Wood supply continues to be tight and sawlogs costs high, European forest products giant Stora Enso has reported in its January-June 2026 Interim Results.
The Group recorded an H1 operating result (IFRS) of €100m versus €235m a year ago, while the Q2 operating result (IFRS) totalled €16m – a 75% contraction from the €64m recorded in Q2, 2025.
The performance specifics of the company’s Northern Europe Wood Products operations (including sawmilling) is not set out in detail in the results, since the Wood Products segment was discontinued as a separate reportable segment as of 1 January 2026.
Northern Europe Wood Products operations have been integrated into the Consumer Packaging, Integrated Packaging, and Biomaterials segments to leverage operational synergies.
However, the Central European Wood Products operations – which are currently under strategic review – are reported within the Stora Enso division ‘Other’.
The segment Other, also including the Wood & Energy business category, the Swedish forest assets, and the Growth business unit, show an operating loss (IFRS) of -€54m in Q2 (Q2: 2025: +€4m).
Stora Enso’s President and CEO Hans Sohlström said preparations for the separation of the Swedish forest assets business, Bergslagets Skogar, progressed as planned.
“Market conditions nevertheless remained challenging,” he said.
“Demand levels across many end markets continued to be subdued and geopolitical tensions increased uncertainty during the quarter. The conflict in Iran contributed to increases in energy, logistics and other input costs. Through disciplined and relentless focus on our own actions across procurement, commercial and operational excellence, we actively managed these impacts and limited their effect on our business.”
“Compared to the exceptionally high levels seen over the past years, wood costs have moderated. However, wood supply continues to be tight and overall wood costs, including sawlogs, remain high. This is the backdrop against which we operate and compete every day.”
Stora Enso said short-term risks included continued volatility in raw material and energy prices, particularly wood availability in the Nordics, which could increase costs and disrupt production.
