Swedish forest group S\u00f6dra reported a negative result for the third quarter of 2025, as continued uncertainty in global markets, low demand, and adverse currency fluctuations weighed on earnings.<\/p>\n
Net sales for the S\u00f6dra Group during the third quarter amounted to SEK 6,349 million (\u20ac548 million), down 9 percent from SEK 6,944 million (\u20ac600 million) a year earlier. The group recorded an operating loss of SEK 360 million (\u20ac31 million), compared with an operating profit of SEK 937 million (\u20ac81 million) in the same period last year. The swing in earnings was partly due to exchange rate effects of approximately SEK 380 million (\u20ac33 million), weaker prices for core products, and higher raw material costs of around SEK 470 million (\u20ac41 million). The result corresponds to an operating margin of -6 percent (13) and a return on capital employed of 2 percent, while the equity ratio remained solid at 57 percent.<\/p>\n
\u201cThe third quarter was marked by continued low demand and price pressure in an uncertain environment. Profitability was impacted by the continued effects of currency fluctuations from the spring, together with an imbalance between the market for raw materials and the markets for our products. This reinforces the need for the intensified actions implemented during the quarter,\u201d said S\u00f6dra President and CEO Lotta Lyr\u00e5.<\/p>\n
Market conditions and product trends<\/strong><\/p>\n Markets for S\u00f6dra\u2019s products continued to face rapid currency fluctuations, turbulence surrounding international tariffs, and a long-term imbalance between raw material prices and sales prices. In the pulp segment, weak European demand led to increased shipments to Asia at lower margins. Oversupply of both softwood and hardwood pulp contributed to continued price pressure.<\/p>\n In sawn timber, oversupply in the US and UK pushed prices down, while Germany and Central Europe showed signs of recovery. The Netherlands remained stable. The CLT (cross-laminated timber) business grew, but production was temporarily hindered by an unplanned interruption; production has now resumed, and the order book indicates continued growth.<\/p>\n Energy products recorded seasonal volumes in line with the previous year. Demand for biomethanol and turpentine remained strong, while tall oil showed a rising trend from low levels. Dissolving pulp demand remains favourable but has been affected by tariff concerns and high supply levels. Competition for wood raw material remains high, with price adjustments in pulpwood and energy ranges, while demand for spruce logs and softwood pulp has remained stable.<\/p>\n Efficiency improvements and cost initiatives<\/strong><\/p>\n S\u00f6dra\u2019s World-class Efficiency programme generated improvements with an annual recurring effect of SEK 341 million (\u20ac29 million). To address the challenging global environment, the company launched an action programme during the summer, aimed at strengthening long-term competitiveness through increased profitability and operational changes. Intensified measures in the autumn included redundancy notices for 200 roles across M\u00f6nster\u00e5s, M\u00f6rrum, V\u00e4r\u00f6, and V\u00e4xj\u00f6 at the start of Q4.<\/p>\n Investments are continuing to maintain competitiveness in forest raw material procurement for S\u00f6dra\u2019s members and to ensure stability, quality, and long-term customer relationships. \u201cThe mission is to refine and renew family forestry, and this requires competitiveness across the value chain \u2013 regardless of the global situation. To succeed, we need to both accelerate and brake: continue investing for the future, but also adapting our operations to new conditions,\u201d said Lyr\u00e5.<\/p>\n Major investment in Kinda sawmill<\/strong><\/p>\n One key initiative is the investment in Kinda, with S\u00f6dra committing just over SEK 1.5 billion (\u20ac130 million) to expand the sawmill in Kisa. The project will increase capacity by 50 percent and include a new pellet plant, supporting growing demand for wood-based products in the green transition. The investment is intended to strengthen S\u00f6dra\u2019s position as a long-term supplier both in Sweden and internationally.<\/p>\n Business area performance<\/strong><\/p>\n S\u00f6dra Skog: Operating loss of SEK 32 million (\u20ac2.8 million), mainly due to declining energy sales and higher IT\/digitalisation investments.<\/p>\n<\/li>\n S\u00f6dra Wood: Operating loss of SEK 103 million (\u20ac8.9 million), driven by higher saw log costs, partly offset by higher delivery prices.<\/p>\n<\/li>\n S\u00f6dra Cell: Operating loss of SEK 80 million (\u20ac6.9 million), affected by negative exchange rates, higher raw material costs, and an unfavourable geographic sales mix.<\/p>\n<\/li>\n S\u00f6dra Building Systems: Operating loss of SEK 51 million (\u20ac4.4 million), influenced by an unplanned production interruption and higher depreciation, partly offset by cost control and improved gross margin mix.<\/p>\n<\/li>\n S\u00f6dra Bioproducts: Sales amounted to SEK 674 million (\u20ac58 million) and are included in other business areas.<\/p>\n<\/li>\n<\/ul>","protected":false},"excerpt":{"rendered":" Swedish forest group S\u00f6dra reported a negative result for the third quarter of 2025, as continued uncertainty in global markets, low demand, and adverse currency fluctuations weighed on earnings. Net sales for the S\u00f6dra Group during the third quarter amounted … Continue reading \n