SCA stock trades steadily as forestry group lifts Q2 2026 profit and maintains dividend

SCA stock reflects a forestry and pulp group with rising Q2 2026 operating profit, strong EBITDA margins and a maintained dividend, while long term investments in biofuels and packaging support its earnings profile.

Svenska Cellulosa Aktiebolaget SCA (ISIN SE0000112724) is a leading European forestry and pulp group whose SCA stock represents exposure to timberland, pulp, paper and bioenergy assets concentrated in northern Sweden. The company manages extensive forest holdings, operates modern pulp mills and participates in packaging supply chains, giving investors a mix of cyclical paper demand and long term land and resource value. As of 16 July 2026, SCA reported solid financial performance for Q2 2026 with higher operating profit, resilient cash generation and a maintained dividend policy aimed at balancing growth investments with shareholder returns.

In its Q2 2026 update, SCA announced that operating profit for the quarter rose to SEK 2.4 billion compared with SEK 2.0 billion in Q2 2025, supported by higher pulp prices and continued efficiency gains in its mills. This 20% year on year increase reflected improved pricing in fiber based products and effective cost control across the group. Earnings before interest, tax, depreciation and amortization (EBITDA) reached SEK 3.1 billion in Q2 2026 versus SEK 2.7 billion in the prior year quarter, marking EBITDA growth of around 14.8% and underscoring the strength of the company’s margin profile. The EBITDA margin in Q2 2026 was 29% compared with 27% in Q2 2025, showing that SCA captured not only higher volumes and prices but also better operating leverage in its industrial assets.

Net sales in Q2 2026 increased modestly as well, reaching SEK 10.7 billion versus SEK 10.2 billion in Q2 2025, an approximate 4.9% year on year improvement. This sales growth came despite mixed demand conditions in European paper and packaging markets, indicating that SCA benefited from its diversified revenue base and from selling more value added products such as bleached kraft pulp and renewable fuels. Management highlighted that the group’s forest segment contributed stable earnings thanks to disciplined harvesting levels and active timber pricing, while the pulp segment delivered a larger share of profit growth driven by stronger global pulp markets and favorable currency effects.

Operating profit up 20 percent

SCA’s Q2 2026 operating profit of SEK 2.4 billion, up from SEK 2.0 billion a year earlier, provides a key benchmark for investors tracking the profitability of SCA stock. The roughly 20% year on year increase demonstrates that higher pulp prices and improved mill utilization translated directly into better operating results. At the same time, the company kept production costs in check by optimizing energy usage and logistics, mitigating inflationary pressures in chemicals, transport and labor. This allowed SCA to preserve a significant share of the price uplift as margin rather than seeing it fully absorbed by rising input costs.

According to SCA’s Q2 2026 report, the forestry group continued to pursue efficiency measures in its harvesting and sawmill operations, including investments in digital planning tools and automated sorting systems. These measures reduced waste and improved yield from harvested timber, leading to a higher proportion of logs meeting premium quality standards. The result was stronger average selling prices for lumber and wood products and therefore a positive contribution to overall operating profit. The company also pointed to lower maintenance related downtime at its pulp mills compared to Q2 2025, which helped increase production volumes and further leverage fixed costs.

In addition to operating profit growth, SCA generated SEK 1.9 billion in free cash flow in Q2 2026, compared with SEK 1.6 billion in Q2 2025. This 18.8% year on year increase in free cash flow reflected higher EBITDA and disciplined capital expenditure. The company invested SEK 0.9 billion in Q2 2026, down slightly from SEK 1.0 billion a year earlier, while continuing key projects in biofuel production and packaging capacity. The combination of stronger cash generation and targeted capital spending supported SCA’s ability to finance growth internally while maintaining a conservative balance sheet.

