Sveaskog (SVEA) Q1 2025 earnings summary

Executive summary

• Net sales rose 7% to 2,325 MSEK in Q1 2025, driven by a 14% increase in timber prices, despite an 8% drop in delivery volumes.

• Operating profit surged 41% to 839 MSEK, mainly due to higher timber prices; average prices from own forests increased 23% year-over-year.

• Net income fell 62% to 154 MSEK, impacted by a 235 MSEK impairment related to the planned sale of Setra Group shares.

• The company remains focused on robust operations, climate adaptation, and value creation from forest and land assets.

Financial highlights

• Net sales: 2,325 MSEK (+7% year-over-year); operating profit: 839 MSEK (+41%); net income: 154 MSEK (-62%).

• Cash flow from operations: 193 MSEK (down from 233 MSEK in Q1 2024).

• Earnings per share: 1.30 SEK (3.40 SEK in Q1 2024).

• Impairment of Setra Group shares: -235 MSEK; change in value of biological assets: -211 MSEK.

Outlook and guidance

• Timber, pulpwood, and energy wood prices remain high, but there is risk of weaker economic conditions affecting demand.

• The company continues to focus on operational resilience, climate adaptation, and diversification of tree species.

• Ongoing strategic review of renewable energy and market activities, including solar and wind projects.