Arctic Paper (ARP) Q3 2025 earnings summary

Executive summary

• Q3 2025 net sales were PLN 796.2 million, down 2.8% year-over-year, reflecting lower demand, price declines, and currency effects.

• EBITDA for Q3 2025 was PLN 38.9 million, down 49.7% year-over-year but improved sequentially from Q2 2025, indicating operational stability.

• The pulp segment contributed negatively for the first time, while the paper segment showed stabilization and growth in volumes.

• Cost reduction and efficiency programs are underway, targeting annual savings of PLN 45–50 million, with main effects expected in 2026.

• The Group’s financial position remains solid, with net debt/EBITDA at 1.5–1.54x.

Financial highlights

• Q3 2025 sales revenue: PLN 796.2 million (down 2.8% YoY, down 4.5% QoQ).

• EBITDA: PLN 38.9 million (down 49.7% YoY), margin 4.9%.

• Net debt/EBITDA ratio increased to 1.54x at Q3 2025 end, up from 0.08x a year earlier.

• Refinancing completed ahead of schedule, with favorable terms and lower interest rates.

• CapEx reduced from over PLN 420 million in 2024 to below PLN 300 million in 2025, and planned below PLN 200 million in 2026.

Outlook and guidance

• No recovery in European demand is expected before late 2025 or early 2026.

• Efficiency programs and cost reduction initiatives are expected to generate annual savings of PLN 45–50 million from 2026.

• Revenues from new business areas (packaging and pellets) are projected to increase EBITDA by PLN 20 million.

• CapEx expenditures will be reduced for 2026 and 2027.

• Focus remains on maximizing sales outside Europe and continuing cost and efficiency programs.