Sveaskog (SVEA) Q2 2025 earnings summary

Executive summary

• Net sales rose 10% to 2,454 MSEK in Q2 2025, driven by a 16% increase in timber prices, despite a 7% drop in delivery volumes.

• Operating profit surged 48% to 740 MSEK, mainly due to higher timber prices; average prices from own forests increased 28% year-over-year.

• Sale of Setra Group AB shares to Mellanskog AB completed, aligning with the strategy to focus on sustainable forestry and independence from industrial interests.

• Q2 net income fell 36% to 334 MSEK, impacted by a negative revaluation of biological assets due to a new valuation methodology.

Financial highlights

• Q2 2025 net sales: 2,454 MSEK (+10% YoY); H1 2025: 4,779 MSEK (+9% YoY).

• Q2 operating profit: 740 MSEK (+48% YoY); H1: 1,579 MSEK (+45% YoY).

• Q2 net income: 334 MSEK (-36% YoY); H1: 488 MSEK (-47% YoY).

• Cash flow from operations in H1: 946 MSEK (+37% YoY).

• EPS for Q2: 2.82 SEK (-36% YoY); H1: 4.12 SEK (-47% YoY).

Outlook and guidance

• Market conditions remain uncertain; timber prices continue to rise due to strong raw material demand, but customers face weak demand and high costs.

• Future revenue growth expected mainly from renewable energy projects, including joint investments in wind and solar.