Press Release
Kostrzyn nad Odra / Gothenburg, February 19, 2026
Arctic Paper S.A. Q4, 2025 - preliminary results*:
Positioned for recovery through strategic investments
- Q4 sales revenue amounted to PLN 745,1mn (EUR1 175,7mn).
- EBITDA Q4 was PLN -33,5mn (EUR1 -7,9mn) and the EBITDA margin -4.5 percent
- FY 2025 sales revenue amounted to PLN 3 197,6mn (EUR1 754,1mn).
- EBITDA FY 2025 was PLN 28,3mn (EUR1 6,7mn) and the EBITDA margin 0,9 percent.
- Weak performance in pulp segment weighed heavily on consolidated results
- Arctic Paper continues to gain market shares in a challenging paper market.
- Modernized biofuel boiler and additional pellets production in Grycksbo operational.
- The management board will not propose a dividend for 2025.
* Presented financial results are estimates obtained during the preparation of the financial statements for 2025. The final standalone and consolidated results will be published in the annual report and may differ from the amounts presented above.
"We are determined to take further actions aimed at increasing revenues and improving profitability across all our segments. Going forward, our focus remains on cost savings and measures to increase our competitiveness."
Michal Jarczynski, CEO (see letter from the CEO on page 2)
Preliminary selected financial results: Arctic Paper Group & Arctic Paper (paper segment)
PLN (million) | Q4, 2025 | Q4, 2024 | Changes | FY 2025 | FY 2024 |
Sales revenue, Arctic Paper Group | 745,1 | 810,8 | -65,7 | 3 197,6 | 3 434,7 |
Sales revenue Arctic Paper (paper segment) | 517,9 | 576,4 | -58,5 | 2 224,4 | 2 413,7 |
EBITDA, Arctic Paper Group | -33,5 | 38,8 | -72,3 | 28,3 | 298,6 |
EBITDA Arctic Paper (paper segment) | 36,4 | 46,3 | -9,9 | 113,3 | 243,2 |
EBIT, Arctic Paper Group | -72,2 | 11,3 | -83,5 | -166,0 | 184,3 |
EBIT Arctic Paper (paper segment) | 13,2 | 30,1 | -16,9 | 25,1 | 168,8 |
Net profit, Arctic Paper Group | -75,4 | 18,8 | -94,1 | -175,4 | 161,1 |
Net profit, Arctic Paper (paper segment) | -3,7 | 26,9 | -30,6 | -10,9 | 160,2 |
Net profit per share2 (PLN/share) | -0,62 | 0,34 | -0,96 | -1,44 | 2,23 |
Net debt | 146,7 | -1,4 | 148,1 | 146,7 | -1,4 |
Arctic Paper Group consists of Arctic Paper S.A. (parent company), Arctic Paper mills (paper segment) and pulp producer Rottneros AB in which Arctic Paper S.A. holds a 55 percent stake.
1Arctic Paper S.A. reports in PLN. In the English press release, the amounts above were converted to EUR at the average rates for the quarter respectively.
2 Net profit per share: net profit for the paper segment plus 55% of the net profit for Rottneros divided by the number of shares.
"The paper segment holds a strong position in attractive niches within the European graphical paper market and has continued to gain market shares." |
The fourth quarter of 2025 concluded another period of very complicated market conditions. Weak demand and intense competition exerted sustained pressure on pricing, while elevated commodity prices and significant currency fluctuations further impacted our results. For the full year, consolidated negative currency effects amounted to PLN -27,7 million. Arctic Paper Group's revenues reached PLN 745.1 million (810.8), while EBITDA decreased to PLN -33.5 million (38.8). For the full year, Arctic Paper Group's revenues were PLN 3,197.6 million (3,434.7) with an EBITDA of PLN 28.3 million (298.6).
Most planned projects and major investments were completed during 2025, and capital expenditure will therefore decrease by 100 mPLN in 2026. During the fourth quarter, Arctic Paper completed a refinancing on favorable terms. Supported by a solid balance sheet, the Group has the financial strength to withstand challenging conditions; however, considering the weak results, the management board will not propose a dividend for 2025. We continue to apply strict cost discipline across the entire Group.
