SCA (SCA) Q2 2025 earnings summary

Executive summary

• EBITDA rose 8% year-over-year to SEK 2,033m (margin 37.8%), driven by higher prices, strong production in Containerboard and Wood, and increased harvesting of own forest.

• Net sales increased 2% year-over-year to just below SEK 5.4 billion, supported by higher prices and volumes, partially offset by negative currency effects.

• Strategic investments in production facilities, including Bolstad sawmill and Obbola containerboard mill, contributed to higher volumes and lower specific costs.

• Global uncertainty, especially around tariffs, continues to impact demand, notably in the pulp market.

• Market volatility and tariff risks remain key concerns for future performance.

Financial highlights

• Net sales reached SEK 5,380m in Q2 2025, up 2% year-over-year; EBITDA was SEK 2,033m (margin 37.8%).

• EBIT increased 11% to SEK 1,504m, with EBIT margin at 28.0%.

• Net profit was SEK 1,088m, or SEK 1.55 per share, with an effective tax rate of 20%.

• Operating cash flow for Q2 was SEK 953m; for H1, SEK 1,438m.

• Net debt stood at SEK 12,958m; net debt/EBITDA at 1.8x; net debt/equity at 13%.

Outlook and guidance

• Expect continued market volatility, especially in renewable fuels, as Europe increases blending mandates.

• Tariff uncertainty is expected to continue affecting the Pulp segment.

• Strategic projects are expected to gradually increase production volumes and cash flow in coming years.

• Pulpwood costs expected to decrease slightly in Q3 and Q4, while sawlog costs may rise.

• Containerboard prices remain firm, but market balance and tariffs could impact future pricing.