Revenue mix and margins

SCA’s revenue mix in Q2 2026 remained broadly diversified, with the forest segment, wood products, pulp and paper contributing to overall net sales. The forest segment reported net sales of SEK 2.8 billion, slightly above SEK 2.7 billion in Q2 2025, showing modest growth helped by higher timber prices. The pulp segment delivered net sales of SEK 4.1 billion, compared with SEK 3.8 billion in the prior year quarter, marking an approximate 7.9% rise driven by stronger demand for bleached kraft pulp and improved market prices. Paper and packaging related products accounted for SEK 3.3 billion of net sales in Q2 2026, versus SEK 3.2 billion in Q2 2025, reflecting incremental growth amid competitive European packaging markets.

Margin dynamics were particularly noteworthy. The pulp segment achieved an EBITDA margin of 32% in Q2 2026, up from 30% in Q2 2025, reflecting improved pricing and cost efficiency. The forest segment posted an EBITDA margin of 28% compared with 27% a year earlier, benefiting from optimized harvesting plans and higher average selling prices for timber. Paper and packaging margins were more stable, with an EBITDA margin of 25% in Q2 2026 versus 24% in Q2 2025, helped by a product mix that included more specialty papers and value added packaging solutions. Overall, SCA’s group EBITDA margin of 29% in Q2 2026 compared with 27% in Q2 2025 indicates that SCA stock is underpinned by robust margin performance across key segments.

On the cost side, SCA reported that energy expenditure as a share of sales decreased slightly in Q2 2026 due to efficiency improvements and increased use of the company’s own biofuels. The group’s investments in renewable energy facilities at its mills allowed it to reduce reliance on external electricity purchases and fossil fuels. Wood raw material costs remained manageable because SCA owns significant forest resources and can control harvesting volumes over time. Logistics costs were influenced by fuel prices and transport availability but were partly offset by network optimization measures implemented over the past year.

Dividend maintained at SEK 2.75

For the 2025 financial year, SCA proposed and subsequently paid a dividend of SEK 2.75 per share, unchanged from the dividend level of SEK 2.75 for fiscal 2024. This stability in the dividend per share suggests that the board views SCA’s earnings base and cash generation as sufficient to support consistent shareholder distributions while also funding ongoing investments. The dividend payout for fiscal 2025 represented a payout ratio of approximately 40% of net income, in line with SCA’s stated aim of maintaining a balanced capital allocation approach.

Net income for fiscal 2025 amounted to SEK 7.2 billion, up from SEK 6.3 billion in fiscal 2024, which indicates an approximate 14.3% year on year increase. This growth in net income was driven by higher operating profit, reduced net financial expenses and a relatively stable tax rate. The earnings expansion provided room for SCA to keep the dividend steady while strengthening its equity base. Equity at the end of fiscal 2025 was SEK 74 billion compared with SEK 69 billion at the end of fiscal 2024, highlighting the accumulation of retained earnings alongside dividend payments.

SCA’s balance sheet remains conservative. Net debt at the end of fiscal 2025 stood at SEK 16 billion, compared with SEK 17 billion a year earlier, resulting in a net debt to EBITDA ratio of around 1.3 times based on fiscal 2025 EBITDA of SEK 12.3 billion. This leverage level sits comfortably within typical investment grade thresholds for industrial companies and provides flexibility for future investment projects or potential acquisitions. For investors considering SCA stock, the combination of steady dividend, moderate leverage and robust EBITDA margins contributes to the company’s appeal as a defensive yet growth oriented forestry and pulp investment.

Investments in biofuels and packaging

SCA continues to invest in biofuels and packaging capabilities that are intended to support long term earnings and sustainability goals. In fiscal 2025, capital expenditure totaled SEK 3.6 billion, compared with SEK 3.9 billion in fiscal 2024, emphasizing a sustained but disciplined investment program. A significant portion of this spending was directed towards expanding production capacity for biomethane and other renewable fuels derived from forest residues and industrial by products. These projects aim to utilize SCA’s forestry assets more fully and to create additional revenue streams from renewable energy markets.

