Production curtailments in the industry have led to decreases in pulpwood prices. During the quarter, log prices also started to decrease from very high levels due to lower demand. Operating profit from Forest remained strong and amounted to SEK 511 million. We manage the forest actively and responsibly to optimise the value over time, while it is also the main source of supply for our industry.
Electricity prices in northern Sweden increased sharply in the first quarter as a result of limited wind and cold weather, resulting in a strong result from Renewable Energy of SEK 281 million. Energy is a scarce resource in Europe and the transition of Europe’s fossil-dependent energy system, together with developments in AI data centres, require large amounts of electricity, which should attract new establishments in northern Sweden.
Demand for wood products remained weak during the quarter. Unchanged wood product prices and high raw material costs meant that earnings from Wood Products were weak, at SEK -91 million. We have adapted production to market conditions. With efficient sawmills and processing capacity, we are well positioned for when the construction cycle turns.
Demand for consumer paperboard has not picked up due to consumer caution, making the market balance challenging. Demand for paper slightly decreased. Market prices were largely unchanged. The high electricity price, together with lower volatility in the electricity market, increased our energy costs during the quarter. Board and Paper’s profit decreased to SEK 168 million. Given our strong market positions in selected niches, and our well-invested production facilities, we are in a good position to create ample added value.
Market conditions remain difficult in the wake of global turmoil. However, our business, which is based on our land holdings, is holding up well even in times such as these. On our land, we grow houses while also harness ing the energy that flows in the rivers and blows over the treetops. We use the residual forestry products to make renewable packaging, magazines and books that help our customers to increase their competitiveness and reduce their fossil carbon footprints.
Henrik Sjölund
President and CEO, Holmen
28 April 2026