Arctic Paper (ARP) investor relations material

Executive summary

• Q1 2026 was marked by continued uncertainty due to geopolitical tensions, trade barriers, and weak demand, negatively impacting profitability and margins.

• Revenues reached PLN 814 million, with EBITDA dropping to PLN 2.6 million (0.3% margin), and a net loss of PLN 33.5 million.

• Cost control, capital discipline, and working capital optimization remain top priorities, with capex more than halved and investments in H2 strictly constrained.

• Market conditions in pulp, paper, and packaging remain challenging, with no signs of rapid recovery.

• Efficiency and cost reduction programs are expected to contribute approximately PLN 6 million to 2026 earnings.

Financial highlights

• Sales revenue for Q1 2026 was PLN 813.99 million, down 1.1% year-over-year but up 9.2% sequentially from Q4 2025.

• EBITDA fell 88.8% year-over-year to PLN 2.6 million; EBIT was negative at PLN -36.2 million.

• Net loss attributable to shareholders was PLN -21.4 million, compared to PLN -13.4 million in Q1 2025.

• Paper sales volume increased to 137,000 tons (up 9.6% year-over-year), pulp sales volume rose to 89,000 tons.

• Margins and profitability ratios were lower year-over-year but improved sequentially from Q4 2025.

Outlook and guidance

• Heightened uncertainty from geopolitical crises is expected to persist, with no rapid market recovery anticipated.

• Focus remains on cost savings, pricing discipline, and strengthening competitiveness.

• Paper price increases of 5-7% were implemented in April, with further 4-8% increases announced for June 2026.

• Efficiency and cost reduction programs are expected to contribute PLN 6 million to 2026 earnings.