Rottneros Reports Improved Cost Position Amid Challenging Market Conditions in Q1 2026

Rottneros AB reported first-quarter 2026 results reflecting continued pressure from a weak pulp market and unfavorable currency effects, while demonstrating improved operational efficiency, lower costs, and strengthened financial resilience.

Net turnover for the quarter amounted to SEK 622 million, compared with SEK 652 million in the corresponding period of 2025. EBITDA totaled SEK -36 million, impacted primarily by lower pulp prices in SEK and a weaker USD exchange rate. However, lower wood costs and reduced fixed expenses partly offset the decline in earnings.

“Our financial performance in the first quarter was affected by the uncertain global environment,” said Per Bjurbom, President and CEO of Rottneros AB. “We remain strongly focused on driving efficiency improvements, increasing production availability, and prioritising cash flow and cost efficiency in a volatile market.”

First Quarter 2026 Highlights

• Net turnover: SEK 622 million (652)

• EBITDA: SEK -36 million (-27)

• Net income: SEK -65 million (-56)

• Pulp deliveries: Increased 9% to 89,900 tonnes

• Equity/assets ratio: 62%

• Available liquidity: SEK 214 million

While demand in Rottneros’ prioritized sulphate pulp niches remained stable, market conditions for CTMP continued to be weak. Total pulp deliveries increased by 9 percent year-over-year, supported by strong demand in selected market segments.

Lower Costs and Operational Focus

The Group continued implementing its cost-efficiency initiatives during the quarter, achieving a reduction in fixed costs of approximately SEK 26 million compared with the same period last year. Lower pulp wood prices also contributed positively to earnings development.

Production volumes totaled 81,300 tonnes, down from 85,800 tonnes in the prior-year quarter. Sulphate pulp production at Vallvik Mill was negatively affected by cold winter conditions during the beginning of the quarter, while CTMP production remained aligned with current market demand.

Rottneros also continued to prioritize cash flow and capital efficiency:

• Working capital declined by SEK 256 million year-over-year

• Investments were reduced to SEK 7 million from SEK 37 million in Q1 2025

• Cash flow after investments improved to SEK -49 million from SEK -165 million

Strengthened Financial Position

During March 2026, Rottneros signed an amended agreement for its existing loan facilities, including updated temporary financial covenants valid through April 2027.

The company maintained a strong balance sheet, with:

• Net debt of SEK 389 million

• Available unused credit facilities totaling SEK 192 million

• Equity/assets ratio comfortably above the long-term target of 50 percent

Market Outlook

Rottneros noted that global macroeconomic uncertainty remains elevated due to geopolitical tensions and ongoing conflict in the Middle East, contributing to higher energy prices, inflationary pressure, and weaker global growth expectations.

The pulp market remained largely stable during the quarter, although softwood pulp inventories continued to exceed balanced market levels. Demand for hardwood pulp remained stronger than for softwood pulp globally.

The company expects continued focus on:

• Cost efficiency and operational improvements

• Production stability and availability

• Cash flow strengthening

• Selective investments to support long-term competitiveness

Strategic Development Initiatives

Rottneros continues to expand its sustainable packaging and innovation initiatives. Through Rottneros Packaging and its joint venture in Poland with Arctic Paper, the company is scaling production of molded fiber packaging solutions. Rottneros also remains a stakeholder in Blue Ocean Closures, which develops fiber-based closures intended to replace plastic packaging solutions.