Holmen (HOLM) Q3 2024 earnings summary

Executive summary

• Q3 2024 operating profit exceeded SEK 1 billion, driven by strong Board and Paper performance despite challenging markets and high log costs.

• Net sales for Jan–Sep 2024 were SEK 17,246 million, slightly down year-over-year, with operating profit for the period at SEK 3,005 million.

• Return on capital employed was 16% for the last year, with a 10-year average of 18%.

• Maintained a strong financial position, with net debt at 6% of equity (SEK 3.5 billion).

• SEK 6 billion returned to shareholders via dividends and buybacks over 2023–2024.

Financial highlights

• Q3 2024 operating profit was SEK 1,078 million, up from SEK 983 million in Q2 2024.

• EBITDA for Jan–Sep 2024 was SEK 4,050 million, down from SEK 5,055 million year-over-year.

• Forestry cash flow increased 60% over three years, though Q3 saw lower cash flow due to reduced harvesting and increased silviculture.

• Board and Paper delivered strong EBIT and robust EBITDA margin, with favorable product mix and stable prices.

• Renewable Energy segment faced headwinds from the lowest Swedish electricity prices in 20 years, impacting revenues and support services.

Outlook and guidance

• Q4 expected to be more challenging for Board and Paper due to lower demand, maintenance shutdowns, and a SEK 250 million profit impact.

• Wood Products market remains weak, with prices moving sideways and high log costs, especially in southern Sweden.

• Interest rate cuts have not yet stimulated consumption or construction; market conditions remain challenging.

• Ongoing focus on niche markets for fresh fibre and development of new wind power projects.