{"id":99320,"date":"2026-07-17T10:55:21","date_gmt":"2026-07-17T10:55:21","guid":{"rendered":"https:\/\/www.timberindustrynews.com\/?p=99320"},"modified":"2026-07-17T11:59:44","modified_gmt":"2026-07-17T11:59:44","slug":"weak-softwood-lumber-demand-pushes-sodra-into-q2-operating-loss","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/weak-softwood-lumber-demand-pushes-sodra-into-q2-operating-loss\/","title":{"rendered":"Weak softwood lumber demand pushes S\u00f6dra into Q2 operating loss"},"content":{"rendered":"

Swedish forest owners' cooperative S\u00f6dra<\/strong> reported a loss in the second quarter of 2026 as weak demand across its core markets, subdued construction activity and the continued mismatch between timber procurement costs and finished product prices weighed on profitability. Although earnings remained negative, management said cost-cutting measures and efficiency improvements are beginning to deliver measurable results.<\/p>\n

Group net sales declined to SEK 6.95 billion (\u20ac605 million)<\/strong> from SEK 7.19 billion (\u20ac626 million)<\/strong> a year earlier, while the company recorded an operating loss of SEK 424 million (\u20ac36.9 million)<\/strong>, compared with a positive operating result in the second quarter of 2025. The operating margin fell to -6%<\/strong>.<\/p>\n

President and CEO Lotta Lyr\u00e5<\/strong> said S\u00f6dra remains focused on strengthening competitiveness by lowering costs, improving operational efficiency and enhancing commercial performance. During the quarter, overhead costs were reduced by more than SEK 202 million (\u20ac17.6 million)<\/strong>, while the company's contribution margin improved by 5%<\/strong>, reflecting the early impact of ongoing restructuring efforts.<\/p>\n

Softwood lumber market remains challenging<\/strong><\/p>\n

Market conditions for softwood lumber<\/strong> remained difficult throughout the quarter, despite the spring season typically representing one of the strongest periods for wood products demand.<\/p>\n

S\u00f6dra said activity remained weak in Sweden, the United Kingdom and the United States, while only parts of continental Europe experienced modest improvement. Continued weakness in residential and commercial construction limited demand across most product categories, while timber procurement costs remained significantly higher than the prices manufacturers were able to achieve for finished products.<\/p>\n

The company also noted that demand for cross-laminated timber (CLT) remained constrained by the slowdown in construction activity, although the residential segment showed tentative signs of recovery.<\/p>\n

Pulp business shows gradual improvement<\/strong><\/p>\n

While the pulp business delivered a stronger operational performance than a year earlier, management said global market conditions remain difficult.<\/p>\n

Higher shipment volumes and lower maintenance shutdown costs supported earnings during the quarter, but global supply continues to exceed demand, preventing any meaningful recovery in pulp prices. Paper and paperboard markets also remained subdued.<\/p>\n

By contrast, several bio-based products benefited from more favourable market conditions. Demand remained healthy for dissolving pulp, while electricity generation, biomethanol and turpentine all contributed positively during the period.<\/p>\n

Cost reduction programme continues to deliver savings<\/strong><\/p>\n

S\u00f6dra continued implementing its S\u00f6dra Leap<\/strong> transformation programme, aimed at strengthening profitability through lower operating costs and improved efficiency across the organisation.<\/p>\n

Since the programme was introduced, operating expenses have been reduced by approximately SEK 329 million (\u20ac28.7 million)<\/strong>. More than SEK 202 million (\u20ac17.6 million)<\/strong> of those savings were achieved during the second quarter through lower consulting expenses, revised IT investment plans and workforce adjustments.<\/p>\n

The company's World-class Efficiency programme also generated operational improvements valued at SEK 122 million (\u20ac10.6 million)<\/strong> during the quarter. Management indicated that further actions remain under consideration should market conditions fail to improve.<\/p>\n

Mixed performance across business segments<\/strong><\/p>\n

Performance varied across S\u00f6dra's four business areas during the second quarter.<\/p>\n

The S\u00f6dra Wood<\/strong> division remained the largest drag on group earnings as weak softwood lumber<\/strong> demand, lower shipment volumes, softer market prices and elevated timber costs continued to pressure margins. Forestry operations also moved into a small operating loss following lower spruce sawlog deliveries.<\/p>\n

