 million investment to increase fluff pulp production at its Skutskär site in Sweden, responding to growing consumer demand for hygiene products. As part of this transition, softwood pulp production on fiberline 3 will be permanently shut down during Q3/2026.

•Stora Enso published its Circularity Plan, aligned with the Global Circularity Protocol for Business (GCP), and has set a new target to achieve 90% material circularity in its direct operations by 2030.

•In July, the corrugated board production units in Germany were divested to optimise the asset base.

Outlook Q3/2026

•Market conditions remain uncertain. Continued geopolitical tensions and trade-related volatility may affect customer demand, supply chains and input costs. Stora Enso continues to focus on actions within its control while proactively adapting to market developments with agility.

•Planned maintenance impact in the third quarter is expected to increase by approximately EUR 40–50 million compared with the second quarter. The increase is due to scheduled maintenance shutdowns across all operational segments.

•The ramp-up of the new production line in Oulu continues. A longer annual shutdown is planned in the third quarter, during which selected efficiency improvement equipment will be installed. The negative impact on adjusted EBIT is expected to remain at a similar level to the second quarter.

•The divestment of 175,000 hectares of forest assets in Sweden, completed in 2025, will result in a reduction of annual adjusted EBIT of approximately EUR 20 million, with an estimated quarterly effect of approximately EUR 5 million.

•The operating income from emission rights in 2025 was about EUR 72 million, distributed evenly throughout the year. For 2026, the income from the sale of emission rights is projected to decrease to EUR 10–20 million. This decline reflects changes to the EU ETS (Emissions Trading Scheme) rules: several sites will lose their free CO₂ allowance allocations from 2026 onward, as their emissions are more than 95% biogenic and therefore no longer qualify for free allocations under the revised ETS framework.

Key figures

1 Total forest assets value, including leased land and Stora Enso's share of forest assets in associated companies 2 LTM=Last 12 months

Stora Enso’s President and CEO Hans Sohlström comments the results:
The second quarter marked another period of disciplined execution in a volatile market environment. We improved operational performance, strengthened customer relationships and advanced several important strategic initiatives. Despite continued market uncertainty, we made progress in building a stronger and more focused Stora Enso.
I am particularly pleased with the progress in Consumer Packaging, where operational performance strengthened further and customer feedback continues to be very encouraging. We continue to receive positive feedback on both product quality and service, reflecting the dedication of our teams, strength of our customer offering and our significant investments in leading technologies. Creating customer value remains at the heart of our strategy, and it is encouraging to see this translating into stronger customer relationships and faster than market growth.
At the same time, we continued to execute our strategy and focus on our portfolio. We announced actions to further strengthen our position in specialised pulp through the decision to invest in fluff pulp capacity at Skutskär, while also closing a less competitive production line at the site. As a part of our corrugated asset base optimisation we divested the corrugated board production in Germany. These actions are aligned with our strategic ambition to strengthen competitiveness and allocate capital where we see the greatest opportunities to create value.
Preparations for the separation of our Swedish forest assets business, Bergslagets Skogar, also progressed as planned. The strategy is defined, the organisation is in place, and preparations continue at a good pace. Bergslagets Skogar is an important step towards unlocking value and enhancing the strategic focus of both companies.
Market conditions nevertheless remained challenging. Demand levels across many end markets continued to be subdued and geopolitical tensions increased uncertainty during the quarter. The conflict in Iran contributed to increases in energy, logistics and other input costs. Through disciplined and relentless focus on our own actions across procurement, commercial and operational excellence, we actively managed these impacts and limited their effect on our business.
Compared to the exceptionally high levels seen over the past years, wood costs have moderated. However, wood supply continues to be tight and overall wood costs, including sawlogs, remain high. This is the backdrop against which we operate and compete every day.
At Oulu, the ramp-up of the new consumer board line continued to progress. Production stability, technical runnability and operational efficiency improved further during the quarter. While the ramp-up continues to affect short-term profitability, the overall development was positive and we expect further improvement going forward.
This quarter once again demonstrated that we are not standing still and we are not relying on market conditions to improve our performance. We continue to drive profitability through our own actions, operational and commercial excellence and systematic value creation. We are creating a more focused and competitive company with a strong foundation for profitable growth.
Our strategic priorities remain unchanged:

•Lead in customer value creation through innovation, quality and sustainability

•Grow faster than market with superior customer offering, leading technology and operational efficiency

•Expand margin through business focus, a positive performance culture and systematic value creation

•Generate cash with high conversion ratio and disciplined capital allocation

I am encouraged by the progress we are making. We have many important initiatives underway, and our focus remains firmly on execution.
I would like to thank our employees for their commitment, hard work and determination. Together, we are actively shaping our future and building a stronger, more focused, and more sustainable Stora Enso.
Webcast for analysts, investors, and media
Stora Enso’s President and CEO Hans Sohlström and CFO Niclas Rosenlew will present the results in a webcast today starting at 11:00 am EEST (10:00 CEST, 9:00 BST, 4:00 EST). The live the webcast can be accessed using the following link: https://stora-enso-q2-earnings-presentation-2026.open-exchange.net/registration

During the webcast presentation, analysts and investors will also have the possibility to ask questions. To participate in the teleconference, please choose the “Teleconference” option on the homepage of the webcast. Recording of the webcast will be available shortly after the event at the same address and at storaenso.com.
Media representatives who wish to ask questions after the publication of the report may contact Hanna Rutanen, SVP Communications at Stora Enso on +358 41 507 1361

This release is a summary of Stora Enso’s Half-year Report 2026. The complete report is attached to this release as a pdf file, and it is also available on the company website.

Media enquiries:
Hanna Rutanen
SVP Communications
tel. +358 41 507 1361
Investor enquiries:
Jutta Mikkola
SVP Investor Relations
tel. +358 50 544 6061
Stora Enso is a global leader in renewable materials with a strong focus on packaging. Our purpose is to replace non-renewable materials with renewable solutions. Together with our customers, we design and deliver competitive, high-quality packaging materials and solutions, made from fresh and recycled fibers, accelerating the transition to a circular bioeconomy. Stora Enso has approximately 19,000 employees and our sales in 2025 were EUR 9.3 billion. Stora Enso shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In addition, the shares are traded in the USA on OTC Markets (OTCQX) as ADRs and ordinary shares (SEOAY, SEOFF, SEOJF). storaenso.com/investors
STORA ENSO OYJ

Media enquiries:
Hanna Rutanen
SVP Communications
tel. +358 41 507 1361
Investor enquiries:
Jutta Mikkola
SVP Investor Relations
tel. +358 50 544 6061