Holmen Reports Stable Profit in Q1 2026 Amid Challenging Market Conditions

Holmen AB today announced its interim results for the first quarter of 2026, delivering solid profitability despite continued global market uncertainty and weak demand in key segments.

For the period January–March 2026, Holmen reported net sales of SEK 5,473 million and an operating profit of SEK 827 million, corresponding to an operating margin of 15%. Profit after tax amounted to SEK 618 million, with earnings per share of SEK 4.0.

Resilient Performance in a Volatile Environment

CEO Henrik Sjölund commented that the quarter was marked by international turbulence, a weak construction market, and cautious consumer behavior. Despite these challenges, Holmen maintained a strong earnings level thanks to its integrated business model and diversified operations.

Business Area Highlights

• Forest: Delivered a strong operating profit of SEK 511 million, supported by increased harvesting, although timber prices declined due to weaker demand.

• Renewable Energy: Achieved a significant improvement, with operating profit rising to SEK 281 million, driven by sharply higher electricity prices and increased energy deliveries.

• Wood Products: Reported an operating loss of SEK -91 million, reflecting weak construction demand and high raw material costs.

• Board and Paper: Operating profit declined to SEK 168 million, impacted by lower volumes, higher energy costs, and a weaker USD.

Financial Position and Cash Flow

Cash flow from operating activities before changes in working capital totaled SEK 986 million, while net financial debt decreased to SEK 4,186 million, representing a low debt-to-equity ratio of 8%.

Holmen maintains a strong financial position, supported by unused credit facilities and a BBB+ credit rating with stable outlook.

Dividend and Shareholder Returns

The Annual General Meeting approved a dividend of SEK 9.5 per share, totaling SEK 1,458 million, which was paid in April 2026.

Outlook

While market conditions remain challenging due to global uncertainty, Holmen’s diversified operations—spanning forestry, renewable energy, and forest-based products—continue to provide resilience. The company remains well-positioned to benefit from long-term trends such as the energy transition and demand for sustainable materials.