Holmen stock reacts as sawmill cuts follow weaker Q2 profit

Published on 09/06/2026 at 20:37 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Holmen stock faces a tougher operating backdrop as the Swedish forest products group cuts sawmill capacity after a weaker second-quarter profit, highlighting how high log prices and soft sawn timber demand are reshaping its business profile for investors.

Fotorealistische Ansicht eines Sägewerks mit gestapeltem Holz im schwedischen Wald bei Sonnenlicht — Fotorealistisches Bild zeigt Holmen AB (SE0000171100), einen schwedischen Forstwirtschafts- und Papierkonzern mit Sägewerk, Illustration mit AI erstellt.

Holmen (ISIN SE0000171100) stock is in focus on September 6, 2026 as the Swedish forest products group moves to cut sawmill capacity after posting a weaker operating profit for the second quarter of 2026, underlining how high log costs and soft sawn timber demand are weighing on results according to industry reports.

Sawmill capacity reduced after Q2 loss

According to an industry report on European sawmill closures dated September 6, 2026, Holmen is cutting output at its Linghem sawmill in southern Sweden and has already scaled back production at all of its sawmills except Iggesund.

Holmen plans to reduce annual output at Linghem from 72,000 cubic metres to 26,000 cubic metres and lay off 18 of its 30 workers, a reduction of 64.0 percent in planned volume that reflects what the company describes as the weakest sawn timber market in three decades, with a majority of staff affected by the restructuring.

The same report notes that Holmen’s wood products business lost SEK 55 million in the June quarter of 2026, highlighting how the combination of high log prices, tougher competition for raw materials and weak demand has turned a historically profitable segment into a loss-making unit in the latest quarter.

Weaker Q2 2026 profit for Holmen

In parallel with the operational cuts, Holmen’s latest quarterly figures confirm that profit has come under pressure. A brief item on a pulp and paper industry news site states that Holmen’s operating profit for the second quarter of 2026 amounted to SEK 689 million, down 15 percent from the comparable period, underscoring a clear year-on-year decline.

That year-on-year drop means that, despite Holmen’s diversified exposure to forestry, paper and energy, profitability in the most recent reported quarter has been visibly squeezed by market conditions, with the loss in wood products and reduced sawmill output acting as a drag on group performance rather than a source of growth.

For investors, the key takeaway from the Q2 2026 figures is that Holmen is still generating a substantial operating profit, but that profit is now 15 percent lower than in the prior-year quarter at SEK 689 million, a shift that puts more weight on management’s ability to adapt sawmill capacity and pricing to restore margins.

Go deeper

Holmen stock and latest figures

For a broader view of Holmen stock and the company’s recent reports, the following resources provide additional background beyond the current capacity cuts and Q2 2026 profit trends.

More news on Holmen stock Investor Relations

Holmen Paper and product perspective

Beyond sawmills and raw timber, Holmen maintains a strong position in paper through its Holmen Paper brand. The industry overview that lists Holmen Paper as a member describes it as a leading supplier of sustainable fresh-fibre based paper for retail applications and magazines, underlining that Holmen’s business model is not limited to sawn timber but spans value-added paper products that can support earnings when lumber markets are weak.

For retail and publishing customers, Holmen Paper’s fresh-fibre based grades position the company to benefit from demand for high-quality, sustainable printed materials, offering a potential stabilizing counterweight to volatility in timber and sawmill operations when log prices are high and classic construction-related demand for sawn wood softens.

Holmen stock and investor view

As of early September 2026, Holmen stock reflects a company balancing lower Q2 2026 operating profit of SEK 689 million, down 15 percent year-on-year, with active capacity adjustments such as the planned 64.0 percent cut in Linghem sawmill output from 72,000 to 26,000 cubic metres and a SEK 55 million loss in its wood products business in the June quarter, all framed by management’s stated aim of securing long-term profitability in a historically weak sawn timber market.