Tuesday, July 22, 2025
Sveaskog, Sweden’s largest forest owner and a state-owned enterprise, has reported a significant improvement in its operational performance for the first half of 2025. The company’s interim report for January–June 2025 shows a remarkable 48% increase in operating profit, reaching SEK 740 million (up from SEK 500 million in 2024). This boost in profit is largely attributed to higher timber prices, which have had a positive impact on Sveaskog’s overall revenue and business performance.
Key financial highlights
Net sales: For the period from April 1 to June 30, 2025, Sveaskog’s net sales grew by 10%, reaching SEK 2,454 million compared to SEK 2,224 million in the same quarter last year. The increase in sales was mainly driven by a 16% rise in timber prices, although the delivery volumes saw a decline of 7%. The company’s diversified sales portfolio, which includes other products, saw a slight 1% increase during the quarter.
Operating profit: The company’s operating profit surged by 48% to SEK 740 million, compared to SEK 500 million in the same period last year. This increase can largely be attributed to higher timber prices. On average, timber deliveries from Sveaskog’s forests saw a 28% increase in prices compared to the same period in 2024.
Profit for the period: However, the company’s profit for the period amounted to SEK 334 million, a decrease from SEK 524 million in 2024, which translates to SEK 2.82 per share (down from SEK 4.43 per share in Q2 2024). This decline in profit is mainly linked to the decreased valuation of biological assets, which dropped by SEK 262 million due to a new valuation methodology introduced with the 2024 annual accounts.
Biological assets and share profits: Sveaskog reported a net change in value of biological assets of SEK -262 million (compared to SEK 168 million in 2024). This decrease reflects the new valuation process implemented in 2024. In addition, the company recorded a share of profit in associated companies of SEK 10 million, a notable increase from SEK 5 million in the previous year.
Year-to-Date performance: For the January 1–June 30, 2025 period, Sveaskog’s net sales increased by 9% to SEK 4,779 million (up from SEK 4,394 million in 2024). This increase was again driven by a 15% rise in timber prices, while delivery volumes decreased by 7%. Operating profit for the first half of the year also rose by 45% to SEK 1,579 million (up from SEK 1,092 million in 2024).
Strategic developments and market trends
In his statement, Sveaskog’s President and CEO, Erik Brandsma, highlighted the company’s ongoing strategic shifts and long-term vision. The recent sale of Setra Group AB shares to Mellanskog AB in the second quarter of 2025 marks an important part of Sveaskog’s transition toward focusing exclusively on sustainable forestry operations. According to Brandsma, this move aligns with the company’s objective of being an independent market player while ensuring the responsible management of Sweden’s vast forests. This transaction also aligns with Sveaskog’s broader goal to enhance transparency and sustainability in forest management, while ensuring that the company can prioritise activities related to seed and seedling operations, timber purchasing, and overall forest value creation.
The sale of Setra Group AB is in line with Sveaskog’s mission to maintain independence and concentrate on the core forestry activities without direct involvement in the forest industry. Brandsma emphasised that the focus will remain on the company’s forestry operations and the long-term health and viability of Sweden’s forests. The company is also working to build a future-proof business model that will contribute to Sweden’s environmental goals, as part of its commitment to the Agenda 2030 framework.
Prospects for Sveaskog
Sveaskog remains optimistic about the future despite some short-term challenges related to fluctuating timber prices and the changing dynamics of biological asset valuations. The company is focused on creating a robust business that can withstand future market shifts and continue to generate long-term value for both its stakeholders and the Swedish state.
With the forestry sector becoming more vital in the context of climate change and sustainability, Sveaskog’s strategic focus on responsible forest management and value creation places it in a strong position to lead the industry. The company’s operations are not only crucial for Sweden’s economic performance but also play a pivotal role in achieving Sweden’s climate and environmental objectives.
The upcoming months will be key for Sveaskog as it continues to implement its strategic objectives, focusing on growth in its timber operations, biological asset management, and other forestry-related activities that emphasise sustainability, innovation, and responsible stewardship of Sweden’s forests.
About Sveaskog
Sveaskog is Sweden’s largest forest owner, and its operations span across the entire country. As a state-owned entity, Sveaskog is dedicated to balancing ecological, economic, and social values in its forest management practices. The company employs over 800 individuals who work diligently to ensure that the forests remain viable for future generations, contributing to Sweden’s national environmental goals and the broader Agenda 2030 sustainability targets.
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Tags: biological assets, environmental goals, Forest sustainability, forestry industry, operating profit, Scandinavian forestry industry, Setra Group, sustainable forestry, Sveaskog, sweden, Sweden forest management, Swedish climate goals, Swedish forestry, Swedish state forest management, timber delivery, timber market, timber prices, timber purchasing
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