Segezha Group Reports 2025 IFRS Results with Revenue Decline and Net Loss

Segezha Group has reported its financial results for 2025 under International Financial Reporting Standards (IFRS), showing a decline in revenue and a significant net loss amid challenging market conditions.

The company’s revenue totaled 89.2 billion rubles in 2025, down 12% compared to the previous year. The decrease was attributed to lower sales volumes, weak pricing conditions, and the strengthening of the ruble.

Segezha Group recorded a net loss of 88.4 billion rubles. This result included 35.1 billion rubles in interest and other financial expenses, as well as 36.1 billion rubles related to asset impairment in its Wood Processing and Forest Resources-Siberia segments and the suspension of unfinished capital projects.

Operationally, roundwood harvesting volumes fell by 11% year-on-year to 7.6 million cubic meters. Domestic harvesting accounted for 68% of total volumes, while the company maintained an average self-sufficiency rate in forest raw materials of 87%.

Sales performance varied across product categories. Paper sales rose slightly by 0.3%, while birch plywood remained broadly stable, declining by 1%. Sales of fuel pellets and briquettes increased significantly by 74%. In contrast, packaging sales dropped by 12% and lumber by 9%, reflecting weak demand.

Net debt was reduced by more than half to 67.0 billion rubles, following an additional share issue completed in the second quarter of 2025. Capital expenditures, excluding mergers and acquisitions, declined by 37% year-on-year to 4.6 billion rubles, with most spending directed toward maintenance.

Segezha Group President Kirill Arsentyev said the past year presented serious challenges for the industry, citing reduced demand, tight macroeconomic policies, and rising costs. He added that the company maintained its position and continued to advance, with the board approving an updated strategy focused on financial stability, cash flow stabilization, asset recovery, operational efficiency, and sales growth.