Record deliveries for packaging paper

14 Jul 2026 07:00 CEST

Norske Skog delivered EBITDA of NOK 73 million and a loss before income taxes of
NOK 163 million in the second quarter of 2026. Recycled containerboard
deliveries reached a new record of 122 000 tonnes, and for the first time the
packaging paper segment, with Norske Skog Bruck and Norske Skog Golbey combined,
achieved a positive EBITDA margin. The quarter was characterised by continued
operational progress, cost reduction initiatives across the mills, and a
financial position expected to strengthen further during the third quarter.

“The second quarter confirms the steady progress in our packaging paper ramp-up,
with record containerboard deliveries and the first positive EBITDA margin for
the segment. While the stronger NOK and lower other operating income weighed on
reported results, we maintained solid liquidity discipline and strengthened cash
during the quarter. With energy refunds received in the second quarter and the
NND proceeds expected in the third quarter, we are well positioned to continue
the operational improvement programs and develop profitable opportunities across
the mills.” says Geir Drangsland, CEO of Norske Skog.

In the second quarter of 2026, total operating income was NOK 2 584 million,
compared with NOK 2 877 million in the previous quarter. Norske Skog reported
EBITDA of NOK 73 million and a loss before income taxes of NOK 163 million,
compared with EBITDA of NOK 451 million and a profit before income taxes of NOK
236 million in the first quarter of 2026. Equity ratio was 41%, cash was NOK 723
million and net interest-bearing debt decreased from NOK 4 502 to 4 361 million
during the quarter.

Norske Skog received approximately NOK 470 million in energy refunds during the
quarter. The company expects cash proceeds of approximately NOK 780 million from
the transaction with Norwegian Nuclear Decommissioning (NND) in the third
quarter of 2026, of which approximately NOK 50 million will be used for
dismantling costs. The gain of approximately NOK 330 million will be recognised
at completion in the third quarter of 2026, rather than in the second quarter as
previously communicated, and will positively influence other operating income
and EBITDA in the third quarter.

Market segments
Norske Skog’s publication paper segment maintained profitability and market
share in a challenging market. A stronger NOK reduced operating revenue in the
quarter, partly offset by higher prices and deliveries. Other operating income
decreased compared with the previous quarter due to the recognition of the NOK
320 million gain from the NND transaction in the first quarter. Cost of
materials remained lower due to reduced pulpwood prices, with further reductions
expected during the second half of 2026, while employee benefit expenses
increased following salary adjustments across the mills.

The packaging paper segment delivered continued operational progress, with
recycled containerboard deliveries increasing to a record 122 000 tonnes. Higher
deliveries and implemented price increases supported operating revenue, while
improved operating efficiency and active energy market management reduced cost
of materials per tonne. Bruck PM3 delivered 52 000 tonnes and EBITDA of NOK 25
million, while Golbey PM1 delivered 70 000 tonnes and EBITDA of NOK -24 million.
Full utilisation at Golbey PM1 remains targeted for the first half of 2027.

Projects and other initiatives
At Saugbrugs, the transaction with NND is expected to be completed at the
beginning of the third quarter of 2026. NND will acquire Saugbrugs properties
and assets to support decommissioning of the Halden nuclear facility, while
Saugbrugs will continue to produce SC magazine paper by leasing PM4 and PM5
until handover expected in the second half of 2028. Studies with Green Mountain
to evaluate a potential data centre establishment and studies relating to a
possible rebuild of PM6 for production of SC magazine paper and TMP-based
kraftliner are expected to conclude during the second half of 2026.

At Skogn, the rebuild of PM1 for book paper production was successfully
completed in April, with positive feedback from customer trials. Commercial
deliveries under the NOR Book brand are expected to increase during the second
half of 2026. The project enables switching between newsprint and book paper at
PM1, which has an annual capacity of 140 000 tonnes, and is expected to reduce
exports of newsprint to lower-margin markets. The investment budget is NOK 40
million, of which NOK 7 million remains.

