Swedish forest products group SCA reported improved third-quarter earnings compared with the preceding quarter, supported by higher kraftliner prices, lower industrial raw material costs and reduced maintenance expenses.
The recovery in containerboard contrasted with continued weakness in market pulp, highlighting divergent conditions across the company's businesses.
For July–September 2026, SCA reported net sales of SEK 5.25 billion, up 5% from the same period last year. EBITDA reached SEK 1.63 billion, down 1% year-on-year but up 25% from the second quarter.
The EBITDA margin stood at 31.1%, compared with 32.9% a year earlier and 25.3% in the preceding quarter.
Operating profit declined 6% year-on-year to SEK 1.05 billion, while net profit decreased 7% to SEK 772 million.
Kraftliner prices support containerboard earnings
Containerboard was a key contributor to the sequential improvement.
SCA implemented further kraftliner price increases during the third quarter, lifting its average selling prices compared with April–June.
According to the company, European demand for packaging paper remained robust, supported by industrial activity, e-commerce and consumer goods.
Containerboard deliveries increased compared with the third quarter of 2025 but declined from the preceding quarter. European producer inventories also rose seasonally.
The Containerboard segment generated EBITDA of SEK 446 million, compared with SEK 194 million a year earlier, reflecting stronger prices, higher year-on-year delivery volumes and lower costs.
The improvement indicates more favourable market conditions for kraftliner producers, although the sequential decline in deliveries and seasonal inventory increase warrant continued monitoring.
Market pulp remains under pressure
Conditions were less favourable in SCA's Pulp segment.
Average pulp selling prices declined slightly from the second quarter. European prices for northern bleached softwood kraft (NBSK) pulp edged lower, while prices in China declined early in the quarter before recovering.
SCA reported higher pulp deliveries both year-on-year and sequentially. Strong production performance and lower raw material costs helped reduce operating expenses.
Nevertheless, pulp EBITDA declined to SEK 198 million from SEK 241 million a year earlier, as weaker pricing continued to weigh on profitability.
Global producer inventories remained unchanged during the quarter, according to SCA.
The contrasting trends in pulp and containerboard underline the uneven recovery across fibre-based product markets.
Energy and wood costs shape performance
SCA reported a stable supply of wood raw material to its industrial operations, with balanced markets for sawlogs and pulpwood.
Lower raw material costs benefited its industrial businesses compared with the second quarter, while high fuel prices continued to weigh on the Forest and industrial segments.
Renewable Energy, however, benefited from elevated energy prices. Demand for solid biofuels remained robust, supported by high European energy costs.
SCA also continued processing wind-felled timber following the storm that affected parts of Sweden in late 2025.
The company's integrated operations, including forest ownership, energy production and logistics, helped mitigate some of the cost pressures affecting its businesses.
Nine-month results remain below 2025 levels
Despite the third-quarter improvement, SCA's financial performance for the first nine months of 2026 remained below the previous year's level.
Net sales declined 3% to SEK 15.14 billion, while EBITDA fell 24% to SEK 4.04 billion. The EBITDA margin decreased to 26.7%, compared with 34.3% during the corresponding period of 2025.
SCA attributed the weaker nine-month performance primarily to lower selling prices, adverse currency effects and higher raw material costs.
The third-quarter results therefore point to improving conditions in containerboard and some easing of industrial costs, rather than a broad-based recovery across all of SCA's markets.
SCA is a Swedish forest industry company with operations in wood products, pulp, packaging paper and renewable energy. The company manages extensive forest holdings in northern Sweden and operates the Östrand pulp mill, which produces bleached softwood kraft pulp.
