Nordic Paper (NPAPER) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 were SEK 1,148 million, down 6% year-over-year; excluding currency effects, down 1%.

• EBITDA reached SEK 228 million, down 19% year-over-year, with a margin of 19.8% compared to 22.9% last year.

• The business remains resilient due to focus on food-related end uses, which are less sensitive to economic cycles.

• Market demand softened, with customers delaying orders amid global uncertainty and tariff concerns.

• Extraordinary dividend of SEK 12 per share (SEK 803 million) approved post-quarter, to be paid July 2025.

Financial highlights

• Q2 sales volume was 72.4 ktonnes, down 6% year-over-year.

• Product prices increased 3% in local currency; positive product mix contributed 1%.

• Cash flow from operating activities was SEK 179 million, up from SEK 175 million last year.

• Net debt/EBITDA increased to 1.7 at quarter-end.

• Working capital rose to SEK 682 million, 12.9% of net sales.

Outlook and guidance

• Demand expected to remain weak in Q3, with continued price pressure in both segments.

• Input material prices (pulp and pulpwood) anticipated to decrease in Q3.

• Annual maintenance stops in Q3 will incur direct costs of SEK 125–145 million.

• Ongoing investments in Bäckhammar expected to yield SEK 100 million annual EBITDA gain from 2026.

• Water handling investments (2025–2027) to enable higher production output.