Arctic Paper (ARP) Q3 2025 earnings summary

Executive summary

• Net sales in Q3 2025 were PLN 796.2 million, down 2.8% year-over-year, reflecting challenging market conditions, lower demand, and currency effects.

• EBITDA for Q3 2025 was PLN 38.9 million, down 49.7% year-over-year but improved sequentially from Q2 2025, indicating some operational stability.

• The pulp segment contributed negatively for the first time, while the paper segment showed signs of stabilization and volume growth.

• Cost reduction and efficiency programs are underway, targeting annual savings of PLN 45–50 million, with main effects expected in 2026.

• The Group’s financial position remains solid, with a net debt/EBITDA ratio of 1.54.

Financial highlights

• Q3 2025 sales revenue: PLN 796.2 million (down 2.8% YoY, down 4.5% QoQ).

• EBITDA: PLN 38.9 million (down 49.7% YoY), margin 4.9%.

• Net debt/EBITDA at 1.54x at Q3 2025 end, up from 0.08x a year earlier.

• CapEx reduced from over PLN 420 million in 2024 to below PLN 300 million in 2025, and planned below PLN 200 million in 2026.

• Net loss: PLN 1.2 million, compared to net profit of PLN 36.6 million in Q3 2024.

Outlook and guidance

• No recovery in European demand is expected before the end of 2025 or early 2026; stabilization and cost efficiency are the near-term goals.

• Efficiency improvement initiatives are expected to generate annual savings of PLN 45–50 million starting in 2026.

• Revenues from new business areas (packaging and pellets) are projected to increase EBITDA by approximately PLN 20 million.

• CapEx discipline prioritized, with significant reductions planned for 2025 and 2026.