Rottneros AB (publ)

Rottneros reported Q2 EBITDA of SEK 31 million, versus minus SEK 15 million in Q2 last year and minus SEK 36 million in Q1. Management said the year-over-year EBITDA improvement was driven mainly by lower wood costs, with additional help from lower chemicals and fuel costs, while NBSK pulp price in dollars was 9% lower and the dollar weakened 3% versus last year. For the first half, operating free cash flow was minus SEK 81 million, working capital ended Q2 at SEK 458 million, and management expects 2026 CapEx of about SEK 60 million versus SEK 166 million in 2025. No formal earnings guidance was given; management instead said wood prices have improved, pulp prices and FX are hard to predict, and they will keep focusing on cost reduction, working capital, and cash flow.

Per Bjurbom said the company is coming out of several negative-EBITDA quarters and highlighted that Rottneros is benefiting from its focus on niche products with demand that remains stable. He framed the business as well positioned in areas tied to electrification, sustainability, e-commerce, and hygiene, and said the move of tray commercial production to Poland fits that strategy. His tone was cautiously upbeat but pragmatic, repeatedly stressing disciplined cost control, selective production, and the difficulty of predicting pulp, FX, and wood markets.

Monica Pasanen said the main swing in profitability came from variable costs, especially wood, which had peaked in spring 2025 and continued to come down in Q2. She noted the savings program is working, with headcount down to 266 from 288 a year ago, and that maintenance, services, and other fixed costs also decreased. She also pointed out that the Q2 cash picture was affected by planned stock-building ahead of the Rottneros Mill summer shutdown and the Vallvik maintenance shutdown, and said investment levels should fall to about SEK 60 million this year from SEK 166 million last year.

Analysts pressed management on the spread between the two mills, weak CTMP pricing, higher electricity prices, and whether the mills are being run below full capacity. Per Bjurbom said the company does not disclose mill-level EBIT, but confirmed CTMP prices reflect overcapacity and that Rottneros deliberately avoids full utilization when electricity prices are high, using order selection and shutdown timing to manage margins. Questions also focused on how much of the Q2 EBITDA rebound was sustainable; Pasanen said the biggest improvements came from wood and fixed-cost savings, which should continue, though Vallvik’s annual maintenance shutdown will weigh on Q3 costs. Management also said it is not planning to expand into other products such as pellets and remains focused on niche segments.