SCA Reports Stable Performance in 2025 with Strong Margins and Continued Strategic Investments

Svenska Cellulosa Aktiebolaget (SCA) reported stable financial performance for the 2025 financial year despite a challenging global economic environment characterized by weak demand in several forest industry markets, trade barriers and currency volatility. The company’s integrated value chain, strong forest asset base and high degree of self-sufficiency in raw materials, energy and logistics enabled SCA to maintain robust profitability during the year.

Net sales for 2025 amounted to SEK 20,427 million compared with SEK 20,232 million in 2024. EBITDA reached SEK 6,564 million, corresponding to an EBITDA margin of 32 percent. Operating profit totaled SEK 4,432 million, while profit for the period amounted to SEK 3,205 million. Earnings per share were SEK 4.56. Operating cash flow remained strong at SEK 3,078 million.

SCA’s forest operations remained the largest contributor to earnings, generating EBITDA of SEK 3,788 million. Containerboard operations contributed SEK 1,111 million, followed by wood products with SEK 856 million and pulp with SEK 752 million. Renewable energy operations generated EBITDA of SEK 442 million. The company also reported an overall climate benefit equivalent to approximately 12 million tonnes of CO₂.

The Board of Directors proposes a dividend of SEK 3.00 per share for the 2025 financial year. The company has maintained a stable dividend policy and has doubled its dividend since the corporate split in 2017 while continuing to make substantial long-term investments in its industrial operations and forest assets.

Strategic capital expenditures during the year totaled SEK 1,273 million. Over recent years, SCA has implemented several major industrial investments designed to strengthen its competitiveness and increase production capacity. These include the expansion of kraftliner production at the Obbola mill through the installation of a new paper machine with a capacity of approximately 725,000 tonnes, the conversion and expansion of the Ortviken facility to produce CTMP pulp, and investments in sawmill operations including the Bollsta sawmill.

In addition, the company has developed logistics infrastructure to support its growing operations. The newly upgraded Tunadal port in Sundsvall enables SCA to handle larger vessels operating in the Baltic Sea. This investment improves export efficiency while reducing transportation costs and emissions per tonne of product.

SCA also continues to expand its renewable energy and biofuel activities. Tall oil, a by-product from the company’s pulp mills, is refined into fossil-free fuels at a jointly owned biorefinery in Gothenburg. Increasing regulatory requirements for renewable fuels, including aviation fuel blending mandates, are expected to support long-term growth in this business segment.

The company’s forest assets remain central to its long-term strategy. With approximately 2.7 million hectares of forest land across Sweden and the Baltic region, SCA is Europe’s largest private forest owner. The company continues to expand its forest resource base, including an acquisition program targeting 100,000 hectares of forest land in the Baltic region. Approximately 80 percent of this target has already been completed.

SCA’s integrated industrial ecosystem enables efficient use of the entire tree and ensures a high degree of self-sufficiency across several critical inputs. Approximately 60 percent of wood raw materials used in production originate from SCA’s own forests and sawmills. The company also produces a significant share of its electricity and is fully self-sufficient in solid biofuels. Its logistics organization, including owned vessels and terminals, provides additional operational stability and cost control.

Market conditions during 2025 were marked by economic uncertainty. Demand for packaging materials softened as industrial production in Europe slowed, while the pulp market experienced price volatility following the introduction of new trade barriers. At the same time, global supply of wood raw materials remained limited due to geopolitical factors, pest outbreaks in parts of Europe and reduced harvesting in Canada. These dynamics have supported long-term timber price levels and reinforced the strategic importance of SCA’s forest holdings.

Despite these challenges, the company maintained strong profitability and continued to invest in its long-term growth strategy. SCA’s strategic priorities include expanding forest resources, increasing the value generated from each harvested tree and maintaining a high level of operational self-sufficiency. Future growth opportunities include further development of containerboard and pulp production, expansion of solid wood product capacity, renewable fuel production and wind power generation on company land.

SCA’s operations also provide significant environmental and climate benefits. The company’s forests act as a carbon sink, capturing and storing carbon dioxide as they grow. Combined with the use of renewable forest-based products that replace fossil-based materials and fuels, SCA’s operations contribute substantially to the transition toward a fossil-free society.

The company employed an average of 3,508 people during the year, primarily in northern Sweden. Through its forestry operations and industrial activities, SCA plays an important role in supporting employment, regional development and exports from Sweden.

Looking ahead, the company expects long-term demand for renewable forest products to continue growing as industries and societies transition toward more sustainable materials and energy sources. SCA believes its strong forest asset base, modern industrial facilities and integrated value chain position the company well for continued profitable growth.