Arctic Paper: consolidated loss of PLN 175.4 m for 2025 and suspension of the dividend policy - driven by Sweden's Rottneros

Arctic Paper for 2025: consolidated loss of PLN 175.4 m and dividend-policy suspension - driven by Sweden's Rottneros

Arctic Paper S.A. - headquartered at ul. Fabryczna 1 in Kostrzyn nad Odrą (postcode 66-470, Lubuskie voivodeship), registered in the KRS under number 0000306944 - closed 2025 with consolidated group revenue of PLN 3,197.6 m and a net loss of PLN 175.4 m. That breaks the multi-year run of profits. Group EBITDA fell to just PLN 28.3 m; Q4 alone recorded revenue of PLN 745.1 m, EBITDA of PLN -33.5 m and a net loss of PLN 75.4 m. The strongest caution signal for shareholders: the board has suspended the dividend policy and has not recommended a dividend out of 2025, although the final decision on profit distribution rests with the AGM.

A structural detail that changes the interpretation: the loss is consolidated, not standalone. Arctic Paper S.A. itself generated a positive standalone result of +PLN 16.1 m in 2025. The PLN 175.4 m loss appears only after consolidating Sweden's Rottneros (the pulp segment, ~51% owned by ATC) - which in Q4 2025 alone recorded EBITDA of SEK -190 m after a SEK 35 m finished-goods inventory write-down and a 6% YoY drop in sales to SEK 587 m. An additional drag is negative FX effects of PLN -27.7 m at the consolidated level (SEK and EUR exposure versus PLN).

Arctic Paper

KOSTRZYN NAD ODRĄ · KRS 0000306944 · SPÓŁKA AKCYJNA

Revenue

3.2 B PLN

Kostrzyn nad Odrą, ul. Fabryczna 1: 3-member board, Onstad control of ~68%, dual listing on the WSE and Stockholm

The address ul. Fabryczna 1, 66-470 Kostrzyn nad Odrą places Arctic Paper's seat in a 17,000-population town in the Gorzów district of Lubuskie, right next to the Polish-German border (the Oder river). The company has operated in its current corporate form (Arctic Paper S.A., KRS 0000306944) since 28 May 2008, has been listed on the Warsaw Stock Exchange since 2009, and additionally on Nasdaq Stockholm - making it one of the few Polish companies with dual listing, which reflects the group's Scandinavian capital and operational roots. It belongs to the sWIG80.

Governance: a three-member management board (CEO plus two board members). Shareholders are strongly concentrated - Sweden's Nemus Holding AB, controlled by Thomas Onstad, directly holds 41,374,890 shares (59.71% of capital as of 31 December 2025); together with indirect stakes Onstad controls about 68.1% of the company. Free float is therefore small (~32%), which limits trading liquidity on both exchanges.

Under Polish PKD codes the principal activity is 70.10.Z (head-office activities), although physical production is concentrated in three paper mills: Arctic Paper Kostrzyn (Poland), Arctic Paper Munkedal (Sweden), Arctic Paper Grycksbo (Sweden). In 2025 Munkedal signed a 15-year agreement with S.E.R. Sverige for 24 MW of battery energy storage (BESS) and with Adven Sweden for 30 MW of biomass energy - interpreted as a strategic signal of sustained production in Sweden despite market pressure. Main product brands: Amber, Munken, Arctic.

Polish paper-and-pulp sector on the WSE: Arctic Paper with the largest Scandinavian exposure

The Polish paper-and-pulp sector listed on the Warsaw exchange has narrow representation in 2026:

• Arctic Paper - premium graphic paper mills (Amber, Munken, Arctic) plus consolidated Sweden's Rottneros (pulp). Dual listing WSE + Stockholm.
• Mondi Świecie - not WSE-listed in Poland, controlled by Mondi plc (LSE).
• International Paper Kwidzyn - not WSE-listed in Poland.
• Others (Stora Enso Polska, Metsä) - not WSE-listed in Poland.

