Norske Skog Q3 2026 Results: EBITDA Rises to NOK 448 Million as Property Sale Boosts Earnings

Norske Skog ASA reported a significant improvement in its third-quarter 2026 financial results, with EBITDA rising to NOK 448 million from NOK 38 million in the same period last year. The improvement was supported by a NOK 338 million gain from the sale of property at Norske Skog Saugbrugs to Norwegian Nuclear Decommissioning (NND), alongside stronger publication paper performance.

Total operating income increased to NOK 3.015 billion from NOK 2.403 billion in the third quarter of 2025. Profit before income taxes reached NOK 251 million, compared with NOK 120 million a year earlier, while profit for the period declined to NOK 151 million from NOK 161 million.

The company’s EBITDA margin increased to 14.9%, compared with 1.6% in the corresponding quarter last year. The results also marked a recovery from the second quarter of 2026, when Norske Skog recorded EBITDA of NOK 73 million and a pre-tax loss of NOK 163 million.

However, the property transaction played a substantial role in the improvement, while higher energy, fuel and chemical costs and operational difficulties at the Golbey packaging paper mill continued to affect performance.

Financial performance improves in the third quarter

Norske Skog's third-quarter results showed stronger profitability compared with both the previous quarter and the corresponding period last year.

Key financial figures for the quarter were:

The increase in operating income reflected the property-sale gain, as well as higher publication paper deliveries and customer prices. Continued efficiency improvements also supported the results.

Despite the improvement in EBITDA and pre-tax profit, net profit was lower than a year earlier. The divergence highlights the importance of considering the full income statement when assessing the company's quarterly performance.

Property transaction strengthens liquidity

The sale of property at Norske Skog Saugbrugs to NND generated a recognised gain of NOK 338 million during the third quarter.

Norske Skog received NOK 770 million in cash proceeds in early October, after the end of the reporting period. Approximately NOK 50 million of the proceeds is allocated to dismantling.

The transaction strengthened the company's financial flexibility at a time when it faces significant scheduled debt repayments during the fourth quarter of 2026.

At the end of September, Norske Skog reported cash holdings of NOK 577 million and net interest-bearing debt of NOK 4.428 billion. Its equity ratio stood at 41%.

The proceeds provide additional liquidity, although the company's debt obligations and operating cash requirements remain important considerations for its financial position.

Publication paper delivers stronger earnings

Norske Skog's Publication Paper segment was the principal operating contributor to the improved quarterly EBITDA.

Segment EBITDA increased to NOK 431 million from NOK 143 million in the third quarter of 2025 and NOK 86 million in the second quarter of 2026.

Operating income reached NOK 2.319 billion, compared with NOK 1.971 billion in the year-earlier quarter. Production increased to 284,000 tonnes from 271,000 tonnes, while deliveries rose to 282,000 tonnes from 267,000 tonnes.

Higher customer prices, increased deliveries, the property-sale gain and ongoing efficiency improvements supported the segment. These benefits were partly offset by higher material costs, particularly energy, and increased distribution costs per tonne.

The segment includes Norske Skog's publication paper mills in Norway, France and Austria, with annual production capacity of approximately 1.2 million tonnes.

Packaging paper remains under pressure from production challenges

The Packaging Paper segment continued to face operational difficulties during the third quarter, despite higher operating revenue and improved recycled containerboard prices.

Segment operating income increased to NOK 591 million from NOK 357 million in the third quarter of 2025. However, EBITDA was approximately break-even, compared with a loss of NOK 95 million in the year-earlier period.

Deliveries rose year on year to 115,000 tonnes from 71,000 tonnes, but declined from 122,000 tonnes in the second quarter of 2026.

Production at Norske Skog Golbey PM1 was affected by regional drought, unplanned maintenance at its water effluent treatment facility and press-crushing issues at the paper machine. The company expects these challenges to improve during the fourth quarter.

Norske Skog Bruck PM3 delivered 55,000 tonnes and generated EBITDA of NOK 40 million during the quarter. Golbey PM1 delivered 60,000 tonnes and recorded EBITDA of negative NOK 40 million.

Higher prices for recycled containerboard supported revenue, and the company expects further price increases during the fourth quarter. However, higher energy, fuel and recycled fibre costs continued to pressure production economics.

The performance of the packaging paper business remains a key factor to watch as Norske Skog works to improve operating reliability and complete the ramp-up at Golbey.

Year-to-date EBITDA rises, while net profit declines

For the first nine months of 2026, Norske Skog reported total operating income of NOK 8.476 billion, up from NOK 7.893 billion in the same period of 2025.

EBITDA increased to NOK 973 million from NOK 756 million, while the EBITDA margin rose to 11.5% from 9.6%.

Operating earnings declined slightly to NOK 730 million from NOK 757 million. Profit before income taxes fell to NOK 324 million from NOK 610 million, while profit for the period decreased to NOK 321 million from NOK 640 million.

The year-to-date figures demonstrate that stronger EBITDA has not translated into an equivalent improvement in bottom-line earnings. The results also reflect differences in other income-statement items and the contribution of non-recurring gains.

Management focuses on profitability and operational recovery

Commenting on the results, CEO Geir Drangsland said the third quarter reflected resilient operations in challenging markets. He highlighted the contribution of price increases and cost-reduction initiatives in partly mitigating higher energy, fuel and chemical costs.

Drangsland also pointed to the NND transaction and the receipt of NOK 770 million after quarter-end as important for strengthening the company's financial flexibility.

Management's stated priorities remain improving profitability, maintaining disciplined working capital and completing the operational ramp-up at Golbey.

The expected improvement in Golbey's production performance during the fourth quarter will be an important factor in determining whether the Packaging Paper segment can move beyond break-even EBITDA.

Outlook: Liquidity improves, but execution remains critical

Norske Skog enters the final quarter of 2026 with stronger reported EBITDA and additional liquidity from its property transaction. Publication paper has provided a significant contribution to profitability, while efficiency measures and pricing actions have helped mitigate cost pressures.

Nevertheless, the quality and sustainability of earnings remain central considerations. The third-quarter result benefited materially from a non-recurring property-sale gain, and packaging paper operations continued to face production and cost challenges.

The company's near-term performance will depend on the recovery of Golbey PM1, the realisation of further containerboard price increases, control of energy and raw-material costs, and the management of scheduled debt repayments.

For investors and industry participants, the results present a mixed picture: improved financial flexibility and stronger EBITDA, alongside ongoing operational work required to support sustainable profitability.