Trump announces trade deal with EU following months of negotiations
Investing.com -- Shares of Finnish forestry company Stora Enso (HE:STERV) Oyj (HEL:STEAV) rose about 4.7% on Wednesday after reporting second-quarter operational earnings before interest and taxes (EBIT) of €126 million, exceeding analyst estimates of €122.7 million.
The company posted quarterly sales of €2,426 million, slightly below the expected €2,434.4 million.
Operational EBITDA reached €279 million for the quarter, while net income came in at €15 million and pretax profit at €20 million.
Looking ahead, Stora Enso warned that market conditions remain challenging, stating it expects "subdued and volatile market demand to persist through remainder of 2025."
The company anticipates an adverse impact on full-year adjusted EBIT of "somewhat above or around €100 million."
For the third quarter of 2025, maintenance costs are projected to increase by approximately €10 million compared to the second quarter.
Fiber costs are expected to remain at high levels, according to the company’s statement.
According to Jefferies analysts, Stora is a turnaround story that must strengthen investor confidence in its efforts to achieve cost savings, reduce leverage, and restore EBIT and free cash flow from the cyclical lows of 2023–25.
"Shares have several potential catalysts (incl realising forest value on
BS), but stock market needs to see tangible actions sooner rather than later, like capacity rationalisation which we would see as a positive," it said in a note.
Stora Enso also noted that the direct impact of US tariffs at current rates is limited on its business operations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.