HELSINKI, July 23 (Xinhua) -- UPM and Stora Enso, two of Finland's leading forest industry groups, reported stronger underlying second-quarter earnings on Thursday, although sales remained broadly unchanged amid continued weakness in forest product markets.
UPM's comparable operating profit rose 71 percent year-on-year to 212 million euros (241 million U.S. dollars), while sales edged up to 2.36 billion euros (2.68 billion dollars) from 2.34 billion euros (2.66 billion dollars) a year earlier.
Stora Enso's adjusted operating profit increased 27 percent year-on-year to 160 million euros (182 million dollars), while sales were unchanged at 2.42 billion euros (2.75 billion dollars).
The companies attributed the improved earnings largely to operational measures. UPM cited higher volumes, margin management and continued efficiency improvements, while Stora Enso said its performance was supported by the ramp-up of a new consumer board line in Oulu in northern Finland, higher volumes and lower variable costs.
Both companies warned that significant geopolitical and trade uncertainties persisted, with demand across many end markets remaining subdued.
Analysts cautioned that the stronger results did not yet signal a broader recovery in the sector. Ville Arffman of Finnish investment service Sijoittaja said the improvement mainly reflected company-specific measures rather than stronger market conditions.
Juuso Kenkkila, head of equities and investments at Finland's OP Financial Group, told business daily Kauppalehti that it was still too early to conclude the sector had passed the bottom of the downturn, as there was insufficient evidence of a recovery in demand.
Finland had about 22.5 million hectares of forest in 2025, the second-largest forest area in the European Union, according to the State of Europe's Forests 2025 report. The forest industry is one of Finland's key export sectors. Its exports were valued at 12.6 billion euros (14.33 billion dollars) in 2025, accounting for 17 percent of the country's total goods exports, according to the Finnish Forest Industries Federation.
The sector has faced subdued global demand, geopolitical and trade uncertainty, and high raw material and energy costs in recent years, according to the federation. The suspension of Russian wood imports following the outbreak of the Russia-Ukraine conflict has also tightened raw material supplies, it added.
The Finnish government has sought to support the sector by promoting higher value-added forest products, strengthening research and innovation, and improving the long-term supply of domestic timber. Enditem
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