Sweden’s Holmen AB reports an operating profit of SEK 3.27 billion for 2025, down 12% from 2024, as the company faced subdued construction activity, lower
Holmen’s 2025 operating profit falls 12% as weak construction and low power prices limit earnings
Lower power prices in northern Sweden and reduced demand for wood products weigh on results while Board and Paper maintains strong margins
Sweden’s Holmen AB reports an operating profit of SEK 3.27 billion for 2025, down 12% from 2024, as the company faced subdued construction activity, lower electricity prices, and weaker demand for wood products, according to Holmen’s year-end report for 2025.
Net sales declined 3% to SEK 22.06 billion, while the operating margin narrowed from 16% to 15%. The decrease was mainly due to weaker results in the Wood Products division and low electricity prices in northern Sweden. Profit after tax was SEK 2.88 billion, slightly higher than the previous year’s SEK 2.86 billion, corresponding to SEK 18.5 per share.
Holmen’s Forest business reported an operating profit of SEK 1.95 billion, in line with 2024. The annual harvest from company-owned forests totaled 2.69 million m³, while the book value of forest assets fell 2% to SEK 56.7 billion based on property transaction values. Storm damage in central Sweden affected about 10% of Holmen’s annual harvest, but the company expects only a limited impact on 2026 earnings.
The Renewable Energy division recorded a full-year operating profit of SEK 18 million, down from SEK 265 million, due to very low electricity prices during most of the year. In the fourth quarter, prices in northern Sweden rose to SEK 270/MWh as transmission capacity to Finland increased and water levels normalized, but remained far below prices in central Sweden. Total power deliveries reached 1.63 TWh, slightly below 2024 levels. The newly completed Blisterliden Wind Farm increased renewable generation capacity to 2.2 TWh annually.
In Wood Products, low construction activity and higher log costs led to a full-year operating loss of SEK 182 million, compared with a marginal profit in 2024. Deliveries decreased 4% to 1.29 million m³ following a rebuild shutdown and reduced production in southern Sweden.
The Board and Paper segment achieved an operating profit of SEK 1.70 billion, broadly unchanged year on year. Despite weak demand, profitability was supported by low energy costs and stable prices. Deliveries amounted to 1.39 million tonnes, slightly below 2024, while return on capital employed reached 22%.
Cash flow from operations before working capital changes rose to SEK 3.90 billion, with total investments of SEK 2.12 billion, including SEK 916 million for wind power construction. Net financial debt increased to SEK 4.98 billion, equal to 9% of equity.
The Board proposes increasing the ordinary dividend from SEK 9.0 to SEK 9.5 per share. Holmen also repurchased 2.65% of its shares in 2025 for SEK 1.65 billion.
Holmen states that market conditions remain uncertain due to global trade tensions and slower construction demand. The company notes that improved transmission capacity and competitive power prices in northern Sweden could attract new electricity-intensive industries.
