Stora Enso Advances Portfolio Transformation and Prepares Forest Assets Separation in 2025

Helsinki, Finland – 4 February 2026 – Stora Enso delivered resilient performance in 2025 amid challenging market conditions and took decisive strategic actions to sharpen its focus on renewable packaging and materials.

Full-year sales amounted to EUR 9.3 billion, with adjusted EBIT of EUR 528 million. Operating cash flow reached EUR 897 million, while the company significantly strengthened its balance sheet through the divestment of Swedish forest assets.

A major strategic milestone was the decision to separate Stora Enso’s Swedish forest assets into a new publicly listed company, expected to be completed in the first half of 2027. This transaction will create Europe’s largest listed pure-play forest company and unlock long-term shareholder value.

During the year, Stora Enso continued the ramp-up of the new consumer board line at the Oulu site in Finland, strengthened its wood supply through the acquisition of Junnikkala Oy, and initiated a strategic review of its Central European sawmills and building solutions operations.

The Board of Directors proposes an unchanged dividend of EUR 0.25 per share, reflecting disciplined capital allocation and focus on cash generation.

Looking ahead, Stora Enso will continue executing its sharpened strategy, prioritising packaging, margin expansion, cash flow generation, and sustainability leadership.

📊 FINANCIAL HIGHLIGHTS (FY 2025)

• Sales: EUR 9,326 million (2024: EUR 9,049 million)

• Adjusted EBIT: EUR 528 million (2024: EUR 598 million)

• Operating result (IFRS): EUR 942 million

• Cash flow from operations: EUR 897 million

• Net debt: EUR 3.18 billion

• Net debt / adjusted EBITDA: 2.8x

• Capital expenditure: EUR 746 million

• Employees (average): ~18,900 FTE

🏗️ MAJOR PROJECTS & INVESTMENTS

Oulu Consumer Board Line – Finland

• Strategic flagship investment

• Continued ramp-up during 2025

• Negative EBIT impact in 2025: ~EUR 140 million

• Expected to reach full capacity during 2027

Energy Transition – Heinola Fluting Mill

• EUR 30 million investment completed in 2025

• Shift from fossil fuels to renewable bioenergy

• Annual CO₂ reduction: >113,000 tonnes (-90%)

Biomaterials Investments

• Skutskär (Sweden): fluff pulp, winder & roll handling upgrades

• Finalised during 2025

🛑 SHUTDOWNS / RESTRUCTURING / REVIEWS

Strategic Review – Central European Sawmills

• Covers:

  • 7 sawmills (Austria, Czechia, Poland, Lithuania)

  • 3 CLT (cross-laminated timber) mills

• Options under evaluation:

  • Divestment

  • Other strategic alternatives

• Operations in Nordics & Baltics excluded

Production Curtailments

• Temporary curtailments implemented in Wood Products to align with weak construction demand

🔁 MERGERS, ACQUISITIONS & DIVESTMENTS

Acquisition

Junnikkala Oy (Finland)

• Completed April 2025

• Purchase consideration: ~EUR 61 million (incl. earn-outs)

• Adds ~700,000 m³ sawmilling capacity

• Strengthens wood supply for Oulu site

Forest Asset Divestment – Sweden

• Sold 175,000 hectares (12.4%) of forest land

• Buyers: Soya Group & MEAG-led consortium

• Cash proceeds: ~EUR 624 million

• Disposal gain: ~EUR 140 million

• 15-year wood supply agreement secured

🌲 FOREST ASSETS SEPARATION (DEMERGER)

• Planned demerger of Swedish forest assets

• New listed company:

  • ~1.2 million hectares

  • Estimated fair value: EUR 5.8 billion

• Listings planned on:

  • Nasdaq Stockholm

  • Nasdaq Helsinki

• Completion target: H1 2027

• Shares distributed to existing shareholders

💰 CAPITAL EXPENDITURE & GUIDANCE

• Capex 2025: EUR 746 million

• Capex 2026 guidance: below EUR 550 million

• Decline reflects completion of major investments (Oulu, energy upgrades)

💸 DIVIDEND

• Proposed dividend: EUR 0.25 per share (unchanged)

• Paid in two instalments:

  • EUR 0.13 – April 2026

  • EUR 0.12 – October 2026

• Dividend policy: ≥50% of EPS (excl. fair value) over the cycle

🔮 OUTLOOK & FUTURE PLANS

2026 Outlook

• Markets remain challenging

• Packaging and pulp demand expected to remain stable at low levels

• Oulu ramp-up EBIT headwind:

  • Q1 2026 impact: EUR 15–30 million