Overview#

Holmen Group reported mixed financial results for the first quarter of 2026. The company's earnings per share (EPS) came in at 4 SEK, which was below the expected 4.37 SEK. Additionally, revenue totaled 5.47 billion SEK, missing the forecast of 5.67 billion SEK. Despite these disappointing figures, Holmen's stock rose by 1.32% to 311.1 SEK, suggesting that investors are optimistic about other aspects of the company's performance.

Company Performance#

The results for Q1 2026 highlighted some challenges for Holmen in meeting earnings expectations. However, the company benefited from its diversified business model, which helped mitigate some of the negative impacts. A strong performance in the Energy Division, driven by high electricity prices and favorable weather conditions, played a significant role in supporting overall results.

Financial Highlights#

  • Revenue: 5.47 billion SEK, below the forecast
  • Earnings per share: 4 SEK, missed forecast
  • Dividend: 1.5 billion SEK paid to shareholders

Market Reaction#

Despite the earnings and revenue misses, Holmen's stock price increased by 1.32% to 311.1 SEK. This rise indicates that investors may be focusing on the company's strategic initiatives and strong performance in certain segments, particularly energy. The stock is currently trading close to its 52-week low, just 1% above the bottom. Analysis suggests that the stock may be undervalued, with a price-to-earnings (P/E) ratio of 17.76.

Outlook & Guidance#

Management at Holmen acknowledged ongoing uncertainty but expressed optimism about future performance. The company aims to continue leveraging its diversified business model and expand its renewable energy infrastructure, including the recently commissioned Blåbergsliden Wind Farm. Executives emphasized their commitment to navigating current challenges while investing in future growth.

Risks and Challenges#

Holmen faces several risks, including declining pulpwood and sawlog prices, high raw material costs affecting the Wood Products Division, and currency fluctuations from a weakening USD that may impact earnings.