Lower costs, but negative currency effect

NET TURNOVER decreased by 5 percent to 622 (652) MSEK. Sales volumes rose, but lower market prices and a weaker USD against the SEK had a negative impact.

THE NET PRICE for NBSK in SEK was 23 percent lower than in the first quarter of 2025. The CTMP price remained relatively stable, though it was impacted in SEK by the stronger krona.

VOLUME PRODUCED amounted to 81,300 (85,800) tonnes. Sulphate pulp production was adversely affected by the cold winter at the beginning of the quarter. CTMP production remained at the same level as in the first quarter of 2025 and is adjusted in line with market demand.

SOLD VOLUME totalled 89,900 (82,600) tonnes. Demand in Rottneros' prioritised niches for sulphate pulp remained strong, while CTMP sales continued to be impacted by a weak market and low margins.

EBITDA was -36 (-27) MSEK. Earnings were negatively affected by lower sales prices in SEK, while lower pulp wood costs and reduced fixed costs contributed positively.

NET INCOME for the quarter totalled -81 (-69) MSEK. Earnings per share were -0.24 (-0.32) SEK.

BANK AGREEMENT: In March, Rottneros entered into an amended of the existing bank agreement that runs until April 2027.

BALANCE SHEET: The equity/assets ratio was 62 (56) percent, and available liquidity amounted to 214 (208) MSEK. Net debt totalled 389 (558) MSEK.

CASH FLOW from operating activities after investments amounted to -49 (-165) MSEK. Cash flow from financing activities amounted to 4 (184) MSEK.

THE ANNUAL GENERAL MEETING will be held on 27 May 2026. The Board proposes that no dividend be paid for 2025.

Comments by the CEO
Focus on efficiency, availability and cash flow

The financial performance in the first quarter was affected by the uncertain global environment. Overall, the pulp market moved sideways, while a weak USD weighed on price and margin development in SEK. Demand in our chemical softwood pulp niches remained stable and solid. The Group will continue to prioritise cash flow, cost efficiency and high production availability.

EBITA for the quarter was -36 MSEK, a decrease of 9 MSEK compared with the same period last year. The cost adjustments implemented had the anticipated full impact on earnings, reducing the fixed cost base by approximately 26 MSEK compared with the same quarter last year. We remain strongly focused on driving efficiency improvements and increasing production availability, including strengthening systematic cost reduction efforts.

Cold weather in January and February constrained production at Vallvik Mill, which declined by 10 percent. At Rottneros Mill, production continued to be limited by the adjustments required in the weak market for mechanical pulp.

Cash flow and capital efficiency remain key priorities

Further reducing tied-up capital and strengthening cash flow also remain high on the agenda. The investment pace has therefore been scaled back following the extensive investment programmes of recent years. This represents a long-term sustainable level needed to maintain the operational efficiency of our facilities. Investments during the quarter decreased by 30 MSEK compared with the same period last year, to 7 MSEK. Working capital declined by 256 MSEK from the end of the first quarter last year, amounting to 386 MSEK.

At the end of March, we signed an amendment and restatement agreement to the existing loan facility, which includes updated covenants. The temporary covenants run until the end of April 2027 and set profitability and liquidity targets that we consider achievable, based on current levels of the main factors affecting earnings.

The Group's financial position will continue to be characterised by a strong equity/assets ratio. At the end of the quarter, the ratio stood at 62 percent, comfortably exceeding the long-term target of at least 50 percent. Available liquidity remained solid at 214 MSEK.

Wood prices continue to decline

An increased supply combined with lower demand for pulp wood means that the price trend for the Group's most important input good remains favourable. The decline amounts to around 15 percent from the peak in the first half of 2025. The impact of price movements on earnings is reflected with a delay of about one quarter.

Employee safety always remains our top priority. This work has been and continues to be highly successful, with very few lost-time incidents.

In these uncertain times, it is especially important that the organisation feels fully engaged in the decision-making needed to respond swiftly to both challenges and opportunities in an ever-changing environment. I am sincerely grateful for the warm and positive reception I have received from all my new colleagues during my first weeks as CEO.

Per Bjurbom

President and CEO

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 7 May 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 Q1 2026

All participants can follow the presentation via the web link:

Rottneros - Q1 Presentation 2026 - 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.

Reports and presentations

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