Rottneros forecasts a preliminary EBITDA result of negative SEK 180 million ($19.7 million) for the Q4 2025, a significant decline from positive SEK 10 million ($1.09 million) in the same period last year, due to a continued weak pulp market and the negative impact of a weaker U.S. dollar, according to Rottneros.
The company stated the continued weak pulp market resulted in lower prices in U.S. dollars, while a weaker dollar amplified the price and margin decline when converted to Swedish kronor. The valuation of finished goods inventory was also negatively affected, contributing to a lower profit of approximately SEK 30 million ($3.3 million).
Although lower wood raw material prices materialized compared to the previous quarter, this did not significantly counteract the lower pulp prices in SEK terms. The company also completed its normal annual maintenance shutdown at the Vallvik Mill during the quarter, which had a negative impact on earnings.
The savings program initiated in the spring of 2025 had virtually full impact during the quarter, resulting in lower fixed costs. The program is now expected to reduce the annual cost base by approximately SEK 45 million ($4.9 million), an increase from the previously announced SEK 35 to 40 million.
Rottneros is an independent producer of market pulp.