Rottneros (RROS) investor relations material

Executive summary

• EBITDA returned to SEK 31 million in Q2 2026 after several negative quarters, driven by lower wood costs, effective cost control, and stable demand in prioritized niches.

• Net turnover for Q2 2026 declined 16% year-over-year to 612 MSEK, but profitability improved due to margin gains from cost reductions.

• 79% of volumes were directed to prioritized niches, with a focus on climate-smart packaging and high-purity pulp for specialized markets.

• Production volume reached 328,000 tons over the rolling 12 months, with 69% of business in Europe and 24% in Asia.

Financial highlights

• EBITDA improved from SEK -15 million in Q2 2025 to SEK +31 million in Q2 2026, with an EBITDA margin of 5.1%.

• Net turnover for the rolling 12 months was approximately SEK 2.3 billion.

• Cost of wood, accounting for 45% of total costs, declined significantly, supporting profitability.

• Free cash flow from operating activities was SEK -81 million for H1 2026, impacted by working capital and inventory buildup.

• Equity/assets ratio at 60% (up from 53%), with available liquidity of 171 MSEK and net debt at 431 MSEK.

Outlook and guidance

• No formal guidance provided; profitability highly sensitive to wood prices, pulp prices, and SEK/USD exchange rates.

• Investments for 2026 expected to total approximately 60 MSEK, significantly reduced from 166 MSEK in 2025.

• Continued focus on cost efficiency, margin improvement, and maintaining cash flow.

• Market pulp overcapacity and competitive pressure from China expected to persist.