Svenska Cellulosa AB (SVCBF) Q1 2026 Earnings Call Highlights: Navigating Market Challenges ...

This article first appeared on GuruFocus .

• EBITDA:SEK1.1 billion, corresponding to a 23.4% EBITDA margin.

• Net Sales:Decreased 8% to SEK4.7 billion.

• EBIT:Decreased to SEK543 million.

• Net Debt to Equity:Reached 11.9%.

• Forest Segment EBITDA:SEK884 million.

• Wood Segment EBITDA:SEK49 million, margin of 4%.

• Pulp Segment EBITDA:SEK40 million, margin of 3%.

• Containerboard Segment EBITDA:SEK104 million, margin of 6%.

• Renewable Energy Segment EBITDA:SEK206 million, margin of 31%.

• Operating Cash Flow:SEK569 million.

• Forest Asset Value:SEK104 billion.

• Capital Employed:SEK112 billion.

• Debt:SEK12 billion.

• Equity:SEK100 billion.

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Release Date: April 24, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• Svenska Cellulosa AB ( SVCBF ) achieved a record high result in the Renewable Energy segment, driven by strong electricity prices and a favorable market for liquid biofuels.

• The new wind farm in Jamtland started operations and contributed to high profitability within the Renewable Energy segment.

• The company maintained a high degree of self-sufficiency in strategic areas, which helped mitigate higher costs.

• Svenska Cellulosa AB ( SVCBF ) reported a 23.4% EBITDA margin for the first quarter, demonstrating strong operational performance despite market challenges.

• The company successfully ramped up production at its biorefinery in Gothenburg, achieving record production levels and exceeding design capacity.

Negative Points

• Net sales decreased by 8% to SEK4.7 billion, impacted by lower prices and negative currency effects.

• EBITDA decreased by 33% to SEK1.1 billion, driven by lower prices, negative currency effects, and high costs for wood raw materials.

• The pulp segment experienced a significant decline in EBITDA, down 88%, due to lower prices and negative currency effects.

• The containerboard segment saw a 56% drop in EBITDA, affected by lower prices, negative currency effects, and higher energy costs.

• The solid wood products market remained slow, with a 13% decrease in sales compared to the same quarter last year, and an EBITDA margin drop from 16% to 4%.

Q & A Highlights

Q: Can you provide insights into the cost developments for containerboard in the second quarter, particularly regarding logistics and chemicals? Is another kraftliner price increase expected in May? A: Ulf Larsson, CEO, explained that they have already implemented a price increase for kraftliner from April 1st, with no further increases planned for May. Andreas Ewertz, CFO, added that pulpwood costs will decrease slightly in Q2, with a more significant reduction expected in the second half of the year. Electricity prices are expected to be lower compared to Q1, and transportation costs will depend on oil price developments.