Holmen (HOLM) investor relations material

Executive summary

• The quarter was marked by continued uncertainty and cautious consumer behavior, resulting in a challenging supply-demand balance across all forest-based industries.

• Strong performance in the energy segment and stable financial position, with a SEK 1.5 billion dividend paid and net debt at 8–10% of equity post-dividend.

• Operating profit for Q1 2026 ranged from SEK 827 million to SEK 1,078 million, with a 15% operating margin and significant gains in renewable energy, while industrial profits declined.

• Profit after tax was SEK 618 million, with earnings per share of SEK 4.0, compared to SEK 4.8 in Q1 2025.

• The AGM approved a dividend of SEK 9.5 per share (SEK 1,458 million), paid in April.

Financial highlights

• Group operating profit reached up to SEK 1,078 million in Q1 2026, with strong results in Forest and Energy segments and weaker results in Wood Products and Board & Paper.

• Forest division delivered SEK 511–522 million in operating profit for Q1, up year-over-year due to increased harvesting.

• Renewable Energy segment operating profit surged to SEK 281 million, driven by high electricity prices and new wind farm capacity.

• Board and Paper EBIT ranged from SEK 168 million to SEK 241 million, down from previous periods due to lower volumes, weaker prices, and higher energy costs.

• Wood Products division reported negative operating profit, with losses up to SEK -91 million, due to weak demand and high raw material costs.

Outlook and guidance

• Market conditions remain challenging due to international turmoil, weak construction markets, and cautious consumers.

• Wood and pulpwood prices are gradually declining, with further downside risk; impact on P&L expected after summer.

• Board and paper prices are stable, but fierce competition persists for marginal volumes, especially outside Europe.

• Energy segment expected to continue strong performance due to high prices and increased production; volatility expected to remain low until new transmission capacity is added in 2027–2028.

• Maintenance shutdown at Iggesund Mill in Q3 is expected to negatively impact earnings by SEK 150 million.