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Stora Enso Profit Slips as Oulu Ramp-Up and FX Weigh on Q1, Forest Assets Spin-Off Advances

Story Highlights
  • Stora Enso’s Q1 2026 profit and cash generation came under pressure from FX headwinds, Oulu ramp-up costs, and restructuring, even as leverage and post-investment cash flow improved.
  • The company is pushing ahead with spinning off Swedish forest assets, reviewing Central European sawmills, and faces a tough Q2 outlook amid higher costs, EU ETS changes, and weak demand.
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Stora Enso Oyj ( ($SE:STE.A) ) has shared an announcement.

Stora Enso reported Q1 2026 sales essentially flat at EUR 2.36 billion, while adjusted EBIT fell 9% as foreign exchange headwinds and the ramp-up of its Oulu consumer board line weighed on margins despite lower wood costs. Cash flow from operations weakened on restructuring and working capital needs, but cash flow after investments and leverage improved, and the company maintained a dividend of EUR 0.25 per share for 2025.

Strategically, the group is advancing the planned separation and stock-market listing of its Swedish forest assets business by the first half of 2027 and continues a review of its Central European sawmills and building solutions operations. Management flagged a challenging outlook for Q2 amid weak demand, higher costs tied to geopolitical tensions and EU ETS rule changes, and ongoing start-up losses at Oulu, implying continued pressure on profitability following the 2025 divestment of 175,000 hectares of Swedish forest assets.

More about Stora Enso Oyj

Stora Enso Oyj is a global renewable materials company focused on wood-based products, packaging materials, biomaterials, and forest assets management. It supplies consumer board, building solutions, and other fibre-based offerings, with a strategy centered on sustainable forestry, low-carbon materials, and value creation from its extensive Nordic and Central European forest holdings.

Average Trading Volume: 3,456

Technical Sentiment Signal: Sell

Current Market Cap: SEK80.58B

See more insights into STE.A stock on TipRanks’ Stock Analysis page.

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