Norske Skog delivered a profit before income taxes of NOK 354 million and an
EBITDA of NOK 769 million for 2025. Total operating income increased from NOK
10.2 to 10.5 billion for 2025. Norske Skog has strengthened market shares across
key segments. At year-end, the group held a cash position of NOK 1.1 billion.
The fourth quarter marked a period of operational progress and strategic
execution. Norske Skog achieved record production and deliveries of recycled
containerboard, both for the quarter and the full year, despite profitability
being temporarily impacted by ramp-up costs, trial deliveries, and export
volumes from Golbey PM1. The ramp-up continues to develop in line with
expectations, with full utilisation targeted in the first half of 2027.

"We are concluding the year with strong operational momentum and a significantly
improved liquidity position," says Geir Drangsland, CEO of Norske Skog. "Record
containerboard deliveries, increased market shares, and solid progress across
several strategic projects demonstrate the resilience of our organisation and
the long-term value of our transformation efforts."

In the fourth quarter of 2025, total operating income increased to NOK 2 589
million, up from NOK 2 403 million in the previous quarter. Norske Skog had
total operating earnings of NOK -194 million compared to NOK 193 million in the
previous quarter, and a loss before income taxes of NOK 256 million, down from
NOK 120 million in the previous quarter. Equity decreased from NOK 5 997 million
to NOK 5 819 million, reducing the equity ratio from 42.8 % to 39.6 %. Total
assets increased from NOK 14 002 million to NOK 14 707 million, whereof cash and
cash equivalents increased from NOK 758 million to NOK 1 082 million. Net
interest-bearing debt increased from NOK 4 243 million to NOK 4 295 million. 

Net cash flow from operating activities was NOK 163 million in the quarter,
mainly due to improved working capital. Net cash flow from investing activities
was NOK -133 million, reflecting ongoing investments in the Golbey PM1 project,
the book paper conversion project at Norske Skog Skogn, and continued
maintenance investments across mills. Net cash flow from financing activities
increased to NOK 290 million from NOK -55 million in the previous quarter.


Market segments
Norske Skog's publication paper segment, with an annual capacity of 1.3 million
tonnes, increased operating income this quarter through higher deliveries and
growing market share, partly offset by slightly lower prices. Norske Skog
maintained stable distribution costs, reduced fixed costs through 2025, and
expects the energy refund in Austria to contribute approximately EUR 5 million
annually through 2029.

Norske Skog's packaging paper segment, with mills in France and Austria and a
total capacity of 0.8 million tonnes, faced lower sales prices, which was
somewhat offset by lower recycled paper costs, but it still resulted in net
negative EBITDA at Bruck PM3 and Golbey PM1 in the fourth quarter of 2025.
Margins are expected to improve in 2026 through long-term contracts, increased
European sales, and support from energy certificates and grants totalling EUR 50
million over 2026-2028. Full utilisation at Golbey PM1 is expected in the first
half of 2027.
 

Projects and other initiatives
Norske Skog Skogn expects to complete the book paper project in the second
quarter of 2026, enabling supply of standard bulk book paper under the NOR Book
brand from Skogn PM1 with a total capacity of up to 140 000 tonnes. The
remaining investment for the project amounts to about NOK 25 million. Norske
Skog Skogn also expects to complete the first stage of the PulpFlex project in
the second quarter of 2026, which will reduce energy consumption, improve fibre
quality og power grid flexibility. PulpFlex has obtained NOK 52 million in
governmental grant from ENOVA. 

Norske Skog Skogn joined Carbon Centric in a partnership for carbon capture of
biogenic CO2, targeting carbon-negative operations at Skogn.

Norske Skog has launched several initiatives to improve profitability and cash
flow across all mills, including reviews of both variable and fixed costs and
working capital efficiency. The company continues to evaluate strategic options
for Norske Skog Saugbrugs, with a decision expected during the second quarter of
2026.
The appeal regarding the decision to exclude Norske Skog Skogn and Norske Skog
Saugbrugs from the EU Emissions Trading System (EU ETS) for the period 2026 to
2030 is currently being handled by the Ministry of Climate and Environment. 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 to seek a reversal of this decision.


Outlook 
Norske Skog aims to continue increasing market share despite an uncertain
operating environment and challenging markets. The company expects continued
volatility in raw material prices, excess production capacity, and frequently
changing operating conditions. To remain competitive, Norske Skog places strong
emphasis on reducing production costs and working capital.

Norske Skog expects to complete key development projects at Skogn in the second
quarter of 2026, including the NOR Book paper project, and the first stage of
PulpFlex, strengthening product offerings, fibre quality, and power grid
flexibility support. In parallel, Norske Skog Saugbrugs plans to conclude the
study for rebuilding PM6 to enable production of SC magazine paper and TMP-based
kraftliner.

Norske Skog monitors the capital and liquidity position closely and has several
ongoing initiatives to secure the financial performance and competitive position
going forward.


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 1.3 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

CEO
Geir Drangsland
E-mail: geir.drangsland@norskeskog.com
Mob: +47 928 85 862