Results for the third quarter of 2024: signs of normalisation

Europe: strong forestry, weak timber construction

Thanks to high timber prices, Stora Enso achieved a record operating result in its forest division, while its wood products segment remained unprofitable. In early October, the group announced plans to sell 12 percent of its Swedish forests. SCA grew wood products revenue by more than 20 percent year on year at an EBIT margin of 14 percent, driven by repair and renovation. Holmen warned that timber could become scarce in the Nordic countries once construction recovers. Steico delivered solid figures, and machinery maker Husqvarna reported rising construction equipment sales in Europe.

If not falling interest rates, the industry at least needs stable ones.

North America: lumber in balance, mass timber under pressure

After production cuts, almost all companies see the North American lumber market back in balance. Interfor sold its Quebec business, and Rayonier sold forests for almost 500 million US dollars. The Timberland REITs are expanding natural climate solutions as a new source of income. At Mercer, the mass timber order backlog fell from 100 million US dollars at the end of 2023 to 33 million, although management still expects annual demand growth of around 20 percent in the US over the next five years. Louisiana Pacific and Trex surprised on the upside, while D.R. Horton's share price fell 15 percent after high incentives for homebuyers.

How Timber Carbon sees it

The figures show how strongly interest rates and the construction cycle affect the timber construction chain. Timber Carbon, launched in 2026 as a spin-off of Timber Finance, quantifies, certifies and monetises the carbon removed in mass timber buildings as carbon removal credits on the voluntary carbon market. The structure of the index is explained in An equity index focused on timber construction, and the story continues with the results for the fourth quarter of 2024.