SCA Reports Q2 and First Half 2026 Results: Strong Operational Resilience Amid Challenging Market Conditions

Svenska Cellulosa Aktiebolaget SCA (publ), Europe's largest private forest owner and a leading producer of forest-based products and renewable energy, today announced its financial results for the second quarter and first half of 2026. Despite a challenging market characterized by lower selling prices, unfavorable currency movements, and increased raw material costs, the company demonstrated resilience through higher delivery volumes, disciplined cost management, and continued operational efficiency.

First Half 2026 Financial Highlights (January–June 2026)

• Net sales: SEK 9.893 billion, down 6% from SEK 10.541 billion in the same period last year.

• EBITDA: SEK 2.410 billion, down 35% year-over-year.

• EBITDA margin: 24.4%, compared with 34.9% a year earlier.

• Operating profit: SEK 1.267 billion, a 52% decline.

• Operating cash flow: SEK 1.015 billion.

• Earnings per share: SEK 1.29, compared with SEK 2.69 in the prior-year period.

Second Quarter 2026 Highlights

For the quarter ended June 30, 2026:

• Net sales totaled SEK 5.153 billion, a 4% decrease compared with Q2 2025.

• EBITDA declined to SEK 1.303 billion, with an EBITDA margin of 25.3%.

• Compared with the first quarter of 2026, sales increased 9%, driven by stronger delivery volumes and improved selling prices.

• EBITDA improved 18% quarter-over-quarter, reflecting improved pricing, lower raw material costs, and higher deliveries despite planned maintenance costs.

Market and Business Performance

SCA's earnings were affected by:

• Lower market selling prices.

• Negative foreign exchange impacts.

• Higher raw material and fuel costs.

• Planned maintenance shutdowns at the Obbola paper mill and Östrand pulp mill.

These challenges were partly offset by:

• Higher delivery volumes.

• Strong cost control.

• High self-sufficiency in wood raw materials, energy, fuel, and logistics.

• Continued operational efficiency across the business.

Business Segment Highlights

• Forest: Stable sales with EBITDA of SEK 1.75 billion, supported by higher sawlog prices despite increased fuel costs and reduced harvesting.

• Wood: Sales declined 13% as lower deliveries and higher raw material costs significantly reduced profitability.

• Pulp: Higher delivery volumes partially offset weaker prices and unfavorable exchange rates.

• Containerboard: Sales increased slightly due to higher volumes, although profitability was impacted by maintenance shutdowns and lower selling prices.

• Renewable Energy: Outstanding performance with EBITDA increasing 91%, driven by stronger electricity prices, higher liquid fuel prices, increased tall oil deliveries, and the contribution from the Fasikan wind farm

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Financial Position

SCA maintained a solid financial position during the first half of 2026:

• Net debt: SEK 10.859 billion

• Net debt/EBITDA: 2.1x

• Equity: SEK 101.2 billion

• Debt-to-equity ratio: 10.7%

Cash flow from operations remained strong, supporting ongoing investments while maintaining financial flexibility.

Outlook

SCA expects gradual benefits from recently implemented kraftliner price increases during the second half of 2026. The company remains focused on disciplined cost management, efficient operations, and leveraging its integrated forest assets to navigate ongoing market uncertainty and geopolitical challenges affecting global forest products markets.