Leading European sawmilling giant Stora Enso has signalled that Middle East conflict impacts on costs will become more visible during Q2.
Stora Enso, which has about 19 global sawmills and wood product manufacturing facilities, has posted a Q1 operating loss of €-11m in the division that includes wood products, compared to an operating profit of €34m in Q1, 2025. Sales were virtually identical in the two comparative periods, with Q1, 2026 at €641m.
Group sales increased by 5% to €2.358bn (Q1 2025: €2,254bn), mainly due to higher deliveries in all segments except Biomaterials. Sales prices and foreign exchange rates had a small positive impact on sales. Group profits before tax were €43m (Q1 2025: €132m).
The company said market conditions remain challenging, with low consumer confidence.
“In the early part of the quarter, we saw a positive development in demand,” said Hans Sohlström, President and CEO of Stora Enso.
“However, towards the end of the quarter, geopolitical tensions escalated with the outbreak of the war in Iran. While the impact on the first quarter’s performance was limited, these
developments have increased uncertainty and are expected to affect the operating environment going forward.
“The situation adds to volatility and raises the risk of higher cost levels, particularly related to
energy, logistics and other variable costs such as chemicals, with effects becoming more visible in the second quarter.”
Stora Enso’s strategic review of its Central European sawmills and building solutions operations is ongoing.
The company also continues the preparations for the separation of its Swedish forest assets business into a new publicly listed company, expected to be completed during the first half of 2027.
