Sveaskog (SVEA) Q3 2025 earnings summary

Executive summary

• Revenue increased by 3% in Q3 and 7% for the first nine months, driven by higher timber prices despite lower delivery volumes.

• Operating profit fell 2% in Q3 due to provisions, but rose 32% for the nine-month period, mainly from higher timber prices.

• Net profit declined 45% in Q3 and 47% for the nine months, impacted by a change in valuation methodology for biological assets and a significant write-down related to the Setra Group divestment.

• The company maintains a strong market position despite a weakening timber market and challenging economic conditions.

Financial highlights

• Q3 net sales: 1,769 MSEK (+3% YoY); nine months: 6,548 MSEK (+7% YoY).

• Q3 operating profit: 386 MSEK (-2% YoY); nine months: 1,965 MSEK (+32% YoY).

• Q3 net profit: 106 MSEK (-45% YoY); nine months: 594 MSEK (-47% YoY).

• Earnings per share: 0.90 SEK in Q3 (1.64), 5.02 SEK for nine months (9.43).

• Cash flow from operations: 1,366 MSEK for nine months (+35% YoY).

Outlook and guidance

• The timber market is expected to remain challenging, with continued weak demand in the sawmill and pulp sectors.

• The company is focusing on operational adjustments and long-term sustainability, including divesting non-core assets.