The third week of February 2026 underscores a defining theme across the global pulp, paper, and packaging sector: strategic repositioning amid uneven demand recovery. While pricing momentum is building in select grades, margin pressure, trade shifts, portfolio realignments, and disciplined capital allocation continue to shape corporate strategies.

Below is your comprehensive global industry briefing — covering major financial results, investments, acquisitions, mergers, capacity developments, sustainability moves, and market data.

📊 Global Market Snapshot: Pricing Firms, Demand Uneven

Printing & Writing Paper (U.S.)

The latest data from the American Forest & Paper Association (AF&PA) signals continued structural decline in graphic grades:

• Total shipments down 13% year-over-year in January 2026

• U.S. purchases declined 16%

• Exports down 19%, imports down 10%

• Only coated free sheet exports showed growth (+9%)

Demand erosion remains persistent despite some inventory rebuilding.

Packaging Papers & Specialty Grades

• Shipments declined 1% YoY

• Operating rate at 80.7%

• Unbleached multiwall shipments rose 6.9%

• Imports increased nearly 6% in 2025

Packaging fundamentals are comparatively more resilient, but pricing remains sensitive to import pressure.

💰 Financial Performance: Divergence Widens

🇺🇸 Sonoco Delivers Strong Earnings Momentum

Sonoco Products Company

Sonoco reported a transformational Q4 and FY2025 performance:

Q4 2025

• Net sales: $1.8 billion (+29.7% YoY)

• GAAP net income: $332.2 million

• Adjusted EBITDA: $272 million (+10.2%)

• Adjusted operating profit: +47%

The results reflect integration benefits from its Eviosys (Metal Packaging EMEA) acquisition and portfolio transformation. Debt reduction remains a key focus as Sonoco reshapes into a higher-value packaging player.

🇺🇸 Kadant Hits Record Q4 Revenue

Kadant Inc.

• Q4 revenue: $286.2 million (record, +11%)

• Adjusted EBITDA: $58 million (+11%)

• FY2025 revenue: $1.05 billion

• Record operating & free cash flow

Recurring aftermarket demand and acquisitions continue to drive performance.

🇺🇸 Clearwater Paper: Volume Gains, Margin Strain

Clearwater Paper Corporation

• FY2025 sales: $1.6 billion (+12%)

• Adjusted EBITDA: $107 million

• Net loss: $53 million (impacted by $48M goodwill impairment)

The Augusta mill integration supported volumes (+14%), but oversupplied paperboard markets pressured pricing.

🇨🇦 KP Tissue Shows Strong EBITDA Expansion

KP Tissue Inc.

• FY2025 revenue: $2.2 billion

• Adjusted EBITDA: $318.2 million (+20%)

• Net income: $75.5 million

Diversified growth and productivity improvements support 2026 expansion plans, including a new western U.S. tissue facility.

🇺🇸 Mativ Strengthens Cash Flow

Mativ Holdings Inc.

• FY2025 revenue: $1.99 billion

• Adjusted EBITDA: $224.7 million

• Record free cash flow: $93.8 million

Margin expansion and disciplined cost management are positioning Mativ for improved 2026 performance.

🇸🇪 Rottneros Reports Deep Losses

Rottneros AB

• FY2025 EBITDA: –253 MSEK

• Net loss: –452 MSEK

• Covenant breach; no dividend

Weak pulp prices and currency headwinds severely impacted performance. A rights issue was executed to reinforce liquidity.

🇵🇱 Arctic Paper Under Pressure, Investing for Recovery

Arctic Paper S.A.

• FY2025 revenue: PLN 3.2 billion

• EBITDA margin: 0.9%

• No dividend proposed

Strategic energy investments (biofuel boiler & pellet production) aim to strengthen cost competitiveness.

🇬🇧 Mondi Navigates Cyclical Headwinds

Mondi plc

• FY2025 revenue: €7.66 billion

• Underlying EBITDA: €1.0 billion

• Operating cash flow: >€1 billion (+11%)

Following the Schumacher Packaging acquisition, Mondi is accelerating cost actions (~1,200 roles impacted), resetting dividend policy, and prioritizing capital discipline in 2026.