At Bruck, Norske Skog is reviewing a Battery Energy Storage System to reduce
electricity costs and offer grid services. A 20 MW battery park with 40 MWh
capacity is estimated to enable project profit of about EUR 2–3 million per
year. Final decision and authority approval are expected during the third
quarter of 2026, with delivery, installation and start-up planned for the second
quarter of 2027.
Norske Skog is reviewing an expansion of its Golbey biogas project to increase
green biogas deliveries to the national grid from 16 GWh to 70–90 GWh annually,
with potential additional revenues of around EUR 8 million and commissioning
targeted for 2028.

The Ministry of Climate and Environment has decided to exclude Norske Skog Skogn
and Norske Skog Saugbrugs from the EU Emissions Trading System (EU ETS1) for the
period 2026 to 2030. The exclusion is based on revised qualification criteria
under which facilities with more than 95% of emissions originating from
sustainable biomass no longer qualify for free CO₂ allowances. Norske Skog is
actively engaging with the authorities

Changes of mill directors
Norske Skog has announced two mill director changes. At Norske Skog Golbey, Yves
Bailly stepped down as President after more than 30 years with the Group and 20
years leading the mill. Geir Drangsland, principal shareholder and CEO of Norske
Skog, assumed leadership of Golbey on an interim basis from 2 July 2026 until
December 2026, supported by Christoffer Bull, Senior Vice President Business
Development. The strengthened Group presence will support the ongoing ramp-up of
Golbey PM1 and the mill’s role as the Group’s largest business unit by capital
investment and production capacity.

At Norske Skog Skogn, Mads Eikeland has been appointed Managing Director
effective 1 September 2026 after Håvard Busklein. Eikeland currently serves as
Chief Financial Officer at Norske Skog Skogn AS, following his previous role as
Finance Manager at the same mill. He brings extensive experience from the
business and strong insight into both operations and the organisation.

Outlook
Norske Skog aims to continue increasing market share in an uncertain operating
environment and challenging markets. The company maintains a strong emphasis on
cost reductions and working capital discipline to preserve competitiveness.
Profitable projects are being explored across all mills to diversify revenue
streams, with significant emphasis on the Golbey PM1 ramp-up and expected full
utilisation during the first half of 2027. The future direction for Saugbrugs is
planned to be decided during the second half of 2026.

About Norske Skog
Norske Skog is a producer of packaging paper and publication paper across four
mills in Europe. Packaging paper includes testliner and fluting and publication
paper includes newsprint and magazine paper. The annual production capacity of
packaging paper is 0.8 million tonnes, and the annual production capacity of
publication paper is 1.2 million tonnes. Packaging paper and publication paper
are sold through sales offices and agents. Norske Skog has approximately 1 650
employees and the parent company, Norske Skog ASA, a public limited liability
company, is incorporated in Norway and has its head office in Oslo. The company
is listed on Oslo Stock Exchange with the ticker NSKOG.

Presentation and quarterly material
The company will arrange a Teams-webinar today at 08:30 CET, which can be
attended by clicking the webinar link on the front page of the
www.norskeskog.com.

The quarterly board of directors’ report, the presentation, the financial
statements and the press releases are available on www.norskeskog.com, and
published on www.newsweb.no under the ticker NSKOG. If you want to receive
future Norske Skog press releases, please subscribe through the website of the
Oslo Stock Exchange www.newsweb.no.


Norske Skog
Communications and Public Affairs

For further information:

Norske Skog media:
Vice President Corporate Communication and Public Affairs
Carsten Dybevig
carsten.dybevig@norskeskog.com
Mob: +47 917 63 117

Norske Skog Investor Relations:
Senior Vice President Corporate Finance
Even Lund
even.lund@norskeskog.com
Mob: +47 906 12 919

More information:
Access the news on Oslo Bors NewsWeb site

678124_Norske Skog presentation Q2 2026.pdf
678124_Norske Skog reports Q2 2026.pdf
678124_Norske Skog press release Q2 2026 ENG - FINAL.pdf