SCA reported lower earnings for the fourth quarter and full year 2025, reflecting softer market conditions, negative exchange rate effects, and higher raw material costs, partially offset by higher volumes and price increases across several product segments.
For the full year, SCA posted net sales of SEK 20.4 billion, broadly in line with the prior year. EBITDA declined to SEK 6.6 billion from SEK 7.1 billion in 2024, resulting in an EBITDA margin of 32.1%, down from 35.3%. Operating profit decreased to SEK 4.4 billion, while earnings per share fell to SEK 4.56 from SEK 5.18 a year earlier. Operating cash flow totaled SEK 3.1 billion.
Despite the decline in profitability, SCA’s Board of Directors proposed an unchanged dividend of SEK 3.00 per share.
Challenging market environment
SCA said the forest industry faced a demanding market throughout 2025, marked by weak underlying demand in most product areas, high raw material costs, and adverse currency movements. Against this backdrop, the company continued to benefit from its integrated value chain and high self-sufficiency in wood raw material, which helped mitigate cost inflation.
Over recent years, SCA has restructured its portfolio by divesting its publication paper business and increasing investments in long-term growth areas such as fresh fiber-based packaging materials, pulp, solid-wood products, and renewable energy. Several major investment projects completed during the year are now being ramped up and are expected to gradually strengthen cash flow and competitiveness.
Fourth-quarter performance
In the fourth quarter, net sales declined to SEK 4.9 billion, down from SEK 5.1 billion a year earlier. EBITDA fell to SEK 1.24 billion, compared with SEK 1.65 billion in the fourth quarter of 2024, with the EBITDA margin decreasing to 25.2%.
SCA attributed the quarter-on-quarter and year-on-year earnings decline primarily to lower selling prices and negative exchange rate effects, amid continued economic uncertainty, trade barriers, and currency volatility.
Segment trends and forestry operations
Selling prices for solid-wood products declined during the quarter, reflecting higher supply and seasonally weaker demand. European demand was described as normal for the season, while the U.S. market remained weak. Pulp prices also edged lower, with market conditions mixed across regions.
In packaging materials, weaker demand in Europe weighed on prices, although volumes increased slightly, supported by e-commerce and consumables. European producer inventories declined modestly in the quarter.
The company said a severe storm late in the year had only a marginal impact on its forest holdings. Windfall volumes on SCA’s land are estimated at 0.1–0.2 million cubic meters, most of which can be harvested in 2026. At the national level, storm damage is significantly higher, and SCA plans to support private forest owners with harvesting operations starting in the second quarter of 2026.
Looking ahead, SCA said it expects completed investments, continued cost control, and its integrated forest-based value chain to support long-term competitiveness, despite ongoing market and currency-related challenges.
SCA is a Swedish forest products group built around Europe’s largest private forest holding. The company produces packaging paper, pulp, wood products, and renewable energy, and employs about 3,500 people.
Source: SCA
