Robert Walters PLC

Rottneros reported Q2 EBITDA of SEK 31 million, compared with minus SEK 15 million in Q2 last year and minus SEK 36 million in Q1. Management said net turnover on a rolling 12-month basis was about SEK 2.3 billion, production volume was 328,000 tons, and the company had 266 employees. For the first half, CFO Monica Pasanen said free cash flow from operating activities was minus SEK 81 million and working capital ended Q2 at SEK 458 million. She also said CapEx is expected to be about SEK 60 million for full-year 2026 versus SEK 166 million in 2025. No formal next-quarter or full-year earnings guidance was given; management instead pointed to continued benefits from lower wood prices, while warning that pulp prices, FX, and maintenance shutdowns remain difficult to forecast.

CEO Per Bjurbom framed the quarter as an important turnaround after several EBITDA-negative periods, highlighting stable demand in prioritized niches, lower wood prices, and active cost scrutiny. He emphasized that Rottneros is focused on niche segments such as electrification, packaging, e-commerce, and hygiene, where the company believes it has a strong position. In Q&A, he also stressed that the company’s operating philosophy is to protect margins by staying close to customers and avoiding unprofitable volume.

CFO Monica Pasanen said the main drivers of the EBITDA swing were lower wood costs, with additional help from lower chemicals and fuel costs, as well as fixed-cost savings from the company’s savings program. She noted that the company reduced headcount to 266 from 288 a year ago and cut CapEx to around SEK 60 million this year from SEK 166 million last year to support cash flow. She also flagged that working capital increased in Q2 because the mills were building inventory ahead of planned shutdowns, and said the company is keeping very tight control over stocks and cash.

Analysts asked about the difference in EBIT between the two mills, but management said it does not comment on mill-level EBIT. Instead, Per Bjurbom explained that CTMP prices have stalled at low levels, the mill is run flexibly around electricity prices, and orders are screened for contribution. Management also said the effluent-treatment investment is progressing but still needs fine-tuning, and confirmed that all tray commercial production has been moved to Poland, where output is running at about 0.5 million to 1 million pieces per month. On outlook, management declined to give 12-month guidance and pointed to sensitivity to wood prices, pulp prices, and USD/SEK.