{"id":99668,"date":"2026-08-21T05:04:37","date_gmt":"2026-08-21T05:04:37","guid":{"rendered":"https:\/\/www.timberindustrynews.com\/?p=99668"},"modified":"2026-08-21T14:49:44","modified_gmt":"2026-08-21T14:49:44","slug":"holmen-sawmill-losses-persist-but-easing-log-costs-point-to-a-changing-swedish-timber-market","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/holmen-sawmill-losses-persist-but-easing-log-costs-point-to-a-changing-swedish-timber-market\/","title":{"rendered":"Holmen sawmill losses persist, but easing log costs point to a changing Swedish timber market"},"content":{"rendered":"

Holmen\u2019s Wood Products business remained in the red in the first half of 2026 despite stable delivery volumes, highlighting how high raw-material costs, weaker by-product revenues and currency pressure continue to squeeze Swedish sawmill margins. The second quarter nevertheless brought an important change: sawlog prices started to ease, deliveries improved and the operating loss narrowed.<\/p>\n

Holmen\u2019s five sawmills reported an operating loss of approximately \u20ac13.1 million in January-June 2026, compared with a profit of around \u20ac1.8 million in the same period last year. EBITDA fell from positive \u20ac11.3 million to negative \u20ac3.9 million, while sales declined 4.1% to approximately \u20ac186.7 million.<\/p>\n

The deterioration cannot be explained by a collapse in sawmill volumes. Holmen delivered 674,000 m\u00b3 of wood products during the first half, virtually unchanged from 671,000 m\u00b3 a year earlier. Instead, the figures show how little margin was left in converting logs into sawn and further-processed timber during the first six months of the year.<\/p>\n\n\n\n\n\n\n\n\n
Holmen Wood Products<\/th>\nQ2 2026<\/th>\nQ1 2026<\/th>\nQ2 2025<\/th>\nH1 2026<\/th>\nH1 2025<\/th>\n<\/tr>\n
Net sales, \u20acm<\/strong><\/td>\n98.5<\/td>\n88.3<\/td>\n99.1<\/td>\n186.7<\/td>\n194.6<\/td>\n<\/tr>\n
EBITDA, \u20acm<\/strong><\/td>\n-0.3<\/td>\n-3.6<\/td>\n6.7<\/td>\n-3.9<\/td>\n11.3<\/td>\n<\/tr>\n
Operating profit, \u20acm<\/strong><\/td>\n-5.0<\/td>\n-8.2<\/td>\n1.8<\/td>\n-13.1<\/td>\n1.8<\/td>\n<\/tr>\n
Operating margin<\/strong><\/td>\n-5%<\/td>\n-9%<\/td>\n2%<\/td>\n-7%<\/td>\n1%<\/td>\n<\/tr>\n
Deliveries, '000 m\u00b3<\/strong><\/td>\n345<\/td>\n329<\/td>\n326<\/td>\n674<\/td>\n671<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Holmen attributed the H1 decline primarily to lower income from wood chips and biofuels and a weaker US dollar. The comparison is also slightly flattered by a roughly \u20ac2.7 million shutdown cost at Iggesund Sawmill in H1 2025, meaning the underlying year-on-year deterioration in 2026 is even more significant than the reported swing from a \u20ac1.8 million profit to a \u20ac13.1 million loss suggests.<\/p>\n

Volumes recover, but price improvement remains limited<\/strong><\/p>\n

The second quarter was better than the first. Deliveries increased 5% quarter on quarter to 345,000 m\u00b3, helped by the normal seasonal improvement in construction-related demand. Holmen also reported a slight increase in wood-product selling prices.<\/p>\n

That combination lifted Q2 sales to approximately \u20ac98.5 million from \u20ac88.3 million in Q1 and reduced the operating loss from \u20ac8.2 million to \u20ac5.0 million. EBITDA was almost back at break-even at negative \u20ac0.3 million.<\/p>\n

The improvement is important, but it is not yet a normalised sawmill margin. Q2 deliveries were actually 5.8% higher than a year earlier, while revenue was slightly lower. On a simple sales-per-delivered-cubic-metre basis, segment revenue fell from roughly \u20ac304\/m\u00b3 in Q2 2025 to around \u20ac285\/m\u00b3 in Q2 2026.<\/p>\n

Product mix, processing levels, currencies and by-product revenue mean this is not a direct lumber price comparison, but the direction is telling: higher throughput has not yet translated into stronger revenue per unit.<\/p>\n

