Norske Skog (NSKOG) Q1 2025 earnings summary

Executive summary

• Q1 2025 EBITDA reached NOK 612 million, mainly due to a NOK 560 million insurance settlement at Saugbrugs.

• Strategic transformation continues with ramp-up in packaging paper and fiber projects across European mills.

• Maintained high publication paper deliveries despite industry-wide low utilization rates; containerboard deliveries and prices increased.

• Sale of Australasian operations completed, with NOK 150 million proceeds received in Q2.

• Equity ratio improved to 39%, with net debt reduced and strong liquidity maintained.

Financial highlights

• Total operating income for Q1 2025 was NOK 3,101 million, up from NOK 2,666 million in the previous quarter.

• EBITDA margin improved to 22% in Q1 2025, driven by insurance settlement and cost reductions.

• Profit before tax was NOK 464 million, rebounding from a loss of NOK 470 million in Q4 2024.

• Net debt stood at NOK 3,246 million to NOK 4,087 million, with unrestricted cash of NOK 1,051 million to NOK 1.1 billion.

• Earnings per share from continuing operations was NOK 5.14, up from negative NOK 6.54 in Q4 2024.

Outlook and guidance

• Operating environment remains uncertain and volatile, with ongoing margin pressure from high raw material prices and excess capacity.

• Focus on cost and working capital reductions to maintain competitiveness.

• Bruck PM3 expected to reach full utilization in H2 2025; Golbey PM1 to start production end of April and reach full utilization in 2027.

• Remaining gross capex at Golbey PM1 is EUR 35-40 million, with EUR 50 million in grants and energy certificates expected in 2026-27.

• Working capital expected to reduce in Q2 following CO2 compensation receipts in Norway and France.