Stora Enso Reports Lower First-Quarter Earnings Amid Weak Demand and Oulu Ramp-Up Costs

Stora Enso reported lower first-quarter earnings as continued weak market demand, foreign exchange impacts and costs related to the ramp-up of its Oulu consumer board line weighed on profitability despite stable sales and lower raw material costs.

The packaging and biomaterials group posted sales of EUR 2.36 billion for the January–March 2026 period, broadly unchanged from EUR 2.36 billion a year earlier. Adjusted EBIT declined 9.5% to EUR 159 million, while operating profit under IFRS fell to EUR 85 million from EUR 171 million in the prior-year quarter. Net profit decreased to EUR 35 million from EUR 107 million.

Stora Enso said lower wood costs were offset by adverse foreign exchange movements and the ongoing ramp-up of the new consumer board production line at its Oulu site in Finland. The company expects the ramp-up to continue affecting earnings through the second quarter, with full production capacity anticipated during 2027.

Chief Executive Officer Hans Sohlström said market conditions remained challenging due to weak consumer confidence and geopolitical uncertainty. He noted that escalating tensions in the Middle East are expected to increase logistics, energy and chemical costs during 2026.

Within its business segments, Consumer Packaging sales increased 8.5% to EUR 970 million, supported by higher deliveries and the Oulu ramp-up. Integrated Packaging sales declined 2.3% to EUR 572 million due to foreign exchange impacts, while Biomaterials sales fell 15.1% to EUR 353 million following maintenance shutdowns at the Veracel site and lower deliveries.

The company continued 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.

Cash flow from operations declined to EUR 125 million from EUR 192 million a year earlier, mainly due to higher working capital and restructuring-related expenses. Net debt rose to EUR 3.54 billion at the end of March from EUR 3.18 billion at the end of 2025.

Stora Enso said capital expenditure in 2026 is expected to remain below EUR 550 million, approximately EUR 200 million lower than in 2025.