Norske Skog (NSKOG) Q2 2025 earnings summary

Executive summary

• EBITDA was NOK 106 million in Q2 2025, reflecting a drop from Q1 due to a one-off insurance gain, but supported by higher market share, CO2 compensation, and energy contracts.

• Maintained strong capital and liquidity position, aided by asset sales, CO2 allowance sales, energy refunds, and revised loan repayment schedules.

• Golbey PM1 containerboard production started, with ramp-up ongoing and full utilization targeted for H1 2027.

• Implemented profitability initiatives, including fiber mix optimization and equipment upgrades.

• Strategic review at Saugbrugs ongoing; BCTMP project on hold and PM6 restart decision expected in H2 2025.

Financial highlights

• Operating income for Q2 2025 was NOK 2,029 million, with group EBITDA margin at 4.5%-8% and pre-tax profit of NOK 49 million.

• Publication paper segment EBITDA was NOK 172 million; packaging paper segment reported negative EBITDA of NOK -52 million, with Bruck PM3 positive at NOK 26 million.

• Net income for Q2 2025 was NOK 78 million; equity ratio improved to 41.8%-42%.

• Net interest-bearing debt reduced to NOK 3,717-3,960 million; unrestricted cash at NOK 1,051 million.

• Net cash flow from operating activities improved to NOK 327 million.

Outlook and guidance

• Golbey PM1 ramp-up to full utilization expected in H1 2027; Q3 2025 utilization forecast at 20%-30%.

• Remaining Golbey CapEx of EUR 20-25 million, with EUR 52 million in grants and energy certificates to be received by 2027.

• Publication paper demand expected to decline 5%-10% in 2025; containerboard market remains under pressure from overcapacity.

• Ongoing focus on cost reduction, working capital management, and strategic initiatives to maintain competitiveness.

• Operating environment remains volatile, with profitability under pressure from raw material and energy price volatility.