Setra Group, a Swedish wood products company, reported a significant improvement in its operating result for the third quarter of 2026 compared with the same period last year. The company recorded net sales of SEK 1,286 million and an operating loss of SEK 12 million, reflecting the continued impact of efficiency improvements, lower timber prices, and favourable currency effects.

While market conditions remain challenging, the results indicate progress in Setra’s ongoing efforts to strengthen operational efficiency, improve profitability, and maximise the value derived from each log processed.

Net sales increased by approximately 5.8% year-on-year, while the operating result improved by SEK 136 million. EBITDA also returned to positive territory, highlighting the significant improvement in the company’s operating performance compared with the third quarter of 2025.

Lower timber costs and efficiency measures support results

Several factors contributed to the improved performance. Lower timber prices, partly resulting from the effects of Storm Johannes, supported profitability. Increased internal efficiency and favourable currency movements also had a positive impact.

However, the operating result declined compared with the second quarter of 2026. Setra attributed this development primarily to a weak July, when planned maintenance shutdowns affected performance. The subsequent months of the quarter delivered positive results.

At the same time, uncertainty in the global market continues to put pressure on finished timber prices, underscoring the challenges facing the wood products industry.

Strengthening long-term competitiveness

Setra continues to focus on operational improvements, profitability, and the efficient use of raw materials to strengthen its long-term competitiveness.

Commenting on the results, Marcus Westdahl, President and CEO of Setra Group, said:

“Setra’s work on continuous improvements, combined with lower timber prices because of Storm Johannes, continues to have a visible effect on the result. Setra is continuing its work to strengthen the company’s long-term competitiveness by continuing to work with efficiency improvements and profitability, and on ensuring the greatest possible value yield from every sawn log.”

The company’s focus on extracting maximum value from each log reflects the importance of resource efficiency throughout the wood processing value chain. By combining operational improvements with disciplined cost management, Setra aims to strengthen its ability to navigate fluctuating raw material costs and uncertain market conditions.

Outlook: Continued focus on efficiency and profitability

Although the third-quarter results represent a substantial improvement over the previous year, pressure on finished product prices and uncertainty in the global economy remain important challenges.

Setra’s continued emphasis on efficiency, cost control, and value creation will be central to its efforts to improve profitability and reinforce its competitive position in the wood products market.

About Setra Group

Setra Group is one of Sweden’s largest wood industry companies, with more than 100 years of history. The company processes wood raw materials sourced from responsibly managed forests into wood products for construction and living applications, serving customers in international markets.

In addition to sawn timber and engineered wood products, Setra supplies by-products such as bark, wood chips, and sawdust to industries including pulp and paper manufacturing, as well as renewable heat and fuel production.

Source: woodandpanel.com