State Forest Management Organizations (SFMOs) play a crucial role in the European forest sector, managing almost half the forests in the region. SFMOs are often managed for timber production only whereas, being publicly owned, they should play an important role in providing a vast range of public goods (e.g. soil protection, biodiversity conservation). Their management goals depend on the history and current conditions of the forest sector at a national level, as well as different challenges and the potential for development. Although there is a lack of knowledge about the current performance of SFMOs, there have been recent changes to their management goals and practices in response to the new demands expressed by society (e.g. transparency, social inclusion). The main purpose of this study is to analyse the current situation of SFMOs by clustering them according to indicators that reflect three pillars of the common understanding of sustainable forest management (SFM) concept. With the help of Principal Component Analysis (PCA), we grouped countries according to common characteristics of the forest sector at the national level. Results show three main clusters of SFMOs in Europe. The first cluster has rather small but commercially-oriented forestry unit together with other business activities and a strong focus on public services. The second sees itself as the protector of public interest, rather than commercially-oriented organisations. The third is mainly profit-seeking. The existence of diverse SFMO clusters shows the possibility of different approaches for SFM with a focus on different goals (e.g. profit gaining, public service delivery).