HELSINKI – October 30, 2026 -- Stora Enso lifted third-quarter adjusted EBIT by 28% to EUR 161 million (126), lifting the adjusted EBIT margin to 7.2% (5.5%), as the board approved a Demerger Plan to spin off its Swedish forest assets business into a new listed company.
Organic sales rose 2% on higher board deliveries and containerboard prices. Reported sales fell 2% to EUR 2,240 million (2,283) because of divestments. Higher board volumes, lower variable costs and the ramp-up of the new consumer board line at Oulu drove the earnings gain.
IFRS operating result falls to EUR 47 million on impairments and fair valuations
The IFRS operating result dropped to EUR 47 million from EUR 231 million. Items affecting comparability totalled EUR -63 million (+117), mainly impairments, restructuring and disposals. Fair valuations and other non-operational items were EUR -51 million (-11), mostly from the fair valuation of biological assets.
Earnings per share were EUR 0.01 (0.25). Excluding fair valuations, EPS was EUR 0.06 (0.26). Forest assets were valued at EUR 8.4 billion (8.3), equal to EUR 10.66 per share.
Cash flow after investing activities more than doubles to EUR 132 million
Cash flow from operations reached EUR 245 million (223). Lower spending on fixed assets lifted cash flow after investing activities to EUR 132 million (57). Net debt to adjusted EBITDA (LTM) improved to 2.1 from 2.7, mainly because proceeds from a hybrid bond, classified as equity, repaid debt.
For January-September, sales were EUR 7,021 million (7,072) and adjusted EBIT was EUR 479 million (427). The IFRS operating result was EUR 148 million (466), and EPS was EUR 0.02 (0.42). Cash flow from operations was EUR 457 million (560), while cash flow after investing activities was EUR 113 million (-26).
Demerger of Bergslagets Skogar targeted for first half of 2027
The separation of the Swedish forest assets business is expected during the first half of 2027. CEO Hans Sohlstrom said the company will present Bergslagets Skogar financials at a Capital Markets Day within days, and that the split will sharpen the strategic focus of both companies.
Stora Enso closes Veitsiluoto sawmill and Gruvon CLT unit, centralises Finnish packaging
The Veitsiluoto sawmill in Kemi, Finland, has been permanently closed, with output centralised at other sawmills. The Cross Laminated Timber unit at Gruvon, Sweden, will close by the end of 2026, leaving the site focused on sawn goods. CLT production will concentrate on three units in the Czech Republic and Austria. In Finland, corrugated packaging production will be centralised at Lahti, and the Kristiinankaupunki site will close.
The company also divested its Packaging Solutions units in Germany and reduced its stake in a Swedish wood supply company. The strategic review of Central European sawmills and building solutions continues.
Shanshan Technology partnership targets lignin-based battery anodes
In October, Stora Enso and Shanshan Technology agreed to accelerate development and industrialisation of sustainable battery materials. The plan includes a demonstration line for lignin-based hard carbon anode materials.
Q4 outlook: maintenance, higher costs and sharply lower emission-rights income
Stora Enso describes market conditions as mixed and uncertain, with demand subdued in several end markets and pricing improved in certain packaging grades. Geopolitical tensions are expected to add pressure on energy, logistics and chemicals costs, and wood costs are expected to rise somewhat. Consumer Packaging faces significant planned maintenance, lower volumes and an adverse price/mix effect in a seasonally low quarter.
The Oulu line's financial performance is expected to improve somewhat year-on-year in Q4, with ramp-up completing in 2027. The 2025 divestment of 175,000 hectares of Swedish forest will cut annual adjusted EBIT by about EUR 20 million, roughly EUR 5 million per quarter.
Income from emission rights is projected at EUR 10-20 million in 2026, versus about EUR 72 million in 2025. Several sites lose free CO2 allowances from 2026 under revised EU ETS rules because their emissions are more than 95% biogenic. Full-year 2026 capital expenditure is now estimated at about EUR 500 million, down from a previous estimate of below EUR 550 million.