Earnings announcement
(unaudited information)
1Q26
Index
Highlights of 1Q26 3
Message from the CEO 4
Operating and Financial Performance 5
Pulp Market 5
The Altri Group 8
Sustainability 13
Perspectives 14
Annexes 15
Description of Altri Group 15
Pulp mill's Maintenance Downtime Schedule 16
Debt Maturity Profile 16
Ratings ESG 17
Income Statement (1Q26) 18
Balance Sheet (1Q26) 19
Glossary 20
This document is a translation of a document originally issued in Portuguese, prepared using accounting policies consistent with the International Financial Reporting Standards adopted in European Union (IFRS-EU), some of which may not conform or be required by generally accepted accounting principles in other countries. In the event of discrepancies, the Portuguese language version prevails.
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Index of Tables and Graphs
Table 1 - Global Pulp Demand 5
Table 2 - Global Hardwood Pulp Demand by Region 5
Table 3 - Pulp Stocks in European ports 6
Table 4 - BHKP Average Pulp Price Evolution in Europe (2021 to 2025) 6
Table 5 - BHKP Average Pulp Price Evolution in Europe (1Q2024 to 1Q2026 - quarterly evolution) 6
Table 6 - Global Dissolving Pulp Demand 7
Table 7 - Average Dissolving Pulp Price (2021 to 2025) 7
Table 8 - Evolution of Average Dissolving Pulp Price (2025 to 1Q26 - quarterly evolution) 8
Table 9 - Operating Indicators (Quarter) 8
Table 10 - Weight of Sales (Volume) by End Use 9
Table 11 - Weight of Sales (Volume) by Region 9
Table 12 - Income Statement Highlights of 1Q26 11
Table 13 - Investment 11
Table 14 - Debt 12
Table 15 - Scheduled Downtime 2026 16
Graph 1 - Debt Maturity Profile 16
Table 16 - Ratings ESG 17
Table 17 - Income Statement (1Q26) 18
Table 18 - Balance (1Q26) 19
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Highlights of 1Q26
The Altri Group reported total revenues of €160.2 M in 1Q26, representing a decrease of 21.3% compared to 1Q25. This performance was mainly driven by lower sales volumes compared to the same period last year, as well as an unfavourable evolution in net pulp prices in Euros. The adverse weather conditions experienced in Portugal during 1Q26 resulted in several disruptions, leading to lower production levels and sales volumes below plan. In addition, the negative evolution of the US dollar against the Euro during that period (-12% compared to 1Q25), the decline in DP prices on a year-on-year basis, and an increase in discounts on Hardwood pulp (BHKP) prices in Europe led to a decrease in the average net selling prices of pulp sold by the Group. Compared to the previous quarter (4Q25), total revenues decreased by 3.0% in 1Q26, with revenues from cellulosic fibers increasing by 4.3%. This evolution reflects a more stabilized environment, with a slight increase in both prices and volumes in line with the previous quarter.
The Group reported an EBITDA of €5.4 M in 1Q26, a reduction of 81.6% compared to 1Q25. The EBITDA margin stood at 3.4%, compared to 14.5% in the same period of the previous year. In addition to the effects already mentioned (namely lower sales volumes and a less favourable market environment impacting net selling prices), the storms that affected the Group's operations during the first quarter of 2026 required additional non-recurring costs during the period, in order to maintain service levels and ensure the continuity of supply to the Group's customer base. Compared to the previous quarter, the trend was similar, with EBITDA decreasing by 78.2%, reflecting the market context and the increase in costs related to the adverse weather conditions, particularly in logistics, with some additional impact on energy. With the normalization of operations, a significant improvement in profitability is expected in 2Q26, driven by improvements in pricing and cost efficiency.
Following a particularly challenging year for the global pulp sector in 2025, marked by excess supply and demand that only began to recover in the final months of the year, 2026 is expected to bring some improvement to the sector overall. On the demand side, the Asian region has shown stronger momentum, following normalization and greater clarity regarding tariffs imposed by the United States, supporting a positive evolution in hardwood pulp prices in the first months of 2026. On the supply side, and as a result of the less favourable environment in 2025, announcements of capacity adjustments at less efficient units have begun to emerge, alongside recent constraints in raw material availability in certain Southeast Asian countries, impacting supply to China.
The Altri Group continues to advance and invest in several growth and diversification projects aligned with its strategic plan. The renewable-based project for the recovery and valorisation of acetic acid and furfural at Caima is nearing completion, with production expected to begin at the end of June 2026, as planned. The full conversion of paper pulp (BHKP) production into dissolving pulp (DP) at the Biotek industrial unit continues to progress at a good pace, with completion expected by the end of 2026, with multiple qualification processes underway with customers in Asia and Europe. The Group has also initiated investment in a pre-industrial filament unit to support the scale-up of AeoniQ™'s activity, aiming to increase production capacity and accelerate customer qualification processes in the emerging market for sustainable textile fibers.
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Message from the CEO
The first quarter of the year unfolded in a particularly challenging context for Altri and for the sector. The very adverse weather conditions recorded in Portugal, with a succession of storms affecting the areas surrounding our bio-industrial units, combined with extensive logistical disruptions and a still challenging market environment for the pulp industry, had a significant impact on our operational activity, production and sales volumes and, naturally, the Group's results. Despite this backdrop, we once again demonstrated the resilience of our operations, the adaptability of our teams and our continued commitment to our customers, ensuring operational and commercial stability during a period marked by high volatility and unpredictability in international markets.
Throughout the quarter, we maintained strong financial and operational discipline, seeking to mitigate external impacts through continued rigorous cost management and industrial efficiency, despite the disruptions in the logistic chain, particularly in maritime and rail logistics. At the same time, we have already observed encouraging signs of recovery in some of our key markets, particularly in terms of demand, as well as a gradual improvement in prices in international markets. We entered the second quarter with a more stabilized operating environment and activity levels within normal ranges, which allows us to anticipate a more favourable evolution in operational and financial performance in the coming months.
We remain focused on executing our strategy of sustainable growth and long-term value creation. The progress achieved in the Biotek, Caima and AeoniQ™ proįects represents important milestones in Altri's transformation process, strengthening our presence in innovative, higher value-added segments aligned with global trends of sustainability, circularity and decarbonization of the economy. We believe that this strategic focus will enable the Group to reduce its exposure to the cyclical volatility of the traditional pulp sector and create growth opportunities in higher value-added segments in the coming years.
While the macroeconomic and geopolitical environment continues to call for caution, we face the coming quarters with measured confidence. The gradual recovery of markets, the normalization of operations, the Group's financial strength and the quality of our industrial assets positions us well to navigate the challenges of the current environment and to continue to deliver on our strategic vision. Above all, we remain confident in the capabilities of our teams, partners and stakeholders to build a more resilient, more innovative and more sustainable Altri.
José Soares de Pina CEO
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