Mellanskog delivers a strong Q2 performance for the Swedish forestry

 Friday, August 29, 2025

The Mellanskog Forest Owners’ Association is one of the leading forest organisations in Sweden, has posted robust financial results for the second quarter of 2025. The association has seen a significant increase in profit, with a notable SEK 117 million in pre-tax profit, compared to SEK 83 million during the same period last year. This strong performance is primarily attributed to favorable timber prices, which have benefitted both the association and its members. In addition to timber sales, Mellanskog’s expanding service business, which includes logging and forestry services, has also contributed to the positive results.

Timber prices have reached record levels in 2025, creating a favourable environment for both Mellanskog and its members. The association’s revenue from timber sales has been bolstered by the strong demand for forest raw materials during the period. However, as supply shortages in some product ranges have been addressed, the market for forest products is beginning to balance out. Despite this, the overall market conditions remain relatively strong, supporting the association’s performance. The association’s turnover has seen considerable growth in its services sector, particularly in logging and forestry services. Mellanskog’s service-related income continues to rise, contributing significantly to its overall success. With the increasing need for professional services within the forestry sector, Mellanskog is well-positioned to capitalise on these opportunities.

Solid forestry conditions and strategic investments

During Q2 2025, forestry conditions have been generally favourable. Sweden has experienced good weather for forest growth, improved seedling quality, and reduced forest damage. These conditions have enabled forest owners to manage their land more effectively and support sustainable forestry practices. However, Mellanskog’s CEO, Fredrik Munter, emphasised the need for political decisions that support forest owners’ long-term management. One of the key issues being addressed by the association is the government’s proposal to change conservation regulations. While this proposal is a step in the right direction, several critical concerns remain, particularly regarding compensation for forest owners affected by species protection bans. According to Munter, resolving these issues is a top priority for the association moving forward.

Despite higher costs associated with strategic investments, Mellanskog’s long-term vision is clearly focused on modernising its operations. One of the key developments during Q2 2025 was the acquisition of a 50% share in the Setra Group, which will help strengthen Mellanskog’s position in the Swedish forestry sector. Additionally, the association made significant strides in modernising its production and delivery management systems. In May 2025, Mellanskog implemented the new VIOL 3 accounting system, which is now being adopted by the entire Swedish forest sector. This investment in technology will further streamline operations and enhance efficiency across the organisation.

Mellanskog continues to improve its membership offerings in response to changing market conditions. A newly introduced price guarantee allows members to secure price increases within 35 days of contract signing, providing greater security in the face of fluctuating timber prices. This initiative enhances the stability and predictability of timber transactions for forest owners. Moreover, the terms for felling rights have been improved. While the five-year contract period remains in place, forest owners now have the flexibility to terminate the contract after three years if no felling has begun. This change provides members with more control over their timber management and aligns with their long-term sustainability goals.

Dividends and climate initiatives

Mellanskog’s commitment to sustainability is evident in its ongoing efforts to reduce climate impact. At the association’s annual general meeting in May, a dividend of SEK 115 million was approved, underscoring the strong financial health of the organisation. Additionally, the association’s climate initiative, Climate Million, has been active in distributing SEK 250,000 to various projects aimed at reducing the environmental footprint of Sweden’s forestry sector. The initiative continues to support efforts to implement more sustainable practices, with new ideas being collected for further investments later in the year.

Financial summary for Q2 2025

Mellanskog’s financial results for Q2 2025 highlight strong performance across several key metrics:

While delivery volumes remained consistent with last year’s figures, the increase in turnover and profit highlights the positive impact of favorable timber prices and the association’s expanding service business. The higher operating profit is a clear indication that Mellanskog has successfully navigated the challenges of the forestry sector.

Mellanskog is well-positioned for continued success. The favorable market conditions for timber sales, combined with strategic investments and a focus on sustainability, will likely ensure that the association remains a strong player in Sweden’s forestry industry. However, the association will continue to advocate for political and regulatory decisions that support long-term sustainable forestry practices and the interests of forest owners. As the market stabilises and the forestry sector evolves, Mellanskog’s strategic investments in modernisation and its commitment to offering enhanced services to its members will help secure its place as a leader in the industry.

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Tags: forest industry, Mellanskog, Q2 2025 results, sustainable forestry, Sweden forestry, timber market