Swedish sawlog market finally begins to loosen<\/strong><\/p>\n

The more important development for the second half may be upstream.<\/p>\n

Holmen said competition for wood raw material eased during the quarter and log prices declined from exceptionally high levels. This is consistent with broader Swedish market data.<\/p>\n

According to the Swedish Forest Agency, average harvesting-assignment prices in Q1 2026 fell 4% quarter on quarter for pine sawlogs to around \u20ac88\/m\u00b3sub and 6% for spruce sawlogs to approximately \u20ac104\/m\u00b3sub.<\/p>\n

The physical supply position has also changed. Swedish stocks of coniferous sawlogs reached 4.6 million m\u00b3 at the end of March, up around 1.2 million m\u00b3 in just one quarter.<\/p>\n

For sawmills, this is a notable reversal from the tight raw-material environment of 2024-2025. Swedish spruce log prices had more than doubled from early-2020 levels before reaching their peak in 2025, leaving sawmills increasingly dependent on higher lumber prices and stronger by-product revenues to defend margins.<\/p>\n\n\n\n\n\n\n\n\n
Market indicator<\/th>\nLatest signal<\/th>\nImplication for sawmill margins<\/th>\n<\/tr>\n
Pine sawlogs<\/strong><\/td>\n~\u20ac88\/m\u00b3sub in Q1, -4% q\/q<\/td>\nFirst meaningful raw-material relief after exceptionally high prices<\/td>\n<\/tr>\n
Spruce sawlogs<\/strong><\/td>\n~\u20ac104\/m\u00b3sub, -6% q\/q<\/td>\nPotentially more important for construction-grade lumber producers<\/td>\n<\/tr>\n
Swedish sawlog stocks<\/strong><\/td>\n4.6m m\u00b3, +1.2m m\u00b3 q\/q<\/td>\nLess competition for marginal log volumes<\/td>\n<\/tr>\n
Holmen Q2 deliveries<\/strong><\/td>\n345,000 m\u00b3, +5% q\/q<\/td>\nSeasonal demand recovery, but not yet enough to restore profitability<\/td>\n<\/tr>\n
Holmen Q2 operating margin<\/strong><\/td>\n-5%, versus -9% in Q1<\/td>\nMargin is improving sequentially, but still negative<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Storm timber changes the short-term raw-material balance<\/strong><\/p>\n

Part of the additional supply is temporary.<\/p>\n

The major storm in central Sweden at the end of 2025 felled around 10 million m\u00b3 of timber. About 0.5 million m\u00b3 was blown down on Holmen\u2019s own land, equivalent to roughly half of a normal annual harvest for the company in that region. Holmen has prioritised harvesting storm-damaged timber both from its own forests and from other forest owners.<\/p>\n

That creates a near-term supply benefit for mills in the affected region. Salvage volumes have to be moved relatively quickly, increasing the amount of timber available to the market and reducing some of the competition that drove sawlog prices to unusually high levels.<\/p>\n

The effect should not be read as a permanent increase in Swedish supply, however. Holmen expects its own normal harvest in 2027 to be lower because harvesting resources are currently being redirected towards storm-damaged stands.<\/p>\n

This gives the Swedish log market an unusual profile: additional physical supply is providing relief today, while some of that volume is effectively being brought forward from future harvests.<\/p>\n

The margin remains upstream<\/strong><\/p>\n

Holmen\u2019s own results show particularly clearly where value currently sits in the forest-products chain.<\/p>\n

Its Forest division generated operating profit of approximately \u20ac87.5 million in H1, only slightly below \u20ac90.6 million a year earlier. Wood Products, by contrast, lost \u20ac13.1 million. Forest remained highly profitable despite lower timber prices and higher harvesting costs.<\/p>\n

Holmen owns more than one million hectares of productive forest land, with a normal annual harvest of around 2.8 million m\u00b3sub, and its forests are the main raw-material source for its industrial operations.<\/p>\n

For the integrated group this provides an important cushion. For the wider Swedish sawmilling market, however, the contrast is revealing: the high prices achieved by forest owners during the previous raw-material squeeze have not been fully recoverable downstream through sawn timber prices.<\/p>\n

That margin imbalance is now beginning to correct, but slowly.<\/p>\n

Five sawmills and 1.5 million m\u00b3 of capacity<\/strong><\/p>\n

Holmen operates five sawmills with combined annual capacity of around 1.5 million m\u00b3. The network includes Braviken, Iggesund, Linghem, Kroksj\u00f6n and Bygdsiljum, with production ranging from standard sawn and planed timber to more specialised joinery products, pressure-treated timber, glulam and CLT.<\/p>\n

