Stora Enso (STE) Q2 2026 earnings summary

Executive summary

• Achieved stable Q2 2026 sales of EUR 2.4 billion, with adjusted EBIT up 27% year-over-year to EUR 160 million, driven by operational improvements, portfolio optimization, and disciplined cost management.

• Portfolio optimization included investments in fluff pulp at Skutskär, closure of less competitive lines, divestment of German corrugated board sites, and acquisition of Junnikkala sawmills.

• Oulu consumer board line ramp-up and Junnikkala acquisition contributed to higher sales volumes and improved production stability, though short-term profitability was still impacted.

• Strategic priorities remain: customer value creation, margin expansion, cash generation, disciplined capital allocation, and advancing sustainability targets.

• Preparations for the separation and listing of Swedish forest assets are progressing, with completion targeted for H1 2027.

Financial highlights

• Q2 2026 sales were EUR 2,423 million, stable year-over-year; adjusted EBIT rose 27% to EUR 160 million, with margin up to 6.6%.

• Net debt to adjusted EBITDA improved to 2.2x, supported by a EUR 1 billion hybrid bond issuance.

• Cash and cash equivalents at EUR 1.6 billion, with strong liquidity and no near-term refinancing pressure.

• Cash flow from operations was lower year-over-year due to increased working capital from higher trade receivables and lower payables.

• Operating result (IFRS) fell to EUR 16 million due to items affecting comparability and fair value changes.

Outlook and guidance

• Continued ramp-up of Oulu consumer board line, with full capacity expected next year.

• Focus for H2 2026 on operational efficiency, commercial excellence, cost efficiency, and improved sourcing.

• Q3 2026 maintenance impact expected to increase by EUR 40-50 million versus Q2, with a longer annual shutdown at Oulu.

• Annual adjusted EBIT will decrease by EUR 20 million due to Swedish forest asset divestment; emission rights income projected to drop to EUR 10-20 million in 2026.

• Predictable and limited capex expected, with major investments completed.