Holmen reported operating profit of SEK 827 million for the first quarter of 2026, as strong performance in renewable energy helped offset weaker demand in construction-related markets and paperboard.
The result declined from SEK 988 million a year earlier but improved compared with the previous quarter, supported by higher electricity prices and increased energy output.
Energy offsets weaker industrial segments
Renewable energy was the main driver of earnings growth during the quarter, with operating profit rising to SEK 281 million. Electricity prices in northern Sweden increased sharply due to cold weather and limited wind generation.
In contrast, Holmen’s industrial segments faced more difficult conditions.
Wood Products reported an operating loss of SEK -91 million, as weak construction activity and high raw material costs continued to weigh on margins.
Board and Paper earnings fell to SEK 168 million, reflecting lower delivery volumes, a weaker U.S. dollar and higher energy costs. Demand for consumer paperboard remained subdued due to cautious consumer spending.
Forest segment remains resilient
Holmen’s forest operations continued to deliver strong results, with operating profit increasing to SEK 511 million, supported by higher harvest volumes.
However, market conditions showed signs of softening. Demand for pulpwood remained weak, and both pulpwood and log prices began to decline from previously high levels.
Market outlook remains uncertain
The company said global uncertainty continues to weigh on demand, with overcapacity in the forest industry and cautious consumer behaviour affecting key markets.
At the same time, structural demand for electricity in Europe remains strong, supporting the company’s renewable energy business.
Holmen’s integrated model, combining forest assets, industrial production and energy generation, helped maintain profitability despite challenging market conditions.
Holmen is a Sweden-based forest industry group producing paperboard, paper and wood products, and generating renewable energy from hydro and wind power. The company also manages over one million hectares of forest land.