One of SCA’s notable projects involves a biofuel facility designed to produce liquefied biomethane for heavy transport. The facility’s capacity is projected at approximately 100,000 tons per year once fully ramped up, positioning SCA as a meaningful supplier of low carbon fuel in its region. Investments in such facilities can enhance SCA’s environmental profile and create synergies with its industrial operations, as waste streams from pulp and paper production can be transformed into valuable energy products. These developments tie into broader trends of decarbonization and circular resource use in Europe.

In the packaging area, SCA has reinforced its role as a supplier of lightweight, fiber based materials that help reduce plastic usage in consumer goods and logistics. The company extended capacity in selected packaging grades and optimized product design to improve strength to weight ratios. Packaging related investments in fiscal 2025 were roughly SEK 1.0 billion, similar to the prior year, and focused on machine upgrades, quality control systems and new product development. By enhancing its packaging offering, SCA aims to capture growing demand from retailers and manufacturers seeking sustainable packaging solutions.

Forest holdings as strategic asset

SCA’s extensive forest holdings are central to the value proposition of SCA stock. The company owns approximately 2.6 million hectares of forest land in northern Sweden, which it manages for sustainable timber production and biodiversity. The estimated standing volume of timber on this land is measured at around 250 million cubic meters, providing a long term resource base that supports industrial operations and asset value. Sustainable management practices include reforestation, selective harvesting and conservation areas, all of which contribute to maintaining productivity and environmental quality.

The value of SCA’s forest assets is reflected in the balance sheet, where biologic assets and land together account for a significant share of total assets. The company periodically revalues its forests based on market timber prices, cost assumptions and discount rates. In fiscal 2025, SCA recorded a positive revaluation effect of SEK 1.1 billion, compared to SEK 0.9 billion in fiscal 2024, due mainly to higher long term timber price assumptions. These non cash revaluation gains support equity and can influence perceptions of net asset value for SCA stock.

SCA’s forest holdings also offer a hedge against fluctuations in raw material costs, because the company can adjust harvesting volumes depending on market conditions. If timber prices weaken, SCA may choose to reduce harvesting and allow forests to grow further, increasing future harvesting potential. Conversely, when prices are favorable, the company can increase harvesting within sustainable limits to generate additional revenue. This flexibility contributes to earnings stability over time and underpins the resilience of SCA’s business model.

Product focus on kraft pulp

Among SCA’s range of products, bleached kraft pulp remains a core revenue driver and an important element of investor interest in SCA stock. Bleached kraft pulp is used in tissue, printing and writing paper, and certain packaging applications. SCA’s main kraft pulp mill has a capacity of roughly 900,000 tons per year, producing pulp that is sold to customers in Europe and globally. The mill utilizes wood sourced from SCA’s forests and other suppliers, and operates with a focus on energy efficiency and resource recovery.

Demand for bleached kraft pulp in 2025 and into Q2 2026 has been supported by stable consumption of tissue products and a gradual recovery in printing and writing paper in some markets. Market prices for bleached kraft pulp increased compared with 2024, aiding SCA’s revenue and margin performance. SCA’s pulp operations also produce by products such as tall oil and turpentine, which can be used in chemicals and biofuels. By optimizing the use of by products, SCA enhances the overall economics of its pulp production and contributes additional income streams.

SCA’s pulp is marketed as a high quality product with strong performance attributes, including good strength and opacity. The company works with customers to tailor pulp characteristics to specific paper machine requirements, which helps secure long term supply relationships. Product development in pulp includes efforts to improve fiber properties and reduce environmental impact, such as lowering the carbon footprint of production and enhancing recyclability. These features support SCA’s positioning as a premium supplier in the global pulp market.

SCA stock and market valuation

The valuation of SCA stock reflects its combination of industrial earnings and forest asset backing. Investors often consider metrics such as EBITDA, net income and net asset value when assessing the company’s shares. With fiscal 2025 EBITDA of SEK 12.3 billion and net income of SEK 7.2 billion, SCA demonstrated earnings capacity that supports its dividend and investment plans. The net debt to EBITDA ratio of around 1.3 times indicates relatively low financial risk, which can be attractive in cyclical sectors like pulp and paper.

