SCA Reports Weaker Q1 2026 Earnings Amid Pricing Pressure; Renewable Energy Delivers Record Performance

Svenska Cellulosa Aktiebolaget SCA reported a challenging first quarter for 2026, with earnings impacted by lower selling prices, adverse currency movements, and higher raw material costs, despite strong performance in its renewable energy segment.

Financial Highlights (Q1 2026)

• Net Sales: SEK 4,740m (↓8% YoY)

• EBITDA: SEK 1,107m (↓33% YoY)

• EBITDA Margin: 23.4% (vs 32.0%)

• Operating Profit: SEK 543m (↓51% YoY)

• Net Profit: SEK 380m (↓53% YoY)

• EPS: SEK 0.54 (vs 1.14)

• Operating Cash Flow: SEK 569m

The decline was primarily driven by lower prices, currency headwinds, and rising input costs, partially offset by strong cost control and vertical integration.

Business Segment Performance

Forest (Core Profit Driver)

• Stable performance with EBITDA of SEK 884m (+1% YoY)

• Benefited from higher timber prices

Wood

• EBITDA fell 79% to SEK 49m

• Impacted by lower volumes and higher raw material costs

Pulp

• EBITDA dropped 88% to SEK 40m

• Weak demand in Europe & US; pricing pressure significant

Containerboard

• EBITDA declined 56%

• Lower selling prices and higher energy costs impacted margins

Renewable Energy (Key Bright Spot)

• EBITDA surged 54% to SEK 206m

• Driven by:

  • Higher electricity prices

  • Commissioning of Fasikan wind farm

  • Strong biofuel pricing

Capex & Investment

• Strategic capex: SEK 130m (significantly lower vs last year)

• Ongoing investments focused on:

  • Renewable energy expansion

  • Efficiency improvements

• No major new large-scale expansion projects announced

Shutdown / Maintenance Plan

• No maintenance shutdowns in Q1 2026

• FY2026 planned maintenance impact estimated at SEK 480m, mainly in:

  • Pulp

  • Containerboard segments

Dividend Update

• Dividend of SEK 2,107m approved but not yet paid

• Reflected in cash and debt structure

Debt & Balance Sheet

• Net Debt: SEK 11.9bn

• Net Debt / EBITDA: 2.0x

• Strong liquidity with SEK 6bn undrawn credit facilities

Operational & Strategic Updates

• Cost control measures include adjustment of staff levels (no major layoffs disclosed)

• High self-sufficiency in:

  • Wood raw material

  • Energy

  • Logistics

• Processing of storm-damaged timber volumes initiated

Market Outlook

• Market impacted by:

  • Geopolitical uncertainty

  • Trade barriers

  • Currency volatility

• Demand trends:

  • Weak pulp demand in Europe & US

  • Gradual recovery in packaging

  • Strong renewable energy pricing

SCA remains focused on:

• Cost efficiency

• Renewable energy growth

• Leveraging integrated value chain

Key Takeaway

SCA delivered a weaker quarter due to cyclical and macro pressures, but:

• Renewable energy is emerging as a strong growth driver

• Core forest assets remain stable and resilient

• Balance sheet and liquidity remain solid