Three structural features of the Arctic Paper model that explain a structurally negative 2025:

• Consolidating Rottneros is a double-edged sword - in years of a strong pulp market (2021–2023) Rottneros generated the largest single result contributions to the Group. In a weaker cycle year (2025 - falling NBSK and bleached long-fibre pulp prices, inventory pressure) the same consolidation turns ATC's positive standalone into a consolidated loss. It is a structural feature of a cyclical commodity business.
• SEK and EUR vs PLN currency exposure - most group revenue is invoiced in EUR (paper exports) and SEK (Rottneros). Costs sit in a mixed PLN/SEK/EUR base. The stronger zloty in 2025 hit the consolidated result by PLN -27.7 m - independent of physical volumes. Each successive strong-PLN year repeats the effect.
• Premium graphic-paper segment under digital pressure - graphic paper for book printing, magazines and advertising is in a long-term decline in the EU. Arctic Paper has been repositioning toward quality paper for premium publishing and packaging for years, but the pace is constrained by the requirement to maintain three paper mills.

Implication for the investment profile: dividend suspension, valuation pressure, open question on cyclical vs structural signal

The interpretation is speculative - the conclusions below are scenarios, not certainties:

“Weak demand and intense competition exerted constant price pressure. High raw-material prices and currency volatility kept additional pressure on margins in both group segments.”

Three possible consequences of the 2025 results for Arctic Paper's investment profile in 2026:

• Dividend-policy suspension is a signal, not a verdict - the absence of a 2025 recommendation reflects the depth of the consolidated loss, but historically Arctic Paper's board has returned to payouts after weaker cycles (after the 2019 loss it resumed dividend out of 2020). A return to payouts depends on: (a) NBSK pulp prices recovering in 2026, (b) Rottneros stabilising operationally, (c) no further write-downs. Dividend investors must accept a pause across the 2026–2027 cycle.
• Pulp cyclicality may either prolong the loss or reverse it - the pulp segment is classically cyclical: NBSK prices on commodity exchanges move in 5–7 year cycles. If 2025 was a „cycle bottom", 2026–2027 may bring a dynamic Rottneros EBITDA rebound - and with it the Group. If it is the start of a structural decline in long-fibre bleached-pulp demand - the loss may repeat.
• Low free-float liquidity (~32%) caps the valuation - Onstad controls 68% via Nemus Holding, which depresses turnover on both the WSE and Nasdaq Stockholm. In a downturn, low liquidity may amplify share-price falls; in a rebound - amplify gains. It is a structural feature of the exposure.

Main company-specific risks across the 2026–2027 cycle:

• NBSK pulp cycle - market pulp prices are the key driver of Rottneros' result; further declines in 2026 may prolong the loss.
• SEK/EUR vs PLN FX - sustained PLN strengthening further compresses consolidated revenue.
• Structural decline in graphic-paper demand - segment hit by publishing digitalisation, portfolio transformation is slow.
• Onstad ownership concentration (~68%) - low liquidity, no minority-activist pressure; limited market discipline.

What you'll find in the Arctic Paper S.A. profile

The Arctic Paper S.A. profile in our database carries the full picture of the company: composition of the three-member management board, the KRS registration history from 28 May 2008, the registered address at ul. Fabryczna 1 in Kostrzyn nad Odrą, e-delivery status (AE:PL-25812-29910-RDIEV-21), the website arcticpaper.com, the e-mail biuro@arcticpaper.com, and the assigned PKD code 70.10.Z (head-office activities). The profile is also available in English - important for international industrial / paper-fund investors, since Arctic Paper is one of the few Polish companies with a dual listing on the WSE and Nasdaq Stockholm, with three paper mills in Poland and Sweden.

This material is informational and does not constitute investment advice.

Data: Polish KRS Court Register (KRS 0000306944); Arctic Paper S.A. - current report 6/2026, preliminary financial results of the Company and the Group (January 2026); full annual report - publication 21 April 2026; PAP / biznes.pap.pl - communication 6/2026; Tipranks - Q4 and Rottneros analysis; news.cision.com - Arctic Paper communications on Munkedal BESS and biomass; ArcticPaperGroup - shareholder structure as of 31 December 2025; PKD 70.10.Z classification (head-office activities); company history - incorporated 28 May 2008, WSE IPO 2009, dual listing on Nasdaq Stockholm, as of 2026-05-02.