H1 deliveries of 674,000 m\u00b3 correspond to around 45% of nominal annual capacity before allowing for normal maintenance schedules and product mix. The figure does not mean utilisation was exactly 90% on an annualised basis, but it indicates that Holmen has not responded to weak margins by withdrawing large amounts of production.<\/p>\n

Instead, management says production is being adjusted to market conditions while costs are being reduced.<\/p>\n

That is significant for the Northern European lumber balance. If other Scandinavian sawmills follow a similar strategy - maintaining output while waiting for log costs to fall and construction demand to recover - supply pressure can remain high even as mill profitability deteriorates.<\/p>\n

Q2 may mark the bottom, but the spread has not normalised<\/strong><\/p>\n

There are several signs that Q2 was better than Q1 for Holmen\u2019s sawmills: deliveries increased, selling prices edged higher, log costs started falling and the operating loss narrowed by approximately \u20ac3.2 million.<\/p>\n

But the comparison with Q2 2025 remains weak. A year ago, Wood Products produced around \u20ac6.7 million of EBITDA and \u20ac1.8 million of operating profit on 326,000 m\u00b3 of deliveries. This year, 345,000 m\u00b3 generated essentially zero EBITDA and a \u20ac5.0 million operating loss.<\/p>\n

The next improvement therefore has to come mainly from the spread between lumber and logs, rather than volume alone.<\/p>\n

If sawlog prices continue to retreat while lumber prices hold or rise modestly, Holmen should see a clearer margin recovery in the second half. Stronger revenues from chips and biofuels would add another lever. A recovery driven only by higher sawmill output, on the other hand, would do much less to change the economics.<\/p>\n

For the Swedish lumber market, Holmen's Q2 numbers suggest that raw-material pressure has finally begun to ease, but not yet enough to restore a normal sawmilling margin. That makes the pace of the decline in sawlog prices - rather than another seasonal increase in lumber shipments - the more important indicator to watch over the coming quarters.<\/p>\n

Group earnings remain protected by integration<\/strong><\/p>\n

At group level, Holmen reported H1 sales of approximately \u20ac999 million, down 3.8% year on year, while operating profit declined 15.5% to around \u20ac136 million. Renewable Energy provided a substantial offset to weaker industrial earnings, with H1 operating profit rising to approximately \u20ac31.9 million from a small loss a year earlier.<\/p>\n\n\n\n\n\n\n\n
Holmen Group<\/th>\nH1 2026<\/th>\nH1 2025<\/th>\nChange<\/th>\n<\/tr>\n
Net sales, \u20acm<\/strong><\/td>\n999.5<\/td>\n1,039.1<\/td>\n-3.8%<\/td>\n<\/tr>\n
EBITDA, \u20acm<\/strong><\/td>\n200.4<\/td>\n227.2<\/td>\n-11.8%<\/td>\n<\/tr>\n
Operating profit, \u20acm<\/strong><\/td>\n136.4<\/td>\n161.5<\/td>\n-15.5%<\/td>\n<\/tr>\n
Operating margin<\/strong><\/td>\n14%<\/td>\n16%<\/td>\n-2 pp<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The integrated structure therefore continues to protect Holmen from the full effect of the sawmill downturn. But within Wood Products itself, the first-half figures leave little doubt about the current market equation: volumes are available, demand has improved slightly and logs are beginning to get cheaper, yet the lumber-log spread remains too narrow to generate acceptable returns.<\/p>","protected":false},"excerpt":{"rendered":"

Holmen\u2019s Wood Products business remained in the red in the first half of 2026 despite stable delivery volumes, highlighting how high raw-material costs, weaker by-product revenues and currency pressure continue to squeeze Swedish sawmill margins. The second quarter nevertheless brought … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":99669,"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-99668","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\nHolmen sawmill losses persist, but easing log costs point to a changing Swedish timber market - 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\/holmen-sawmill-losses-persist-but-easing-log-costs-point-to-a-changing-swedish-timber-market\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Holmen sawmill losses persist, but easing log costs point to a changing Swedish timber market - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"Holmen\u2019s Wood Products business remained in the red in the first half of 2026 despite stable delivery volumes, highlighting how high raw-material costs, weaker by-product revenues and currency pressure continue to squeeze Swedish sawmill margins. 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