Swedish timber giant SCA has reported higher sawn timber prices but lower delivery volumes in its latest financial update.
The results covering the January–June 2026 period show that SCA’s Timber division recorded a 13% decline in net sales to SEK2.82bn (H1, 2025 – SEK3.23bn). The change was primarily attributable to lower delivery volumes.
A first half -SEK6m operating loss was recorded in the division, compared with a profit of SEK402m a year ago. EBITDA declined 75% to SEK138m (H1, 2025 – SEK546m). The decrease was mainly attributable to higher raw material costs, lower delivery volumes and negative exchange rate effects.
The timber division has an annual production capacity of 2.2 million m3 of solid-wood products, with five sawmills located close to its forest holdings in Northern Sweden, as well as wood processing and distribution to the building materials trade in Scandinavia and France.
The Q2 comparison was a 12% decline in sales for April-June 2026 to SEK1.52bn (Q2, 2025 – SEK1.73bn). The operating profit for Q2 was SEK17m – significantly down by 93% compared to a year ago, but an improvement from the -SEK23m loss recorded in Q1.
EBITDA declined 71% to SEK89m (Q2, 2025 – SEK310m). The decrease was mainly attributable to higher raw material costs, lower delivery volumes and negative exchange rate effects.
“Selling prices for solid wood products increased [in Q2] compared with the preceding quarter, driven primarily by sustained high raw material costs and seasonably higher demand,” SCA reported.
“In Europe, the level of demand was normal for the season. Demand remained higher for spruce products compared with pine products. Production of solid wood products in Sweden and Finland declined during the first five months of the year compared to the preceding year.
“SCA’s delivery volume was lower compared with the year-earlier quarter, but seasonally higher compared with the preceding quarter. Producer stocks in Sweden and Finland remained high for pine and normal for spruce and were generally lower than in the preceding year. Customer stocks are estimated to remain low.
The Group’s overall H1 results show an operating profit of SEK1.26bn (H1, 2025 – SEK2.62bn) – a reduction of 52%. H1 Group sales were down 6% to SEK9.89bn (H1, 2025 – SEK10.54bn).
The lower Group net sales were mainly driven by lower selling prices and negative exchange rate effects, which were offset by higher delivery volumes.
