Stora Enso's profit falls due to weak pulp prices, adverse exchange rates (updated)

Stora Enso Oyj

04/02/2026 06:59

Recasts to include UPM, adds graphic, adds share move in paragraph 9

By Elviira Luoma and Agnieszka Olenska

Feb 4 (Reuters) - Finnish forestry groups Stora Enso STERV.HE and UPM UPM.HE saw their quarterly operating profits fall 17% and 15%, weighed down by lower pulp prices, weakening consumer confidence and escalating geopolitical and trade tensions.

However, the companies signalled some easing in the downward trend for 2026, sending their shares higher on Wednesday.

Finland is a major producer and exporter of pulp, paper and other products that are based on logging in the country's vast forests. The Nordic forestry industry has been suffering from weakened demand, elevated cost of wood and low pulp prices for the past few years.

Stora Enso said it expected packaging and pulp market demand to remain stable at low levels in the first quarter of 2026, though geopolitical volatility makes it more difficult to make predictions.

UPM said it was cautiously optimistic for 2026, as its performance should benefit from moderately higher selling prices and delivery volumes in the first half, compared to the second half of 2025. Variable costs should also be lower than last year, it added.

Its operating profit forecast for the first half of the year, at 325-525 million euros ($384 million-$621 million), was less than it had guided for last year, though the reported number of 413 million euros is close to the midpoint of the new guidance.

UPM's comparable operating profit declined to 355 million euros in the fourth quarter, but was 51 million euros more than analysts polled by LSEG had expected. Stora Enso's adjusted operating profit fell to 100 million euros, broadly in line with market expectations according to a Vara consensus.

Shares of Stora Enso were up around 6%, leading gains on the Helsinki blue-chip index .OMXH25, while UPM was up around 5% in afternoon trading.

($1 = 0.8455 euros)

Nordic forestry companies have been struggling with pulp prices and demand https://reut.rs/3MeuNtY

(Reporting by Elviira Luoma and Agnieszka Olenska in Gdansk, editing by Milla Nissi-Prussak)

((Elviira.luoma@thomsonreuters.com))