Profit for the fourth quarter totalled SEK 739 million where Board and Paper and harvest from own forests contributed with a good result but an impairment loss on felling right inventory had a negative impact.
Demand for pulpwood slowed during the autumn and prices slightly decreased from a high level. Competition for logs remained high and prices were largely unchanged. High wood prices contributed to a good underlying profit from forests, but an inventory impairment loss of SEK 160 million linked to purchases for the sawmill business meant that earnings recognised for the fourth quarter stood at SEK 403 million. The book value of our forests, based on transaction prices, decreased by two per cent in 2025 to SEK 57 billion. The end of December saw one of the most powerful storms to hit Sweden in modern times. Although we have a lot of forest in the most affected areas, we will be able to handle storm-felled volumes in the normal course of business and they are expected to have a limited impact on earnings.
After a long period of locked-in power in northern Sweden, the situation improved in the fourth quarter due to the commissioning of a cable between northern Sweden and Finland and the normalisation of water storage reservoir levels. The electricity price increased, but remained at lower levels than they have been historically, and earnings totalled SEK 41 million. The price level in northern Sweden is lower than in the rest of the country, and significantly lower than on the continent, which should attract new establishments in electricity-intensive industries.
Wood product consumption has been subdued in recent years, but price levels have been sustained by global raw material shortages. After a seasonal price increase in the spring, prices fell back and were broadly at the same level as a year ago in the fourth quarter. Log costs increased considerably during the year, however, which means that earnings for the fourth quarter were very weak, at SEK -111 million. We are in a good position for when the construction cycle turns, thanks to efficiency improvements and investments in processing capacity.
The market balance for consumer paperboard was weak as demand was lower than normal and new capacity was added in the past year. Demand for paper decreased. Market prices were largely unchanged. Despite weak market conditions and high wood costs, the profit from Board and Paper was good in the fourth quarter, SEK 454 million, thanks to relatively good deliveries and low energy costs. Our focus on niches in which fresh fibre comes into its own has worked well. This is illustrated by the fact that in 2025 we were able to deliver a return on capital employed of 22 per cent.
The markets in which we operate are currently marked by global unrest and cautious consumers. With a large forest holding as a foundation, we stand strong even in turbulent times and Holmen has developed well by creating added value from the forest and land we own. On our land, we grow houses while converting the energy that flows in the rivers and blows over the treetops into electricity that is needed to power Europe. 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
CEO, Holmen
January 30 2026