SCA (SCA) investor relations material

Executive summary

• EBITDA reached SEK 1,107m with a 23.4% margin in Q1 2026, despite higher costs, lower prices, and challenging markets.

• Net sales decreased 8% year-over-year to SEK 4,740m, mainly due to lower prices, negative currency effects, and flat volumes.

• Renewable energy delivered record results, driven by high electricity prices, strong biofuel margins, and new wind farm contributions.

• Strategic investments, including the new wind farm in Jämtland/Fasikan and ramp-up in Obbola, positively impacted results.

• Cost control measures and integrated value chain helped mitigate rising costs.

Financial highlights

• EBITDA down 33% year-over-year to SEK 1,107m; EBIT at SEK 543m; EBIT margin dropped to 11.5%.

• Net profit was SEK 380m, or SEK 0.54 per share, down 53% year-over-year; effective tax rate at 16.9%.

• Operating cash flow for the quarter was SEK 569m, up from SEK 485m year-over-year.

• Net debt stood at SEK 11,942m, with net debt to equity at 12% and net debt/EBITDA at 2.0x.

• Dividend of SEK 2,107m approved but not yet disbursed as of quarter-end.

Outlook and guidance

• Expecting stable development into autumn with balanced supply and demand in solid wood products.

• Pulpwood and sawlog prices expected to decrease slightly in Q2, with a larger effect in Q3 and Q4 due to storm volumes.

• No further Kraftliner price increases planned for May; possible attempts later in Q2 or Q3 if gas prices remain high.

• CTMP market outlook is positive for Q2 as demand and prices recover.

• Market uncertainty persists due to geopolitical turmoil, trade barriers, and currency fluctuations.