Interim report January–September 2026
Sales growth and continued profitability recovery
Key highlights
• Sales growth in both regions
• Positive pricing impact across most categories
• Continued EBITDA margin improvement in Region Europe
• Successful upgrade of assets in North America
• Strong cash conversion of 127%
Quarterly data
• Net sales increased by 3% to SEK 10,166 million (9,905)
• Adjusted EBITDA* SEK 1,032 million (1,058)
• Adjusted EBITDA margin* 10% (11)
• Operating profit SEK 311 million (9)
• Net profit/loss SEK 212 million (-63)
• Earnings per share SEK 0.85 (-0.25)
Outlook for Q4
• Stable market conditions in both regions
• Positive pricing expected to offset input cost inflation
• Reduced impact from maintenance shutdowns
Comments by the CEO
The third quarter was another step in the right direction for Billerud and ended broadly in line with our expectations. We increased sequentially our shipments, improved profitability and delivered strong cash conversion. Strong commercial execution and efficiency actions were the main contributing factors behind the improvement. We successfully implemented price increases in both regions, more than offsetting the input cost inflation resulting from the situation in the Middle East.
Encouragingly, we see progress across several fronts for Region Europe. Net sales grew by 2% versus last year and the region delivered the best profitability quarter (EBITDA margin 12%) since the first quarter of 2025. Solid sales volumes, pricing and mix actions together with successful execution of our cost-out initiatives were the main drivers. Market conditions improved during the quarter, supported by cost-driven price increases due to higher energy prices in Europe. Consumer sentiment strengthened slightly within some of our categories.
For Region North America, market conditions continue to remain more favorable. The Q3 EBITDA margin of 15% was another solid performance, albeit somewhat below the levels we have historically achieved due to operational challenges during the Escanaba maintenance shutdown. While our successful ramp of packaging materials is creating some short-term production inefficiencies, our utilization rates have improved, and we fully expect improved operating performance as our volumes continue to grow.
Looking ahead to Q4, our order books remain solid, and we expect stable market conditions. Energy-price-related inflation continues to impact our cost base, but we expect positive pricing to keep offsetting higher input costs. After a heavy maintenance shutdown period, we will now have lower maintenance activity in the fourth quarter.
Strong cash generation and prudent capital allocation are key priorities. Cash conversion above 100% for the first nine months is robust. During 2027, we will complete the final phase of our Evolution investment program in the US, with approximately SEK 500 million remaining. Beyond 2027, we currently foresee no major investment projects, and regional capital spending is expected to return to a base capex level totaling approximately SEK 2.2 billion.
We remain committed to our strategic priorities and game plan. For Region Europe, improving profitability from our existing asset base remains our top priority. Our efficiency measures are working, we will continue to stay disciplined and pursue new cost and value-creation opportunities to reach long-term targets. For Region North America, we remain committed to our strong graphic and label paper positions while evolving towards packaging material for higher capacity utilization. We are step by step building a meaningful position in the attractive North American board market. In particular, the introduction of our coated liner proposition Tribute® has been a success. The technical upgrades at our US mills completed over the past quarters mark important milestones in our Evolution journey. The latest upgrades at Escanaba strengthen our manufacturing platform and position us for future growth in North America.
We are also seeing tangible benefits from our targeted mill investments in Europe and our innovation-driven new product initiatives are beginning to deliver positive results. The upgraded headbox at PM6 in Gruvön has enabled the launch of our New Billerud Flute®, which is receiving great customer feedback, while the new Yankee cylinder at PM8 in Skärblacka has strengthened our position in the medical and hygiene MG paper markets. To further accelerate growth in the prioritized medical segment, we recently launched PharmaKraft™, which broadens our existing product offering for medical packaging.
While there is still work to do, recent developments confirm that we are on the right path. I would like to thank our employees for their firm commitment and dedication to improve our performance. Region Europe is beginning to deliver on its potential, and I am encouraged by the steady progress to strengthen cost competitiveness. With stable production across our mills and higher capacity utilization, we expect stronger operating leverage to support continued profitability recovery.
Ivar Vatne
President and CEO
Third quarter
Sales and results
Net sales for the third quarter grew by 3% to SEK 10,166 million (9,905), positively impacted by currency effects. The currency-neutral net sales grew by 2%, mainly as a result of increased sales volumes, while sales prices had an adverse impact. Total sales volumes in the quarter were 903 ktons (870).
Adjusted EBITDA amounted to SEK 1,032 million (1,058), corresponding to a margin of 10% (11). Compared to the same period last year, EBITDA was negatively affected by the loss of free emission rights and positively impacted by lower pulpwood costs and fixed cost savings. The net result from emission rights in the third quarter 2025 was SEK 137 million.
Annual maintenance shutdowns during the third quarter had a cost impact of SEK 403 million (361).
No items classified as affecting comparability impacted the result in the third quarter of 2026 (-350). Items affecting comparability in the same period last year were attributed to a provision for the cost-saving program announced in September 2025.
Market development and outlook
In the third quarter of 2026, market fundamentals remained solid for Billerud in North America. For Region Europe, the market situation improved for containerboard as well as for brown sack and kraft paper, although the overall consumer demand in Europe remained muted. Market conditions were stable for liquid packaging board and for white kraft and sack paper. For cartonboard, market imbalance persisted, characterized by excess supply.
For the fourth quarter of 2026, market conditions for Region North America are expected to remain solid. For Region Europe, stable market conditions are expected, with muted demand and selective pricing opportunities. We expect pricing to have a positive impact in both regions, while input costs will increase slightly, driven by higher energy and fuel prices. Nordic pulpwood prices are expected to remain stable.
Events in the quarter
As part of Billerud’s Evolution program, which aims to gradually shift production in North America to packaging materials (see page 8), new equipment was installed at Escanaba during the annual maintenance shutdown. The upgrades include enhanced production capabilities and modernized winder and roll handling systems, thereby enhancing the mill’s ability to produce a broader product range featuring larger formats and higher basis weights. These investments provide greater flexibility to meet the growing demand for fiber-based packaging materials in North America. Another upgrade at Escanaba focused on heat recovery optimization, reducing steam and energy consumption.
The Quinnesec mill was certified to ISO 9001, marking a milestone for both this mill and Billerud as a whole. With this achievement, all Billerud's mills hold ISO 9001 certification, completing the company's initiative to implement a globally aligned quality management system across all production facilities.
Billerud clarified its sustainability prioritizations, focusing on creating customer value. The company’s sustainability agenda focuses on the priorities Renewable, Low carbon and Circular, in addition to the foundation of Responsible operations and business practices throughout the value chain. The agenda builds on Billerud’s existing commitments, including its SBTi-approved targets.
Andreas Mattsson, EVP Legal & Strategic Projects, will leave Billerud no later than 31 December 2026. The process to recruit his successor is ongoing.
Events after the quarter
In October, Billerud launched a new generation of Billerud Flute®, an improved version of its fluting with even higher compression strength, enabling lighter, more resource-efficient corrugated packaging designs. With this product’s additional strength, packaging manufacturers can optimize board structures, reduce material use and lower the weight while maintaining the required packaging performance.
* For key figures and a reconciliation of alternative performance measures including adjusted EBITDA, adjusted operating profit/loss, adjusted EBITDA margin, adjusted operating profit margin, adjusted ROCE and interest-bearing net debt/adjusted EBITDA, see pages 15-17.
For further information:
Andrei Krés, CFO, +46 8 553 335 72
Lena Schattauer, Director Investor Relations, +46 8 553 335 10
ir@billerud.com
This information constituted inside information prior to publication. This is information that Billerud AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 07.00 CEST on 22 October 2026.