Arctic Paper (ARP) Q4 2025 earnings summary

Executive summary

• Q4 2025 saw continued weak demand, intense competition, and negative currency effects, resulting in a net loss and negative EBITDA for the quarter.

• Net sales in Q4 2025 were PLN 745.1mn, down from PLN 810.8mn in Q4 2024, reflecting a challenging market environment.

• EBITDA for Q4 2025 was negative at PLN -33.5mn, a significant decline from PLN 38.8mn in Q4 2024.

• Full-year 2025 results were significantly below 2024, with lower revenues and profitability, mainly due to the pulp segment's underperformance.

• Strategic investments, including a modernized biofuel boiler and new pellet production, were completed to strengthen competitiveness and sustainability.

Financial highlights

• Q4 2025 sales revenue: PLN 745.1mn, down from PLN 810.8mn in Q4 2024.

• Q4 2025 EBITDA: PLN -33.5mn (margin -4.5%), compared to PLN 38.8mn in Q4 2024.

• FY 2025 sales revenue: PLN 3,197.6mn, down from PLN 3,434.7mn in FY 2024.

• FY 2025 EBITDA: PLN 28.3mn (margin 0.9%), down from PLN 298.6mn in FY 2024.

• Net debt/EBITDA at end of Q4 2025 was -0.01x, indicating a strong financial position.

Outlook and guidance

• Management expects limited prospects for rapid demand recovery in H1 2026.

• Focus remains on cost savings, competitiveness, and strict cost discipline.

• Announced 8-10% price increase for Q2 2026 for both coated and uncoated fine papers.

• Personnel reductions in 2025 will cut fixed costs by SEK 45mn in 2026.

• Capex expenditures for 2026 will be reduced by PLN 100mn.