Arctic Paper Reports H1 2026 Results as Efficiency Measures and Strategic Investments Continue

Arctic Paper Capital Group reported consolidated sales revenue of PLN 1.565 billion for the first half of 2026, compared with PLN 1.656 billion in the same period of 2025, as lower paper and pulp selling prices continued to weigh on revenues. Paper sales volumes increased 4.1% year on year, while pulp volumes decreased 0.6%.

For H1 2026, the Group reported EBITDA of PLN 11.1 million, compared with PLN 22.9 million in H1 2025. EBIT was a loss of PLN 65.9 million, compared with a loss of PLN 98.3 million a year earlier, while net loss improved to PLN 70.4 million from PLN 98.8 million.

“Market conditions remained challenging in the second quarter, with weak European growth, geopolitical uncertainty and higher input and logistics costs continuing to affect demand and profitability,” said Michał Jarczyński, President of the Management Board of Arctic Paper. “At the same time, we are seeing the benefits of our efficiency initiatives, particularly in the pulp segment, while continuing to invest selectively in projects that strengthen our long-term competitiveness and sustainability.”

Pulp profitability improves

The Group's pulp operations delivered improved profitability despite a challenging global market. Pulp EBITDA reached MSEK 31 million, compared with a negative MSEK 15 million in the corresponding period, supported by lower pulpwood prices and reduced fixed costs. Pulp turnover was MSEK 612 million, compared with MSEK 726 million a year earlier.

For the consolidated six-month period, the Pulp segment generated PLN 477.4 million in external revenue and EBITDA of PLN 2.1 million, while the Paper segment generated PLN 1.087 billion in external revenue and EBITDA of PLN 14.0 million.

The Group continues to prioritize cost efficiency, high production availability and cash-flow generation as global pulp markets remain under pressure from production curtailments and capacity reductions.

Efficiency programme and market expansion

Arctic Paper has largely completed its efficiency and cost-reduction programme, which is expected to generate approximately PLN 6 million in savings during 2026. Further initiatives to improve efficiency and reduce costs remain underway.

The Group also strengthened its presence in the strategically important North American market during the quarter through the establishment of a new sales office. Early market traction has been encouraging, with Arctic Paper targeting North America to represent 5–10% of paper sales in the coming years.

Continued investment in sustainability and new businesses

Despite the challenging market environment, Arctic Paper continues to advance selected strategic investments.

A new wastewater treatment facility at the Munkedal mill is scheduled for completion in 2026. The Group is also progressing with construction of a new electric boiler at Kostrzyn, scheduled for completion in 2027, which is expected to reduce emissions while strengthening cost competitiveness.
At Grycksbo, commercial-scale production of wood pellets is progressing, with a targeted EBITDA contribution of SEK 20 million in 2026. The Group has also continued financing the pellet factory project, with further investment-loan tranches of PLN 25.9 million received during H1 2026.
Packaging operations delivered stable volumes during the quarter.

Stronger financial performance compared with the previous year

Although revenues declined, Arctic Paper's cost base showed improvement. Cost of sales fell 2% in H1 2026 to PLN 1.423 billion, primarily due to lower variable production costs. Administrative expenses declined by approximately PLN 20.5 million, while finance costs fell 55% to PLN 9.4 million.

At June 30, 2026, the Group had total assets of PLN 2.652 billion and equity of PLN 1.639 billion. Cash and cash equivalents stood at PLN 123.5 million.

The Group generated positive operating cash flow of PLN 5.6 million in Q2, although operating cash flow for H1 remained negative at PLN 41.0 million, primarily due to movements in receivables and payables.

Outlook

Arctic Paper expects market conditions to remain demanding in the near term, while the timing of a broader market recovery remains uncertain. The Group will continue to focus on operational efficiency, cost optimization, production availability and cash-flow generation.

“Our strong financial position, disciplined execution and strategic investments provide a robust foundation for the future,” said Jarczyński. “We remain focused on strengthening competitiveness and margins so that Arctic Paper is well positioned to benefit when market conditions improve.”

Arctic Paper employs more than 1,500 people across its paper mills, pulp operations, sales companies, procurement and packaging activities. Its three paper mills in Poland and Sweden have combined annual capacity of more than 630,000 tonnes, while its two Swedish pulp mills have combined annual capacity exceeding 400,000 tonnes.