Stora Enso Warns Middle East Tensions and Oulu Ramp-Up Will Continue to Pressure Earnings

Stora Enso said geopolitical tensions in the Middle East and the continued ramp-up of its new consumer board production line in Oulu, Finland, are expected to weigh on profitability and increase operating costs during 2026.

The packaging and biomaterials group said escalating conflict-related volatility could raise expenses for logistics, chemicals and energy across its operations, with the impact expected to become more visible during the second quarter. The company added that weak consumer confidence and broader macroeconomic uncertainty continue to challenge market conditions.

At the same time, Stora Enso said the ramp-up of the new consumer board line at the Oulu site continued to negatively affect first-quarter earnings as the company focused on improving the technical performance and operational stability of the facility. Production volumes are gradually increasing, with full capacity expected to be reached during 2027.

Chief Executive Officer Hans Sohlström said the first quarter developed largely as expected, although geopolitical tensions intensified toward the end of the reporting period following the outbreak of war in Iran. He said the resulting uncertainty is expected to affect the company’s operating environment going forward.

“The ramp-up of the new production line in Oulu continues. In Q2, we expect the negative impact on adjusted EBIT to continue at a similar level as in Q1/2026,” the company stated in its outlook.

Stora Enso reported first-quarter adjusted EBIT of EUR 159 million, down 9.5% from the prior-year period, as lower wood costs were offset by adverse foreign exchange movements and the Oulu ramp-up. Consumer Packaging sales rose 8.5% to EUR 970 million, supported by higher deliveries and increased production from the Oulu facility.

The Oulu investment forms part of Stora Enso’s strategy to expand its renewable fiber-based packaging materials business and strengthen its position in the consumer packaging market.