The paper segment holds a strong position in attractive niches within the European graphical paper market and has continued to gain market shares despite turbulent conditions. While expected closures and consolidations might reduce capacity and improve the demand-supply balance, the entry of Asian competitors into the European market has put continued pressure on prices. At the same time, Arctic Paper has experienced growth in sales in the US market. Overall, volumes increased, while prices declined. For the fourth quarter, paper segment sales reached PLN 517,9 million (576.4) with an EBITDA of PLN 36.4 million (46.3). Recent investments in our mills, including the modernization of Paper Machine 9 in Grycksbo and the installation of a new sheeter in Kostrzyn, have strengthened our competitive position. For the second quarter, we announced a price increase of 8-10 percent aimed at restoring profitability.
For the pulp segment (Rottneros), sales dropped by 6 percent to SEK 587 million (626). Higher sales volumes of 84,900 (72,800) tons of pulp were offset by lower market prices and currency effects, leading to 16-19 percent lower income in SEK. The combination of lower sales prices, negative currency effects, and a write-down of finished goods inventory by SEK 35 million, resulted in an EBITDA of SEK -190 million (10). The result for the quarter of comparison was positively affected by sales of emission rights. Wood prices remained at an unsatisfactory high level, but the market balance has recently swung in our favor. The cost savings initiated are now fully implemented, reducing the fixed cost base by around SEK 45 million. The efforts to reduce working capital are also yielding results.
In the packaging segment, the kraft paper volume remained relatively stable throughout the year. The pulp tray production facility in Kostrzyn has entered commercial production for customers.
The most significant milestone of the period-and for the power segment in 2025-was the commissioning of the modernized biofuel boiler and pellet production facility at the Grycksbo mill. This SEK 300 million investment strengthens our competitiveness and energy self-sufficiency, delivering estimated annual cost savings of approximately SEK 50 million. In addition, pellet production of around 50 000 ton per year is expected to generate annual market sales of approximately SEK 100 million when it reaches full operation in 2027, further supporting both earnings and our sustainability agenda.
We are determined to take further actions aimed at increasing revenues and improving profitability across all our segments. Going forward, our focus remains on cost savings and measures to increase our competitiveness. Although the outlook for the first half of 2026 suggests limited prospects for a rapid recovery in demand, our strong balance sheet and discipline provide resilience and flexibility in a challenging market.
Michal Jarczynski, CEO of Arctic Paper S.A.
Table 1: Preliminary selected consolidated profit and loss account items
PLN '000 | 4Q | 3Q | 4Q | YTD | YTD | |
Sales revenues | 745 145 | 796 224 | 810 827 | 3 197 594 | 3 434 693 | |
EBIT | (72 189) | 4 491 | 11 280 | (166 018) | 184 294 | |
EBITDA | (33 501) | 38 918 | 38 831 | 28 279 | 298 595 | |
Net profit/ (loss) | (75 355) | (1 165) | 18 774 | (175 365) | 161 104 | |
Table 2: Preliminary selected consolidated balance sheet items
PLN '000 | 31.12.2025 | 31.12.2024 | |
Fixed assets | 1 643 086 | 1 492 328 | |
Inventories | 443 529 | 495 044 | |
Receivables | 390 129 | 444 931 | |
Other current assets | 48 019 | 37 077 | |
Cash and cash equivalents | 151 642 | 287 583 | |
Total assets | 2 676 405 | 2 756 962 | |
Equity | 1 697 441 | 1 768 722 | |
Short-term liabilities | 776 136 | 612 680 | |
Long-term liabilities | 202 828 | 375 560 | |
Total equity and liabilities | 2 676 405 | 2 756 962 | |
Table 3: Preliminary selected items of the consolidated cash flow statements
PLN '000 | Q4 | Q3 | Q4 | YTD | YTD | |
Cash flows from operating activities | 93 362 | 26 417 | 109 335 | 118 332 | 188 395 | |
Cash flows from investing activities | (79 026) | (65 498) | (133 567) | (302 041) | (416 630) | |
Cash flows from financing activities | (13 157) | (46 521) | 58 718 | 43 951 | 22 835 | |
Total cash flows | 1 179 | (85 601) | 34 486 | (139 758) | (205 400) | |
Financial calendar for 2026
Annual report 2025: Year-end April 21st, Q1 2026: May 12th, Q2 2026: August 11th, Q3 2026: November 5th
Further information provided by:
Michal Jarczynski, CEO, Arctic Paper S.A.
Phone +46 10 451 7005
michal.jarczynski@arcticpaper.com
Katarzyna Wojtkowiak, CFO, Arctic Paper S.A.
+48 667 652 112
katarzyna.wojtkowiak@arcticpaper.com
