Holmen reported that operating profit declined to SEK 827 million in January-March from SEK 988 million a year earlier as construction demand stayed weak and consumers remained cautious. Profit after tax totalled SEK 618 million, and earnings per share were SEK 4.0.

Significant overcapacity in the forest industry led to production curtailments that reduced demand for pulpwood, and pulpwood prices fell during the quarter. Log demand decreased, and log prices began to decline slightly from very high levels.

Forest operating profit increased to SEK 511 million from SEK 487 million, which Holmen linked to a higher harvest. Deliveries from Holmen's own forests rose to 614 thousand m3sub from 535 thousand m3sub a year earlier.

In Wood Products, demand remained weak and selling prices were largely unchanged, while high log costs kept earnings negative. The Wood Products business reported an operating loss of SEK 91 million, and deliveries fell to 329 thousand m3 from 345 thousand m3.

In Board and Paper, demand for consumer paperboard did not pick up and demand for paper decreased slightly, while selling prices were largely unchanged. Deliveries fell to 334 thousand tonnes from 359 thousand tonnes, and operating profit declined to SEK 168 million from SEK 528 million, which Holmen attributed to lower volumes, slightly lower paper prices, a weaker dollar, and high electricity prices early in 2026.

Electricity prices in northern Sweden rose to SEK 700 per MWh from SEK 270 in the fourth quarter, which Holmen attributed to cold weather and an unusually low amount of wind. Renewable Energy operating profit increased to SEK 281 million from SEK 29 million as higher power prices and higher deliveries lifted results, and deliveries rose to 542 GWh partly because Blisterliden Wind Farm became operational at the turn of the year.

Holmen said the high electricity price, together with lower volatility in the electricity market, increased its energy costs during the quarter. The maintenance shutdown at Iggesund Mill in the third quarter was expected to reduce earnings by SEK 150 million, and Holmen said its annual general meeting approved a dividend of SEK 9.5 per share, which totalled SEK 1,458 million and was paid in April.