Stora Enso Advances Strategic Transformation and Operational Excellence in Q3 2025

Stora Enso’s third quarter of 2025 marked significant progress in its strategic transformation and operational initiatives, positioning the company for sustainable long-term success despite a tough macroeconomic environment and subdued market demand. Key Project and Investment Highlights: The ramp-up of the new consumer board line at the Oulu mill in Finland continues successfully, with production volumes steadily increasing. While this ramp-up impacted Q3 profitability by EUR 45 million, the line is projected to attain full capacity by 2027 and will deliver industry-leading quality and cost competitiveness. In September, Stora Enso completed the divestment of approximately 175,000 hectares of forest land in Sweden, representing 12.4% of its Swedish forest holdings. Valued at SEK 9.8 billion (about EUR 900 million), this transaction strengthens the balance sheet and supports financial flexibility. A strategic review of the company’s remaining 1.2 million hectares of Swedish forest assets is underway, including evaluation of options for separation and potential public listing, aiming to unlock further shareholder value. The Evolution program continues to drive operational excellence with investments like the upgraded Escanaba woodyard featuring new debarking technology and advanced conveyor systems, enhancing safety, chip quality, and sustainability. Future Plans and Strategic Focus: Stora Enso remains focused on improving profitability, cash flow, and cost competitiveness through enhanced sourcing, operational efficiency, commercial excellence, and tighter working capital and fixed cost management. The company is pursuing a leaner, more customer-centric organizational model, sharpening its focus on sustainable packaging solutions. Integration across Nordic mills is evolving towards a more unified business model to optimize value delivery and customer satisfaction. Sustainability remains a priority, with Stora Enso and the International Union for Conservation of Nature (IUCN) launching a science-based framework to promote nature-positive forestry. Maintenance and Capital Expenditure: Capital expenditures in Q3 were EUR 144 million, focused on production capacity expansion and ongoing modernization. Maintenance shutdowns and operational stops will continue at similar levels in Q4 to support long-term equipment reliability and performance. Market Outlook: Despite persistent macroeconomic and geopolitical uncertainties weighing on consumer demand and exerting downward pressure on prices, Stora Enso is taking decisive internal actions to improve its competitive position. The company expects the new Oulu board line to reach EBITDA break-even by the end of 2025, laying a foundation for improved profitability as production scales. This narrative provides a comprehensive yet concise story of Stora Enso’s operational and strategic initiatives in Q3 2025, aligning with its broader goal of resilient sustainable growth.