The pulp division improved compared with the same period last year, supported by stronger delivery volumes and reduced maintenance costs, although profitability continued to be limited by global oversupply. Meanwhile, Building Systems remained loss-making as construction activity stayed weak despite stable sales and disciplined cost management.<\/p>\n

Outlook<\/strong><\/p>\n

S\u00f6dra expects market conditions to remain challenging in the coming months. Weak construction activity continues to limit demand for softwood lumber<\/strong>, while excess global pulp capacity is expected to keep pressure on prices.<\/p>\n

Management said restoring profitability will depend on maintaining strict cost discipline while gradually improving the balance between timber procurement costs and finished product prices. Although selected market segments have shown early signs of stabilisation, the company believes operational efficiency and commercial initiatives will remain the main drivers of performance until demand recovers.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Key indicator<\/th>\nQ2 2026<\/th>\nQ2 2025<\/th>\nTrend<\/th>\n<\/tr>\n<\/thead>\n
Net sales<\/strong><\/td>\nSEK 6.947 billion (\u20ac605 million)<\/td>\nSEK 7.193 billion (\u20ac626 million)<\/td>\n\u25bc -3.4%<\/td>\n<\/tr>\n
Operating result<\/strong><\/td>\nSEK -424 million (\u20ac36.9 million)<\/td>\nPositive<\/td>\n\u25bc Loss<\/td>\n<\/tr>\n
Operating margin<\/strong><\/td>\n-6%<\/td>\nPositive<\/td>\n\u25bc Lower profitability<\/td>\n<\/tr>\n
Softwood lumber market<\/strong><\/td>\nWeak demand in Sweden, UK and US; slightly better activity in parts of Europe<\/td>\n-<\/td>\n\u25bc Challenging<\/td>\n<\/tr>\n
Pulp market<\/strong><\/td>\nHigher shipment volumes but global oversupply continues to pressure prices<\/td>\n-<\/td>\n\u279c Mixed<\/td>\n<\/tr>\n
CLT market<\/strong><\/td>\nConstruction slowdown continues to limit demand; residential segment showing modest recovery<\/td>\n-<\/td>\n\u279c Slight improvement<\/td>\n<\/tr>\n
Cost reduction programme<\/strong><\/td>\nSEK 329 million cumulative savings since launch<\/td>\n-<\/td>\n\u25b2 Improving<\/td>\n<\/tr>\n
Overhead costs (Q2)<\/strong><\/td>\nDown SEK 202 million<\/td>\n-<\/td>\n\u25b2 Lower costs<\/td>\n<\/tr>\n
Contribution margin<\/strong><\/td>\n+5%<\/td>\n-<\/td>\n\u25b2 Improved<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n\n\n\n\n\n\n\n\n
Business area<\/th>\nOperating result (SEK million)<\/th>\nMain driver<\/th>\n<\/tr>\n<\/thead>\n
S\u00f6dra Skog<\/strong><\/td>\n-12<\/td>\nLower spruce sawlog deliveries and weaker revenue.<\/td>\n<\/tr>\n
S\u00f6dra Wood<\/strong><\/td>\n-215<\/td>\nWeak softwood lumber<\/strong> demand, lower shipment volumes, softer market prices and high raw material costs.<\/td>\n<\/tr>\n
S\u00f6dra Cell<\/strong><\/td>\n-88<\/td>\nHigher pulp shipments and lower maintenance costs partly offset by global oversupply.<\/td>\n<\/tr>\n
S\u00f6dra Building Systems<\/strong><\/td>\n-45<\/td>\nWeak construction market despite stable sales and disciplined cost control.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>","protected":false},"excerpt":{"rendered":"

Swedish forest owners’ cooperative S\u00f6dra reported a loss in the second quarter of 2026 as weak demand across its core markets, subdued construction activity and the continued mismatch between timber procurement costs and finished product prices weighed on profitability. Although … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":99321,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-99320","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\nWeak softwood lumber demand pushes S\u00f6dra into Q2 operating loss - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/weak-softwood-lumber-demand-pushes-sodra-into-q2-operating-loss\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Weak softwood lumber demand pushes S\u00f6dra into Q2 operating loss - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"Swedish forest owners' cooperative S\u00f6dra reported a loss in the second quarter of 2026 as weak demand across its core markets, subdued construction activity and the continued mismatch between timber procurement costs and finished product prices weighed on profitability. 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