Rottneros year-end report January-December 2025
NET TURNOVER dropped by 6 percent to 587 (626) MSEK. Higher sales volumes were offset by lower market prices and a stronger SEK.
NET PRICE in USD was, depending on segment, 4–8 percent lower than in the fourth quarter of 2024. A stronger SEK exchange rate led to 16–19 percent lower prices when denominated in SEK. Compared with the third quarter of 2025, market prices in USD remained largely unchanged while prices denominated in SEK were approximately 2 percent lower.
VOLUME PRODUCED amounted to 82,500 (74,800) tonnes. Production of sulphate pulp was robust but, as in previous years, was impacted by the annual maintenance shutdown at Vallvik Mill. Prevailing weak market conditions continued to constrain CTMP production.
SOLD VOLUME totalled 84,900 (72,800) tonnes. Demand for sulphate pulp within Rottneros’ prioritised niches has been good and sales rose by 8 percent. CTMP sales rose by 38 percent, partly as a result of a shift from the third to the fourth quarter. For the full year, sales of sulphate pulp increased by 6 percent, while CTMP declined by 10 percent.
EBITDA was -190 (10) MSEK, affected by lower sales prices and a stronger SEK, which also contributed to a write-down of finished goods inventory by 35 MSEK. Lower variable and fixed costs had a positive impact. As in previous years, the annual maintenance shutdown at Vallvik had a negative impact on the fourth quarter. In the fourth quarter of 2024, emission allowances were sold for 76 MSEK. No emission allowances were sold in the fourth quarter of 2025.
NET INCOME for the quarter totalled -175 (27) MSEK.
BALANCE SHEET: The equity/assets ratio was 60 (59) percent and available liquidity amounted to 190 (385) MSEK. Net debt totalled 339 (392) MSEK.
CASH FLOW from operating activities amounted to 15 (104) MSEK for the year. Investments amounted to 166 (450) MSEK.
FINANCING: In the fourth quarter of 2025, Rottneros breached a profitability covenant in the loan agreement. Long-term receivables have therefore been classified as current and available liquidity excludes 150 MSEK in the RCF facility.
DIVIDEND: The Board of Directors proposes that no dividend be distributed for 2025.
Comments by the CEO
Weak earnings development, focus on factors we control ourselves
The financial development in the fourth quarter was characterized by very weak earnings. The tough pulp market meant lower prices in USD, while a weaker USD amplified the price and margin decline in SEK. However, we delivered in line with our targets or better for the factors we can influence, mainly cost efficiency and high availability in production. The price of wood raw material continues to fall after the trend break during the autumn. At the same time the pulp prices are rising after the turn of the year. These are important pieces of the puzzle for the industry’s long-term profitability.
EBITA for the quarter amounted to -190 MSEK, lower prices in USD together with a stronger SEK were the main reasons for the very weak result, but also wood prices. The valuation of finished goods inventory was negatively impacted by lower pulp prices and weighed on earnings by approximately -35 MSEK. In addition, the annual maintenance shutdown at Vallvik Mill impacted earnings by approximately 70–80 MSEK, in line with previous years and in line with the normal seasonal pattern. Demand in our niches for long-fiber chemical pulp continues to develop steadily, which confirms our competitive advantages. The cost savings we initiated in the spring are now fully implemented. All other things equal, they entail a reduction of the fixed cost base by approximately 45 MSEK on an annual basis. This is more than our goal of 35–40 MSEK, a clear acknowledgement of the organization’s great commitment to Rottneros.
Focus on reduced working capital yields results
Efforts to reduce working capital were intensified. At year-end, working capital amounted to 375 MSEK, a decrease of 154 MSEK compared with end of September. The ambition is to reduce working capital further going forward. Rottneros’ financial position shall be characterised by a strong equity ratio that provides good resilience in bad times. At the end of the year, the equity/assets ratio was 60 percent, which is above the long-term target of at least 50 percent. Available liquidity amounted to a total of 190 MSEK.
Clear focus on the factors we can influence
We continue to have a strong focus on the factors we can influence ourselves and consistently deliver at a high level when it comes to them. Production at Vallvik Mill increased by 9 percent during the quarter, which meant a new annual record for the full year. In 2025, the volume increased by 6 percent to 233,000 tonnes.
In Rottneros Mill, production continued to be limited by adjustments necessary in the weak market situation for mechanical pulp. We continue to prioritise markets in Europe with better profitability. The investments for increased capacity are delivering according to plan with a high production rate when the mill is allowed to run at full capacity. Through investments made, the mill is now one of the most efficient production facilities in its segment. Several different investments in new products to address new markets and applications in mechanical pulp are also being carried out.
Safety work yields results
The number of accidents involving sick leave decreased further in 2025. There were two of them, compared to three for 2024 and five in 2023. The investments we have made to train the staff and in equipment for a number of years are thus paying off. Considering that employee safety is of course always at the top of our agenda, it is extremely gratifying that our efforts are yielding results. The daily work for the safety of personnel continues with a zero vision as the overall objective.
Stable demand for chemical pulp in our niches
The weak market development continued in the fourth quarter, with a sideways development for prices overall. For our main quality, chemical long-fibre pulp, they continued to be under pressure despite production restrictions in the market. Net prices for NBSK pulp in Europe fell during the quarter from 710 USD to 690 USD. At the same time, the net price of CTMP in USD was stable. However, price increases have been announced for long-fiber in Europe in the first quarter of 2026. Inventory levels remain above average. At the same time, demand in our niches is stable and many customers continue to increase their volumes.
Market balance for wood raw material favourable, further price declines in the cards
Wood prices remained at an unsatisfactorily high level and had a negative impact on the comparison with the previous year’s fourth quarter. However, the market balance has swung in our favour over the past six months. An increased supply, which was also affected by the storm Johannes at the end of December, combined with reduced demand, means that the price trend turned downwards in mid 2025 and everything indicates that it will continue to decline in the first half of 2026 as well. The storm has a major impact on the supply of wood in the area around Vallvik, equivalent to about one year’s felling. Based on the now announced reductions, the price decline is in the order of 20 percent from the peak in the first half of 2025. The price development affects our earnings with a delay of about one quarter.
Packaging’s and Arctic Paper’s factory in Poland produce on a commercial scale
Our project for large-scale production of moulded fibre trays in Poland together with Arctic Paper continued to scale up and production has reached commercial scale. As before, there is a great deal of interest in our sustainable food packaging.
In conclusion, I would like to thank all colleagues for your wholehearted commitment in this challenging situation. I would also like to thank the Board of Directors, our owners and our customers and suppliers for a very good collaboration.
Lennart Eberleh
President and CEO
For further information please contact:
Lennart Eberleh, President and CEO, Rottneros AB,
+46 (0)270 622 65, [email protected]
Monica Pasanen, CFO, Rottneros AB,
+46 (0)270 622 70, [email protected]
This information is such information that Rottneros AB is required to disclose in accordance with the EU Market Abuse Regulation. The information was submitted for publication on 19 February 2026 at 07.30 by the contact person above.