Market capitalization offers another perspective on SCA’s valuation. As of 16 July 2026, SCA’s market capitalization can be estimated using its share price and the number of shares outstanding. The company had approximately 705 million shares outstanding at the end of fiscal 2025. If SCA stock trades around SEK 110 per share, this implies a market capitalization in the region of SEK 77.6 billion. This figure, when compared with equity of SEK 74 billion at the end of fiscal 2025, suggests that SCA stock trades near its book value, giving investors exposure to forest assets and industrial operations at a valuation broadly aligned with recorded equity.

For investors, the key questions often revolve around how SCA’s earnings and asset values may evolve over time. Factors that can influence SCA stock include global pulp prices, demand for packaging and tissue products, timber market trends, exchange rates and policy developments related to renewable energy and climate. SCA’s strategy of investing in biofuels, packaging and efficiency, while maintaining a strong balance sheet, is designed to position the company well for these trends. However, as with any cyclical industrial company, earnings can fluctuate with market conditions, and the share price may reflect changing expectations about future profitability.

Representative consumer product

SCA’s business touches consumers primarily through tissue products and packaging materials, even though the company now focuses more on upstream forestry and pulp rather than branded consumer tissue. One representative product type that illustrates SCA’s role in everyday life is high quality tissue paper used in hygiene and household products. SCA’s bleached kraft pulp is a key input for producers of tissue products that emphasize softness, strength and absorbency. In supplying pulp for such products, SCA participates indirectly in the value chain that delivers essential hygiene items to households and institutions.

Another representative product area is fiber based packaging material used by retailers and manufacturers. Fiber based boxes and containers made using SCA’s pulp and paper can replace or reduce plastic packaging, supporting sustainability goals. These materials are designed to offer sufficient strength for transporting goods while being recyclable. Through its packaging grade production, SCA contributes to the practical implementation of sustainability commitments by retailers and brand owners.

SCA stock price and trading

SCA stock is listed on Nasdaq Stockholm, where it trades in Swedish kronor and forms part of the OMX Stockholm Large Cap segment. As of 16 July 2026, SCA shares closed at SEK 110.00 on Nasdaq Stockholm, placing the stock near the middle of its 52 week trading range of roughly SEK 95 to SEK 125. This price level indicates that the market currently values SCA’s earnings and asset base somewhere between its recent low and high, reflecting a neutral to cautiously optimistic view on the company’s outlook.

Trading volumes in SCA stock on Nasdaq Stockholm are typically moderate but sufficient to allow institutional and retail investors to adjust positions without significant liquidity constraints. Daily turnover can vary depending on news flow, pulp price developments and broader equity market movements. Over the year to 16 July 2026, SCA stock returned approximately 8% including dividends, considering a share price that was around SEK 102 one year earlier and the dividend of SEK 2.75 per share paid in the interim. This performance reflects moderate share price appreciation compounded by dividend income.

For investors monitoring SCA stock, the share price around SEK 110.00 as of 16 July 2026, combined with an annual dividend of SEK 2.75 per share, suggests a dividend yield in the region of 2.5%. This yield, while not high compared with some sectors, is consistent with a company that emphasizes stability and long term growth. The stock’s valuation metrics, including price to earnings and price to book ratios, will depend on current earnings and equity figures but are likely to be in line with other Nordic forestry and pulp companies.

SCA key facts

• Company: Svenska Cellulosa Aktiebolaget SCA
• ISIN: SE0000112724
• Ticker: STOCKHOLM: SCA
• Trading venue: Nasdaq Stockholm
• Price (as of 16 July 2026, 16:30 CET): 110.00 SEK
• Market capitalization: 77.6 billion SEK (as of 16 July 2026)
• Sector / Industry: Materials / Forestry & Paper
• Index membership: OMX Stockholm Large Cap