Holmen (HOLM) Q4 2025 earnings summary

Executive summary

• Full-year 2025 operating profit was SEK 3,270 million, with a 15% margin, despite challenging market conditions, weak Wood Products results, and lower electricity prices in northern Sweden.

• Profit after tax reached SEK 2,879 million, with earnings per share of SEK 18.5, slightly up from SEK 18.0 in 2024.

• Board proposes increasing the ordinary dividend to SEK 9.5 per share, with SEK 1,888 million paid in dividends and SEK 1,649 million spent on share buybacks in 2025, totaling SEK 13 billion in dividends and buybacks over five years.

• SEK 3.5 billion was allocated to dividends and buybacks in 2025.

Financial highlights

• Net sales for 2025 were SEK 22,056 million, down from SEK 22,759 million in 2024.

• EBITDA for the year was SEK 4,733 million, down from SEK 5,110 million.

• Fourth quarter operating profit for Wood Products was a loss of SEK 111 million due to weak demand and high wood costs.

• Forest holdings valued at SEK 57 billion, down 2% year-over-year due to changes in valuation model.

• Board and paper division reported high Q4 results, supported by SEK 250 million in one-off gains from UK green certificates, emission rights, and lower energy costs.

Outlook and guidance

• Market conditions remain challenging, with weak construction and cautious consumer demand; Board and Paper segment expects continued pressure from subdued demand.

• Energy market volatility has decreased, making it harder to maintain lower energy costs in Q1 2026; one-off effects from Q4 are not expected to repeat.

• Maintenance shutdown at Iggesund mill in Q3 2026 will impact P&L by SEK 150 million.

• Loss of 30% of carbon emission rights allotment at Iggesund Bruk Mill in 2026 will reduce annual income by about SEK 50 million.

• Electricity price hedges cover 85% of expected consumption for 2026 and 40% for 2027.