Norske Skog Q1 2026 Results

Norske Skog reported a strong operational performance in the first quarter of 2026, driven by improved profitability in packaging paper and continued strategic execution across its European operations.

Key Highlights (Q1 2026)

• Revenue: NOK 2,877 million

• EBITDA: NOK 451 million (up sharply from NOK 13 million in Q4 2025)

• EBITDA Margin: 15.7%

• Profit Before Tax: NOK 236 million

• Net Profit: NOK 335 million

• Net Debt: NOK 4,502 million

The company achieved record deliveries in packaging paper and continued to strengthen its market position across Europe.

Business Segment Performance

Publication Paper

• Revenue: NOK 2,291 million

• EBITDA: NOK 477 million

• EBITDA Margin: 20.8%

Performance was supported by:

• A NOK 320 million gain linked to an agreement with Norsk Nukleær Dekommisjonering (NND)

• Lower raw material costs (notably pulpwood)

• Stable production and deliveries (~274k tonnes)

Packaging Paper

• Revenue: NOK 508 million

• EBITDA: NOK -28 million (improving from -126 million in Q4 2025)

Key developments:

• Deliveries reached 106,000 tonnes (record level)

• Improved cost structure despite lower prices

• Gradual price increases implemented in March–April 2026

• Golbey mill expected to reach full utilisation by H1 2027

Cash Flow & Financial Position

• Operating Cash Flow: NOK -307 million (impacted by working capital increase)

• Capex: NOK 59 million (down from NOK 140 million in Q4)

• Maintenance Capex: NOK 31 million

The negative cash flow was largely due to receivables related to the NND transaction, with expected cash inflow in Q2 2026.

Strategic Developments & Projects

Norske Skog continues to advance multiple transformation projects:

• Golbey (France): Packaging paper expansion; remaining capex ~EUR 7 million

• Skogn (Norway): Book paper & PulpFlex projects

• Saugbrugs (Norway):

  • Data centre project

  • Conversion of PM6 to TMP-based kraftliner

• Bruck (Austria): Battery energy storage system

• Golbey: Biogas project

Transactions, One-offs & Other Updates

• NND Transaction:

  • NOK 320 million gain booked in Q1

  • Additional NOK 330 million expected in Q2

  • Cash proceeds ~NOK 770 million expected (incl. dismantling costs)

• Energy Refunds:

  • NOK 370 million received post-quarter (April)

  • Additional ~EUR 10 million expected in Q2

• Discontinued Operations:

  • Australasian business fully divested (closed April 2025)

Capex & Investments

• Ongoing investments in:

  • Packaging paper capacity

  • Energy efficiency and sustainability projects

  • Industrial transformation initiatives

• Future benefits include:

  • Energy certificates (~EUR 30 million expected in 2026, ~EUR 45 million in 2028)

Debt & Balance Sheet

• Equity Ratio: 41.7% (improved from 39.6%)

• Total Assets: NOK 14.2 billion

• Net Debt: Increased slightly due to working capital timing

Dividend

• No dividend announcement in Q1 2026 report.

Outlook

Norske Skog expects:

• Continued market volatility (raw materials, pricing, demand)

• Gradual profitability improvement from price increases

• Stronger performance in packaging paper as utilisation increases

• Ongoing cost reduction initiatives across all mills

The company remains focused on:

• Increasing European market share

• Strengthening cash flow

• Delivering on industrial transformation projects

Management Commentary

Management highlighted:

• Strong operational momentum

• Significant improvement in EBITDA

• Strategic progress in energy, packaging, and industrial conversion projects

Conclusion

Norske Skog delivered a solid turnaround quarter, with:

• Strong earnings recovery

• Improved operational efficiency

• Visible future cash inflows

The company is well-positioned to benefit from:

• Packaging market growth

• Cost optimisation initiatives

• Strategic asset transformation