Holmen Holds Firm in 2025 as Strong Paperboard Offsets Weak Wood Products

Holmen AB ( ($SE:HOLM.B) ) has provided an announcement.

Holmen reported 2025 operating profit of SEK 3,270 million, down from SEK 3,721 million a year earlier, corresponding to an operating margin of 15% versus 16%, as weaker wood products performance and lower electricity prices in northern Sweden weighed on results. Fourth-quarter operating profit was SEK 739 million, roughly flat quarter-on-quarter but hit by a SEK 160 million inventory impairment tied to sawmill-related felling rights, while profit after tax for the year edged up to SEK 2,879 million, or SEK 18.5 per share, reflecting resilience in a weak macro environment. The company’s forest assets were valued at SEK 56.7 billion at year-end, about 2% lower than at the start of the year, and management expects storm damage in heavily affected Swedish regions to be financially manageable within normal operations. Board and Paper delivered strong fourth-quarter earnings of SEK 454 million thanks to healthy deliveries, low energy costs and a focus on fresh-fibre niches that supported a 22% return on capital employed, offsetting subdued demand and high wood costs, while Wood Products suffered a very weak quarter with a loss of SEK 111 million due to elevated log costs and muted construction activity. Holmen continued to optimise its balance sheet with SEK 1,649 million of share buybacks, representing 2.65% of its share capital, and the board has proposed raising the ordinary dividend from SEK 9 to SEK 9.5 per share, signalling confidence in the company’s long-term cash generation despite ongoing global uncertainty and cautious consumer behaviour.

The most recent analyst rating on ($SE:HOLM.B) stock is a Sell with a SEK306.00 price target. To see the full list of analyst forecasts on Holmen AB stock, see the SE:HOLM.B Stock Forecast page.

More about Holmen AB

Holmen AB is a Swedish forest industry group that manages extensive forest holdings and produces wood products, paperboard and printing paper, as well as generating hydro and wind power. Its operations focus on adding value to its forest and land assets by supplying renewable packaging materials, magazines and books, and electricity to European markets, with a strategic emphasis on fresh-fibre niches and electricity-intensive industrial customers, particularly in northern Sweden.

Average Trading Volume: 225,947

Technical Sentiment Signal: Hold

Current Market Cap: SEK55.73B

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