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Investing.com -- Swedish forest products company Svenska Cellulosa reported third-quarter 2025 results showing mixed performance with sales missing expectations but earnings holding up better than anticipated.
The company posted sales of 4.99 billion Swedish kronor in Q3, down 5% year-over-year and 7% quarter-over-quarter, falling short of analyst expectations by 6-10%.
Despite lower sales, adjusted EBITDA came in at 1.64 billion kronor, exceeding analyst forecasts by 1-6%, though still down 18% year-over-year and 19% from the previous quarter.
The sequential decline was primarily due to higher planned maintenance costs of 287 million kronor compared to just 25 million kronor in Q2, along with lower average selling prices and reduced delivery volumes.
Operating profit reached 1.11 billion kronor, beating analyst estimates by 2-9%. Cash flow from operations improved 8% quarter-over-quarter to 1.22 billion kronor, representing a 54% increase year-over-year, helped by a working capital inflow of 215 million kronor.
Capital expenditures rose 13% from the previous quarter to 590 million kronor, resulting in free cash flow of 634 million kronor, which exceeded consensus estimates by 7-32%. Net debt decreased 9% quarter-over-quarter to 11.7 billion kronor, representing 1.7 times EBITDA.
By segment, pulp operations outperformed expectations with EBITDA 13-17% above forecasts despite volumes being 13% below estimates. Containerboard EBITDA fell 57% quarter-over-quarter, impacted by 204 million kronor in maintenance costs. Wood segment EBITDA declined 25% from Q2 but exceeded consensus by 3%.
The company maintained its previous guidance for maintenance costs, expecting 180 million kronor in the fourth quarter.
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