Q1 2026 Holmen AB Earnings Call Transcript
Key Points
- Holmen AB (HLHLY) maintained a strong financial position even after distributing SEK1.5 billion in dividends to shareholders.
- The Forest division reported a financial performance of SEK511 million in the first quarter, which is SEK25 million higher than the same period last year.
- The Renewable Energy division benefited from high electricity prices in January and February, contributing positively to the company's results.
- The commissioning and ramp-up of the Vista Lieden wind farm added production capacity, providing a tailwind to the Energy division's results.
- Holmen AB's diversified business model allowed different divisions to support each other, resulting in a relatively stable overall performance despite market challenges.
- The supply-demand balance in the Forest-based industries remains challenging, with declining production and curtailments, particularly in the pulp board industry.
- Wood Products division continues to face slow demand and high raw material costs, resulting in negative operating profit.
- Board and Paper segments are experiencing a weak supply-demand balance, with competition for marginal volumes and stable but pressured prices.
- High electricity prices and limited volatility in the market negatively impacted the Board and Paper division's financial performance.
- The weakening of the dollar and high raw material costs, particularly in Sweden, are affecting the company's cost competitiveness.
Good morning, everybody, and most welcome to the interim report presentation for the Holmen Group. Today, it's me, Henrik Sjolund and Stefan Lorehn. Correct name again. Now the second quarter.
Good.
We will go through the presentation, and then we are happy to take any questions you might have after the presentations. So let's start. Well, as you know, the quarter again, characterized by uncertainty and the cautious consumers leading to a quite tough supply-demand balance for, I'd say, all Forest-based industries. In our case, we also -- we had arctic weather up in the North, which helped us to deliver a decent result, which we will come back to in the different business areas, Stefan.
During the first quarter, we also paid dividend to our shareholders, SEK1.5 billion. And our financial situation after the dividend, just to remind you is, of course, very strong, and shall remains so
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