Stora Enso Oyj

Second-quarter sales were stable at EUR 2.4 billion, and adjusted EBIT increased 27% to EUR 160 million. Management said profitability improved versus last year due to disciplined own actions, progress in Oulu, and cost control, while lower prices and adverse currency movements offset higher sales from the Oulu ramp-up and Junnikkala Oy acquisition. Net debt declined after the EUR 1 billion hybrid issuance, and net debt to adjusted EBITDA improved to around 2.2x. Looking ahead, management did not give detailed quarterly or full-year financial guidance, but said Oulu should reach full capacity during next year, the Central European sawmills strategic review will conclude by the end of this year, and the company remains focused on reducing CapEx, improving margins, and generating cash.

Hans Sohlstrom framed the quarter as another example of Stora Enso improving results through actions it controls rather than market conditions. He emphasized customer value creation, innovation, sustainability, and operational excellence, saying the company is growing faster than the market in consumer board and is building a more focused portfolio through ongoing asset optimization. His tone was confident and determined, especially around margin expansion and portfolio simplification, while acknowledging that Oulu still affects short-term profitability.

Niclas Rosenlew highlighted stable sales of EUR 2.4 billion and adjusted EBIT of EUR 160 million, with the improvement driven by owned actions, Oulu, lower wood costs, and higher volumes in Consumer Packaging. He said cash flow benefited from lower CapEx, though operating cash flow was lower year over year because of higher receivables, lower payables, and some inventory reduction. He also pointed to a EUR 1 billion hybrid issuance that strengthened the capital structure and helped net debt to adjusted EBITDA improve to around 2.2x. On costs, he explained that lower pulpwood prices helped, but higher sawlog costs, logistics, and timing effects limited the near-term benefit.

Analysts focused on Oulu’s ramp-up pace, the profitability of Central European sawmills, the weak “Other” division, and whether consumer board and containerboard pricing and demand could hold up. Management said Oulu’s full capacity should be reached during next year, declined to disclose exact operating rates or mill-level EBIT/EBITDA, and said consumer board EBIT margin improved from about 2.3% last year to 6.5% in Q2. On Central European wood products, management said the business is still profitable but not at its ambition level, and that it is taking stronger self-help actions while the strategic review continues. On the “Other” division, management said most of the weakness came from lower Sweden wood trading prices after Storm Johannes, plus some pressure from Central European wood products and timing effects.