Latvian Forest Company (LATF) Q2 2026 earnings summary

Executive summary

• Net sales for January–June 2026 increased to 707.5 TEUR from 532.3 TEUR year-over-year, mainly from timber sales.

• Operating profit was -336.4 TEUR, down from -273.9 TEUR, with a total operating result of -1,473.8 TEUR due to negative revaluation of biological assets.

• Net result after tax was -1,527.2 TEUR, compared to 526.9 TEUR in the prior year period.

• The company acquired 58 hectares and sold 3 hectares of land, with significant harvesting and replanting activities.

Financial highlights

• Net sales rose 33% year-over-year to 707.5 TEUR.

• Operating profit (EBIT) was -1,473.8 TEUR, mainly due to a -1,137.4 TEUR change in forest value.

• Earnings per share were -0.038 EUR, down from 0.013 EUR.

• Book value of fixed assets was 42,022.3 TEUR; equity per share was 0.883 EUR.

• Total assets at period end were 43,495.2 TEUR, with equity of 35,301.8 TEUR and a solid equity ratio of 81.2%.

Outlook and guidance

• Baltic timber and land markets remain fragmented but offer consolidation opportunities.

• Timber prices are expected to rise due to higher energy prices and raw material shortages in Scandinavia.

• Long-term demand for timber and forest products is projected to increase.