Arctic Paper (ARP) investor relations material

Executive summary

• Net sales in Q2 2026 were PLN 750.8mn, down from PLN 833.5mn in Q2 2025, reflecting weaker market demand and competitive pressures.

• H1 2026 net sales totaled PLN 1,565mn, down 5.5% year-over-year, mainly due to lower selling prices for both paper and pulp, despite a 4.1% increase in paper sales volume and a 0.6% decrease in pulp volume.

• EBITDA for Q2 2026 reached PLN 8.6mn, a significant improvement from PLN 0.01mn in Q2 2025, driven by cost-saving initiatives and margin recovery in the pulp segment.

• H1 2026 EBITDA was PLN 11.1mn, down from PLN 22.9mn in H1 2025, with the EBITDA margin dropping to 0.7%.

• The Group reported a net loss of PLN 70.4mn for H1 2026, compared to a net loss of PLN 98.8mn in H1 2025, reflecting ongoing market challenges and cost pressures.

Financial highlights

• Net debt/EBITDA at end of Q2 2026 was 0.51x, up from 0.38x at Q2 2025, indicating higher leverage.

• H1 2026 EBIT was PLN -65.9mn (vs. PLN -98.3mn in H1 2025).

• H1 2026 EPS was PLN -0.81 (vs. PLN -0.85 in H1 2025).

• Paper segment revenue in Q2 2026 was PLN 514mn, down 10% from Q1 2026.

• Pulp sales revenue in Q2 2026 was SEK 612mn, down 1.5% sequentially.

Outlook and guidance

• Ongoing uncertainty due to geopolitical tensions, trade barriers, and weak demand.

• High crude oil prices expected to raise transportation and chemical costs.

• BHKP pulp prices anticipated to decline by year-end; focus remains on margin recovery, cost discipline, and cash flow improvement.

• Strategic investments in sustainable energy solutions, such as a new electric boiler and wood pellet plant, are progressing as planned.

• The timing of market recovery is uncertain, but the Group is positioned to benefit from improved conditions due to its strong financial position and ongoing efficiency measures.