Rottneros AB Reports Weak Q4 and Full Year 2025 Results Amid Challenging Market Conditions

Fourth Quarter 2025 Highlights

Rottneros reported net turnover of 587 MSEK, down 6% year-over-year despite higher sales volumes. The decline was primarily driven by lower pulp prices in USD and a significantly stronger SEK.

• EBITDA: -190 MSEK (vs. 10 MSEK in Q4 2024)

• EBIT: -228 MSEK

• Net income: -186 MSEK

• Equity/assets ratio: 60%

• Available liquidity: 190 MSEK

Lower selling prices and currency effects negatively impacted earnings by approximately -131 MSEK, while finished goods inventory was written down by 35–37 MSEK due to price declines.

The annual maintenance shutdown at Vallvik Mill impacted earnings by approximately 70–80 MSEK, consistent with normal seasonal effects. No emission allowances were sold during Q4 2025 (compared with 76 MSEK in Q4 2024).

Full Year 2025 Performance

For the full year:

• Net turnover: 2,539 MSEK (down 6%)

• EBITDA: -253 MSEK (vs. 179 MSEK in 2024)

• EBIT: -540 MSEK

• Net income: -452 MSEK

• Operating cash flow: -71 MSEK

The combined effect of lower selling prices and a stronger SEK reduced earnings by approximately -258 MSEK for the year.

Depreciation and impairment totaled 288 MSEK, including 140 MSEK in non-current asset impairments.

Production & Operations

• Total pulp production: 331,400 tonnes (vs. 340,700 tonnes in 2024)

• Vallvik Mill production: 233,000 tonnes — a new annual record (+6%)

• Rottneros Mill production: 98,400 tonnes (-19%) due to weak CTMP market conditions

Demand for sulphate pulp in niche markets remained stable, while CTMP volumes were constrained by weak market conditions.

Cost Reduction Program

The company fully implemented a cost savings program expected to reduce the fixed cost base by approximately 45 MSEK annually, exceeding the initial target of 35–40 MSEK.

Fixed costs declined during Q4, partially offsetting pricing pressure.

Financing & Covenant Update

Rottneros refinanced its long-term facilities (400 MSEK term loans and 150 MSEK revolving credit facility).

However, in Q4 2025 the company breached a profitability covenant and received a waiver for the quarter. As a result:

• The 150 MSEK revolving credit facility is currently restricted

• Long-term debt was reclassified as current

• The company is in constructive dialogue with lenders to strengthen its financial position

Net debt at year-end was 339 MSEK.

Additionally, a 300 MSEK rights issue was completed in July 2025 to strengthen liquidity.

Capital Expenditure

• 2025 investments: 166 MSEK (down from 437 MSEK in 2024)

• Investments focused on maintaining technical standards and environmental improvements

• 2026 CAPEX expected below 100 MSEK