Finland's Stora Enso Q3 sales fall 2% on divestments

Overview

• Finland packaging and renewable materials firm's Q3 sales fell 2% yr/yr due to divestments

• Adjusted EBIT rose 28% yr/yr, driven by higher board volumes and lower variable costs

• Company to separate Swedish forest assets business and announced further restructuring actions

Outlook

• Stora Enso sees market conditions as mixed and uncertain for Q4/2026

• Company expects higher variable costs in Q4/2026 due to geopolitical tensions and rising wood costs

• Consumer Packaging to face higher maintenance costs and lower volumes in Q4/2026

Result Drivers

• BOARD DELIVERIES AND PRICES - Organic sales growth was supported by higher board deliveries and improved containerboard prices

• LOWER VARIABLE COSTS - Adjusted EBIT rose due to lower variable costs, according to the company

• OULU LINE RAMP-UP - Ramp-up of the new consumer board line at Oulu contributed to improved adjusted EBIT

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the non-paper containers & packaging peer group is "buy"

• Wall Street's median 12-month price target for Stora Enso Oyj is €11.70, about 20% above its October 29 closing price of €9.75

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)