Arctic Paper Group Reports Q1 2026 Results Amid Challenging Market Conditions

Arctic Paper Group reported consolidated sales revenue of PLN 814.0 million for the first quarter of 2026, compared with PLN 822.8 million in the same period last year. EBITDA amounted to PLN 2.6 million with an EBITDA margin of 0.3%, reflecting continued pressure from weak demand, geopolitical uncertainty and rising operating costs.

The Group increased paper sales volumes to 137 thousand tonnes in Q1 2026, up from 125 thousand tonnes in Q1 2025, supported by a proactive commercial strategy and continued gains in market share across Europe.

“Our focus remains firmly on cost savings and measures to strengthen competitiveness, while our strong balance sheet and disciplined capital allocation provide resilience in difficult market conditions,” said Michał Jarczyński, CEO of Arctic Paper Group. “We continue to execute operational improvements while maintaining pricing discipline and investing selectively in projects with long-term strategic value.”

Key Q1 2026 Highlights

• Revenue: PLN 814.0 million versus PLN 822.8 million in Q1 2025

• EBITDA: PLN 2.6 million versus PLN 22.9 million in Q1 2025

• Net loss: PLN 33.5 million versus PLN 23.8 million loss in Q1 2025

• Paper sales volumes: 137k tonnes, up 9.5% year-on-year

• Pulp sales volumes: 89k tonnes, up 8.9% year-on-year

Segment Performance

Paper Segment

The paper segment maintained stable sales of PLN 573.4 million despite ongoing market weakness. EBITDA reached PLN 21.8 million, impacted by higher input costs and currency effects. Arctic Paper announced additional paper price increases effective from June 2026 to support margin recovery.

Pulp Segment (Rottneros)

The pulp market remained stable, although profitability was negatively affected by a weak USD and lower margins in SEK terms. Cost-saving initiatives reduced the fixed-cost base significantly during the quarter.

Packaging and Energy

The Group’s pulp tray production facility in Kostrzyn entered commercial production during the quarter. Arctic Paper also advanced its renewable energy strategy through the commercial launch of its new wood pellet plant in Grycksbo, expected to contribute positively to EBITDA already in 2026.

Strategic Priorities

Arctic Paper continues to focus on:

• Cost optimisation and operational efficiency

• Strengthening cash flow and working capital discipline

• Selective capital expenditure management

• Growth in packaging and renewable energy businesses

• Maintaining strong market positions in European paper markets

The company stated that geopolitical tensions and macroeconomic uncertainty continue to impact market visibility, but no material direct operational disruptions have been identified at this stage.