Swedish wood industry company Setra reported an operating result of -60 million SEK for the second quarter of 2025, down from a profit of 31 million SEK in the same period last year. Net sales increased slightly to 1,442 million SEK from 1,370 million SEK.

The quarter was marked by weak demand, concerns over trade tariffs, and persistently high raw material prices. A strong Swedish krona added further pressure on the sawmill and wood processing sector.

Setra said it has continued to implement measures to strengthen internal efficiency and reduce fixed costs, with a “clear positive trend” now visible. The previously announced production adjustment at the Långshyttan facility is in its final phase and is expected to have a stronger effect in the fourth quarter. The company is also focusing on lowering raw material and finished goods inventories and optimising production.

“To ensure long-term competitiveness for the Swedish mechanical wood industry, a balance between raw material and finished goods prices must be achieved,” said Marcus Westdahl, CEO and President of Setra Group. “In particular for pine, where there is no shortage, the raw material price must be adjusted to allow sawmills to achieve a positive margin.”

On the investment side, Setra continued production on its new saw line in Malå and advanced the ramp-up of the small log line in Skinnskatteberg during the quarter.