Arctic Paper S.A. Positioned for Recovery Through Strategic Investments

Kostrzyn nad Odra / Gothenburg, February 19, 2026 — Arctic Paper S.A. today published preliminary Q4 and full year 2025 financial results and outlined its strategy to strengthen competitiveness and position the Group for recovery amid ongoing market challenges.

📉 Financial Performance Highlights

• Q4 2025 sales revenue: PLN 745.1 million

• Q4 2025 EBITDA: PLN -33.5 million (EBITDA margin –4.5%)

• FY 2025 sales revenue: PLN 3,197.6 million

• FY 2025 EBITDA: PLN 28.3 million (EBITDA margin 0.9%)

The consolidated results were negatively impacted by continued weak conditions in key markets, especially price pressure and below-normal demand in both paper and pulp segments.

📊 Operational and Strategic Actions

Despite the challenging earnings environment, Arctic Paper highlighted several strategic investments and improvements designed to support long-term performance and market positioning:

1. Completed Key Investments

• A modernized biofuel boiler and pellet production facility at the Grycksbo mill are now operational, enhancing energy self-sufficiency and reducing costs.

• Pellet production is expected to reach commercial scale and contribute meaningful revenue once full capacity is achieved.

2. Competitive Positioning

• Arctic Paper maintained or increased market shares in competitive niches within the European graphical paper segment, demonstrating resilience despite weaker pricing.

• Continued focus on innovation, mill modernization and niche market leadership supports future demand capture.

3. Cost and Efficiency Measures

• The Group continues stringent cost-saving and efficiency programs to improve profitability, including ongoing resource optimization across segments.

• Management emphasized strict cost discipline and competitive pricing actions as central tools in the recovery strategy.

4. Dividend Policy

• In light of the preliminary results, the Board will not propose a dividend for 2025.

📌 Outlook and Management Commentary

Arctic Paper’s leadership acknowledged the persistent pressure from subdued demand, heightened competition and pricing volatility. However, the company expressed confidence that completed and ongoing strategic investments — particularly in energy self-sufficiency and operational modernization — will strengthen its cost structure and support recovery as market conditions improve.