Finland · Delayed Price · Currency is EUR Stora Enso Oyj Earnings Call Transcripts
Fiscal Year 2025
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Sharpened strategic focus in 2025 led to resilient sales of EUR 9.3 billion and EBIT of EUR 528 million, despite market headwinds and Oulu ramp-up costs. Margin expansion, disciplined capital allocation, and sustainability progress underpin the outlook for 2026.
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Sharpened strategic focus includes a forest asset demerger, new financial targets, and a disciplined capital allocation plan. Margin expansion and above-market growth will be driven by internal efficiency programs, innovation, and leveraging a strong asset base, while new revenue streams and sustainability remain central.
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A de-merger will create Europe's largest listed pure-play forest company, unlocking value and enabling Stora Enso to focus on renewable packaging. Strategic reviews and leadership changes support this shift, while an 18-year wood supply agreement ensures operational continuity.
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Sales rose 1% to EUR 2.3 billion with stable underlying profitability, aided by cost controls and a major forest asset divestment that reduced net debt. Oulu ramp-up is slower than planned but on track for full capacity by 2027, while disciplined CapEx and portfolio actions support resilience.
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Sales rose 5% year-over-year to €2.4 billion, with all segments posting positive adjusted EBIT despite Oulu ramp-up costs. Strategic focus sharpened on renewable packaging and forest asset divestment to enhance financial flexibility.
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A strategic review of Swedish Forest assets is underway, considering a tax-free spin-off to create a leading listed forest company and unlock value for shareholders. Recent asset sales have strengthened the balance sheet, and anchor shareholders support the review.
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Sales grew 9% and adjusted EBIT rose 18% year-over-year, with all divisions posting positive results. A new, leaner structure and successful Oulu ramp-up support future growth, though Oulu ramp-up costs will impact 2025 EBIT. U.S. tariffs pose limited direct risk.
Fiscal Year 2024
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Adjusted EBIT grew 75% year-over-year to EUR 598 million, driven by efficiency gains and cost reductions, despite a 4% sales decline. Strategic investments in packaging and asset sales aim to boost future growth and financial flexibility.
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Q3 2024 saw strong profit and sales growth, led by packaging materials, biomaterials, and forest segments, while packaging solutions and wood products faced market headwinds. The company is selling 12% of its Swedish forest assets to reduce debt and expects full-year adjusted EBIT to rise over 50% from 2023.
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Adjusted EBIT more than quadrupled year-over-year, driven by cost reductions and efficiency gains, despite a 3% sales decline. Full-year 2024 EBIT is expected to be over 50% higher than 2023, with strong liquidity and ongoing strategic investments supporting future growth.