Svenska Cellulosa Aktiebolaget SCA (SCA-A.ST, SCA-B.ST) reported a significant decline in earnings for the second quarter of 2026 compared with the same period a year earlier.
The Swedish forestry and paper giant attributed the weakness primarily to lower selling prices and negative exchange rate effects weighing on its financial results.
Those headwinds were only partially offset by higher delivery volumes, which provided some cushion against the broader earnings pressure the company experienced during the quarter.
Net profit attributable to owners of the parent fell sharply to SEK 523 million, down from SEK 1.09 billion recorded in the second quarter of the previous year.
Earnings per share dropped to SEK 0.74 compared with SEK 1.55 in the same period a year ago, reflecting the steep decline in bottom-line profitability.
Operating profit slid 52% to SEK 724 million, a substantial fall from SEK 1.50 billion posted in the equivalent quarter of the prior year.
EBITDA also contracted significantly, declining 36% to SEK 1.30 billion from SEK 2.03 billion in the year-earlier period.
Net sales fell 4% to SEK 5.15 billion, compared with SEK 5.38 billion in the second quarter of 2025, indicating top-line pressure alongside the margin squeeze.
The results paint a difficult picture for the company as pricing conditions in key markets remain challenging and currency movements continue to create unfavorable conditions for Swedish exporters.
On Tuesday, Svenska closed trading 1% higher at SEK 101.50 on the Stockholm Stock Exchange, suggesting investors had anticipated some degree of weakness ahead of the earnings release.
The company’s performance reflects broader pressures affecting the European forestry and paper sector, where softening global demand and exchange rate volatility have squeezed margins across the industry.
Analysts and investors will be closely watching whether the volume growth that partially offset the pricing declines can accelerate enough in coming quarters to stabilize the company’s financial trajectory.
