tiprankstipranks
Trending News
More News >
Advertisement
Advertisement

SCA Holds Sales and Dividend as Currency and Price Pressures Squeeze 2025 Earnings

Story Highlights
  • SCA kept full-year 2025 sales broadly flat but saw margins and earnings pressured by higher raw material costs and adverse exchange rates, while maintaining its dividend to signal confidence in its financial resilience.
  • Fourth-quarter results deteriorated amid weaker prices and currency headwinds, yet SCA’s integrated value chain, forest asset base and investments in growth categories and renewable energy underpin its long-term competitiveness in a soft market.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
SCA Holds Sales and Dividend as Currency and Price Pressures Squeeze 2025 Earnings

Claim 50% Off TipRanks Premium

Svenska Cellulosa SCA AB ( ($SE:SCA.B) ) has provided an announcement.

SCA reported essentially flat full-year 2025 net sales of SEK 20.4 billion as higher volumes and prices were offset by adverse currency moves, while EBITDA fell 8% and the margin narrowed to 32.1% due to negative exchange rates and higher raw material costs. Despite lower operating profit, earnings per share and cash flow, the board maintained the dividend at SEK 3.00 per share, underlining confidence in the company’s financial resilience. Fourth-quarter results weakened both year-on-year and sequentially, with net sales and EBITDA down sharply as lower selling prices and currency headwinds weighed on profitability, particularly in solid-wood, pulp and packaging materials, amid a weak macro environment, trade barriers and volatile FX. SCA’s integrated supply chain and strong wood self-sufficiency helped contain input cost pressures, and major investments in growth segments are being ramped up to bolster future cash flow and competitiveness, even as the valuation of its Swedish forest assets declined slightly on lower market price assumptions. Market conditions varied across segments, with soft demand in Europe and the US for pulp and solid-wood products but firmer demand in China and e-commerce-related packaging, while biofuels markets strengthened and wind-power lease revenues remained stable, reflecting the diversified income base built around SCA’s extensive forest land.

The most recent analyst rating on ($SE:SCA.B) stock is a Hold with a SEK128.00 price target. To see the full list of analyst forecasts on Svenska Cellulosa SCA AB stock, see the SE:SCA.B Stock Forecast page.

More about Svenska Cellulosa SCA AB

Svenska Cellulosa AB (SCA) is a Swedish forest industry group focused on managing large forest holdings and producing fresh fiber-based packaging materials, pulp, solid-wood products and renewable energy. Having exited publication paper, the company emphasizes an integrated value chain with high self-sufficiency in wood raw material and energy to support cost-efficient, export-oriented operations in a structurally challenged global forest-products market.

Average Trading Volume: 1,515,783

Technical Sentiment Signal: Hold

Current Market Cap: SEK81.56B

See more insights into SCA.B stock on TipRanks’ Stock Analysis page.

Disclaimer & DisclosureReport an Issue

Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App
1