Arctic Paper (ARP) investor relations material

Executive summary

• Net sales for Q1 2026 were PLN 814.0mn, slightly down from PLN 822.8mn in Q1 2025, with EBITDA dropping sharply to PLN 2.6mn and a net loss of PLN 33.5mn.

• Q1 2026 was marked by continued uncertainty due to geopolitical tensions, trade barriers, and weak demand, negatively impacting profitability and margins.

• Cost control and capital discipline were prioritized, with capex more than halved and ongoing efficiency programs expected to contribute PLN 6mn to 2026 earnings.

• Paper segment EBITDA was PLN 22mn, while pulp segment EBITDA was negative (PLN -19mn or -36 MSEK) in Q1 2026.

• Market conditions in pulp, paper, and packaging remain challenging, with no signs of rapid recovery.

Financial highlights

• Sales revenue for Q1 2026 was PLN 814mn, down 1.1% year-over-year but up 9.2% sequentially.

• EBITDA fell 88.8% year-over-year to PLN 2.6mn; EBIT was negative at PLN -36.2mn.

• Net loss attributable to shareholders was PLN 21.4mn, compared to a loss of PLN 13.4mn in Q1 2025.

• Paper sales revenue for Q1 2026 was PLN 573mn, up 11% sequentially; sales volume increased to 137k tons (up 9.6% year-over-year).

• Margins and profitability ratios were lower year-over-year but improved sequentially from Q4 2025.

Outlook and guidance

• Paper price increases of 5-7% were implemented in April, with further 4-8% increases announced for June 2026.

• Pulp prices expected to stabilize in Q3 and Q4.

• Focus on margin recovery, strict cost discipline, and maintaining a strong balance sheet.

• Efficiency and cost reduction programs are expected to contribute PLN 6mn to 2026 earnings.

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