Stora Enso (STE) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales remained stable at EUR 2.4 billion, with higher deliveries offset by adverse FX impacts and ongoing pricing pressure in some segments.

• Adjusted EBIT declined by EUR 16 million year-over-year to EUR 159 million, mainly due to FX and Oulu ramp-up costs, despite cost control and operational improvements.

• Strategic focus on operational efficiency, cost control, commercial excellence, and the ramp-up of the Oulu consumer board line, with decentralized P&L responsibility.

• Preparation for the separation and listing of the Swedish forest assets business (Bergslagens Skogar) is progressing, targeted for H1 2027.

• Innovation and sustainability remain key, with progress in emission reduction and award-winning packaging solutions.

Financial highlights

• Sales stable at EUR 2.4 billion; would have increased excluding negative FX effects.

• Adjusted EBIT for Q1 was EUR 159 million, margin 6.7%, down EUR 16 million year-over-year, mainly due to Oulu ramp-up.

• Net debt at EUR 3.5 billion, net debt to EBITDA at 3.1x; net debt increased after dividend booking.

• CapEx reduced by EUR 100 million year-over-year, aligning with the plan to lower investments; Q1 2026 CapEx was EUR 74 million.

• Cash flow impacted by restructuring one-offs, higher working capital, and dividend payables.

Outlook and guidance

• Ramp-up of the Oulu consumer board line will continue to impact short-term profitability, with full operational performance expected in 2027.

• EUR 500–700 million in value creation initiatives underway, expected to support margin expansion over the next 2–4 years.

• Internal actions and cost initiatives will continue throughout 2026, with ongoing focus on margin expansion and cash generation.

• Predictable and limited capex expected, with major investments completed and selective strategic investments planned; maintenance capex sets the minimum level.

• No specific guidance on pricing or cost inflation due to market volatility; scenario planning is emphasized.