Norske Skog’s packaging paper revenue rises 89% to US$42.5M as pre-tax profit plunges 46%

NORWAY – Norske Skog has recorded a pre-tax profit of Nkr236 million (approximately US$25.2 million) in Q1 2026, down 46 percent from Nkr442 million (approximately US$47.2 million) a year earlier, while its packaging paper segment saw operating revenue rise 89 percent to Nkr398 million (approximately US$42.5 million) from Nkr210 million (approximately US$22.4 million) on record containerboard deliveries of 106,000 tonnes.

EBITDA decreased by 26 percent to Nkr451 million (approximately US$48.2 million) in the quarter from Nkr612 million (approximately US$65.4 million) a year earlier. 

Total operating income in the packaging paper segment nearly doubled to Nkr508 million (approximately US$54.3 million) from Nkr255 million (approximately US$27.2 million) in Q1 2025. 

The segment includes mills in France and Austria with annual production capacity of approximately 0.8 million tonnes at full utilisation.

A Tale of Two Segments

Operating income stood at Nkr2.8 billion (approximately US$299 million), down 7 percent from Nkr3.1 billion (approximately US$331 million) a year earlier. 

The divergence between the packaging paper segment’s 89 percent revenue growth and the group’s 46 percent profit decline suggests that publication paper, Norske Skog’s traditional business, is dragging down overall results. 

Publication paper demand has been in structural decline for years as digital media replaces print.

Strategic Transformation Underway

Geir Drangsland, CEO of Norske Skog, explained that the company achieved record containerboard deliveries and significantly improved profitability in the first quarter. 

He noted that operational performance continues to improve across the packaging paper business, while publication paper profitability benefited from lower raw material costs and a recognised gain from the Saugbrugs transaction. 

He added that clear effects from ongoing cost and working capital initiatives are visible.

In May 2025, Norske Skog started recycled containerboard production at its Golbey mill in France after an investment of approximately €400 million (approximately US$433 million).

The new containerboard machine increased the company’s capacity by 550,000 tonnes, raising the group’s total capacity to 760,000 tonnes.

When Packaging Paper Becomes the Growth Engine

Norske Skog built its name on newsprint. That business is shrinking. But the Golbey mill—€400 million (approximately US$433 million), 550,000 tonnes of recycled containerboard capacity, is a bet on packaging. 

The Q1 numbers show the bet paying off: packaging revenue up 89 percent. For a company that used to make paper for newspapers, the future is boxes.

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