🤝 Mergers & Acquisitions: Strategic Consolidation Continues

🇮🇪 Zeus Acquires KOEX for €24 Million

Zeus Packaging Group

Zeus acquired KOEX Packaging Solutions for approximately €24 million.

• KOEX turnover: €25 million

• Zeus FY2024 turnover: €468 million

• EBITDA: €39.3 million

• €150 million financing facility secured

• Revenue target: €600 million by FY2026

Luxury retail packaging expands Zeus’ specialty footprint across Europe and North America.

🇺🇸 Millcraft Acquires Steen Macek Paper

Millcraft Paper Company

Family-owned consolidation continues in the U.S. merchant space. Terms undisclosed. All 20 employees retained.

🇩🇪 ANDRITZ Expands via Wehrle Asset Acquisition

ANDRITZ AG

ANDRITZ acquired selected assets from Wehrle-Werk AG’s boiler and grate service business, strengthening its waste-to-energy and environmental services footprint in German-speaking markets.

🏗 Major Capital Investments & Capacity Expansions

🇬🇧 Essity Invests £30+ Million in Recycled Fibre

Essity AB

• £30M+ investment in Prudhoe, UK

• Recycled fibre capacity >100,000 tonnes/year

Strengthens circular tissue production leadership.

🇫🇮 Delfort Invests €50M+ to Go Fossil-Free

Delfort Group

• €50+ million invested

• World's largest steam-generating heat pump

• Zero direct fossil emissions at Tervakoski mill

A benchmark in industrial decarbonization.

🇬🇧 Pulpex Advances £62M Series D Expansion

Pulpex Ltd.

• £62 million Series D funding

• Glasgow facility: 50 million fiber bottles/year

• 36 new jobs

Commercial scaling of fiber-based bottle technology accelerates.

🇩🇪 Zerhusen Kartonagen €100M Investment Plan

Zerhusen Kartonagen GmbH

• €100 million total investment plan

• New automated paper warehouse

• Second 2.8m corrugator (450 m/min)

• Capacity toward 500 million m²

🇺🇸 Domtar Adds High-Speed Tissue Line

Domtar Corporation

New converting line at Calhoun, TN aligns tissue production and converting capacity, supporting U.S. growth strategy.

🇫🇮 Kemira Plans Low Double-Digit Million Euro Plant

Kemira Oyj

Activated carbon reactivation plant in Tarragona (operational 2027), supporting PFAS and water treatment demand.

🌱 Sustainability & Innovation Momentum

• Billerud AB earns CDP A-ratings (Climate & Forests).

• ICT France secures ISO 14001 certification.

• ProAmpac expands recyclable fiber platform (RP-2000).

• Duni Group launches FSC-certified Natural Brown series.

• SIG Group introduces alu-free cartons in Slovenia.

• HP Indigo & ePac Flexible Packaging sign $50 million multi-year deal for 10+ digital presses.

🧭 Leadership Changes

Rottneros AB appoints Magnus Wikström as Acting CEO effective February 20, 2026.

📌 Strategic Outlook: Structural Realignment, Not Broad Expansion

This week reinforces five defining themes:

1. Financial divergence widening — strong cash generators outperform commodity-exposed pulp producers.

2. M&A remains targeted, focused on specialty, luxury, and high-value packaging.

3. Capital allocation disciplined — cost optimization prioritized over aggressive expansion.

4. Sustainability investments accelerating — fossil-free energy, fiber substitution, PFAS mitigation.

5. Graphic paper structural decline continues, while packaging shows relative resilience.

The industry is not in a broad growth cycle — it is in strategic recalibration mode. Operators with balance sheet strength, innovation pipelines, and disciplined execution are positioning for the next upcycle.

Stay tuned for next week’s edition of Pulp & Paper Chronicle — delivering the insights that matter to global pulp, paper, and packaging decision-makers.