SCA Annual report in brief 2025

SCA is the largest private forest owner in Europe, with 2.7 million hectares of well-managed forest in northern Sweden, Estonia, Latvia and Lithuania—an area almost as large as Belgium. The forest forms the foundation of SCA’s operations. Around this unique resource, SCA has built an industrial ecosystem that utilizes the entire tree to maximize its value. The integrated value chain enables resource-efficient production of renewable products while contributing to climate benefits, biodiversity and long-term profitability.

The global economy in 2025 was characterised by a weak economic cycle, trade barriers and geopolitical uncertainty. Despite this challenging environment, SCA demonstrated continued resilience and delivered stable financial performance. Net sales amounted to SEK 20,427 million, EBITDA to SEK 6,564 million and the EBITDA margin was 32 per cent. Earnings per share were SEK 4.56 and the Board proposes a dividend of SEK 3.00 per share. The result reflects the strength of SCA’s business model, where an integrated value chain and a high degree of self-sufficiency contribute to strong cost control even in a challenging market environment.

SCA’s competitiveness is largely built on the company’s self-sufficiency and resource efficiency. A significant share of the wood raw material comes from its own forests, and by-products from the sawmills are further utilized in the production of pulp, packaging paper, renewable energy and green chemicals. At the same time, SCA has a well-developed logistics organization with its own vessels, terminals and transport solutions that ensure stable deliveries to customers around the world. The high degree of control over raw materials, energy and transportation provides robustness in a time of major fluctuations in raw material and energy markets.

In recent years, SCA has made substantial investments in both forests and industry to strengthen competitiveness and create additional value from every tree. Key initiatives include the expansion of kraftliner production in Obbola, the development of CTMP production in Ortviken, investments in sawmill capacity and the development of biofuel production based on tall oil. At the same time, the company continues to strengthen its forest resource through active forest management and acquisitions of forest land in the Baltic region. These investments position SCA well to meet the growing global demand for sustainable materials and renewable energy solutions.

Sustainability is a central element of SCA’s strategy. The company’s growing forests function as carbon sinks, absorbing large amounts of carbon dioxide while supplying raw materials for products that can replace fossil-based alternatives. In 2025, SCA’s forests and products contributed climate benefits equivalent to approximately 12 million tonnes of carbon dioxide equivalents, representing a significant share of Sweden’s total emissions. At the same time, SCA actively works to preserve and enhance biodiversity through environmental considerations in forestry, voluntary forest set-asides and targeted conservation measures such as prescribed burns and habitat restoration.

SCA also plays an important role in regional development. With approximately 3500 employees and extensive operations in northern Sweden, the company contributes to employment, export revenues and vibrant local communities. By combining active forest management, modern industry and long-term investments, SCA creates value for both society and shareholders.

As a shareholder in SCA, you own a part of the company’s growing forests and the industrial network built around this resource. Historically, forest assets have demonstrated stable value growth over time, and SCAs strategy for profitable growth—with a focus on increasing forest resources, creating more value from every tree and maintaining a high degree of self-sufficiency—creates strong conditions for long-term sustainable value creation.