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Rottneros Swings to Loss in Weak Pulp Market and Scraps 2025 Dividend

Story Highlights
  • Rottneros’ Q4 2025 results deteriorated sharply as lower pulp prices, a stronger SEK and maintenance downtime drove EBITDA to a loss despite higher sales volumes.
  • Record output at Vallvik and resilient sulphate pulp demand could not offset weak CTMP markets and covenant pressure, prompting the board to cancel the 2025 dividend.
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Rottneros Swings to Loss in Weak Pulp Market and Scraps 2025 Dividend

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Rottneros AB ( (SE:RROS) ) has issued an update.

Rottneros reported a sharply weaker fourth quarter of 2025 as net turnover fell 6 percent to 587 MSEK, with higher sales volumes unable to offset lower market prices in USD and the impact of a stronger SEK. EBITDA plunged to -190 MSEK, hit by price pressure, currency effects, an annual maintenance shutdown at Vallvik and a 35 MSEK inventory write-down, while no emission allowance sales were recorded versus the prior year.

Despite record annual production of 233,000 tonnes at Vallvik and solid demand in its prioritised sulphate pulp niches, CTMP output remained constrained by weak market conditions and full-year CTMP sales declined 10 percent. Breach of a profitability covenant led to reclassification of certain receivables and a tighter view of available liquidity, and the board has proposed no dividend for 2025, underscoring the earnings pressure even as the equity ratio remains a robust 60 percent.

More about Rottneros AB

Rottneros AB is a Swedish pulp producer focused on sulphate pulp and CTMP, supplying specialised niches in the global pulp and paper value chain. The group operates mills including Vallvik, where it has steadily increased annual production capacity, and maintains a strong balance sheet with a high equity ratio despite cyclical market swings.

Average Trading Volume: 316,036

Current Market Cap: SEK640.8M

See more insights into RROS stock on TipRanks’ Stock Analysis page.

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