SCA’s third-quarter EBITDA rises 25% from previous quarter as kraftliner prices strengthen

SCA reported EBITDA of SEK 1,631 million for the third quarter of 2026, up 25% from the preceding quarter and broadly unchanged year-on-year. Higher selling prices, lower maintenance costs and lower raw material costs supported the improvement, while market conditions remained challenging.

SCA’s Ortviken mill viewed across the water, with industrial buildings and tall chimneys against a blue sky. — SCA’s third-quarter EBITDA increased by 25% from the preceding quarter to SEK 1,631 million, supported by higher selling prices and lower costs. Pictured is the company’s Ortviken mill.

Net sales in July–September increased by 5% year-on-year to SEK 5,248 million, driven by higher delivery volumes. Lower selling prices and negative exchange rate effects partly offset the increase.

EBITDA declined by 1% from SEK 1,644 million in the corresponding quarter of 2025. The EBITDA margin was 31.1%, compared with 32.9% a year earlier and 25.3% in the second quarter of 2026.

Operating profit totalled SEK 1,047 million, down from SEK 1,112 million a year earlier but up from SEK 724 million in the preceding quarter. Operating cash flow fell to SEK 426 million from SEK 1,111 million year-on-year.

Stable wood supply and continued storm timber processing

The supply of wood raw material to SCA’s industries remained stable during the quarter, with balanced markets for sawlogs and pulpwood. SCA continued to process wind-felled timber for forest owners in areas affected by the storm at the end of 2025.

Seasonally lower harvesting in SCA-owned forests partly offset the benefits of lower industrial raw material costs and stronger containerboard markets.

According to SCA, its integrated value chain and high self-sufficiency in wood raw material, fuel, energy and logistics continued to mitigate cost pressures. High fuel prices nevertheless weighed on earnings in the Forest and industrial segments, while supporting the Renewable Energy segment.

Lower-quality storm timber weighs on sawn timber prices

Selling prices for solid wood products declined slightly from the preceding quarter, mainly because of a higher proportion of lower-quality wind-felled timber. European demand was normal for the season, with demand for spruce products remaining stronger than for pine.

SCA’s delivery volumes decreased both year-on-year and compared with the second quarter. Producer stocks in Sweden and Finland remained high for pine and normal for spruce, although overall stock levels were lower than a year earlier. Customer stocks were estimated to remain low.

Higher pulp deliveries and stronger kraftliner prices

The pulp market remained weak, and SCA’s average selling prices decreased slightly from the preceding quarter. European prices for northern bleached softwood kraft pulp fell slightly, while prices in China declined early in the quarter before recovering.

SCA’s pulp delivery volumes increased both year-on-year and from the preceding quarter. Good production performance and lower raw material prices reduced costs.

In containerboard, further kraftliner price increases lifted SCA’s average selling prices compared with the second quarter. European demand remained robust, supported by stronger industrial production and demand from e-commerce and consumables.

Containerboard delivery volumes were higher than a year earlier but lower than in the preceding quarter.

Bioenergy demand supports renewable energy earnings

High fuel prices continued to support strong earnings in SCA’s Renewable Energy segment. Demand for solid biofuels was robust for the season, driven by high European energy prices.

Electricity prices in northern Sweden were stable compared with the preceding quarter and slightly higher year-on-year. SCA’s wind power leasehold business also remained stable. At the end of the quarter, approximately 20% of Sweden’s installed wind power capacity was located on SCA-owned land.

Nine-month earnings remain below last year

Despite the sequential improvement in the third quarter, SCA’s January–September results remained below the corresponding period of 2025.

Net sales declined by 3% to SEK 15,141 million, while EBITDA fell by 24% to SEK 4,041 million. The EBITDA margin decreased to 26.7% from 34.3%.

Lower selling prices, negative exchange rate effects and higher raw material costs weighed on nine-month earnings. Operating profit declined to SEK 2,314 million from SEK 3,735 million, and earnings per share fell to SEK 2.38 from SEK 3.87.