Rottneros (RROS) Q2 2025 earnings summary

Executive summary

• Sequential EBITDA improvement in Q2 2025 versus Q1, but EBITDA remained negative at -15 MSEK, reflecting challenging market conditions, high raw material costs, and a 140 MSEK asset impairment.

• Net turnover increased by 2% to 726 MSEK in Q2 2025, driven by higher sales volumes despite lower prices.

• SEK 300 million rights issue completed and oversubscribed in July, strengthening the balance sheet and reducing net debt.

• Cost-saving program initiated, targeting annual savings of SEK 35–40 million, with full effect expected from autumn 2025.

• Production levels remained high, with Vallvik Mill achieving a new record, despite market headwinds.

Financial highlights

• EBITDA for Q2 2025 was -15 MSEK, an improvement from -27 MSEK in Q1 2025 but down from 65 MSEK in Q2 2024.

• Net income for Q2 2025 was -158 MSEK, impacted by a 140 MSEK asset write-down at Rottneros Mill.

• Net debt reduced from SEK 550 million to SEK 250 million post-rights issue; cash and cash equivalents at 83 MSEK.

• Equity-to-assets ratio estimated at 64% after the rights issue, above the long-term target.

• Positive operating cash flow in Q2, mainly due to decreased working capital.

Outlook and guidance

• Cost adjustments and efficiency improvements are expected to reduce the cost base by 35–40 MSEK annually, with full effect in autumn 2025.

• Raw material costs have plateaued, with early signs of further reductions.

• Market remains uncertain due to global trade issues, tariffs, overcapacity, and weak demand in bulk pulp grades.

• Anticipated growth in specialty segments, tissue, e-commerce, and renewable fiber demand.

• Maintenance shutdowns planned for Q3 at Rottneros Mill and Q4 at Vallvik Mill, with estimated income impacts of 10–20 MSEK and 70–80 MSEK, respectively.