SCA lifts sequential EBITDA by 25% to SEK 1.63 billion on the back of European kraftliner price hikes

Kraftliner pricing power restores margin momentum

The European containerboard market is showing clear signs of tightening, and Svenska Cellulosa Aktiebolaget (SCA) is capitalizing on the shift. The Swedish forest products group closed the third quarter of 2026 with an EBITDA of SEK 1,631 million, representing a 25% sequential surge compared to the SEK 1,303 million recorded in the second quarter. This recovery pushes the company's EBITDA margin back above the 30% threshold, settling at a robust 31.1%.

The primary engine behind this sequential leap is the successful implementation of kraftliner price increases throughout the July-September period. After a softer early summer for box demand, the European corrugated packaging sector regained traction, allowing integrated producers like SCA to pass on higher selling prices. Net sales for the quarter rose 5.1% year-on-year to SEK 5,248 million, driven by higher delivery volumes and these adjusted price points.

Cost relief and segment divergence

Beyond top-line pricing, SCA's profitability benefited from a favorable cost environment. The company reported lower expenses for raw materials and planned maintenance stops, alongside a minor tariff repayment of SEK 27 million. However, the market conditions remain highly fragmented across the group's portfolio. While the containerboard and renewable energy divisions delivered strong margins, the pulp and solid wood product segments continued to face sluggish demand and weaker pricing dynamics.

For the broader packaging supply chain, SCA's third-quarter performance serves as a definitive indicator of cost pressures moving downstream. With kraftliner prices firmly established at higher levels and containerboard demand forecasted to remain positive into the final months of 2026, converters and fast-moving consumer goods brands will need to navigate a more expensive raw material landscape for their corrugated transport cases.