Holmen (HOLM) Q4 2025 earnings summary

Executive summary

• Full-year operating profit for 2025 was SEK 3,270 million, with a 15% margin, despite challenging market conditions and weak Wood Products results; profit after tax was SEK 2,879 million and earnings per share SEK 18.5.

• Board proposes increasing the ordinary dividend to SEK 9.5 per share, up from SEK 9.0, reflecting a strong financial position and low debt-to-equity ratio; share buybacks totaled SEK 1,649 million in 2025.

• SEK 3.5 billion was allocated to dividends and buybacks in 2025, totaling SEK 13 billion from 2021–2025.

• Market headwinds included geopolitical uncertainty, tariffs, cautious consumer spending, and weak construction activity.

Financial highlights

• Net sales for 2025 were SEK 22,056 million, down from SEK 22,759 million in 2024; EBITDA was SEK 4,733 million.

• Fourth quarter operating profit in the Wood Products segment was a loss of SEK 111 million due to high wood costs and declining prices.

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

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

• Cash flow from operating activities before changes in working capital was SEK 3,901 million.

Outlook and guidance

• Lower energy cost and one-off items in Q4 are not expected to repeat at the same level in Q1 2026; energy market volatility is lower.

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

• CapEx expected to be just above SEK 1 billion in 2026, down from 2025, with one major maintenance shutdown planned at Iggesund Mill in Q3 2026, expected to impact earnings by SEK 150 million.

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

• Pulpwood prices are coming down, but the impact on input costs will depend on local market effects and storm-related supply.