Q2 2025 Svenska Cellulosa Aktiebolaget SCA Earnings Call Transcript
Key Points
- Svenska Cellulosa AB (SVCBF) achieved an EBITDA margin of 38% for Q2 2025, with EBITDA exceeding SEK2 billion.
- Strategic investments in the Bollsta sawmill and Obbola Containerboard mill have led to increased production and delivery volumes.
- The company reported a 21% increase in EBITDA for the forest segment, driven by higher prices and increased harvesting from its own forests.
- Containerboard sales rose by 15% year-over-year, with a 95% increase in EBITDA due to higher prices and delivery volumes.
- The Renewable Energy segment maintained a healthy EBITDA margin of 18% during the quarter, despite market challenges.
- Global uncertainty, particularly around tariffs, negatively impacted the pulp market, leading to a 16% decline in sales and a 49% drop in EBITDA for the pulp segment.
- The wood products market remains slow, with high stock levels among producers and expected price declines of up to 5% in Q3 2025.
- Higher costs for wood raw materials partially offset the benefits of increased prices, impacting overall profitability.
- The weakening of the US dollar against the Swedish currency negatively affected pricing in SEK, particularly in the pulp segment.
- Electricity prices were extremely low during the quarter, negatively impacting the wind business within the Renewable Energy segment.
Good morning, and welcome to this presentation of SCA's 2025 half year results. With me here today, I have President and CEO, Ulf Larsson; and CFO, Andreas Ewertz to go through the results and take your questions.
Over to you, Ulf.
Thank you for that, Anders. And also from my side, good morning, and a warm welcome to the presentation of our results for the second quarter 2025.
During the second quarter, we continued to deliver good profitability in a challenging environment and are high degree of self-sufficiency in strategic areas, mitigated higher costs, not the least related to wood raw materials. We reached a bit over SEK2 billion on EBITDA level, and by that, an EBITDA margin of 38% for the second quarter and the really strong production, good delivery volumes in both Wood and Containerboard. The volume increase has not the least been
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