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Rottneros AB: Rottneros' interim report January-June 2026
Increased profitability, improved margins
NET TURNOVER decreased by 16 percent to 612 (726) MSEK. Sales volume decreased by 7 percent. At the same time lower market prices and a weaker USD against the SEK also impacted turnover negatively.
The NET PRICE for NBSK in SEK was 12 percent lower than in the second quarter of 2025. The price of CTMP remained relatively stable. Compared with the first quarter of 2026, the price in SEK increased by 5 percent for NBSK and 2 percent for CTMP.
VOLUME PRODUCED amounted to 91,900 (90,300) tonnes. Sulphate pulp production was at the same level as in the corresponding quarter of 2025. CTMP production was higher but continues to be adjusted in line with market demand.
SOLD VOLUME amounted to 84,700 (91,100) tonnes, a decrease of 7 percent. Demand in Rottneros' prioritised niches for sulphate pulp has been strong, but lower production in the first quarter impacted inventory levels and resulted in reduced delivery volumes. The CTMP market has improved slightly but remains weak. The delivery volume of CTMP was higher than in the second quarter of 2025.
EBITDA totalled 31 (-15) MSEK. Improved margins thanks to lower variable and fixed costs contributed positively to earnings.
NET INCOME for the quarter totalled -11 (-158) MSEK. The second quarter of 2025 includes an impairment of non-current assets of 140 MSEK. Earnings per share were -0.04 (-1.04) SEK.
BALANCE SHEET: The equity/assets ratio was 60 (53) percent, and available liquidity amounted to 171 (200) MSEK. Net debt totalled 431 (549) MSEK.
CASH FLOW from operating activities for the first half of the year amounted to -81 (-88) MSEK. Investments amounted to 11 (67) MSEK.
ROTTNEROS' ANNUAL GENERAL MEETING was held on 27 May 2026 and resolved, in accordance with the Board's proposal, that no dividend be paid for 2025.
Comments by the CEO
Clearly positive earnings trend during the second quarter
Earnings in the second quarter developed clearly in the right direction despite the continued uncertain global environment and lower turnover. Both variable and fixed costs declined significantly. Demand in our chemical softwood pulp niches remained stable and solid. We continue to focus on cost efficiency, high production availability and cash flow.
Turnover decreased by 16 percent compared with the second quarter last year. The decline was driven by both lower sales prices and reduced delivery volumes. The latter was constrained by lower finished goods inventories of chemical pulp following high invoicing in the first quarter, when production volumes were lower. Demand in our prioritised niches remained strong.
Production during the quarter proceeded according to plan and was 2 percent higher than in the same period in 2025. At Vallvik Mill, production totalled 61,400 tonnes, marginally below the same period last year but 14 percent higher than the production-wise weak first quarter of 2026.
Production of CTMP at Rottneros Mill amounted to 30,400 tonnes, an increase of 9 percent compared with the same period last year. Although still affected by the weak market situation, improved demand enabled higher volumes. Enhanced cost control in response to electricity price fluctuations proved successful. We operated only when electricity prices allowed profitable production, while carefully balancing volumes against the ability to deliver to our customers.
EBITDA for the quarter showed a clearly positive trend despite lower turnover, amounting to 31 MSEK. This represents an improvement of 46 MSEK compared with the same period last year and 67 MSEK compared with the previous quarter. Variable costs continued to improve. The main driver was the decline in pulp wood prices, but costs for chemicals and fuels were also lower. Variable costs decreased by a total of 82 MSEK compared with the same quarter the previous year. The cost adjustments implemented during 2025 reduced the fixed cost base by approximately 22 MSEK in the quarter compared with the corresponding period last year.
Lower wood prices strengthen earnings performance
An increased supply combined with weaker demand for pulp wood meant that the price trend for the Group's most important input good remained favourable. The decline amounted to approximately 20 percent from the peak in the first half of 2025. Price movements normally impact earnings with a delay of around one quarter.
Capital efficiency and cash flow in focus
Further reducing tied-up capital and strengthening cash flow remain top priorities. The investment pace has therefore been scaled back following the extensive investment programmes of recent years. Investments during the first half of the year amounted to 11 MSEK, down 56 MSEK compared with the same period last year. For the full year, investments are expected to total approximately 60 MSEK, compared with 166 MSEK in 2025. Working capital declined by 164 MSEK from the end of the second quarter last year, to 458 MSEK.
The Group's financial position continues to be characterised by a solid equity/assets ratio. At the end of the quarter, the ratio was 60 percent, comfortably exceeding the long-term target of at least 50 percent. Available liquidity totalled 171 MSEK. Compared with the previous quarter, this represented a decrease of 43 MSEK, mainly due to increased finished goods inventories
Pulp prices remain stable
The market balance for market pulp continues to be characterised by overcapacity, despite certain capacity adjustments. In our main market, Europe, demand for paper and cartonboard improved during the quarter as a result of disruptions in global supply chains and reduced imports. At the same time, the long-term challenge of increasing supply from China persists, contributing to continued competitive pressure in the European market.
At Rottneros Packaging, all commercial production has now been transferred to our jointly owned company in Poland, while operations in Sunne are now fully focused on customer service and product development.
Overall, we are satisfied with our short-term performance. Our strong focus on driving further efficiency improvements and increasing production availability continues, primarily through strengthening our systematic cost-reduction initiatives. In the longer term, there is considerable potential to advance our niche strategy, including by deepening our understanding of our customers' products and their needs.
Per Bjurbom
President and CEO
(For full report, see attached pdf)
This information is such information that Rottneros AB is required to disclose in accordance with the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication on 6 August 2026 at 07.30 by the contact person below. This report has been prepared in both a Swedish and an English version. In the event of deviations between the two, the Swedish version shall prevail.
Invitation to Rottneros' presentation of interim report Q2 2026
All participants can follow the presentation via the web link:
Rottneros - Q2 2026 Presentation - Finwire
The presentation will be held in English. Questions can be asked in English or Swedish via the link in advance or during the presentation.
You can also watch the presentation afterwards on Rottneros' webpage.
For further information please contact:
Per Bjurbom, President and CEO
+46 (0) 270 622 65, per.bjurbom@rottneros.com
Monica Pasanen, CFO
+46 (0) 270 622 70, monica.pasanen@rottneros.com