Södra reports loss in Q2 amid weak market conditions

Forest industry group Södra reported a loss for the second quarter of 2026, attributing the result to weak market conditions and persistent low demand. The company also noted an ongoing imbalance between the raw materials market and the markets for Södra’s products.

Net sales for the Södra Group decreased by 3.4 percent to SEK 6,947 million (SEK 7,193 million) in the second quarter. The group recorded an operating loss of SEK 424 million, resulting in a negative operating margin of 6 percent. The year-on-year decline in earnings was primarily driven by lower sales prices.

In response to the challenging economic environment, Södra announced it is considering measures to strengthen its competitiveness and improve profitability. Specific details of these measures were not disclosed, but they are expected to address cost management and operational efficiencies.

CEO Lotta Lyrdal stated that the market situation was difficult and impacted all business areas negatively. She expressed confidence in the company's long-term ability to adapt to changing conditions.