SCA (SCA) Q1 2025 earnings summary

Executive summary

• Net sales rose 13% year-over-year to SEK 5,161m in Q1 2025, driven by higher prices and delivery volumes, especially in Wood and Pulp segments.

• EBITDA increased 3% to SEK 1,651m, with a 32% margin, as strong self-sufficiency in wood raw materials helped mitigate higher input costs.

• Strategic investments in Obbola, Ortviken, and Gothenburg are ramping up production and expected to boost future productivity and cash flow.

• Delivery volumes increased across most segments, supported by productivity improvements and new investments.

• Tariff and trade barrier uncertainty remains a key risk for the business environment.

Financial highlights

• Net sales reached SEK 5,161m, up from SEK 4,558m in Q1 2024.

• EBITDA was SEK 1,651m (32.0% margin), up from SEK 1,596m (35.0% margin) a year earlier.

• EBIT increased to SEK 1,119m (21.7% margin) from SEK 1,077m (23.6% margin).

• Net profit was SEK 800m, or SEK 1.14 per share, up 1% year-over-year.

• Operating cash flow for the quarter was SEK 485m.

Outlook and guidance

• Price increases implemented in most product areas in Q1 will be realized in Q2, with further increases planned for kraftliner.

• Gradual production ramp-up from recent capital expenditures expected to increase volumes and cash flow.

• Tariffs and trade barriers present ongoing market uncertainty.

• Renewable energy segment expected to remain volatile and challenging in the short term, but long-term outlook remains positive.

• Market conditions show normal production levels in Sweden and Finland, with slightly elevated producer stock levels.