Norske Skog (NSKOG) Q4 2025 earnings summary

Executive summary

• Record production and deliveries of recycled containerboard in Q4 and for the full year, with Golbey PM1 ramp-up impacting profitability due to low-priced trial volumes and higher export share outside Europe.

• Publication paper deliveries and market share increased in Europe despite a declining market.

• EBITDA for Q4 was NOK 13 million; full-year pre-tax profit reached NOK 354 million; year-end cash position at NOK 1.1 billion.

• Liquidity improved with a NOK 400 million loan facility and ongoing cost and working capital optimization initiatives.

• Studies underway for Saugbrugs PM6 rebuild and potential kraftliner production based on mechanical pulp.

Financial highlights

• Q4 2025 EBITDA was NOK 13 million; pre-tax profit for 2025 was NOK 354 million; year-end cash position at NOK 1.1 billion.

• Equity ratio at 40% and interest coverage ratio at 1.1x; net debt at NOK 758 million.

• Q4 2025 operating income increased to NOK 2,589 million from NOK 2,403 million in Q3 2025.

• Net cash flow from operating activities improved to NOK 163 million, mainly due to reduced working capital.

• CapEx focused on Golbey PM1 and Skogn, with about EUR 10 million left for Golbey PM1 and EUR 50 million in grants and subsidies expected.

Outlook and guidance

• Full utilization of Golbey PM1 and Bruck PM3 RCCM capacity targeted for first half of 2027.

• Margin improvement in packaging paper expected in 2026, with 60% of volume on annual contracts and 80% sold in Europe.

• No significant working capital build-up expected during Golbey ramp-up due to offsetting payables and factoring.

• Key development projects at Skogn (NOR Book, PulpFlex) expected to complete in Q2 2026; Saugbrugs PM6 rebuild study to conclude in Q2 2026.

• Ongoing cost reduction and working capital initiatives to maintain competitiveness in a challenging market.