Q4 2025 Holmen AB Earnings Call Transcript
Key Points
- Holmen AB (HLHLY) delivered a return on capital employed of 15% despite challenging market conditions.
- The company proposed an increase in the ordinary dividend from SEK9 to SEK9.50, reflecting a solid financial position.
- Holmen AB (HLHLY) has distributed SEK13 billion in dividends and buybacks over the last five years.
- The Energy division saw an uptick in results due to higher electricity prices and efficient hydropower operations.
- The company maintains a strong financial position with a debt-to-equity ratio of approximately 10%.
- The sawmill operations are currently loss-making, with a reported operating loss of SEK111 million in Q4.
- The Forest division faced a write-down of felling rights amounting to SEK160 million due to challenging financial conditions.
- Wood product prices have not increased as expected, with sawlog prices remaining high, impacting profitability.
- The Board and Paper division is experiencing cautious consumer demand and overcapacity, leading to market-related downtime.
- Holmen AB (HLHLY) anticipates a 30% reduction in carbon emission rights allotment in 2026, impacting financial performance.
Good afternoon, everybody, and welcome to the year-end report presentation for the Holmen Group. It's me, Henrik and Stefan, as usual, now, I must say. Thank you. You are most welcome to listen to us. We do the presentation, then we're happy to take all your questions, and we are especially happy that you take your time on a Friday afternoon like this.
So let's start. I think if we just make a very quick summary of the year, it felt like we were a bit optimistic in the beginning of the year. But after a while, it changed into geopolitics, tariffs and also cautious consumers not really spending and also construction business that didn't really take off. But we'll come back to that a bit later.
Despite challenging market conditions, we were able for the full year of 2025 to deliver close to SEK3.3 billion, which is we consider as fairly good also in the fourth quarter. But I think in the fourth quarter, we'll come back to it when we go through the different business areas. It makes more sense.
If we then
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