Rottneros lifts Q3 pulp production by 9 percent as lower wood costs boost EBITDA

Rottneros has successfully turned its financial trajectory around in the third quarter of 2026, posting an EBITDA of SEK 26 million compared to a SEK 21 million loss during the same period last year. This SEK 47 million earnings improvement underscores a period of operational stability and favorable raw material dynamics for the Swedish pulp producer.

Total production reached 79,300 tonnes, an 8.8 percent increase from the 72,900 tonnes produced in the third quarter of 2025. This industrial growth was primarily driven by the Chemi-Thermomechanical Pulp (CTMP) line at the Rottneros Mill, where output surged to 21,200 tonnes from 15,400 tonnes. Meanwhile, sulphate pulp production at the Vallvik Mill remained highly stable, reaching 58,100 tonnes.

Interestingly, the significant profitability boost was not driven by top-line growth. Net turnover actually dipped slightly to SEK 570 million from SEK 574 million. Instead, the margin recovery was forged on the cost side. Variable costs dropped by SEK 51 million, a financial relief directly linked to lower pulp wood prices. An increased supply of wood in the Swedish market, coupled with softer overall demand, created a highly favorable pricing environment for the manufacturer.

On the commercial front, sales volumes ticked up 2 percent to 77,500 tonnes, with the increase coming entirely from CTMP deliveries. The company also noted that the annual maintenance shutdown at the Vallvik facility commenced at the end of September, a scheduled operational pause that will factor into fourth-quarter availability.

For the European pulp market, Rottneros' ability to leverage lower fiber costs while carefully adjusting its CTMP output to match actual market demand highlights a disciplined operational strategy. By focusing on industrial availability and strict cost control, the company has managed to extract better margins from a market environment where end-product pricing remains relatively flat.