Stora Enso lags Q2 profit expectations, shares drop (updated)

Stora Enso Oyj

23/07/2026 07:35

Adds share move, analyst comments in bullets, details throughout

    July 23 (Reuters) - Finnish forestry group Stora Enso STERV.HE reported a quarterly operating profit below market expectations on Thursday, sending its shares down, and said market conditions would remain uncertain in the third quarter.
Nordic forestry companies' profits have come under pressure in recent years from high wood costs and subdued pulp demand.

        Q2 adjusted operating profit increased by 27% to €160 million ($182.9 million), but fell short of the €173.7 million expected on average in a company-provided poll.

        Shares fell around 11% as of 0825 GMT, putting the stock among the worst performers of the STOXX 600 .STOXX index.

        Inderes said weaker results in other operations drove the miss, hit by lower Swedish wood prices and weaker Central European sawmill margins.
      

        Jefferies said it expects Stora's Q3 EBIT to be stable or lower quarter-on-quarter. 
      

        The company said wood costs had moderated from exceptionally high levels in recent years, although wood supply remains tight and overall wood costs, including sawlogs, remain high.
      
Continued geopolitical tensions and trade-related volatility may affect customer demand, supply chains and input costs in the third quarter, the company said.

        Domestic peer UPM UPM.HE narrowly beat Q2 operating profit expectations, helped by higher volumes, improved margins and efficiency measures. 


($1 = 0.8750 euros)

   

 (Reporting by Elviira Luoma, editing by Milla Nissi-Prussak and Bartosz Dabrowski)
 ((Elviira.luoma@thomsonreuters.com; +48 58 769 66 46))