SCA (SCA) Q3 2025 earnings summary

Executive summary

• Q3 2025 delivered solid results despite challenging market conditions, cost pressures, and planned maintenance stops, supported by high self-sufficiency in strategic areas.

• EBITDA for Q3 2025 was SEK 1.64 billion, down 18% year-over-year, with a margin of 32.9%; EBIT margin was 22%.

• Net sales for Q3 2025 declined 5% year-over-year to SEK 4,993m, mainly due to negative currency effects and lower prices, partially offset by higher delivery volumes.

• For Jan–Sep 2025, net sales rose 3% year-over-year to SEK 15,534m, but EBITDA fell 3% due to higher raw material costs and currency headwinds.

• Focus remains on ramping up major investment projects, with no new large projects planned.

Financial highlights

• EBITDA margin for Q3 2025 was 32.9% (down from 38.3%); EBIT margin was 22.3%.

• Net profit for Q3 2025 was SEK 832m, or SEK 1.19 per share; effective tax rate just below 20%.

• Operating cash flow for Q3 2025 increased to SEK 1,111m; for Jan–Sep 2025, it was SEK 2,549m.

• Net debt/EBITDA (LTM) stood at 1.7x at quarter-end; net debt to equity was 11.2%.

• Value of forest asset: SEK 108 billion; capital employed: SEK 160 billion; equity: SEK 104 billion.

Outlook and guidance

• Market conditions remain uncertain due to weak economic environment, trade barriers, and currency volatility.

• Pulp wood prices expected to remain flat in Q4, with a slow decline into 2026; saw log costs will continue to rise into Q4, peaking around Q1 2026.

• CapEx for 2025 guided at SEK 2.8 billion, with a decrease expected in 2026 as strategic CapEx winds down.

• Market for pulp and kraftliner expected to move sideways; solid wood product prices to decrease by up to 5% in Q4.

• Demand for solid-wood products and pulp remains soft, with high producer stocks and cautious customer activity.